Grocerants: Winning Big Time, and Here's How to Capitalize

 

They call me the Grocerant Guru®, and for good reason. In 1996, I wasn't just spotting a trend, I was defining a whole new niche in the food industry: the grocerant.

Back then, I saw a unique opportunity – a place where grocery stores and restaurants collided. I coined the term "grocerant" to describe this innovative concept, and wrote about it in major publications like Nation's Restaurant News and Restaurant Business.

The grocerant space has exploded since then, and I'm proud to say I was there at the very beginning. It wasn't just about identifying a trend, it was about quantifying, and qualifying this exciting new sales platform.

Today, I continue to work with leading foodservice companies, helping them navigate the ever-evolving world of grocerants. The grocerant niche is my legacy, and I'm thrilled to see it shaping the future of food retail.

As the Grocerant Guru®, I'm thrilled to see my predictions come true! Foodservice at retail is booming, and restaurants, convenience stores, and supermarkets are wise to jump on board.

Why the surge? It's a perfect storm of convenience, affordability, and pandemic-induced home cooking fatigue. People want delicious, ready-made options without the restaurant price tag.

Here's what retailers that want to win a larger share of stomach can do to win in the grocerant game:

1.       Be the "Easy Button" for Dinner: Offer a variety of grab-and-go meals, perfect for busy weeknights. Think salads, hot entrees, and sides – all ready to heat or eat.

2.       Cater to the Lunch Crowd: With more people working from home, lunchtime options are key. Expand your lunch menu with fresh, convenient choices.

3.       Become a Destination: Partner with local restaurants or offer unique signature items to set yourself apart. Think smoked meats, rotisserie chicken with a twist, or prepared meals inspired by global cuisines.

4.       Embrace Technology: Use kiosks to streamline ordering, personalize recommendations, and improve wait times. Automation in food prep can also boost efficiency and quality.

The future of grocerants is bright! By understanding consumer needs and offering innovative solutions, supermarkets can become the go-to spot for delicious and convenient meals.

Invite Foodservice Solutions® to complete a 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

Do You Want to Build

A

Larger Share of Stomach

Focus on the 

Customer's Migration too

The Grocerant Niche 

7-Eleven Music Contest Drives New Electricity See Why

 

If you love music by now you know what a great line-up of events Live Nation has in 2024.  You might already have some tickets.  If not don’t worry 7-Eleven jut might be the one company that can get you tickets to one of your favorite Live Nation events according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Johnson stated 7Rewards members will help drive new electricity into 7-Eleven this year as they look for a chance to win $3,000 worth of tickets for Live Nation events.

Here are several reasons that new electricity could result from Live Nation and 7-Eleven customers focus promotion:

Synergy between target audiences: Both 7-Eleven and Live Nation cater to a similar demographic - young adults and busy individuals who are often on the go. This creates a natural synergy between the two brands, allowing them to reach a wider audience and leverage each other's customer base.

Convenience factor: 7-Eleven's extensive network of convenience stores could be leveraged to offer various benefits to concert-goers, such as:

·         Ticket sales and pick-up: 7-Eleven stores could act as additional points of sale for concert tickets, offering convenience to customers who might not want to purchase online or through traditional outlets.

·         Merchandise sales: Limited edition merchandise or co-branded products could be sold at 7-Eleven stores, creating additional revenue streams and excitement for fans.

·         Pre-concert essentials: 7-Eleven could offer pre-packaged snacks, drinks, and other essentials that concert-goers might need before or after the event.

Promotional opportunities: This partnership could create unique promotional opportunities for both companies. For example:

·         Live Nation could offer exclusive discounts or promotions at 7-Eleven stores to ticket holders.

·         7-Eleven could run sweepstakes or giveaways for concert tickets or merchandise.

Marketing and brand awareness: By working together, both companies could benefit from increased brand awareness and reach a wider audience through co-branded marketing campaigns.

So, how to get in on it:  now until April 30, 7Rewards and Speedy Rewards members who purchase participating products at 7-Eleven, Speedway and Stripes convenience stores will have the chance to win a year's worth of tickets to see their favorite performances, events and experiences live.

Marissa Jarratt, executive vice president, chief marketing and sustainability officer at 7-Eleven, stated, "Seventy-three percent of our target customers say they are a music lover or obsessed with music — making this sweepstakes a no-brainer for us,"… "We can't wait to reward these loyal customers with the chance to enjoy some of the hottest shows of the year."

Guests can also score seven extra entries by purchasing any flavor of Red Bull — including Energy Drink, Sugarfree and Amber editions — as well as any size or flavor of Ghost Energy or Trolli product.

The best part is that, approximately 150 winners will be awarded a $3,000 Live Nation e-gift card.

The contest is open only to registered 7-Eleven and Speedy loyalty program members. Interested customers can sign up either via the 7-Eleven or Speedway apps or by visiting the company websites.

More information about the contest, including the full rules and restrictions, is available here.

Are you looking for new customers? Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Boston Market Once Successful Now Stuck in Failure Mode according to the Grocerant Guru®

 

Boston Market, formerly known as Boston Chicken, began serving its homestyle meals of spit-roasted rotisserie chickens, made-from-scratch cornbread, and creamy mac and cheese in 1985. As it grew in popularity, it had about 1,200 locations at one time, according to Restaurant Business.  Today there are just over 300 locations in the United States and Puerto Rico. All the result of loss of customer focus.

However, in recent years, Boston Market has faced increasing competition from other foodservice providers, especially grocery stores that offer ready-to-eat and heat-and-eat meals for time-starved consumers. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Boston Market has failed to adapt to the changing consumer preferences and has driven customers away with its outdated menu, lack of innovation, and poor customer service.

Johnson, who coined the term grocerant to describe any grocery store, convenience store, retailer, or restaurant that offers freshly prepared or ready-to-heat food to eat on the premises or to-go, says that Boston Market has not kept up with the grocerant trend that is reshaping the food industry. Instead, they focused on what they ‘wanted’ a brand of nostalgia filled with yesterday’s customers.

He says that consumers today are looking for convenience, variety, quality, and value when it comes to their food choices, and that grocery stores have been able to meet these demands by offering a wide range of products, from salads and sandwiches to sushi and pizza, that can be consumed on-site or taken home. Johnson says that grocery stores have also invested in improving their ambiance, service, and technology to create a more appealing dining experience for their customers.

Boston Market, on the other hand, has not changed much since its inception, according to Johnson. He says that the chain still relies on its signature rotisserie chicken and a limited selection of sides, such as mashed potatoes, corn, and macaroni and cheese, that are often bland, or perceived to unhealthy options. He says that Boston Market was late to introduced any new or exciting products, such as plant-based or ethnic options, that could attract new or younger customers. He also says that Boston Market has not leveraged its existing assets, such as its ovens, to create more diverse and customizable offerings, such as baked pasta, roasted vegetables, or flatbread pizzas.

Johnson also criticizes Boston Market for its lack of customer service and engagement. He says that the chain has not invested in training its staff, upgrading its facilities, or enhancing its online presence enough to garner incremental customer buy-in. He says that Boston Market’s website was slowly to update, slow to offer online ordering, delivery, or loyalty programs that were interactive and participatory. He says that the chain’s social media accounts are not interactive enough and do not invite customers to try its products. He says that the chain’s physical locations have often dirty windows, are uninviting, and that the staff are unfriendly, unprofessional, or unresponsive.

Johnson concludes that Boston Market has lost its competitive edge and relevance in the foodservice market, and that it needs to reinvent itself or risk becoming obsolete. He says that the chain needs to rethink its menu, service, and marketing strategies, and to embrace the grocerant concept that is driving the industry forward.

Want to Grow A

Larger Share of Stomach

Focus on the Customer 

He says that Boston Market has the potential to regain its customers and grow its business, but only if it is willing to change and innovate. He says that the chain should learn from its competitors, such as Whole Foods, Wegmans, and Costco, that have successfully implemented the grocerant model and have created loyal and satisfied customers.

He says that Boston Market should also listen to its customers and understand their needs, preferences, and feedback, and use them to improve its products and services. He says that Boston Market should not be afraid to experiment and try new things, and to create a more engaging and enjoyable dining experience for its customers. He says that Boston Market should not settle for being a mediocre and outdated restaurant chain, but strive to be a leading and innovative grocerant provider. What’s the cost of your company’s new customer acquisition? 

Success does leave clues as does failure. 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 edify your brand with relevance.  Call 253-759-7869 for more information. 

Grocerant Guru® Restaurant Discontinuity Continues to Persist

 

At the intersection of What’s for Dinner, restaurant customer trial, cooking from scratch at home, and time is a new level of consumer discontent according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. What are some of the new stumbling blocks?

1.       Drive-thru’s are too SLOW.

2.       Don’t know how to cook ‘trendy’ flavored foods.

3.       Legacy Chain Restaurants Lack of Innovation

4.       You have to walk through five aisles to find three items in a grocery store.

There are few of our readers wondering; Why did the restaurant owner go to therapy? To get help with their “plate” addiction. Regular readers know that ‘Handheld Food for Immediate Consumption’ is now that mainstay in consumers life.

a.       Recent Grocerant ScoreCards found 82.3% of consumers don’t know what’s for dinner at Noon, and 61.8 % don’t know what’ s for dinner at 4PM.

b.       68.2 % of consumers would order alcohol with a meal or meal components from a restaurant if available when ordering.

c.       Roughly 63.7% of consumers purchase prepared food items from a retail location at least three times a month.

d.       79.6% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 66.6% have two meal components per day.

e.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 91.3 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 83.4% chose meal components.

f.         Seventy-three percent of retail prepared food purchases are taken to go

g.       88.2 % of consumers prefer hand held food over sit-down meals with a knife and fork

Restaurant discontinuity continues disrupt branded chain restaurant templets.  Grocery stores that focus on Ready-2-Eat and Heat-N-Eat fresh food are garnering the attention of everyone. They are the ones garnering new consumers. So, let’s look as see just who they are:

There are many popular grocerants across the United States. According to a survey by Newsweek, Wegmans is the best grocery store in America, scoring 92.25 points overall . Other popular grocerants include:

1.       Central Market: A Texas-based grocerant that has been rated highly for customer satisfaction by Consumer Reports 

2.       Heinen’s: A Midwest-based grocerant that has been rated highly for customer satisfaction by Consumer Reports 

3.       Gelson’s Markets: A Southern California-based grocerant that has been rated highly for customer satisfaction by Consumer Reports 

4.       Market Basket: A Northeast-based grocerant that has been rated highly for customer satisfaction by Consumer Reports 

5.       Sprouts: A grocerant that has been rated highly for customer satisfaction by Newsweek 

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 edify your brand with relevance.  Call 253-759-7869 for more information. 

Expanding Dayparts Subway will find Success

 

Mini-meals, snacks, treats are the perfect way today to expand dayparts and Subway is doing all the right things by looking a customer ahead giving today’s customers just what they are looking for fresh fast food and beverages that both satisfies and or treats at a cost that complements time saved going somewhere else. Building brand relevance requires a clear focus on consumers wants, desires, and need-sets according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Subway announced a big customer focused relevant menu update with the debut of Sidekicks, a collection of three new footlong snacks available only at Subway restaurants nationwide on January 22. Subway Sidekicks give fans more of what they love about Subway as the perfect pairing for their favorite footlong, or as a sweet and savory snack any time of day.   

To take snacking to new lengths, Subway’s culinary team joined forces with Cinnabon and Auntie Anne’s to create a craveworthy new twist on their classic snacks to drive new electricity into daypart sales. Subway also spent a year perfecting the recipe for its Footlong Cookie to complete this irresistible new addition to Subway’s menu that’s big on size, taste and value: 

·         A new Cinnabon Footlong Churro for $2, is baked to perfection, served warm and topped with Cinnabon’s world-famous Makara cinnamon and sugar. 

·         The Auntie Anne’s Footlong Pretzel for $3, reimagines Auntie Anne’s buttery and salty classic, served with a side of Subway’s Honey Mustard that takes each bite to another level. 

·         The Footlong Cookie for $5, is back nationwide and better than ever after popping up in select restaurants on National Cookie Day in 2022 and 2023 – it’s thick, gooey and packed with chocolate chips. 

“The introduction of Sidekicks builds on six decades of equity and expertise in all things footlong,” says Douglas Fry, President of Subway North America. “This whole new category on our menu offers Subway fans something they can’t get anywhere else and kicks off a year of culinary innovation and delicious new menu items. 2024 may be the most exciting chapter yet in our growth story.” 

Choice Drives Convenience

What a Larger Share of Stomach

Subway’s multiyear transformation journey began in 2021 with an overhaul of its pantry of ingredients and continued to crescendo with significant changes to its entire guest experience, whether dining in or ordering online. While previous menu and experience updates have been focused on Subway’s signature sandwiches, Sidekicks puts a deserved spotlight on the rest of Subway’s menu.  

“We’re excited to team up with Subway to bring guests the fun and flavor of two of our iconic brands – Cinnabon and Auntie Anne’s,” says Dave Mikita, President of International and Retail Channels at Focus Brands. “These fan-favorite snacks will delight in new, craveable ways.”  How do you plan to garner new customers? What is your cost of customer acquisition?

Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing. Don’t limit your ideations to just a new menu item. Think local, grow with others that are successful around you.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter