Don't Wait for the Gold Rush of Unions! Sell Your Restaurants Now & Cash in Before the Bargaining Chips Fall

 

Foodservice Solutions® team including Steven Johnson our Grocerant Guru® wanted to take a look back, and a look forward at the intersection of unions and restaurants in the United States. We think you should do the same.

A Historical Perspective 

The restaurant industry has a long history of unionization, dating back to 1891. The first restaurant union, now known as Unite Here, was established to attract union factory workers. Unionized restaurants were seen as badges of honor, signaling higher quality food and service. However, the decline in manufacturing led to a decrease in restaurant unionization. 

The Resurgence of Unions 

In recent years, there has been a resurgence in unionization in the restaurant industry. High-profile shops have attempted to organize, hoping to narrow the gap in unionization rates. This resurgence is reminiscent of the early 20th century when unionization was common in the industry. 

The Impact of Unions on Restaurants 

While unions can provide benefits such as better wages and job security, they can also be a source of conflict between employees and management. Unions can make it difficult for restaurants to respond to changes in the marketplace. They can also reduce the profitability of an investment, discouraging further investment. 

The Current Restaurant Industry Trends 

The restaurant industry is moving ahead with cautious optimism. Most restaurants are looking to expand digital ordering options, improve loyalty programs, and invest in new POS technology. However, the industry is also facing labor, interest rate, and inflationary headwinds. 

Who's Winning a Larger Share of Stomach

with Unions

The Time to Sell is Now 

If your brand position is weak, slowing, or you are capitulating market share to other newer concepts then; given the resurgence of unions and the potential challenges they pose, coupled with the current industry trends, it might be a strategic move to sell your restaurants now. Selling before the "Gold Rush of Unions" allows you to cash in before the bargaining chips fall. This move could potentially maximize your profits and allow you to invest in other ventures. 

It is time to think about this, the history of unionization in the restaurant industry provides valuable insights for current restaurant owners. As the industry evolves and unions gain momentum, it's crucial to stay ahead of the curve and make strategic decisions that will benefit your business in the long run. 

Don’t over reach. Unions are dynamic, your brand can’t just sit back and wait.  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

Why Dirty Sodas Are Fizzling with Excitement are They the Next Big Thing

 

The world of beverages is constantly bubbling, and the latest trend making waves is the Dirty Soda. This seemingly unusual concoction blends classic sodas with unexpected twists, like creamy coffee, fruity bursts, and even a touch of salt. But what's behind the fizz? Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks that, Dirty Sodas are becoming a favorite, especially among Gen Z and Alpha consumers, and how Dunn Brothers Coffee is smartly riding this wave of refreshment.

The Allure of the Dirty Soda

For Gen Z and Alpha generations, known for their adventurous palates and love of customization, Dirty Sodas offer a unique and playful twist on familiar flavors. The sweet, nostalgic taste of soda gets a flavor upgrade with unexpected yet delightful combinations – think fruity pebbles meet cola or creamy cold brew coffee swirled with Dr Pepper. This element of surprise and exploration is a big part of the Dirty Soda's appeal.

Dunn Brothers Brews Up Relevance

Dunn Brothers Coffee, a near 40-year-old brand known for its commitment to high-quality coffee, is cleverly leveraging the Dirty Soda trend to stay relevant and attract new customers. Their new "Dunn Dirty's" line takes the core concept of Dirty Sodas and adds their own signature touch.

Here's a closer look at Dunn Brothers' take on Dirty Sodas:

·         Classic Sodas with a Twist: The Dunn Dirty's menu features popular sodas like Pepsi and Mountain Dew, but with exciting new flavor combinations.

·         Coffee Connection: Staying true to their coffee roots, Dunn Brothers incorporates cold brew coffee into some of their Dirty Sodas, creating a unique and intriguing option for coffee lovers.

·         Fruity and Creamy Fusion: Tropical and creamy elements like coconut milk, mango, and strawberry add another layer of flavor and intrigue to the Dunn Dirty's lineup.

·         Limited Time Offer: The initial Dunn Dirty's menu is available for a limited time, creating a sense of urgency and encouraging customers to try these new beverages before they're gone.

·         Social Media Buzz: Dunn Brothers is amping up the excitement with giveaways and promotions on social media, creating a fun and interactive experience for their customers.

Want to Stay Relevant

Want a Larger Share of Stomach

Dirty Sodas and do it in 2024

With Dunn Dirty's, Dunn Brothers Coffee is not only catering to a new generation of coffee drinkers but also demonstrating their ability to adapt and innovate. This strategic move allows them to stay relevant in a competitive market while staying true to their core values of quality and flavor exploration.

So, next time you're looking for a beverage that's both familiar and exciting, consider giving a Dirty Soda a try. And if you're a coffee enthusiast who's curious about this new trend, Dunn Brothers Coffee's Dunn Dirty's might just be the perfect cup (or should we say cupful?) for you.

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Restaurants Lookout Royal Farms Free Fresh Fast Coffee Will Garner New Customers

Worried about capitulating more customers?  If your year over year customers counts continue to track down and you are raising prices your problems are not over.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, “Royal Farms ability to target a single daypart with a price promotion for Coffee will garner the attention of fast-food restaurant customers.  In addition, the trial period is long enough to expose those consumers to a new variety of fresh food options and in many cases faster service.

Welcome to Royal Farms, in 2023.  By introducing "Free Coffee Mondays" for RoFo Rewards members. The promotion will allow members to redeem a free, any-sized coffee, hot or iced, from Jan. 2 through Feb. 27 its assured that RoFo membership will grow.

The one free coffee reward will be gifted to member accounts on Sundays, allowing them to be redeemed the following day at any Royal Farms location. You understand that the free coffee is an interactive positive brand remined the day before you use it and then again on the day you use it! That’s a good step forward in 2023 for Royal Farms.

Frank Schilling, director of marketing and merchandising, stated, "During the cold winter months when daylight hours are shortened, we understand how our moods are impacted. At Royal Farms, we want to make these cold Mondays a little bit easier by giving our RoFo Rewards members something free and delicious to look forward to. We are excited to bring 'Free Coffee Mondays' to all our locations and reward our loyal customers with a free weekly mood booster.”

In case you did not know, Royal Farms has offered other limited-time services to rewards members in the past, including double points during the 2022 holiday season and a short-term expanded discount on gas purchases in its New Jersey stores.

Once again looking a customer ahead Royal Farms, updated its mobile app over the last year to include online ordering and streamline purchasing for customers.

Here is how to sign up and get the free coffee. Anyone that is not already a member looking to participate in "Free Coffee Mondays" can sign up for RoFo Rewards on the store's mobile app or on roforewards.com. In addition to the current promotional offer, members receive two points for every dollar spent and one point for every gallon of gas purchased, allowing them to save money throughout the year, receive rewards for everyday purchases and earn fuel discounts when they upgrade to RoFoPay.

How are you planning to garner more customers in 2023?  Are you inviting consumers to you brand?

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Does your messaging look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us 

Food Retailers Should Support the Credit Card Competition Act of 2022

 

It’s time food retailers stood up and help themselves save money by supporting the Credit Card Competition Act of 2022 according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Johnson stated, “sitting on the sidelines waiting for someone else to do something is no longer an option. It’s time to speak up and be heard.”

In case you had not heard several U.S. Senators recently introduced the bipartisan Credit Card Competition Act of 2022, legislation that aims to enhance competition and choice in the credit card network market.

This bill, is endorsed by the National Association of Convenience Stores and many others withing the food service sector, would direct the Federal Reserve to ensure that giant credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed, with certain exceptions.

Doug Kantor, general counsel for Alexandria, Va.-based NACS, stated, “By requiring card networks to compete for transaction processing, exorbitant fees that have skyrocketed could finally be brought in touch with reality. This is a market-driven solution that would allow a free, fair and competitive market to determine prices in the payments industry, just as it does in most sectors of the economy,”

So, in case you did not know, there are currently four U.S. credit card networks—Visa, Mastercard, American Express and Discover.  Visa and Mastercard are known as “four-party” networks. They act as agents for thousands of card-issuing banks and mandate the fees and terms that the banks receive from merchants for each transaction. Merchants have effectively no leverage to negotiate fee rates and terms in four-party network systems, because they cannot risk losing access to all the consumers served by Visa’s and Mastercard’s member banks.

U.S. Senate Majority Whip Dick Durbin (D-Ill.), a co-sponsor of the bill, stated, “Credit card swipe fees inflate the prices that consumers pay for groceries and gas. It’s time to inject real competition into the credit card network market, which is dominated by the Visa-Mastercard duopoly,” ... “This legislation, which builds upon pro-competition reforms Congress enacted in 2010, would give small businesses a meaningful choice when it comes to card networks, and it would enable innovators to gain a foothold in credit cards.”

Now, according to the Federal Reserve, Visa and Mastercard account for nearly 576 million cards, or about 83% of general-purpose credit cards. Approximately $3.49 trillion was transacted on Visa and Mastercard credit cards in the United States in 2021.

Think about this, U.S. Sen. Roger Marshall, M.D. (R-Kan.), another co-sponsor, stated, “Convenience stores, gas stations and other small businesses in Kansas are being taken advantage of by Visa and MasterCard on behalf of big banks in New York City at a time when they, and the communities they serve, are grappling with crippling inflation and staring down the barrel of a looming recession. It’s gone on long enough. Competition is the heartbeat of capitalism and that is what our bill will create, competition,”

You had better be sitting down before you read this. Visa’s and Mastercard charged a total of $77.48 billion in U.S. merchant credit card fees in 2021. These fees include interchange or swipe fees which Visa and Mastercard require merchants to pay to issuing banks, as well as network fees that Visa and Mastercard require merchants to pay directly to them.

So, under the Credit Card Competition Act, the Federal Reserve would issue regulations, within one year, ensuring that banks in four-party card systems that have assets of more than $100 billion cannot restrict the number of networks on which an electronic credit transaction may be processed to less than two unaffiliated networks, at least one of which must be outside of the top two largest networks.

Leon Buck, vice president for government relations, banking and financial services for the National Retail Federation (NRF), Washington, stated, “Processing credit card transactions should not be limited to two companies when there are a dozen that can do the job just as well,” ... “Routing choice has saved retailers and their customers billions in the debit card market and can do even more in the much-larger credit card market. This is a giant step forward in bringing about the transparency and competition retailers have sought for years.”

Buck continued, “Credit card swipe fees have been driving up prices paid by American consumers for decades but are particularly burdensome amid the near-record inflation families face today,” … “These fees are a percentage of the transaction, so they take even more out of retailers’ and consumers’ pockets as prices go up. They are a significant factor in inflation, but one that could be minimized if the card industry would compete the same as other businesses.”

Please speak out, stand up, and help all food retailers and consumers save money.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Does your messaging 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 the clue you need to propel your continued success.