Restaurants, C-Stores, Deli’s It’s Not too late to start with Online Ordering

 

When you think about selling a meal or meal component, have you continued to say no way, not at all, or I tried it and it did not work for me? Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® wants you to rethink your position. Ask yourself why us and why now?

Here are some insights and research excerpts from our friends at Paytronix. That will help you understand why many restaurants, c-stores, and delis utilize online ordering, and why it might be time for you to test the waters.

“While restaurants, namely quick service (QSRs), have embraced digital ordering, not all convenience stores have taken the leap. Early adopters, such as United Dairy Farmers (UDF), are discovering that adding order and delivery to their digital guest engagement platform is a great way to increase sales on high-margin in-store merchandise, such as fresh-baked items and signature ice cream treats. 

But adding digital ordering doesn’t stand alone. It must be considered as part of a much larger digital guest engagement ecosystem. 

During the pandemic, digital orders emerged as a key part of the mix and are now expected by most customers. The nature of digital orders has changed as well. While delivery was king before and during the height of the pandemic, more recent data indicates that takeout orders now dominate this digital channel, with numbers even higher than they were pre-pandemic. Takeout jumped from approximately 35 percent of orders in January 2020 to nearly 64 percent now. 

What’s more, to meet customers where they are, brands must have a mobile app, and that app must work perfectly with loyalty rewards, your messaging platform and your CRM (customer relationship management). 

Sticking a Toe in the Water

As more and more c-stores expand their physical footprint to accommodate bakery and hot grill items, moving these fresh food items has become a big priority. Like QSRs, c-stores are gravitating toward a takeout model.

C-stores that facilitate this upswing in takeout orders through third-party services are finding a new, receptive client base waiting for them. Google Ordering is one example, with merchants who implement Google Ordering achieving a 0.08 percent lift in orders.

For UDF, which has 170 retail locations throughout the greater Cincinnati area as well as Dayton and Columbus, Ohio, online ordering was a natural extension of its existing U-Drive Plus loyalty program. With loyalty members driving 37 percent of overall sales, UDF welcomed online orders via its website or mobile app. Customers can now order ahead for a coffee and freshly baked doughnuts, and then pick up their breakfast on the way to work. 

Digital ordering also makes it easier for fuel buyers to get in and out of UDF stores and enjoy the brand’s growing assortment of “Oven Side” bakery products, hot food and ice cream treats. Customers are encouraged to shop in whatever way best meets their needs. Whether it’s supporting an in-store visit, an at-home delivery or a curbside pickup, the UDF guest engagement platform captures each transaction and builds a comprehensive view of guest preferences.

This further allows UDF to segment guests by fuel buyers vs. merchandise buyers, or even lapsed fuel buyers vs. those with high fuel buying frequency. Once UDF knows how frequently a guest visits and what they are purchasing, the retailer can create a personalized cadence. 

UDF can generate a 1-to-1 win back campaign or a 1-to-1 visit challenge for individuals. It can experiment with incentives — will a guest respond to Red Bull or Monster? — and continually finetune its loyalty campaigns so that they are always delivering value to customers.

Smart brands are aligning their guest engagement platform to bring online ordering together with loyalty, mobile apps, CRM and messaging. Many will face the temptation to go with a best-of-breed approach and find just the right point solution for each component. The challenge with that approach is that if the pieces aren’t perfectly aligned, it can create operational inefficiencies that will act as a barrier to achieving the most out of the solution. With today’s demanding guests, it is best to create the easiest path to the strongest level of guest engagement. “

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 than tomorrow?  Visit GrocerantGuru.com 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.

7-Eleven Adapting Technology Elevating Consumer Relevance

 

Yes, the company that branded the Slurpee back in 1966 and is famous for it around at over 79, 115 stores continues to listen to its customers and elevate hot button consumer focused issues according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Consumers are dynamic not static and legacy brands need to be dynamic as well.

Just in case you are young and reading this blog for the first time, early on, 7-Eleven questioned how technology innovation could help it grow, and then wasted no time testing and implementing new innovations aka the Slurpee. Over time, the c-store behemoth has evolved to remain on the cutting edge of technological advancements in the convenience store industry with delivery.

This year CStore Decisions recognized 7-Eleven as part of our Tech Innovation Awards for its diligent focus on its delivery app, 7Next research and development projects, and its commitment to technological adoption.

Raghu Mahadevan, senior vice president and chief digital officer of 7-Eleven, stated, “Our mission from a digital perspective is set up to deliver the vision and mission of the company: revolutionize convenience to delight customers, stores and franchisees — enabling 7-Eleven’s vision to be customers’ first choice for convenience, anytime and anywhere,”

Along with programs for customers, 7-Eleven developed technology initiatives for its store leaders, associates and franchisees, such as its 7MD device. The 7MD mobile, handheld point-of-sale device brings speed to ordering, inventory control and checking out customers.

Did you know that one of 7-Eleven’s biggest digital accomplishments is its 7NOW delivery app, which can provide access to 3,000-plus products?

Regular reader of this blog know that, 7NOW was launched in 2018, and the service has expanded to reach throughout the U.S. Groceries, over-the-counter medicines, household goods and a range of food and beverage options, including pizza, Slurpee drinks, beer, wine and more are all available to customers 24/7.

Mahadevan continued, “We believe we are in a unique position because of our proximity to the customer — more than 50% of the U.S. population lives within two miles of a 7-Eleven or Speedway store,”.

This is important and show how it helps when you have over 79,115 stores, as the delivery locations are flexible. Customers can receive delivery wherever they find most convenient using 7NOW Pins, including parks, beaches, sports fields, entertainment venues and other public places. 

As it has with its 7-Eleven stores, the company plans to expand 7NOW delivery to Speedway stores across the U.S.

7-Eleven also launched the 7NOW Gold Pass, which offers customers the ability to have their delivery fee waived for a monthly cost of $5.95. With roughly three delivery orders per month, the service pays for itself.

“The introduction of the 7NOW Gold Pass is part of a company-wide commitment to bring value and delight to every customer experience, both in and out of the store,” Mahadevan remarked.

The next generation of customers are Gen Z, they are also digital natives. So, 7-Eleven’s research and development (R&D) center, 7NEXT, provides a space for the chain to discover new ways to “expand digital touchpoints with customers while chasing disruptive ideas that will define the customer experience and store of the future,” said Mahadevan.

It aims to solve customer problems and develop a quicker and more personalized shopping experience in and out of the store with new products and services. Its proprietary technology allows 7-Eleven to test programs before scaling them to customers.

One example of 7-Eleven’s R&D work is its cashierless store at the Store Support Center. An assortment of products, including hot and fresh food and beverages, are supported by the frictionless tech.

Looking a customer ahead, after living with the pandemic and customers’ shifted perceptions and priorities, 7-Eleven knew one of the best ways to cater to its customers was by accelerating “critical technology initiatives within the 7-Eleven app to ensure customers can shop at 7-Eleven the way they want to shop: safe and convenient while also being rewarded,” according to Mahadevan.

In 2022 and beyond, 7-Eleven plans to capitalize on its goal of increased ease and access by expanding the delivery from Laredo Taco Co. and Raise the Roost, its two major restaurant banners. The chain is also working to provide further assortment options in popular categories such as non-alcoholic beverages, snacks, and beer and seltzers.

“We want to continue to provide our customers with what they want,” Mahadevan said.

In another move to use technology innovation, 7-Eleven partnered with U.S. robotics company Nuro to launch the first commercial autonomous delivery service in California.

“We’ll have more exciting autonomous delivery announcements to come in the future — so stay tuned,” Mahadevan revealed.

Mahadevan believes that personalization will be important for loyalty and convenience in the c-store industry regarding the increasing popularity of digital/virtual services.

“For our customers, the top priority is to deliver a delightful personalized experience and cater to immediate adjacencies, by making an already-convenient experience even more convenient,” he said. 

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. 

Are Food Halls a Destination or a Rest Stop?

 

Food Halls are the darling of legacy food industry publications, new papers, and mall developers looking for readers or for foot traffic.  The question Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® asks is call it a food hall or food court industry buzz will fade and traffic will slip in the focus is not on consumers food and beverage consumption preferences.

Restaurant turn-over in traditional food courts located in malls, airports, and unban-setting have been devesting to many a local start-up brand as the mall traffic slides, airport traffic evolves, or the urban core changes so do the retails that operate in those locations. 

So, the question becomes are food halls a destination location for top line sales and bottom-line profits? We should be asking is the short-term exposure to publicity worth the cost of a ‘high turnover’ within the food court/food hall that has become so inevitable.

So, SAJJ Mediterranean has launched a second SAJJ Kitchen in Palo Alto, CA with partners Local Kitchens, a pioneering micro food hall concept. Located at 369 California Ave, SAJJ Kitchen Palo Alto will be open daily from 11am to midnight, hosting guests for indoor or outdoor dining and fulfilling online orders. Customers will be able to order in-store via kiosks, and online for pickup or delivery through the Local Kitchens website or third-party delivery services. Do you think this is a good fit?

CEO of SAJJ Mediterranean Zaid Ayoub, stated, “We first partnered with Local Kitchens earlier this year with the first SAJJ Kitchen in Cupertino, CA as a way to expand our customer base” … “With the boom of digital ordering and the successful pilot of the Cupertino location, we’re excited to launch our second SAJJ Kitchen location with Local Kitchens in Palo Alto to help meet the needs of SAJJ’s new and existing customers in the area. We’re so impressed with the Local Kitchens team and chefs who will create each meal on-site and continue to wonderfully represent the SAJJ brand.”

We most note that Local Kitchens was founded by former DoorDash colleagues, CEO Jon Goldsmith and COO Andrew Munday, and CTO Jordan Bramble. The entrepreneurs set out to transform the concept of a food hall for the digital age. Local Kitchens’ Palo Alto site features a storefront and a dedicated takeout customer experience with staff from local communities, who have been meticulously trained by restaurant partners to prepare each meal on-site. The micro food hall concept allows customers to mix and match cuisines from different restaurants, like SAJJ Kitchen, in a single order. We ask is that how consumers view the platform?

Jon Goldsmith, CEO of Local Kitchens, stated, “SAJJ's vibrant flavors and customizable dishes have been a very popular choice at our locations - both as standalone menu items, and as a unique component of our guest's combined menu orders," ... "We're beyond excited to include SAJJ Mediterranean in the collection of beloved brands we are bringing to the Palo Alto Community."

If you are focusing in on food hall messaging, your brand might simply be at a rest stop waiting for customers to help you define your brand.

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

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh Food Packaged Sells

 

Ready-2-Eat and Heat-N-Eat fresh food Portioned, Portable, Product, with the right Placement, and Price continues to garner incremental customers within the foodservice retail space as COVID-19 continues to linger according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Yes, those are the FIVE P’s of fresh food marketing first identified, quantified, and qualified by Foodservice Solutions®, Grocerant Guru® back in the day. What’s happening today to continue driving top line sales and bottom-line profits with the grocerant niche.  It’s simple the price of freedom has gone up. 

How so? According to the Pew Research Center in Washington, D.C., a majority of young adults (18- to 29-year-olds) in the U.S. live with one or both of their parents for the first time since the Great Depression. Freedom you say.  The ‘kids’ want to be away at school, at work, or play and parents thought they would be gone as well.  No one wants to cook from scratch or eat at the same time so discontent at home and at the dinner table is on the rise according to Johnson.

Here is the problem consumers want the ability to customize and order and personalize a meal. Thus, creating a quagmire for many retailers.  Tim Powell of Foodservice IP conducted some research and stated that "We are seeing more consumers opt for something prepackaged for safety reasons. "The thinking is the food handling by the staff is eliminated." Let’s see what else Powell found:

Foodservice IP has identified four customer mindsets developed in response to the coronavirus pandemic, with each one having different impacts on the foodservice category: 

1.       The Fearful: These consumers are terrified the virus will kill them or their loved ones, resent those who do not follow safety guidelines, and will not shop or visit a restaurant until a vaccine is found. Food handling concerns are also an issue when it comes to delivery.

2.       Cautionaries: These consumers realize the severity of the virus and will follow state and federal rules. Their use of takeout and delivery is minimal, and they'll make use of the drive-thru instead of entering the building.

3.       The Followers: They view the virus as an inconvenience but are not distraught about it, and will sometimes wear protective gear if the social context calls for it. It is common for them to order food for takeout, curbside and delivery.

4.       The Ambivalent: They throw caution to the wind, are unlikely to wear protective gear unless a retailer mandates it, and may resent others for taking the virus too seriously. Their behavior will return to normal once restaurant operations resume.

Here is the rub, according to the Grocerant Guru® every time a retailer converts a Grocerant Niche Ready-2-Eat and Heat-N-Eat fresh food item into a CPG product, consumers push back.  That said in the short- run packaging is more important than ever. It plays a significant role in how consumers rate their off-premise dining experiences. Fresh and Fast are still the number one and two attributes consumers are looking for in prepared food at 78.3% and 77.6% respectively according to recent Grocerant ScoreCards.

Now according to Anchor, noting that many people turned to social media during the COVID-19 crisis to both praise well-packaged food that looked and tasted good and to complain about poor experiences. Such voices will continue to be amplified as usage of takeout and delivery remains high.

Packaging for hot to-go food should include the following:

·         Leak-resistant, tight closures to avoid messy spills en route;

·         Special features to keep fried foods hot and crisp;

·         Reclosable bases and lids made with dishwasher-safe, reusable materials;

·         The ability to withstand temperatures up to 230 degrees Fahrenheit under a heat lamp or in the microwave; and

·         Capable of consumer reuse and being recycled after multiple use

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

Technology Drives Convenience Store Sales

 

Restaurants success with mobile contactless ordering, pick-up, and marketing helped propel sales so much that grocery stores the ilk of Walmart, Kroger, and Publix have jumped in and consumers adoption of mobile ordering continues to accelerate according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Convenience stores need a strong digital strategy to meet new consumer demand and adoption of and for less contact, or even no contact ordering and pick-up according to Johnson

Pepared food is the primary driver of the foodservice category within Convenience stores, generating 47% of the category’s sales industrywide.  Among small operators, prepared food accounts for more than half of the category’s sales at 53%, compared to 38% for large operators.  Johnson added that 83.1% all dinners have at least 1 meal component and 68.4% have two meal components. 

Mike Flebotte, partner at Business Accelerator Team, said during the recent Conexxus 2020 Annual Education and Strategy Conference stated, "Being mobile-friendly is very important at this point,". "So many consumers are looking at mobile devices and trending toward mobile that it is really essential for retailers to have a mobile-friendly web presence."

Millennials matter as the average daily mobile internet usage of millennials aged 25 to 34 was almost four hours. Flebotte continues "Operators focused on appealing to this generation of shoppers really have to make sure their website is responsive across all devices,". 

With a digital marketing strategy geared toward increasing customer visits, Flebotte said there are two ways for c-store retailers to drive visits and sales: sell current customers more and more often, and increase total customer count.

This is important mobile apps drive conversion more so than websites, according to Flebotte. In fact, mobile apps can generate up to 300 percent higher conversion rates than a website. "Operators evaluating the cost to maintain both — responsive website and a separate mobile app — should consider potentially a web app," he said.

Other best practices he offered for developing a digital strategy to drive traffic are:

·         Plan for integration;

·         Have a mobile strategy that enables two-way communication between the customer and the brand;

·         Plan to be flexible;

·         Redefine success; and,

·         Think outside the box.

"Looking outside of your industry for marketing innovation and finding new ways to stand out against your competition is essential," Flebotte said. "As platforms continue to evolve, and shopping behaviors continue to change and shift, it's important for retailers to try to stay ahead of the curve seeking new and innovative ways to leverage technology to more effectively market to customers." Are you looking a customer ahead?

C-stores have an opportunity with mobile commerce, and it starts with registering the consumer and moving him/her into the path to purchase journey, according to fellow Conexxus Conference presenter Don Frieden, CEO and founder of P97, a mobile commerce and digital marketing platform provider. 

Consumers will want more than just mobile ordering.  The opportunity to provide multichannel marketing, such as emails and in-app messaging, to influence the consumer along the journey. And then, step three is to leverage geolocation by having all the retailer's locations in the platform.

Additional steps in the mobile commerce journey, Frieden cited, are:

·         Mobile pay at the pump;

·         Mobile order ahead; and

·         Loyalty rewards and targeted offers. 

The benefits of moving a consumer to mobile are in the numbers, Frieden pointed out. Comparing NACS State of the Industry (SOI) data to P97 data, he cited that the average gallons per transaction based on card-based transactions is approximately 10.8 gallons per SOI's findings vs. an average of 12.2 gallons based on mobile transactions per P97's findings. Are you looking a customer ahead?

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 one of the following links: Facebook,  LinkedIn, or Twitter