Restaurant and Convenience Stores Consumers Visits Declining

 

The consumer is telling us the cost of everything can’t keep going up.  Consumers are cutting back on visits to their favorite restaurants and convenience store.  If you are a retailer that means less money, in the till, less profit in the back at the end of the month.  The questions Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® continues to ask is; How are you going to get those customer visits back? How long are you going to wait before you try to get them back? 

Those lost customers are not eating less they are simply eating somewhere else according to Johnson. In a new survey released by NACS revealed that over the past three months, 59% of retailers said their customer traffic has decreased in stores, likely in large part due to high gas prices.

Regular readers of this blog know that convenience stores, which sell an estimated 80% of the fuel purchased in the U.S., rely on in-store sales, not fuel sales, to drive profits. But high gas prices are hurting customer traffic in stores and basket size: Nearly half of all retailers (49%) also say that those customers coming inside the store are buying less compared to three months ago when gas prices were $1.50 a gallon lower.

Retailer in that study also expressed concerns that elevated gas prices could also depress sales over the traditionally busy summer-drive season: 53% say they expect sales to be lower this summer than last summer, with only 25% anticipating increased sales.

So, we also consumers are more willing to cut out visits to restaurants and bars as a result of inflation than they are to take other steps to cut the cost of their regular food bill, according to data from a new survey released on Tuesday.

Just look at some more facts, 80% of U.S. consumers said they are eating out less often as a result of inflation, according to a Morning Consult survey. And about three-quarters said they are going out to bars less often.

Now consider this, 72% said they were purchasing less meat and 68% said they were buying less alcohol, according to the survey. Overall, more than half of U.S. adults said they have changed their eating and drinking habits because of inflation.

Yet there is more, According to Placer.ai, visits to full-service restaurants have fallen dramatically in recent weeks while quick-service visits continued to grow, which the data firm suggested could be due to a “trade down” from more expensive restaurants to lower priced options.

The Consumer Price Index rose 1% in May from April, and 8.6% over the past year. Retail food prices are up nearly 12% over the past year and prices on many basics have taken off: Gas is up by 50% over the past year while energy prices are up nearly 35%.

The higher prices are squeezing ordinary Americans even as wages rise, raising concerns that consumers could cut back and help throw the economy into a recession.

Restaurant menu prices are not rising nearly as much as retail food prices, which help to backstop demand—food-away-from-home prices were up 7.4% annually last month, though prices at full-service restaurants rose 9%.

Ninety-three percent of economists said inflation has peaked, according to a survey earlier this month by SIFMA, a trade association representing investment bankers and asset managers. But 78% of economists said there is at least a 15% chance that the economy faces “structurally higher inflation” for three years or more.

And 80% of economists said there is a bigger risk of “stagflation,” a combination of economic stagnation and strong inflation. According to Morning Consult, lower-income consumers have been more likely to say they have made adjustments. The survey found that those with children under 18 at home and those with household incomes less than $50,000 have been more likely to make spending adjustments than others.

Women were 13 points more likely to say that they have adapted to rising inflation. Women were more likely to identify themselves as the primary grocery shopper. How are you avoiding losing customers this year?  Are you tracking your year over year customer counts?

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

Grocerant Guru gets GLAZZED at Dunkin’

Success does leave clues according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  When it comes to integrating braded marketing messaging with relevance no one is doing it as well as Dunkin is right now.  Talk about being on trend and driving new electricity.

Now plant-based lovers can get their hands-on merchandise designed by Dunkin’s employee of the month on Dunkin’ Shop, this my friends are contemporary relevance with brand integration. Got Glazzzed at Dunkin! It’s just great.

Dunkin’ and Beyond Meat ambassador, Snoop Dogg, are continuing their collaboration by debuting Dunkin’s newest merch collection. The Beyond Collection by Dunkin’ x Snoop is out and this limited-edition online pop-up of exclusive apparel will be available to Dunkin’ and Snoop Dogg fans nationwide.

Plant-based lovers can get their hands-on merchandise designed by Dunkin’s employee of the month on Dunkin’ Shop. This Snoop-approved swag includes a green tracksuit by Snoop’s outfit in Dunkin’s newest nationwide commercial, joggers featuring Dunkin’ and Beyond Meat icons and the word “Glazzzzy” down the leg, a bomber jacket, beanie and more.

Snoop Dogg still has his hand on the pulse of consumers and kudos to the marketing team at Dunkin brands for developing a partnership that edifies it brand messaging with relevance.  Well Done.

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, Online ordering, delivery, plant based foods,  sampling, toy’s, beer, 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 food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow?  

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 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

NCA SEF 7-Eleven The Coffee Promo is a Good Thing

7-Eleven is a branded fresh food global leader. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® 7-Eleven’s Slurpee, Big Bite, Big Gulp, Stuffed Pillsbury Waffle are all branded products that drove copycat products at fast food restaurants and competing convenience store retailers.

According to Johnson, “a brand is an invitation” and 7 Eleven while a global leader, has lost its edge in the battle for breakfast by many others who have leveraged coffee to drive branded product trial, daypart frequency adoption, and repeat sales. 

In 2019, Casey’s General Stores, Wawa, and Sheetz have all extended their brand invitation offering free coffee driving incremental brand value while edifying an already loyal customer base. In the minds-eye of Johnson, The National Coalition of Associations of 7-Eleven Franchisees questioning 7-Eleven Inc. (SEI) about the benefits of the retailer's aggressive promotion of its low-priced coffee or other specials offered through its mobile app is misplace.

No matter the chain; brand relevance matters.  There are times that customer relevance means not allowing other to steal you customers.  Capitulation of a base daypart can lead to market share capitulation from every daypart.  One good measure of growth is year over year same store customer counts.  Are your customer counts growing?   

When consumers move to technology, brands must move with them.  Coffee is a staple and morning ritual for most coffee drinkers. What is the cost of losing a customer that stops 3.7 times a week to get a cup of coffee?  Extending your brands invitation with a free cup of coffee is a great way to edify current relationships and build new ones.

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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:  www.FoodserviceSolutions.us for more information.

Why Chain Restaurants Worry in 2019

Day after day, earnings report quarter after quarter chain restaurants combine too report continued customer count capitulation even after our Grocerant Guru®, Steven Johnson spoke at MUFSO back in the day about the growing threat of non-traditional fresh food retailers targeting restaurant customers.  Johnson even offered Five Pillars of Success to prevent customer capitulation.  

Here is but one example of a company evolving with the consumer while garnering customer from the restaurant sector. Giant Food Stores reached a milestone with the opening of its 100th Beer & Wine Eatery in Pennsylvania.  

Manuel Haro, vice president of strategy for Giant Food Stores stated “The opening our 100th Beer & Wine Eatery is an exciting milestone for Giant as we continue to expand our unique offerings for our customers,”, The stores features includes hundreds of domestic, imported and craft beers plus a large wine assortment and a seating area for 30 people, who also can choose from a selection of eat-in and take-out foods, such as sandwiches, wraps, subs and salads.

Giant’s expanded offering in prepared foods set the stage for success.  Haro continued “We sell a lot of food that you can eat right on the spot, such as sushi or Boar’s Head sandwiches that are really nice, and some of the hot prepared food bars. We have Asian bars now and some other things. So, anything that's for quick consumption we will merchandise in the area of beer and wine.”  Giant is looking a customer ahead?  Does your restaurant look more like yesterday than tomorrow?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Battle for Share of Stomach

Chipotle Dials in on Digital

Back in the day everyone wondered which fast food chain was the fastest? Ah, but that was a simpler time. Today, the question is which fast food restaurant chain is the ‘smartest’ according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Chipotle is not letting McDonald’s become the only fresh fast food company to continue looking a customer ahead they are entering the artificial intelligence space with some ‘human-backed machine learning’ of their own.

Retail has evolved automated customer service phone systems and chat bots are common among pharmacy, utility, retail and e-commerce companies; even restaurants chains the ilk of Dunkin' and Domino’s Pizza have also deployed bot and voice-enabled ordering.

Chipotle Mexican Grill, is trying to keep a customer ahead by turning to more sophisticated versions of voice assistants to process orders. Nicole West, vice president of digital strategy and product at Chipotle stated “It’s human backed machine learning,”.

It looks as if it is working, as Chipotle reported blockbuster digital sales, as it quietly began testing AI-powered voice assistants for phone orders in early 2018. Kind’ a makes you think that it is working according to Johnson.

The 10-unit test has now grown 1,800 locations according to West said the 2,500-unit chain plans to expand the AI voice system to its remaining U.S. stores by the end of the year.

Here is an example: “In Orange, Calif., a customer dialing a local store is greeted by a female voice. Chipotle has yet to give her a name, West said. Her responses extend beyond standard dispassionate bot programming. She actively listens and makes suggestions when she thinks a customer might have omitted a topping on a bowl or burrito.

 A sample suggestion: “Would you like to add salsa or sour cream?”

With each transaction, she learns the idiosyncrasies of how people order. She might stumble if someone responds “combo” when requesting a mix of pinto and black beans. But, once she figures it out, her algorithm remembers. 

“The more orders that come through the system, the more she learns,” West said.

This is not a labor reduction move. West said it’s about “convenience for our customers” because the system allows them to order, pay and skip the line when grabbing their food from a pick-up shelf. Pay ahead is not available for manual phone orders. 

Automating phone orders also reduces the amount of time managers and employees spend on the phone”, according to West.  So, we ask; are you looking a customer ahead?

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 Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/  or www.twitter.com/grocerant

Dorothy Lane Elevates Grocerant Fresh Prepared Ready-2-Eat & Heat-N-Eat Takeout Food

Regional grocery stores are creating grocerant niche Ready-2-Eat & Heat-N-Eat platforms that have more relevance than national grocery store chains according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Three-store, Dayton, Ohio-based Dorothy Lane Market using the tagline “Fast food the way it should be,” is raising the bar on retail foodservice with its Gourmet Takeaway, which features fresh deli main dishes and sides made in store every day.  This is an example why restaurant customer counts continue to decline according to Johnson.

Eric Richard, education coordinator for the International Dairy Deli Bakery Association, Madison, WI, stated “Variety and personalization are really important, and supermarkets have an advantage in this arena because they allow shoppers to customize a protein with sides and build the meal that they want,”

At Dorothy Lane consumers can choose from a menu of a la carte entrees and sides or build a Dinner Deal that includes an entree and two sides for $8, $10 or $12. At its Washington Square and Oakwood locations, Dorothy Lane shoppers can pick up a What’s for Dinner bag featuring fresh-cooked veggies, an entree and a side dish.

Richard continued “Overall, we’re seeing a lot more interest in Asian and Hispanic side dishes. People want more hot and spicy dishes, as well as sweet and hot,” Richard, who points to a recent study indicating that 71% of millennials and 55% of boomers enjoy spicy foods.

Alice May Block  famously said “Tomatoes and oregano make it Italian; wine and tarragon make it French. Sour cream makes it Russian; lemon and cinnamon make it Greek. Soy sauce makes it Chinese; garlic makes it good.” However in the minds-eye of today’s consumers like blod flavors that have high protein, gluten free, keto, paleo, vegan, organic, local, fresh, all-natural, free from artificial ingredients, preservative free and non-GMO according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

White Castle integrated Brand Messaging Drive Sales

Once again White Castle proves that integrated branded messaging drives customer relevance according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® when they unveiled the design for its 2018 commemorative ceramic mugs for the holiday season.

The mugs, which are released annually, feature a new, custom design by award-winning fashion prodigy and lifelong Craver, Telfar Clemens. The mugs are now available in restaurants for just $5.99, with net proceeds benefitting the Robert F. Kennedy Human Rights bail fund for school-age youth held on Rikers Island.

Jamie Richardson, vice president at White Castle stated “For many years, White Castle has enjoyed producing these one-of-a-kind mugs for White Castle customers and fans everywhere to add to collections or pick up as a quick and fun gift for others,”

Richardson continued “This year, we’re particularly excited to be able to bring our Cravers a custom design by our close friend and partner, Telfar Clemens, the brains behind the TELFAR fashion line and our bold and beautiful uniforms worn every day by thousands of team members nationwide.”

In 2017, White Castle announced a wide-ranging partnership with the independent, young label to reimagine and design original uniforms for White Castle’s nearly 400 restaurants and 10,000 team members. The partnership also includes various extensions, such as the new collectable mug design and even a limited-edition streetwear collection which sold out within days after launch.

Following the successful rollout of the reimagined team uniforms, White Castle was quick to induct Clemens and his creative partner, Babak Radboy, into the most exclusive fast food fan club in existence, the Cravers Hall of Fame. The TELFAR team joins other high-profile celebrity Cravers in the hall of fame like rock and roll icon, Alice Cooper, and the stars of “Harold & Kumar Go to White Castle,” John Cho and Kal Penn.

Since the partnership began, Telfar has designed and produced two sets of White Castle team member uniforms, taking inspiration from White Castle’s originality and integrity. Clemens is currently producing a third line of uniforms to be released in 2019.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us 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:  www.FoodserviceSolutions.us for more information.

C-Stores Continued Innovation Drive Sales at Maverik

While restaurants and grocery stores are battling each other for an increased share of stomach and share of dollars.  The convenience store sector continues to drive top line sales and bottom line profits while garnering customer from both the grocery and restaurant sectors leveraging innovation in fresh food, and brand positioning according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

This year Maverik Inc. was chosen as the 2018 Prepared Foods Innovator of the Year in Convenience Store News ’seventh-annual Foodservice Innovators Awards program. Yes, for regular reader of this blog you are right this is the fifth time that Maverik, has won a Foodservice Innovators Award.

"With the combination of Adventure’s First Stop and Bonfire Grill, Maverik has been very innovative with branding itself and using its foodservice program to become a serious food destination in the company’s core markets," said one member of the CSNews Foodservice Advisory Council, who were impressed with the retailer’s prepared foods offering. Other significant moves that have built up Maverik’s foodservice program are:

·         Experimenting with creative LTOs, some of which become mainstays on the menu, such as the MOAB (Mother of All Burritos);

·         Examining its products and improving the quality of ingredients used;

·         Hiring a new corporate chef, Kyle Lore, a fine-dining culinary expert who’s brought a new perspective to the business; and

·         Creating a taste profile that is spicier and more flavorful compared to its c-store, quick-service and fast-casual competitors.

This year, Maverik launched a new fresh sandwich line to replace its hoagies, which consisted of meat and cheese in a hoagie roll that the customer purchased and then dressed themselves.

The new, fresh line of ready-to-eat sandwiches starts with new bread and also includes new meats and cheeses, and new sauces. Preparation steps have been developed that allow Maverik team members to dress the new sandwiches without them getting soggy.

Varieties include California Club, Turkey Gouda, Righteous Italian, and Buffalo Chicken Ranch. The new sandwiches were first tested in two stores, then expanded to a 10-store test to see actual sales results, and then moved to 30 stores to ensure ingredient distribution was right before being rolled out across all locations.

"Foodservice is an important part of Maverik’s business model, and is becoming even more critical," said Brian Sullenger, the retailer’s FRESCH category manager for grab-and-go. "We’ve been in the foodservice business a long time and our customers have come to trust that we have quality food for a competitive price."

Sullenger also told Convenience Store News that Maverik recently extended its Hispanic menu into nachos and salads, and plans are in the works for line extensions in the retailer’s most successful prepared food segments.

So, how are you planning to drive new customers to you retail brand?  Does our menu look more like yesterday than tomorrow? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us 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:  www.FoodserviceSolutions.us for more information.