Navigating the New Normal: The Struggles of Legacy Foodservice Operators in a Post-Pandemic World

 

As the dust settles from the pandemic's upheaval, legacy foodservice operators—ranging from restaurants and convenience stores to service delis—find themselves grappling with a dramatically altered landscape. The challenges of adapting to a post-pandemic reality, marked by 4.3 percent unemployment and rising wages, are compounded by heightened consumer expectations.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, for seasoned players in the industry, the shift from pandemic operations to a new normal is proving to be a formidable task. Let's delve into why this transition is so arduous and explore what it means for the future of foodservice.

The Pandemic's Legacy: A Shift in Operations

During the pandemic, foodservice operators had to pivot swiftly to survive. Takeout, delivery, and digital ordering became the lifeblood of many businesses. Safety protocols, limited seating, and contactless interactions were prioritized, fundamentally changing the way these establishments operated. However, as the pandemic recedes, the challenge is not just to revert but to reinvent.

1. Operational Overhaul: Legacy operators, steeped in tradition, often find it challenging to overhaul their operations. The shift to a more digital and contactless environment, while crucial during the pandemic, now needs refinement to integrate seamlessly with in-person experiences. The integration of technology—be it mobile apps, online ordering systems, or digital loyalty programs—requires significant investment and expertise, which many legacy operators may lack.

2. Staffing Struggles: The foodservice industry, notorious for high turnover rates, faces an even more pronounced labor shortage in the current economic climate. With unemployment at 4.3 percent, workers have more options, and they are increasingly seeking better wages and working conditions. Legacy operators, used to lower wage structures, must now compete for talent by offering higher pay and benefits. This wage inflation squeezes already thin profit margins, making it challenging for these operators to maintain financial stability.

Consumer Expectations: A New Era of Demand

The pandemic has also reshaped consumer behavior and expectations. People are more health-conscious, value convenience, and are less tolerant of subpar experiences. This shift presents another layer of difficulty for legacy operators trying to keep pace.

1. Elevated Expectations: Today's consumers demand more than just good food. They seek a holistic experience—one that includes excellent service, convenience, and a seamless digital interface. Whether dining in, taking out, or ordering online, the experience must be consistent and exceed expectations. Legacy operators, often accustomed to slower adoption of new trends, find it challenging to meet these heightened demands quickly.

2. Health and Safety Prioritization: The pandemic has heightened awareness around health and safety. Consumers now expect rigorous cleanliness standards and transparency about food sourcing and handling. Legacy operators, particularly those who haven't modernized their practices, may struggle to meet these new standards consistently, risking the loss of consumer trust.

Battle for Share of Stomach

The Road Ahead: Adaptation and Innovation

To thrive in this new era, legacy foodservice operators must embrace change and innovate. The path forward involves a combination of embracing technology, investing in staff, and reimagining the customer experience.

1. Embracing Technology: Legacy operators must invest in modern technology to streamline operations and enhance customer interactions. This includes upgrading point-of-sale systems, adopting mobile ordering and payment options, and utilizing data analytics to understand consumer preferences better.

2. Investing in Talent: To attract and retain quality staff, operators must offer competitive wages, benefits, and a positive work environment. This investment in human capital is crucial for delivering the high level of service that today's consumers expect.

3. Enhancing the Customer Experience: Operators need to focus on creating memorable experiences, whether through unique menu offerings, exceptional service, or a welcoming atmosphere. This might also mean expanding into new channels, such as ghost kitchens or partnerships with delivery services, to reach a broader audience.

Think About This: A New Chapter for Legacy Operators

The transition from pandemic operations to the new reality is undoubtedly challenging for legacy foodservice operators. However, it also presents an opportunity for reinvention. By embracing technology, investing in their workforce, and meeting the elevated expectations of today's consumers, these operators can not only survive but thrive in this new era. The Grocerant Guru® believes that those who adapt will not just navigate these turbulent times but will emerge stronger, more resilient, and more relevant than ever before.

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

The Grocerant Guru: Unveiling the Efficiency Engine of the Future - The Rise of Grocerants

 

Steven Johnson is the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  He has spent years dissecting the ever-evolving food industry landscape. Today, he wants to delve into a niche that's not only thriving but fundamentally transforming how we source, prepare, and consume food: the grocerant niche.

For the uninitiated, grocerants are establishments including Convenience stores, Grocery Service-Deli’s, Restaurants offering Takeout, and other outlets that seamlessly blend meals or meal components for takeout.

Imagine browsing fresh produce, then strolling over to have a chef whip up a custom salad using those same ingredients or picking up different meal components fresh prepared that are either Ready-2-Eat or simply Heat-N-Eat that can be bundled into a personalized, customized, fresh, fast, family meal. That's the grocerant magic!

But grocerants are more than just culinary convenience. Behind the scenes, they're a symphony of operational efficiency. Let's dissect the key elements driving this change:

1.        Reduced Waste: Grocerants have a direct line from farm to table, minimizing spoilage that plagues traditional restaurants. Think about it: leftover ingredients from the grocery side can be creatively incorporated into restaurant dishes, and vice versa.

2.        Inventory Optimization: Grocerants leverage real-time sales data to optimize inventory across both grocery and restaurant sections. This reduces the risk of overstocking and ensures fresh ingredients are always available.

3.        Labor Streamlining: Cross-trained staff can seamlessly switch between stocking shelves and fulfilling restaurant orders. This flexibility optimizes labor allocation and reduces operational costs.

4.        Data-Driven Decisions: Grocerants use data analytics to understand customer preferences and buying habits. This allows them to tailor product offerings and promotions, further enhancing efficiency and profitability.

The grocerant revolution isn't just about bean counting; it's about offering a superior customer experience. Imagine whipping up a gourmet meal at home using top-quality meal components you just picked out or had delivered from some of your family’s favorite food retailers, or grabbing a restaurant-quality meal or meal component without the wait. That's the grocerant promise.

As the Grocerant Guru®, I'm witnessing a paradigm shift. Grocerants are the future, and their operational efficiency is the engine driving this transformation. So, buckle up, foodies! The grocerant era is upon us, and it's bringing a wave of delicious efficiency! Eat fresher, prepare meals faster, empower every meal at home to be a happy meal.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Grocerant Niche Private Label Brand Managers are Needed

 

There is no doubt that Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche retail food offerings are driving top line growth in every sector of retail food service today. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® grocerant niche products are increasing top line revenue, customer continuity, bottom-line profits for both retailer and manufactures.

Customers want branded food with continuity.  That means maintaining a level of excitement in your menu or food products that drive contemporized relevance for your customer in order to maintain or increase frequency levels for branded retailers. It does not mean keep everything exactly the way it was 20 years ago.  Consumers evolve your business should as well.

Creating or identifying distinctive differentiated food consumables (menu or meal options) as an entity with identity by day part is an area each brand must focus.  Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables creates a platform for ongoing success.

Once again, the food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar.  With the help of private label brand managers, regional restaurant chains, independent restaurants, and convenience stores have been growing top line sales and bottom line profits by expanding quality offerings menu offering while displacing legacy national brands according to Johnson.  Are you edifying your menu or product offerings?

Outside eyes can bring new light and assist in your pace of growth, redevelopment, and deployment of your new menu’s sku’s with appropriate COG’s. The Foodservice Solutions® team is very good at assisting companies, teams, and individuals exceed their goals. The grocerant niche is in need of private label brand managers to assist in building long term brand value for both individual products and brands. Should we be talking with you?

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 www.FoodserviceSolutions.us 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.

Legacy Grocery Stores Battle: Slotting Fees for Customers

 

Has begging for more and more money in the way of slotting fees become just a way of life.  What is on your shelf does matter.  Are, your customer focused of slotting fees or meals?  

With SNAP participation continuing to grow are legacy grocery stores becoming even more dependent on slotting fees?  Restaurants and new non-traditional fresh food retailers are driving top line growth with customer relevance while legacy grocery retailers focus on SNAP and Slotting fees. 

The relevant question for the consumers is What’s for Dinner.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® slotting fees are distraction and in conflict with keeping focused on the consumers wants and needs.

Consumers do not want to cook from scratch day after day.  The do not have the skill-set to duplicate the international meals and meal components that have become accustom to enjoying.

So, how do Americans decide what to have for dinner when they want to go out to eat? The most common ways that people find somewhere to eat are on Google (76%), through word-of-mouth recommendations (64%), on Yelp (39%), and on social media (30%).

When asked where Americans get dinner, most (77%) commonly eat at home or cook for themselves. 50% say they regularly get takeout or pick up, 31% say they go to restaurants, and 3% say they use a meal subscription box.

No. 1 factor that consumers say would prompt them to purchase from retail foodservice is that the food looks good, and 27% of consumers say that fresher grab-and-go options would encourage them to make repeat purchases from a store’s prepared foods section.

No. 1 breakfast item is a breakfast sandwich/wrap, with 42% of consumers saying they’d purchase if

Consumer Trend Report, 92% of consumers said they expected to maintain or increase their purchases of grab-and-go items in the near future.

So, lets get to the point if you are running a legacy grocery store that has become dependent on slotting fees for your survival. Your business plan is out of date.  Your sales data is driven by what other paid you to put on the shelf.  Not what customers would choose in an open and free marketplace.

In fact, 83.6% of all restaurant meals in 2022 are purchased from a fast-food outlet or drive-thru. That’s right while most of even our loyal readers of this blog know that fact, they will not admit aloud that they too buy meals and meal components for family members at a fast food drive-thru. 

While more food is purchased for at home for more total meals eaten at home than out consider this fact. In 1966 consumers spent $149B for food away from home and in 2022 that number was $955B. The trend is your friend.  Where are you selling meals and meal components in 2023?

Do you want to meet the needs of your customers or get paid my your merchants?

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

Meals and Meal Components 

Drive Customer Adoption 

Do you Want a Larger Share of Stomach