Chain Restaurant CEOs Need to Spend More Time Focused on Share of Stomach

 

The team at Tacoma, WA based Foodservice Solutions® including Steven Johnson the Grocerant Guru® here, ready to serve up some tasty insights on a critical issue facing the restaurant sector and food industry today. As we witness a seismic shift in dining habits, it's high time for chain restaurant CEOs to pivot their focus towards capturing a larger "share of stomach." With Gen Z and Millennials veering away from legacy brand offerings, it's crucial to understand the forces driving this migration and explore new avenues of food discovery and distribution.

The Changing Palate of Gen Z and Millennials

Gone are the days when the allure of a big-name restaurant was enough to draw in the crowds. Today's younger generations, particularly Gen Z and Millennials, are redefining their dining experiences. According to a study by YPulse, 63% of Gen Z and 59% of Millennials prefer to try new foods rather than sticking to familiar brands. This trend signifies a growing appetite for novelty, diversity, and unique culinary experiences.

The Rise of Food Discovery

The pursuit of food discovery has led these generations away from legacy brands and towards more eclectic and diverse food options. Social media platforms like Instagram and TikTok play a massive role in this shift. A report by Morning Consult found that 53% of Gen Zers and 47% of Millennials have tried a new restaurant or food product based on social media recommendations. The visual and viral nature of these platforms fuels curiosity and encourages exploration, making traditional marketing strategies less effective.

Alternative Avenues of Distribution

As the Grocerant Guru®, I can't stress enough the importance of understanding the new distribution channels that are gaining traction. Ghost kitchens, food trucks, and meal kit delivery services are revolutionizing the way we access and enjoy food. Euromonitor International projects that the ghost kitchen market could reach $1 trillion globally by 2030. These innovative concepts cater to the on-demand, convenience-driven lifestyles of younger consumers.

The Decline of Legacy Brands

Legacy restaurant brands are feeling the heat. A study by Piper Sandler revealed that only 16% of Gen Z teens name a traditional fast-food chain as their favorite restaurant. Instead, they're flocking to niche, local, and artisanal food providers that offer authenticity and a personal touch. This migration away from well-established chains underscores the need for CEOs to rethink their strategies and innovate.

Capturing a Larger Share of Stomach

So, what can chain restaurant CEOs do to capture a larger share of stomach? Here are some spicy strategies from your Grocerant Guru®:

1.       Embrace Culinary Innovation: Experiment with new flavors, ingredients, and cooking techniques. Fusion cuisine and limited-time offerings can create buzz and draw in curious diners.

2.       Leverage Social Media: Engage with younger audiences on platforms they frequent. User-generated content, influencer partnerships, and visually appealing posts can drive food discovery.

3.       Expand Distribution Channels: Invest in ghost kitchens, food trucks, and meal kits. These flexible and scalable options can reach customers wherever they are.

4.       Focus on Sustainability: Gen Z and Millennials prioritize sustainability. A Nielsen report found that 75% of Millennials are eco-conscious. Implement eco-friendly practices and communicate them effectively.

5.       Personalize the Experience: Use data and technology to tailor dining experiences. Loyalty programs, personalized recommendations, and mobile ordering can enhance customer satisfaction.

Think About This

The dining landscape is evolving rapidly, and chain restaurant CEOs must adapt to stay relevant. By focusing on share of stomach and embracing the trends of food discovery and alternative distribution, they can tap into the desires of Gen Z and Millennials. As your Grocerant Guru®, I encourage these leaders to spice things up and innovate. The future of dining is diverse, dynamic, and delicious!

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.

What Happened to Dinner Time?

 

Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, is here once again to dish out some delicious insights on a topic that's been simmering on the back burner for a while: the decline of the traditional family dinner. Once a staple of family life, dinner time has undergone a radical transformation. Let's dig into the facts and figures behind this culinary conundrum.

The Decline of Family Dinner Time

Gone are the days when families gathered around the dinner table at a set time each evening. According to a study by the Hartman Group, only 30% of families manage to eat dinner together every night. This number has been steadily decreasing over the past few decades. So, what's behind this shift?

The Rise of Individual Meal Times

Modern life is a whirlwind of activities, commitments, and diverse schedules. A study by the American College of Pediatricians found that 60% of parents report having less time for family meals due to work and extracurricular activities. This has given rise to "individual meal times," where family members eat whenever it's convenient for them.

The Impact of Technology

Technology has also played a significant role in this shift. The Pew Research Center found that 88% of adults and 95% of teens own a smartphone. With so many screens vying for our attention, it's no wonder that dinner time is often disrupted. Instead of conversing over a home-cooked meal, many families find themselves eating in front of the TV or while scrolling through social media.

Convenience Foods and Grocerants

As the Grocerant Guru®, I can't help but highlight the role of convenience foods and grocerants (grocery store restaurants) in this trend. The Food Marketing Institute reports that 63% of consumers purchase prepared foods from grocery stores at least once a month. These ready-to-eat meals are perfect for busy families who don't have the time or energy to cook. Grocerants, with their wide array of fresh and convenient meal options, cater to this growing demand for quick, individualized dining experiences.

The Social and Nutritional Implications

While individual meal times offer flexibility, they come with their own set of challenges. Studies have shown that families who eat together tend to have healthier eating habits. According to the Family Dinner Project, children who regularly eat with their families are less likely to be overweight and more likely to eat nutritious foods. Additionally, family meals provide a valuable opportunity for communication and bonding, which is often lost when everyone eats separately.

Do you Want to Build A 

Larger Share of Stomach?

The Grocerant Guru's Tips for Bringing Back Family Dinners

While the traditional family dinner might be on the decline, it's not entirely extinct. Here are a few tips from the Grocerant Guru to help bring back the magic of shared meals:

1.       Plan Ahead: Set aside specific days for family dinners and involve everyone in meal planning. This can create anticipation and make the meal more special.

2.       Unplug During Dinner: Make the dinner table a no-phone zone to encourage conversation and connection.

3.       Utilize Grocerants Wisely: Take advantage of the convenience offered by grocerants, but try to eat these meals together as a family.

4.       Make It Fun: Turn dinner into a fun activity. Try themed dinners, cooking together, or even having a picnic in the living room.

Think About This

The evolution of dinner time reflects broader changes in our society. While the shift towards individual meal times offers convenience, it's important to remember the value of shared meals. As the Grocerant Guru®, I encourage you to find a balance that works for your family. Whether it's once a week or every night, make an effort to sit down, share a meal, and savor the moments together.

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 Elevated Fresh Foods Sales Success Crushing Blow for Grocery Deli’s

 

At the intersection of growth fresh food sales specifically Ready-2-Eat and Heat-N-Eat prepared food the convenience store sector is simply trouncing the grocery store sector.  In fact, Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated, grocery stores should be embarrassed by the way the convenience store sector and garnered share of stomach by simply focusing on the eating habits of our evolving consumer.”

As the Grocerant Guru®, I've always championed the grocery store deli as a delicious and convenient option for busy shoppers. But let's face the facts, folks – convenience stores are giving the grocery store deli a run for their money. On top of that restaurant takeout food growth is simply another point of market share capitulation by grocery stores.  

Here's the skinny: Convenience store foodservice sales are booming, with prepared foods making up a whopping 33.9% of their in-store gross profits. That's a bigger slice of the pie than grocery store delis can claim these days.

Why the shift? Convenience stores are winning on three fronts:

1.        Speed and Simplicity: They excel at grab-and-go options. Think hot dogs rolling on a warmer, pre-made salads, and single-serve beverages – perfect for time-pressed customers.

2.        Value for Money: Convenience stores often undercut grocery stores on price, especially for prepared food items. Their lower labor costs and focus on pre-made options allow them to offer competitive pricing.

3.        Adapting to Trends: Convenience stores are constantly innovating. They're offering healthier options like fruit cups and yogurt parfaits alongside classic favorites. Plus, many feature hot food options that rival fast food joints.

But fret not, grocery stores are still too large to just fade away! They still have the upper hand in several areas:

1.        Variety: Grocery store delis offer a wider selection, with options to cater to different dietary needs and preferences. From gourmet cheeses to organic salads, we can provide a more customized experience.

2.        Quality: We can often boast fresher ingredients and higher quality preparation compared to convenience stores that rely heavily on pre-made items.

3.        Synergy with Grocery Shopping: The deli is a natural pitstop during a grocery shopping trip. Customers can grab a meal to go while picking up groceries for the week.

Want to Build a Larger

SHARE OF STOMACH

Focus on Today's Customers

Not Yesterday's Wall Street Metrics 

Here's a few ways that grocery stores could bounce back: They need to up their deli game! Focus in on:

1.        Fresh, Appealing Displays: Make delis look vibrant and appetizing.

2.        Shorter Wait Times: Streamline service to compete with the speedy nature of convenience stores.

3.        Innovative Offerings: Feature unique, chef-inspired dishes that can't be found at the corner store.

4.        Highlighting Quality: Showcase the fresh ingredients and culinary expertise that goes into deli offerings.

By combining the customer focused touchpoints including; convenience, price, and quality the grocery store deli can reclaim a place as a destination for grab-and-go meals. It's time to make the deli aisle a destination, not an afterthought.

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.

Chain Restaurants Achilles’ Heel the Past vs the Future

All retail brands have a lot in common. Sometimes we have to take a sept back to have a view of today or tomorrow according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. I have you noticed that Kodak went nearly out of business. Growing up in the 1960’s and ‘70’s, every family had a Kodak Camera and I still have one of mine.

Those yellow boxes were everywhere and getting your very own Kodachrome camera was seemingly a rite of passage, heck, Paul Simon even wrote a song about it. As digital cameras gained popularity, Kodak stuck to what they believed. They sneered at digital’s quality, righteous in their knowledge that Americans would NEVER give up shiny pictures for their photo albums.

Today, cell phone cameras take most of the pictures and they are rarely printed. Kodak, today is a technology company that produces camera-related products, correct in their assertion that professionally developed pictures look better than low-resolution versions uploaded to Facebook. However, they waited too long to evolve and are now just a fading shadow of once was a great company, this year the stock price hit a low of $1.50. That's 25 years of struggling and turmoil. Now they are evolving into a 'pharmaceutical' focused company with a loan for the U.S. government for $785 Million to do so.  Who is going to help you evolve? 

Being dead and correct is not a great strategy.  Today chain restaurants are either growing or dying much the same as Kodak. Simply look at restaurants that filed bankruptcy of late: Chuckie Cheese, Sweet Tomatoes & Souplantation, Logan's Roadhouse, and large Pizza Hut, Wendy’s and IHOP franchises groups.  They are not all dead but they have been far from right.

These are statements frequently heard from legacy restaurant operators. Like Kodak, crystal clear that what has always worked will continue to work. Over the last ten years, anything sound familiar?

• Our executives have 30 years of experience and know how to run the business.
• We never use coupons, nor do we want to deliver.
• We don’t allow or brand to wander, we protect our brand, that’s brand protectionism and its dying brand.
• We don’t use online third party ordering, I-pad ordering or voice screen ordering.
• We only advertise on Google, Twitter or Facebook.
• We don’t do snacks, we do meals.
• We like the umbrella approach each store different personality but under one umbrella.
• Video menus and video signage is visceral gimmickry.
• We don’t measure ingredient’s; we create daily specials and simply show employees how to make it
• We can’t lower our menu prices.

How did a dominant brand and sector leader like Kodak, in a rock-solid consumer staple lose everything? Simple, they determined the market, the direction of that market and took the steps to conquer it.  If that sounds like your restaurant, retail food sector or niche leader, you better keep reading.

There is little about today’s market, the consumer or food marketing / promotions that was predictable three years ago. In the next three years the rate of change will continue to increase. You need to think about change or evolving your restaurant the way technology companies think about Moore’s Law.  So, let’s look at the above list:

Reliability and a comfortable working relationship are correctly a key to success.  However, if you find your team is blaming the economy, minimum wages increase, cost of health care, the pandemic, and rising food cost for disappointing results, you have a problem. Do not forget there are many companies are out there capable of growing both the top and bottom line, number of units and garnering market share. Is your company one of them?  If not, it might be time for Outside Eyes. 

Millennials and Gen Z consumers are digital natives. They want what they what and in a digital first format.  So, if you are saying we always/never use coupons – coupons and promotions are very complicated today. Add the online aggregators the ilk of, Twitter, YouTube, and TikTok on top of what you know what works. Here is the point, what you measure you manage. All advertising must have an objective that is clear and measurable to insure a proper marketing ROI and validating customer relevance.

We don’t use third-party delivery – face it, convenience is a driving reason why foodservice is popular. If you do not want to deliver, consider outsourcing more not less.  Deliver is not about you. That’s right it is about the consumer.

We protect the value of our brand and its integrity for the consumer, our shareholders and stakeholders.  We know the consumer is dynamic not static, but our customer’s comeback because we have a brand promise and they trust in us to keep that promise. Sounds a lot like Kodak, don’t you think? Don’t let your brand or brand messaging look more like yesterday than tomorrow. 

We don’t use online ordering our food does not “carry” well.  Think about this if you don’t have a way to connect your menu to computers and mobile devices, your competition will woo your customers. Consumers are time starved, and hooked on technology, make it easy. So, can you sell you meals and meal components in a format that does carry well?  

When it comes to search don’t forget Amazon, and Google or Facebook. We don’t open for breakfast – you pay rent 24/7, find ways to increase the utilization of your “factory”. Considering catering or school lunch program, contract out your kitchen. Have you considered opening a branded virtual breakfast restaurant in your store?  Don’t become the next Kodak of chain restaurants.

Different store brands / personalities under one large corporation and all expected to operate utilizing a uniform set of metrics.  Worked well in the 70’s, 80’s but you have the answer.  Let me know just how well that works out.

Visceral gimmickry does not replace high quality food and great service ever.  Who defines quality service? You’re via your brand promise or the consumer?  Yes, the CONSUMER.  Today, consumers consider C-store fresh food restaurant quality, with 24% reporting its ‘better than restaurant quality’.

We don’t measure ingredients; my employees know how much to use – why have menu prices, let customer pay whatever they want. If you don’t care what your product costs, you CAN’T make money.
We can’t raise our menu prices – tell that to the gas station owner on the corner, or the farmer growing your food. Costs are up, you must raise your menu prices, expand dayparts, renew menu choice or you will not exist.

Kodak management, smart and hard working as they were, did not see the world changing, fortunately you do. Realize that change is good and necessary. Act now to challenge your assumption, create new revenue streams and increase profits.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant.

Aldi Give the Customers What They Want

Back in the day circa 1989 Willard Bishop Consulting founder and food industry icon Bill Bishop inform all that the number one challenge grocery retailers has to solve was get customer in and out faster.  It was a clear message, simple to understand, but counter to what legacy retail grocery stores companies wanted.

What they wanted to do and were hell-bent on was to keep consumers in the stores longer to drive a ‘larger basket size’.  How did that work for them?  Not so good.  Today, there are 62.9% fewer legacy grocery stores than there were in 1989.  Now consider this one company hear him and did something about it.

That company Foodservice Solutions® and they put their Grocerant Guru®, Steven Johnson to work to do something about it.  He told anyone that was will to listen.  One company got the message somewhere that company is Aldi.

Aldi now with close to 2,000 US stores is touting its stores as easier to shop, and new Kantar research commissioned by the hard-discount grocer finds that consumers agree. Finding “Of 700 customers ages 18 to 64 who participated in the study, 77% agreed that Aldi is "simpler to shop" compared with other grocery stores. Aldi said the findings also show that its stores are “at least 20% faster to shop” versus Kroger supermarkets and Walmart Supercenters.”

So, it does not stop there, “Nine out of 10 respondents who shopped at Aldi also agreed that the retailer is "more cost-effective" than other grocery stores, according to the study. Aldi added that a 2019 Dunnhumby report ranked it as the No. 1 grocery retailer for price and Market Force Information has recognized Aldi as the value leader for eight consecutive years.”

Scott Patton (above), vice president of corporate buying for Aldi U.S. stated "Today's shoppers are pressed for time and money. We pioneered a model that gives people more of both,”, … “If you ask me, this is a winning combination for grocery shopping."

Is your brand developing a sales platform as dynamic as today’s consumers? Or, is do your stores and sales platform look more like yesterday than today or tomorrow?

For international corporate presentations, regional chain presentations, local 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 www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869