Amazon’s Day 1 Turns into Amazon One

 The customer is dynamic not static according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Regular readers of this blog have heard that refrain often.  Hanging in the main lobby at Amazons Seattle Headquarters is a big sign that reads Day One.  It’s the goal for the Day 1 sign to remind every employee to think as if ‘today’ is day one and you can do anything.

As it turns out that mission vision Day 1, may very well make grocery shopping, or any instore retail experience much faster and safer.  That is something that is top of mind today as the pandemic seems endless, and the cold / flu season is about to become center stage.

The new Amazon One, is a device that connects your amazon account and payment card to your palm for contactless shopping.  Ok, still wondering?  The device contains a scanner that records a user's palm 'signature' -- a unique identifier in humans. Users insert their payment card, hover their palm over the Amazon One, and after the Amazon One scans their palm, they are enrolled. The entire process is claimed to take less than a minute to complete and either an Amazon account or phone number can be used during signup.

Dilip Kumar, VP of physical retail and technology for Amazon Kumar says that once this process is complete, “all customers need to do to enter an Amazon Go store is raise their palm.” That’s right no need to take out your iPhone / smartphone and scan a QR code.

So, here is what is happening underneath.  Custom algorithms and machine learning have been implemented to build a map of our palms through the device. However, images are not stored locally; rather, Amazon says that prints are encrypted and sent to a "highly-secure area we custom-built in the cloud where we create your palm signature."

Human palms have been chosen as biometric authenticators as they require an "intentional gesture" to trigger, Amazon says, and palms are also more private as identities can't be ascertained just based on a handprint.  If you wanted, users can also remove their biometric data directly by accessing their Amazon account or via an online customer portal. 

Thinking big once again consider that Amazon could work in your store.  That’s right. Kumar continued "In most retail environments, Amazon One could become an alternate payment or loyalty card option with a device at the checkout counter next to a traditional point of sale system,". "We built Amazon One to offer [...] a quick, reliable, and secure way for people to identify themselves or authorize a transaction while moving seamlessly through their day."

Think about this Amazon One will eventually be rolled out to other stores, and in addition, the company intends to offer the technology to third-parties including Airports, Hotels, retailers, stadiums, and offices. I would not be surprised if a unit could be installed into your front door.

In Seattle two Amazon Go locations launched Amazon One on Sept. 29, shoppers will still have the option to enter the stores using the Amazon Go app, Amazon app or with associate assistance if paying in cash is preferred. How fast is your company evolving?  It just may come down to this.  If you can’t beat them join them.  Save your customer time.  Consumers are dynamic not static.  Don’t sit back and simply watch others reduce cost, improve service.  Jump in or get left behind.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company 253-759-7869.  

Digital Natives Drive Yum Brands On-line Sales

Customer migration from food channel to food channel continues to reconfigure the food retail landscape according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The internet is not just an informational super highway.  The internet has intersections where digital natives including Gen Z and Millennials hangout in search of food discovery.

Here is why Gen Z has become so important to foodservice they account for 27% of the U.S. population. Combine that with Millennials that account for 22% of the U.S. population and you can see why digital natives have become so important to the future of foodservice.

Like the generation before them Gen Z’s has a desire for seamless digital experiences, purpose, and convenience, all fast, where digital differentiation discovery that they consume and can share is simply second nature to them. So, consider this Yum Brands, digital sales reached an all-time high of $3.5 billion for the quarter, an increase of more than $1 billion compared to the same period last year.

CEO David Gibbs stated “I think we've demonstrated that the business is incredibly resilient and nimble [and] that our teams around the world can move with speed to get new solutions out to meet customers' needs,”

Now, two of Yum’s four brands, KFC and Pizza Hut, posted positive same-stores sales in the U.S. Yet, Taco Bell, which “had the most ground to make up” as it was hit hard at the start of the pandemic, is posting positive comps in the current quarter. For the second quarter, the Irvine, Calif.-based chain reported an 8% drop in same-store sales. But that’s coming off a 7% gain in the same quarter last year.

Gibbs continued “That's enormous progress given the hit to their business,” …. “Taco Bell “pivoted really well” in the second quarter by trimming the menu to serve only the items that consumers love and adding innovative products such as the new Grilled Cheese Burrito and the $5 Cravings Boxes. 

During the quarter, Taco Bell added more than 1 million new users to its digital channels and served an additional 4.8 million cars through the chain’s drive-through lanes, underscoring the strength of the brand’s off-premise business. 

Regular readers of this blog know a hallmark of grocerant niche fresh food fast is fast, and at Taco Bell they reduced drive-through wait times by 18 seconds and began testing curbside pickup. All of that will contribute to incremental food sales according to Johnson.

Gibbs noted that Yum’s global same-store sales were down 15%. Broken down by division: KFC same-store sales were down 21%; Taco Bell dropped 8% and Pizza Hut was down 9%. The Habit Burger Grill, which the company acquired in March, logged an 18% decline in same-store sales. Most of that decline was driven by temporary closures at the onset of the pandemic. 

Once again In the U.S., same store sales at KFC increased 7% and Pizza Hut posted a 5% gain in same-store sales. So, do you want to know what steps our grocerant guru suggest for to drive new electricity, top line sales, and bottom-line profits at Yum Brands.  Well, I guess you will have to call him, engage him.  

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

RaceTrac New Technology for the New Normal

Millennials and Generation Z are digital natives and technology is the platform that a brand message or invitation is best received and accepted. Today, you don’t have to be a ‘digital native’ to know that contactless retail is important in effort to combat COVID-19. Baby Boomers, Gen X all are migrating to new platforms according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Melanie Isbill, chief marketing officer at RaceTrac stated "RaceTrac is committed to the continuous support of our communities and guests through this unprecedented and uncertain time," …"Online ordering is the newest addition to the products and services we are offering to help continue to get our guests whatever gets them going while providing a safe, clean and reliable experience."

Through the new service, guests are able to:

·         Order directly from the RaceTrac website for pickup at a store location in the closest proximity.

·         Select "Whatever Gets You Going" from a menu of available food, drink, alcohol and tobacco items, then edit quantities for the checkout cart.

·       Pick up their orders from selected stores within 30 minutes using the "Grab and Go Box," which allows guests to provide their name on the order, pay at the pass-through window and receive the order. 

Orders can be placed 24 hours a day, 7 days a week, except while the store is closed for cleaning. Some of the other continued actions taken to support team members, guests and the communities it serves include:

·         Free coffee or fountain drinks through April 30 for all essential workers with valid ID/uniform, limit one per day. Essential workers are considered healthcare workers, grocery store workers, truckers, bankers and more.

·         "Grab and Go Box" pass-through window operational at all hours as an alternative shopping option for guests who do not wish to come inside, but would still like to purchase items.

·         Sneeze guards to be installed at the registers of all locations.

·         A pay increase of $3 an hour for store team members.

·         Weekly $150 in extra pay for general managers at the store level through April.

·         A temporary COVID-19 leave policy allowing team members who test positive or who are required to quarantine due to this illness with an inability to work remotely to receive up to two weeks of pay.

Integrating brand messaging that is both customer relevant and ‘better-for-you’ is a valuable took in every companies marketing tool kit.  When developing a brand invitation make sure that invitation is in the right mail box with a proactive message.  

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company 253-759-7869.  

Battle for Share of Stomach

Alltown Fresh Elevates Fresh Food Fast Meal Prep

The number one reoccurring irritant for consumers when shopping for groceries over the past 30 years is the length of time it takes to shop tied with the time it take to prepare a meal when cooking from scratch according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Now, Alltown Fresh has developed a new contactless way for customers to shop for fresh groceries and meals during the COVID-19 pandemic while reducing time in the store called ‘Fresh Crates program’. Here is how it works; customers place orders 24 hours in advance and pick up crates of fresh protein, produce or pantry items curbside the next day.

Here is the hook, Alltown Fresh has what they call ‘Meal Prep & Provisions”.  They have pre-assembled meal prep kits to help get dinner on the table in minutes. Shoppers can place an order before noon to have their meal prep kit ready for pickup by 5 p.m. Prep kits serve a minimum of four people and include options such as taco night; teriyaki rice bowls; tomato soup and grilled cheese; chicken, broccoli, and pasta bake; and fresh falafel wraps.

Technology upgrades have elevated customers relevance at Alltown Fresh as they began offering curbside pickup of all menu items and delivery through Grubhub to deliver fresh food choices and menu items straight to customers' doors. 

Local fresh food fast is a great message for any fresh food retailer and Alltown Fresh has strong relationships with local farms and purveyors to ensure a reliable supply of fresh food to four stores in Massachusetts and Connecticut. How are you helping consumer prepare dinner tonight?

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.