Grocers Grocerant Advantage Technology Driven Marketing Tool Kit

 

Grocerant Niche Ready-2-Eat and Heat-N-Eat fresh prepared food fuels consumer refrigerators at a rate we have never before seen.  I know, regular readers of this blog know that Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, has endlessly pontificated with insights from Foodservice Solutions® proprietary Grocerant ScoreCards, along with countless supporting facts from industry leading food focused companies. 

What has evolved into a “battle for Share of Stomach” the grocery sector has developed a food focused marketing tool kit driven with technology that if integrated properly could sway consumers back to the grocery sector according to Johnson.   

Are You Building A 

Larger Share of Stomach?

All food retailers understand that freshness is an important attribute that is key to staying competitive in today's retail market — whether the competing retailers are restaurants, convenience stores, supermarkets or other non-traditional foodservice outlets. Below is a recent recap from the NRF 2024:

Today retailers implementing technology-based automation solutions can make a major difference, shared Pat Iannotti, director of retail operations at Price Chopper Supermarkets/Market 32, while onstage at NRF 2024: Retail's Big Show on Jan. 15, 2024 stated.

Price Chopper had its own forecasting module, but prior to partnering with cloud-based platform provider Invrafresh and rolling out its production planning tool, it always seemed to be behind the trends on what customers were looking for.

"We realized that when you're not keeping up with the trends, when you're not keeping up with the customers, it could lead to one of two things, either overproduction or underproduction," Iannotti said during the "Unveiling Automation's Wow Factor With Invafresh" session.

Iannotti added that overproduction leads to more markdowns, higher shrink and spending labor where it isn't necessary, while underproduction leads to out-of-stocks, disappointed customers, and lost sales and profits.

The biggest difference in the company's processes is that the production planning tool "takes the guesswork out of fresh item management," he said. "There's no more gut feel that our teammates have to use when deciding how much product to make and at what times of the day to make it. They use the system."

The tool isn't a one-and-done solution, as company management continually examines the data to make sure that the algorithm's production recommendations are accurate. Retailers should prepare to put effort into employee adoption.

"It's a constant battle to get your folks to embrace the technology and not use it as a mandate," Iannotti said. "We want to teach them so that they see the value in what they're doing and realize 'boy, this makes my life a lot easier if I use this product.'"

The rise of complex, data-based solutions is a major boon for fresh foodservice, according to Matt Schwartz, CEO and co-founder of Afresh Technologies, which seeks to help grocers make smarter decisions throughout their fresh supply chain.

"Fresh food is the strategic heart of the retail business, especially in grocery. It's really what drives people to choose where they shop," Schwartz said during the "Driving Optimal Decision-Making in Fresh Grocery" session. 

He pointed out that in the past, even "mission-critical functions" such as ordering, replenishment, production, merchandising and supply chain were processed manually or by using systems that were not designed with freshness in mind. This prevented retailers from doing their best in the category and had a negative effect on the core customer experience.

Offering fresh products doesn't have to mean charging high prices. John Clear, senior director at Alvarez & Marsal Consumer Retail Group, pointed out that leveraging improved processes and performance can drive efficiencies and allow retailers to target customers that may be traditionally underserved in fresh while still making money.

Another important factor is the halo effect that fresh has on the broader store. "Interestingly with my current client and my current engagement, we see a really clear correlation between transaction growth for the whole store and then sales performance and fresh," Clear said.

The key is that the customer who needs to buy fresh items comes back more regularly and adds additional items when they do.

A quality fresh offering also contributes to the overall perception of a store, he noted.

The biggest challenges to success with fresh include high expectations of people who may not have the proper training tools and an ongoing time crunch. The complexity that comes with a responsive, market-focused fresh offering can also add to shrink and difficulty in executing.

"If I look at retailers that are really successful in their businesses and driving that halo effect and fresh, they find ways to drive the experience of fresh in their stores," Clear said. "They're having more of an assortment allocated to fresh food. They're more dynamically adjusting what they offer."

That's where today's fresh-focused solutions can make a big difference, according to Clear. "I think the opportunity then goes back to the how can technology, if it's purpose built for these fresh categories, actually make that a scalable thing for a retailer to roll out," he noted. 

In case you did not know, NRF 2024: Retail's Big Show, the National Retail Federation's annual show, took place Jan. 13-16 at the Jacob K. Javits Convention Center in New York. Are you utilizing all the tools in your marketing tool too your best advantage?

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

Freebirds World Burrito Thinking Like the Smartest of College Students

 

Taking about customer relevance, college students are targeted by every sector of foodservice for their ‘life time value as a customer and propensity for eating out while a student according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

That said, today’s college students are digital natives, and technology is as normal for them as wearing shoes.  Ok, I’m old but back in my day most students sat in the grass, with grass and most did not wear shoes.  So, Freebirds World Burrito is not testing robotic takeout stations. That I believe will be a home run with college students.

So, Now Cuisine and Freebirds World Burrito, known as Texas’ No. 1 Burrito, have entered into a strategic partnership including a pilot program to bring Freebirds’ beloved and craveable bowls to new locations throughout the Dallas area using Now Cuisine’s robotic Takeout Stations.

Now Cuisine’s Takeout Stations are compact, fully-automated, AI-enabled kiosks that can be placed nearly anywhere to serve freshly made-to-order hot meals in minutes, 24/7. Freebirds has issued a purchase order to Now Cuisine which will allow its food to be served in multiple Takeout Stations in Texas as part of the pilot.

According to Now Cuisine Founder and Chief Executive Officer, Adam Lloyd Cohen, “Forward thinking leaders and companies like Alex and Freebirds are experimenting with technology to bring their great food much closer to the people they serve, making it more convenient to eat a delicious hot meal wherever one happens to be, any time of day or night.”

Restaurant-branded Takeout Stations will likely initially be placed in multifamily and office buildings, with plans to later expand to college campuses, airports, hotels, and other locations.

Alex Eagle, Chief Executive Officer for Freebirds World Burrito added, “We’re continuing to invest in new technologies that give people the option to have Freebirds’ craveable bowls whenever and wherever they want them. It’s just cool that a Texas-based AI and robotics company can help a Texas-based burrito company expand in ways we could only imagine just a few years ago.”

As part of the partnership, Eagle is joining Now Cuisine’s advisory board, where he will provide strategic guidance on marketing Now Cuisine and expanding operations throughout Texas.

Now Cuisine is bringing to market a new category of foodservice that addresses the fundamental mismatch between the distribution of people (who are nearly everywhere) and that of restaurants (which tend to be clustered, for example, in retail locations). The result is that enjoying a good meal—if it’s available at all—too often requires people take the time to travel to a restaurant or pay extra for someone to make the trip for them. Through its vision of Distributed Dining™, Now Cuisine seeks to democratize access to delicious, healthful, affordable food, making it ubiquitous and always nearby: wherever people live, work, and play. Through a connected network of Takeout Stations, Now Cuisine is working to improve nutrition, shrink food deserts, save precious time, and reduce waste, traffic, and emissions.

As Texas’ No. 1 Burrito and consumer choice for “Most Craveable Brand,” Freebirds uses certified Master Grillers to ensure its single-cut meats are marinated and grilled to perfection. With the most flavorful marinades and sauces in Texas, Freebirds is consistently craveable. “It’s Your World” at Freebirds where burritos and bowls are customizable and personalized with signature ingredients, including premium meats, guacamole, legendary Queso Blanco and other delicious options you won’t find anywhere else.

The partnership with Now Cuisine is just one of many investments in technology that is fueling Freebirds’ dynamic growth. Freebirds recently announced a new partnership Qu unified omnichannel ordering platform to integrate a wide range of systems and give guests their Freebirds favorites faster wherever they want to order or pick up their meal. Qu’s cloud-based design will let Freebirds experiment with additional mobile and non-traditional outlets. Freebirds is planning to double its total number of locations over the next 5 years, if not faster.  The main areas of expansion will be across Austin, Dallas, Houston and San Antonio, though the growth will see locations open across the state. The brand has already announced new restaurant openings in the pipeline in Kingwood, Spring, Katy and Dripping Springs. With its current growth rate, Freebirds will solidify its position as Texas’ second largest burrito chain.

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