Seafood Restaurants Struggle: Why and Seven Fixes

 

In recent years, seafood restaurants have faced an uphill battle, grappling with a perfect storm of challenges. From declining sales to food safety concerns and the mislabeling of seafood, the industry is in a state of flux.  The Grocerant Guru® Steven Johnson of Tacoma, WA based Foodservice Solutions®, has analyzed the intricacies of these struggles and devised seven actionable fixes to help seafood restaurants regain their footing. Let's dive into the numbers and explore the path forward.

The Struggles 

 

Declining Sales

Seafood restaurant sales have seen a significant decline. According to recent data, the seafood dining segment experienced a 7% drop in sales in 2023, with some individual chains reporting even steeper declines. The National Restaurant Association highlighted that foot traffic in seafood restaurants decreased by 5% year-over-year, indicating a waning consumer interest.

Food Safety Concerns

Food safety remains a paramount concern for seafood restaurants. In 2023 alone, there were over 200 reported cases of foodborne illnesses linked to seafood, leading to several high-profile restaurant closures. The Centers for Disease Control and Prevention (CDC) reported a 15% increase in seafood-related foodborne outbreaks compared to the previous year. This uptick has shaken consumer confidence, making them wary of dining at seafood establishments.

Mislabeled Seafood

Mislabeling seafood is another critical issue plaguing the industry. Studies show that up to 30% of seafood sold in restaurants is mislabeled, misleading consumers about what they are actually eating. The Oceana report highlighted that popular species like red snapper and tuna are frequently substituted with cheaper, lower-quality fish. This practice not only deceives customers but also tarnishes the reputation of seafood restaurants.

Viability of Seafood Chains Moving Forward

Despite these challenges, some seafood chains show promise. Red Lobster, Joe’s Crab Shack, and Bonefish Grill have taken steps to address these issues, focusing on transparency, quality, and customer engagement. However, their viability hinges on how well they can adapt to the evolving landscape.

Seven Fixes for Seafood Restaurants

1.       Enhance Food Safety Protocols

Implementing stringent food safety measures is crucial. This includes regular staff training, rigorous kitchen inspections, and adherence to best practices in seafood handling and storage. Partnering with food safety experts can help ensure compliance and build consumer trust.

2.       Improve Supply Chain Transparency

Transparency in the supply chain is vital. Restaurants should source seafood from reputable suppliers who provide clear documentation about the origin and quality of their products. Utilizing blockchain technology can further enhance traceability, giving consumers confidence in the authenticity of their meals.

3.       Educate Consumers

Educating consumers about seafood sustainability and the challenges of the industry can foster trust and loyalty. Hosting events, sharing stories about sourcing practices, and providing information on menu items can demystify the dining experience and create a stronger connection with patrons.

4.       Innovate the Menu

Diversifying and innovating the menu can attract a broader audience. Incorporating plant-based seafood alternatives, introducing seasonal specials, and offering a variety of cooking styles can keep the menu fresh and exciting, appealing to both traditional seafood lovers and new customers.

5.       Focus on Sustainability

Sustainability should be at the forefront of seafood restaurant operations. Partnering with sustainable fisheries, obtaining certifications from organizations like the Marine Stewardship Council (MSC), and reducing the environmental impact of operations can resonate with eco-conscious consumers.

6.       Enhance Customer Experience

Elevating the overall dining experience can differentiate seafood restaurants from competitors. This includes improving ambiance, providing exceptional service, and leveraging technology for seamless reservations and ordering. Creating memorable experiences will encourage repeat visits and positive word-of-mouth.

7.       Leverage Marketing and Branding

A robust marketing strategy is essential. Utilizing social media, engaging in influencer partnerships, and highlighting unique selling points can attract new customers. Emphasizing stories of sustainability, quality, and safety in marketing campaigns can reshape public perception and drive traffic.

Think About This:

The seafood restaurant industry faces significant challenges, but with strategic adjustments, these establishments can turn the tide. By focusing on food safety, transparency, consumer education, menu innovation, sustainability, customer experience, and effective marketing, seafood restaurants can overcome their struggles and thrive in a competitive market. As the Grocerant Guru®, I believe that with the right approach, the future of seafood dining can be both delicious and promising.

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

Bunding Hand-Held Foods Drives Restaurant Sales Growth

 

Do you know who is your customer and where are they shopping today.  That said, don’t stop where will they be shopping next week, next month, next year.  What channels of distribution are your entrees, sides, or deserts selling?

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that if you are not evolving with your consumer’s, you are capitulating market share. If you are a fresh food, meal provider today and want to drive new electricity into your brand or garner new consumers you should know about the Instacart and Roku partnership.

So, Instacart and Roku have teamed up to help consumer packaged goods (CPG) advertisers make TV advertising more relevant and performance-driven across the entire streamer’s journey. A pilot with select partners revealed that consumers who saw the ad on Roku bought more of the advertised products on Instacart. 

You might not know that, in a pilot with a personal care brand, 60% of those who bought the brand after seeing its campaign on the Roku platform were new to the brand. Additionally, those who were exposed to a beverage brand’s Roku campaign and were new buyers of the brand had a 70% higher repeat rate than the average new-to-the-beverage-brand buyer on Instacart.

This new collaboration brings together viewership data from TV streaming platform Roku and insights from grocery tech company Instacart for marketers to measure whether streamers are buying products on Instacart after seeing an ad on the Roku platform. By matching this data with Roku’s first-party data, marketers can gauge the effect of TV streaming advertising on product sales. The companies intend for the partnership to help accelerate the shift of ad dollars into streaming TV and retail media. Consumer interest in TV streaming is growing: According to NielsenIQ, in July 2022, time spent streaming TV was larger than broadcast or cable for the first time.

Alison Levin, VP of ad revenue and marketing solutions at Roku, stated, “Our goal is to help marketers get more of what they love in TV,” noted. “Our partnership with Instacart makes it easier to measure actual return-on-advertising spend in e-commerce and meet consumers where they are – streaming TV.” 

The new capability, Instacart’s first TV streaming measurement partnership, will offer advertisers consumer purchase insights from its Marketplace, which teams with more than 1,100 retail banners and 80,000-plus stores throughout North America. With Instacart Ads, thousands of CPG brands – category leaders and emerging brands alike – work with the company to connect directly with consumers online at the point of purchase.  

Ali Miller, VP of ads product at San Francisco-based Instacart, stated, “With Instacart Ads, we’re committed to providing CPG brands the ad products, automation, insights and measurement they need to help them meet their objectives and prove their investment,” … which is available to more than 95% of households in the United States and Canada…. “We’re proud to partner with America’s No. 1 TV streaming platform, Roku, to give CPG brands even more insights to help them enhance and optimize their campaigns across TV streaming. As we look ahead, we’ll continue to innovate and expand on integrations and insights across every touchpoint of the consumer journey to serve CPGs better.” 

Are you looking for new customers? Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, 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 retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

This new partnership aims to provide innovative full-funnel solutions offering greater accountability in TV streaming. With the addition of Instacart, advertisers can access even more e-commerce data from grocers and drug stores, alcoholic beverages, apparel, beauty, home and office, and pet care products. 

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

Convenience Stores Lenten Fish Copycat Marketing Challenges Restaurants

 

Chain restaurants have catered to consumers Lenten increase in fish consumption for years with “limited time offers” (LTO’s).  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® chain restaurants have set a standard for Lenten LTO’s by offering fish options while eating out. This year convenience store retailers are offering a variety of flavorful food items for consumers to enjoy during the Lenten season in a copycat like marketing positioning with fish items.

For example, Texas Born (TXB) rolled out a new line of savory limited-time offers (LTOs) that are available through the end of March. Customers looking to avoid meat on Fridays during Lent can try TXB's new fish taco for $4.40. It features baked white fish with a hint of chipotle spices, cilantro, onion and shredded lettuce on a flour tortilla, plus a drizzle of serrano aioli thanks to a partnership between TXB and Austin, Texas-based hot sauce maker Yellow Bird

The new, locally sourced menu items also include:

·         Brisket Quesabirria — Available for $5.99 each, this quesadilla is stuffed with savory brisket, a little cilantro and onion, and topped with gooey cheese.

·         Brisket Egg & Cheese Quesadilla — Available for $5.99 each, this brisket breakfast quesadilla is stuffed with savory brisket and fluffy eggs, and has a gooey cheese topping.

The hearty, on-the-go LTO meals fit with TXB's everyday goal of providing guests with fresh meals that are convenient and directly compete with restaurant-quality menu items, according to the company. This is part of the convenience store operator's larger initiative to "Leave 'em Better" by sourcing delicious, locally sourced ingredients from around Texas.

The largest global food franchiser, 7-Eleven Inc. announced that it is offering a "fin-tastic" deal for the Lenten season that has "o-fish-ally" arrived. For a limited time only, 7Rewards and Speedy Rewards loyalty program members who are looking for a meat alternative can coast to the nearest 7-Eleven, Speedway or Stripes convenience store to enjoy $2 Fish Sandwich Fridays.

In partnership with the Association of Genuine Alaska Pollock Producers, 7-Eleven offers a garlic herb wild Alaska pollock filet that is topped with American cheese and tangy tartar sauce, all served on a warm brioche bun.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

 

Foodservice Customers Pick Price Over Convenience and Experience

 

If you do not think that the price of your food matters you are wrong.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, ho stated, “the price, value, service equilibrium is evolving faster than the wholesale prices the foodservice operators are experiencing.”

Now, according to Mintel, 51 percent of Americans say they are currently concerned about the future of the economy. A same time, a similar share (48 percent) feel confident their financial situation will improve in the next 12 months. That is the good and the bad news. 

Let’s see what Mintel found by digging deeper, nine in 10 consumers (94 percent) say they are currently worried about inflation, and 67 percent believe the majority of Americans share in these concerns, while a third (34 percent) believe it's other Americans — rather than themselves — who are financially struggling right now. Meanwhile, 22 percent of Americans overall, and 31 percent of parents, say they are struggling to cover day-to-day expenses.

Inflationary pressures are driving consumers to cut back on nonessential purchases (40 percent) and dining out (37 percent), said the research firm.

Do you Want to Build Top Line Sales

Remember PRICE Matters

Do you Want To Grow Share of Stomach

Lisa Dubina, associate director of Culture & Identity, at Mintel, stated, "Americans' heightened concern about the country's economic future — which greatly exceeds all other surveyed financial concerns — is likely due to the current laser-sharp focus on this topic across news media, the political arena and among business leaders,".

Dudina continued, "While not all consumers consider themselves financially struggling at this time, many are already adjusting their shopping behaviors regardless of their level of financial comfort," ... "To support struggling and concerned consumers, brands need to find creative ways to demonstrate the value of their products and services and tangibly reward customers as a way of building brand loyalty and repeat business."  Here is more from Mintel:

Generational Differences

According to Mintel, age and current life stage affect consumers' greatest financial concern. Consumers aged 55 to 64 are more focused on big-picture concerns including the overall well-being of the economy and their personal retirement savings.

Conversely, Gen Z consumers (18 to 24), are more concerned with their own short-term financial well-being: maintaining their current standard of living, ability to pay their bills and ability to afford day-to-day necessities.

With these concerns in mind, Dubina pointed out that brands will need to consider these key differences to resonate with each generation.

Price Over Convenience & Sustainability

The research firm also pointed out that consumers are willing to pay more for higher quality; however, there's little else they prioritize before lower prices. More than six in 10 consumers prefer lower prices over a convenient shopping experience, and 57 percent say they prioritize lower pricing over sustainable brand options.

Additionally, 63 percent of consumers say that brand name is not important to them when shopping most categories, yet 59 percent of people agree they'd rather pay more for a higher quality product than pay less to receive average quality.

"As consumers struggle to adapt to rising prices due to inflation and product shortages, they are likely to continue choosing the best price over the more sustainable and more expensive option," Dubina said. "Understanding that now is a difficult time for retailers to offer more discounts due to challenges like supply chain issues and the rising price of labor cutting into profit margins, offering creative perks and benefits to customers can increase the value of purchases and help build long-term customer loyalty.

"Now more than ever, it's important for brands to not only communicate the value of their products and services but also prove it to consumers who are increasingly looking to avoid financial risk or waste," Dubina added.

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

Nathan’s Famous Growing at the intersection of Yesterday and Today

 

Author Stephen King famously wrote “Sooner or later, everything old is new again.’ Well, Nathan Handwerker started Nathan’s in 1916 and Nathan’s Famous has continued to find ways to drive new electricity into the brand while keeping customer coming back according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

When Nathan’s Famous announced that they were adding Arthur Treacher’s Fish & Chips to its portfolio as a virtual brand and updating their menu to include more proteins, including a focus on shrimp you could hear the cash piling up in the till driving incremental revenue.

Back in the day, Arthur Treacher’s was a major quick-service fried seafood chain founded in Columbus, Oh. that hit its peak in the 1970s with more than 800 locations. The UK-style fish and chips chain was named after British actor, Arthur Treacher, who was known for playing butler roles.  

So, looking a customer ahead, in 2002, Nathan’s acquired the rights to market and co-brand Arthur Treacher’s products. As of 2018, there were only three original Arthur Treacher’s restaurants left in North America, with all three located in Northeastern Ohio, according to Cleveland.com. The remaining stores have become a pilgrimage for those who remember the brand, particularly during Lent.

Nathan’s wants to bring the once-prosperous franchise back to life through virtual restaurants.

James Walker, senior vice president of restaurants at Nathan’s Famous, stated, "We are thrilled to provide operators across the country with the opportunity to add Arthur Treacher’s to their portfolio.”…  “Nathan’s Famous and Arthur Treacher’s have a long-standing relationship and we have worked diligently to keep the brand’s traditional menu items while also evolving the menu to fit the Nathan’s mantra of the ‘craveable, memorable and Instagrammable’ product that we believe both operators and customers will love.”

Back to Stephen King’s now old adage, “Sooner or later, everything old is new again.”  The updated menu will include a fish and chips sandwich, fish and chips platter, the Captain’s Dinner with a little bit of everything, shrimp and chips basket, chicken platter, shrimp and fish basket, Boom Boom Shrimp platter, Boom Boom Fries, and a few Nathan’s Famous products including Nathan’s Famous hot dogs as well as the brand’s newly released chicken sandwiches. How are you driving top-line sales and bottom-line profits with relevance?

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? 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.

In A Battle for Share of Stomach

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