Is Coolgreens Meal Subscription Service ‘Better-for-You’?

 

At the intersection of proactive franchisee’s, consumer trends, virtual kitchens can Coolgreens drive top-line growth and bottom-line profits while expanding the ‘halo’ of better for you fresh food with a subscription service? The team at Tacoma, WA based Foodservice Solutions® reached out and asked their Grocerant Guru®, Steven Johnson and believes it will require some testing, trial, and tasking by consumers before mass adoption of the Menu. Price, and Service.

Coolgreens business model is targeting consumers looking for fresh fast food that is better for you. They say food that fuels vibrant communities with “Food that Feeds Your Life.” Coolgreens recently opened a new ghost kitchen with its first-ever subscription service delivering fresh food fast. Consumers are dynamic not static and brands must be as well.

Customers can now order “The Greens” – signature salads – or “It’s A Wrap” – signature wraps – through coolgreensfl.com on a weekly basis. The Orlando community is the first to enjoy Coolgreens’ fresh, made-to-order creations delivered in this new way. After a few months of testing the service in Orlando, they plan to expand to additional Southeast markets.

Coolgreens CEO Robert Lee stated, “Our mission of providing communities with nutritious, fresh food has always been clear, and this is another opportunity for us to fulfill it,” … “In 2020, we saw an increase of 150% in online orders. People are placing larger orders and using us to play a key role in their family’s meal preparation for the week.

Back to the backbone of growth for most restaurant companies’ franchisee. Coolgreens partnered with one of our franchise owners, Humza Idrees, in launching a subscription service. With no extra prep required, we’re catering to the on-the-go consumer who truly is trying to live a healthy lifestyle. Since Humza just opened our first ghost kitchen in Orlando, this is the perfect place for us to get guest feedback on this additional layer of convenience.”

So, for about $40 per week, the consumer will get to choose four salads or wraps for delivery or shipping anywhere in Florida. Coolgreens will safely deliver fresh, delicious healthy meals directly to guests’ doorsteps. Delivery takes place one day after the food is ordered, and the meals will last for up to five days. Each salad or wrap can be customized to meet specific dietary or lifestyle preferences, and guests can even order a bundle called “The Weekender” that feeds six to eight people for $75.

Idrees came up with the subscription service idea when he and his wife were focusing on leading a healthy lifestyle. Idrees stated, “When Fariha and I committed to living healthier, we soon found that meal preparation is among the hardest parts”

Indrees continued, “The one to two hours each day spent on cooking food at home started to feel like a mundane chore, so we wanted to alleviate this task for others wanting to pursue a healthy diet. If you order So, get this for the Coolgreens’ salad subscription service, all you have to do is pour on our house-made dressing, shake the package and you’re good to go.  How fresh and fast is you brand? Are you growing top-line sales and bottom-line profits?

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. 

Walmart and Technology Some Say, they Just don’t Go Together Yet

Walmart is hoping that they do something with technology that will lead to mass customer adoption, increased customer relevance while reducing cost and edifying its relationship with customers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

Will self-driving vans for ‘middle-mile’ logistics be the solution? Johnson, does not think so.  There are three ways to make the self-driving platform customer relevant and right now Walmart has not focused on them?

So, here is what they are doing in series of pilot projects involving autonomous vehicles, Walmart is testing a self-driving van to move customer orders between two of its stores on a two-mile route in its hometown of Bentonville, Ark.

It is reported that “Walmart will use robotic vans from tech startup Gatik to help move goods from its Supercenter in Rogers, Ark., to a Neighborhood Market in nearby Bentonville. In March, Arkansas passed legislation allowing for autonomous vehicles to operate in the state. 

Tom Ward, senior vice President, digital operations, Walmart U.S.  stated “With the help of Gatik, we’re making sure we stay on the cutting edge of grocery pickup,” …. “We aim to learn more about the logistics of adding autonomous vehicles into our online grocery ecosystem, operation process changes and more opportunities to incorporate this emerging technology.”

During the test, Gatik will run three of its modified Ford Transit Connect vans up to 10 times a day, seven days a week, during daylight hours and with human safety operators as backup. The tech company’s goal is to help cut human labor in mundane tasks that are not consumer front-facing, such as transportation between stores.

Johnson believe that Walmart continues to play catch-up with Amazon and other retailers when it comes to technology and that too garner customer buy-in the technology touch points need to be customer facing.

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/

Battle for Share of Stomach

Is McDonald’s Set Too Topple Pizza for Dinner?

How many of you have kids and are considering ordering Dinner from McDonald’s now that they are offering delivery at more than 2,000 stores in the US?  When your kids are asking What’s for dinner, would you elect to replace that dinner pizza with McDonald’s once a month, twice a month or once a week? McDonalds thinks so.

McDonald’s ability to take the time testing delivery around the world and developed systems, food, and service to understand the benefits, complications, and outcomes will prove a key driver of incremental success.

Delivery will drive continue unit level sales success. McDonald’s has with delivery created a platform that will drive top line sales, bottom line profits while garnering market share from other foodservice sectors all while edifying the McDonald’s brand with relevance according to Tacoma, WA based Foodservice Solutions® team which calls this system Build, Measure, Learn, and Repeat. 

When it comes to food delivery McDonald’s has taken its time in rolling out food delivery in the United States but that does not mean that they have done lots of food delivery.  In fact it has been widely reported that last year alone global food sales of food delivered by McDonald’s restaurants reached $ 1 Billion and that’s before they ever delivered one meal in the US. 

Southeast Asia has been the primary testing grounds for McDonald’s delivery including the following countries:

1.       Hong Kong

2.       Signapore

3.       Philippines

4.       Australia

McDonalds is dynamic not static and building sales in new non-traditional avenues of distribution elevates consumer relevance with it target audience specifically younger customers, late-night diners that want their food delivered.

McDonald’s CEO Steve Easterbrook stated “We see significant potential” in delivery….We’re encouraged by the early results.” McDonald’s noted that delivery orders tend to come in the evening or late night — so far, 60 percent of delivery orders come during those periods.

Easterbrook believes that the ability to grow dayparts with underutilized capacity via delivery is a perfect fit for the company at this time.  The team at Foodservice Solutions® believes that there will be a three year ramp-up with delivery at McDonald’s and at the end of three years McDonald’s will have garnered a larger share of stomach. Did you hear that Pizza Hut, Papa John’s and Domino’s?

Our Grocerant Guru® believes catering office breakfast and lunch events will drive market share gains, putting pressure on Starbucks, while dinner will garner share from the Pizza sector.  McDonald’s recorded over $ 1 Billion in delivery worldwide in 2016.  At McDonald’s delivery is an integrated strategy not a one off tactic according to our Grocerant Guru® Steven Johnson.

The Grocerant niche and fresh food sales today is all about time as our Grocerant Guru® reported back in the day. Simply put; today time is the new currency that is the most important in consumer buying decisions. McDonald’s has 14,000 locations in the U.S., and 75 percent of the population lives within three miles of a McDonald’s. 

McDonald’s CFO Kevin Ozan said at a recent Bernstein conference “I say this from experience as one who orders delivery a lot, one of the most important things in speed”. He said most people could get their food less than 30 minutes after order from McDonald’s. “You never get that. It’s usually an hour, whether you’re ordering pizza or Chinese food or anything else.” We might say locations, locations, locations!

 Remember Build, Measure, Learn, and Repeat well McDonald’s did learn with over $1 Billion in Delivery sales in 2016 and over the years they have learned a lot about food quality, service, food sales and delivery.  Is your brand looking beyond traditional points of distribution? Is your brand prepared to target another sector of foodservice?  Is your brand building customer counts or capitulating customers?

 Leaders lead and McDonalds understands that the customer is dynamic not static and the customer is on the move.  Foodservice Solutions® Grocerant Guru® Steven Johnson stated “McDonalds stop practicing Brand Protectionism long ago and that is one major key reason they have exceed globally and will continue.  McDonalds understands that you cannot do what you have always done and stay relevant.”

 Are you trapped doing what you have always done and doing it the same way?  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. 

Technology Too Fuel Fast Food in 2017

McDonald’s and Starbucks continue to cultivate customer relevance leveraging technology in both the front and back of the house operations.  However in 2017 both will elevate the consumer focus with voice recognition ordering. That’s right can you HEAR ME Now.

Microsoft CEO Satya Nadella revealed at a conference this summer that the development is already underway.  That being collaboration between Microsoft and McDonald’s. Nadella explained that the development would allow  customers’ spoken orders to be turned into text and relay the info directly to the kitchen, shaving time off the process and eliminating the possibility of the customer and an employee mishearing one another,

Now Starbucks said it will update its smartphone app next year to include voice recognition ordering, a capability some are predicting will be a major focus of restaurants in 2017.  The coffee chain indicated that the capability will be extended to some iPhone users early next year, with the availability broadened as the year progresses.  So if you skipped FSTEC last year you had better think about attending next year.

McDonald’s reported that it plans add voice recognition, with the intention of adding the capability at drive-thru’s. Starbucks' new system, called My Starbucks Barista, will enable customers to speak their orders into a smartphone loaded with the chain’s popular app. The order will be relayed to the store designated by the customer, and the charge will automatically be added to the patron’s account.

Now once again in case you had not seen this or heard several restaurants in the San Francisco Bay Area are participating in the test of a Google-supported system that combines voice and face recognition. Customers say, “I’ll pay with Google,” setting in motion a visual confirmation that the customer is who he or she says they are. The account is charged, completing the transaction. Now here is the link to FSTEC. 

Foodservice Solutions® Grocerant Guru® recommends very few conferences however FSTEC is one that you should put in your 2017 budget and plan on attending. 

www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us

AmazonFresh, Instacart, Webvan, Peapod Growing Threat

First to market, still matters when it comes to basket size and customer loyalty when you are speaking about Online Grocery sales according to Foodservice Solutions® Grocerant Guru®.  For those of you who can remember one of the first online grocery retailers that made a big splash was Webvan.  However big the Webvan splash they did not last, nor were they first 10 years before Webvan was Peapod.  Peapod was never flashy nor did they make a big splash but they survived and now lead in many online categories.

The demand for on consumer’s time has never been greater. Today consumers continue to be time starved, increasing price aware, and brand loyal. While Peapod is the most established, longest running online grocer, it continues to evolve it’s technology and expand into new markets.  However Peapod is not growing at as fast as some of its newest competitors.  What Peapod does however is lead the industry in the all important metric of Basket Size Matters and according to 1010data:

1.       Peapod                         $ 147

2.       FreshDirect                   $ 105

3.       Instacart                       $  98

4.       AmazonFresh                $  84

According to the new report by 1010data, of the “four prominent grocery delivery companies operating in the United States today “FreshDirect, Peapod, Amazon Fresh and Instacart —  through the first 10 months of 2016. Of the four, FreshDirect does the greatest total sales (47%, more than twice the share of the next largest company in the study, Peapod) but the leaders are also growing much more slowly than the others, with Instacart seeing year-over-year sales growth of 72% during the period and Amazon Fresh growing by 43% during that time.”

Peapod and FreshDirect experienced about 7% year-over-year sales growth during the same period, the study according to the 1010data study.  1010data study also revealed that “The established companies performed better when measured by average basket size, with Peapod’s shoppers spending an average of $147 per trip, well ahead of FreshDirect ($105), Instacart ($98) and Amazon Fresh ($84). 1010data ascribes this in part to Peapod’s offering lower delivery fees for orders above $100.”

The online landscape is evolving once again and grocerant niche mix and match bundling is once again the undercurrent of change within this sector of retail foodservice.  Here is how 1010data found that consumers “are ordering from Peapod less frequently than its competitors — about once every 20 days — vs. once every two weeks from Amazon Fresh and FreshDirect. The company said those figures were based on customers who made their first orders in the fourth quarter of 2015 so as to ensure data uniformity.”

It’s true that Foodservice Solutions® team was asked to assist Webvan near the end of its existence but it was too little too late for Webvan. Their team while recognizing the value of the Ready-2-Eat and Heat-N-Eat grocerant niche they valued ‘basket size’ over frequency, much like all of the leaders within the sector today with the exception of Amazon via Amazon Prime Now.  The team at Foodservice Solutions® recommends that as industries professionals you have not tried Amazon Prime Now that you do try it.

The consumer is dynamic not static your company, your brand, and you should be as well.  Tacoma, Washington based www.FoodserviceSolutions.us can help you drive top line sales and bottom line profits in our evolving retail landscape.  Contact: Steve@FoodserviceSolutions.us

Sears goes shopping for groceries.



Target, Walgreens, CVS, 7 Eleven, Rite Aid and Sears are all shopping for grocery products and new consumers. Each is hopping too increase brand loyalty, build customer frequency while building top line sales and bottom line profits. Within the retail food sector however the only sector showing solid positive growth is the grocerant niche with Ready-2-Eat and Heat-N-Eat fresh and prepared food.

Will Sears capitulate and follow the two low price leaders Walmart and Royal Ahold and get caught playing catch-up and missing the wave. That would be a very dumb move given the dollar stores sector has gutted any profitability from legacy grocers “center of the store”, with no signs of letting up on that strategy.

Given the mall and urban opportunity Sears could find room in the profitable grocerant niche with Ready-2-Eat and Heat-N-Eat fresh and prepared food. Walgreens early stumble in this sector created an opening. The stumble was driven in large part of legacy category managers protecting turf, not focused on consumer demand or demand growth. Success does leave clues and lets hope Sears pick a few up.

Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. For product or brand positioning assistance contact Steven A. Johnson and Foodservice Solutions® or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson, GOOGLE: Steven Johnson Grocerants or twitter.com/grocerant