Showing posts with label Fresh Prepared Food. Show all posts
Showing posts with label Fresh Prepared Food. Show all posts

Wednesday, June 26, 2024

Grocery Stores Battling for a Larger Share of Stomach within the Grocerant Niche

 


The grocerant niche, is a fusion of grocery store, restaurant, and convenience fresh prepared food meal and meal components has been evolving rapidly, driven by consumer demand for convenience, quality, and variety, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Today consumers' lifestyles continue to evolve and change, particularly post-pandemic, grocery stores are stepping up their game in the grab-and-go segment to capture a larger share of the "stomach market." Among the leaders in this movement are Cingari Family Markets and Saker ShopRites, both of which have implemented innovative strategies to meet the growing demand for ready-to-eat meals and meal components that can be bundled into the perfect family meal.


Cingari Family Markets: Elevating Grab-and-Go

Cingari Family Markets, operating under the ShopRite banner in Connecticut, has made significant strides in the grab-and-go sector. Spearheaded by Executive Chef David Cingari, a Culinary Institute of America graduate with extensive experience in New York's culinary scene, the company has developed a sophisticated grab-and-go program. This initiative not only complements the bakery and deli offerings but also includes a wide range of meals, entrées, and side dishes prepared in a central commissary.

The central commissary approach ensures consistency and quality, two crucial factors in the success of grab-and-go programs. "If customers like it, it had better be the same the next time. Then freshness is critical, and it’s got to be restaurant quality," says Cingari. This commitment to quality is evident in their upscale sandwich offerings, such as those featuring prosciutto instead of standard ham, and their diverse menu options catering to various dietary preferences, from vegan to gluten-free.

Cingari's grab-and-go program also addresses the trend of multiple purchasing, which has gained momentum since the COVID-19 pandemic. With families having less time to cook at home, there is an increased demand for multiple ready-to-eat items that cater to different family members' preferences. This approach not only satisfies diverse dietary needs but also offers convenience for today's time-strapped consumers.


Saker ShopRites: Convenience Meets Quality

Richard Saker, president and CEO of Saker ShopRites, highlights how the pandemic accelerated changes in consumer behavior, particularly regarding grab-and-go food. During the pandemic, consumers sought to minimize their time in stores, leading to a rise in the acceptance of pre-cut cold cuts and other ready-to-eat items. This shift was further fueled by the rising cost of dining out and the convenience of grab-and-go options as people returned to their workplaces.

Saker ShopRites has leveraged this shift by offering high-quality, convenient meal solutions. For instance, their clamshell-packaged eggplant parmesan entrées are designed to be easy to prepare and serve, catering to the need for quick, nutritious meals. These offerings are produced in the company's four commissaries, ensuring consistent quality and freshness.

Saker emphasizes the importance of involving culinary professionals in developing grab-and-go programs. Quality assurance is paramount, and Saker even welcomes inspectors to ensure that the standards are maintained. This focus on quality extends to the merchandising of grab-and-go items, which are strategically placed throughout the store to maximize visibility and convenience for shoppers.



Brooklyn Harvest Market: Flexibility and Innovation

Brooklyn Harvest Market, with stores in Brooklyn and Queens, has adapted to changing demographics and consumer preferences by incorporating flexibility into their grab-and-go offerings. Head of operations and merchandising Dan Wodzenski notes that the pandemic spurred a greater willingness among consumers to pick up fresh sliced and store-packaged cold cuts, leading the store to replace traditional service deli counters with grab-and-go sections.

The market has also tailored its offerings to the local community's evolving needs. With a growing Latin customer base, Brooklyn Harvest Market has introduced more Hispanic pastries, baked goods, and savory items like Spanish rice and enchiladas. This responsiveness to consumer trends and preferences is crucial for staying relevant in the competitive grocerant niche.

Industry Insights and Future Directions

The broader industry trends also support the growth of the grab-and-go segment. Bill Heiler, senior manager of customer marketing at Rich Products, notes that shopper demand for innovative grab-and-go items has surged, with a 50% increase in sales of convenient bakery products like parfait cups and cake slices over the past five years. Retailers are becoming more creative with merchandising, placing single-serve items in strategic locations to drive impulse purchases and increase sales.


For grocery stores looking to capitalize on the grab-and-go trend, the Grocerant Guru® offers three key recommendations:

1.       Focus on Quality and Consistency: Ensure that all grab-and-go items meet high standards of quality and consistency. This can be achieved through central commissary production and rigorous quality control processes.

2.       Cater to Diverse Dietary Preferences: Offer a wide range of options to cater to various dietary needs, including vegan, gluten-free, and high-protein diets. This inclusivity will attract a broader customer base.

3.       Enhance Convenience and Visibility: Strategically place grab-and-go items in multiple store locations, including near perishables and high-traffic areas, to increase visibility and accessibility for shoppers.

By implementing these strategies, grocery stores can not only meet the evolving demands of today's consumers but also secure a larger share of the stomach in the competitive grocerant niche.

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



Sunday, April 14, 2024

Surprising Fresh Meal Solutions: Convenience Stores

 



Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that customer migration from the restaurant sector to the convenience store sector will continue. In the bustling world of quick bites and on-the-go meals, convenience stores have quietly transformed into unexpected champions of fresh food. These unassuming neighborhood pit stops, once synonymous with chips, sodas, and lottery tickets, are now outpacing many traditional restaurants in the race for hungry customers. Let’s explore how these unassuming spots are dishing out more than just snacks and becoming culinary contenders.

The Rise of Convenience Store Food


1. Diverse Food Options

Convenience stores have expanded their culinary repertoire beyond the predictable. From hot foods to grab-and-go refrigerated items, they cater to a wide range of tastes. Whether you crave a hearty sandwich, a fresh salad, or a steaming cup of soup, your local convenience store likely has it covered.

2. Health-Conscious Choices

Consumers are increasingly health-conscious, seeking out options that align with their well-being. Convenience stores have responded by offering healthier alternatives. Think fresh fruit cups, yogurt parfaits, and even plant-based snacks. These choices appeal to busy individuals who want a quick meal without compromising on nutrition.

3. Restaurant-Quality Food

Gone are the days when convenience store food meant greasy hot dogs under heat lamps. Today, these stores prioritize quality. Their foodservice programs focus on providing restaurant-quality meals. Whether it’s a crispy fried chicken sandwich or a customized coffee, convenience stores are stepping up their game.

4. Locally Sourced Ingredients

The farm-to-table movement isn’t exclusive to fancy bistros. Convenience stores are embracing locally sourced ingredients. By partnering with nearby suppliers, they offer fresher produce and support local communities. This commitment to freshness resonates with consumers who appreciate knowing where their food comes from.


5. Customization and Convenience

Convenience stores understand that one size doesn’t fit all. They allow customization—whether it’s building your own sandwich or personalizing your coffee. Plus, their extended hours mean you can grab a fresh meal at any time, even when other eateries are closed.

The Numbers Don’t Lie

According to the National Association of Convenience Stores (NACS), convenience store foodservice sales hit new highs in 2022. Here’s a glimpse of the data:

·         In-store sales accounted for 33.4% of industry sales, totaling $302.8 billion.

·         Average basket spending increased to $7.52 per visit.

·         Foodservice sales represented 25.6% of average monthly in-store sales and 36.1% of in-store gross margin.

·         Prepared food, commissary items, and dispensed beverages (hot, cold, and frozen) contributed to this growth.

The Future of Convenience Food


As convenience stores continue to evolve, they’re poised to become even more formidable players in the food industry. Their commitment to freshness, customization, and quality positions them as serious contenders. So next time you swing by your local convenience store, don’t be surprised if you find a delicious meal waiting for you alongside the chips and candy.

In the battle of fresh food, convenience stores are proving that sometimes the best bites come from the most unexpected places

ores: The Surprising Fresh Food Heroes

In the bustling world of quick bites and on-the-go meals, convenience stores have quietly transformed into unexpected champions of fresh food. These unassuming neighborhood pit stops, once synonymous with chips, sodas, and lottery tickets, are now outpacing many traditional restaurants in the race for hungry customers. Let’s explore how these unassuming spots are dishing out more than just snacks and becoming culinary contenders.

The Rise of Convenience Store Food


1. Diverse Food Options

Convenience stores have expanded their culinary repertoire beyond the predictable. From hot foods to grab-and-go refrigerated items, they cater to a wide range of tastes. Whether you crave a hearty sandwich, a fresh salad, or a steaming cup of soup, your local convenience store likely has it covered.

2. Health-Conscious Choices

Consumers are increasingly health-conscious, seeking out options that align with their well-being. Convenience stores have responded by offering healthier alternatives. Think fresh fruit cups, yogurt parfaits, and even plant-based snacks. These choices appeal to busy individuals who want a quick meal without compromising on nutrition.

3. Restaurant-Quality Food

Gone are the days when convenience store food meant greasy hot dogs under heat lamps. Today, these stores prioritize quality. Their foodservice programs focus on providing restaurant-quality meals. Whether it’s a crispy fried chicken sandwich or a customized coffee, convenience stores are stepping up their game.

4. Locally Sourced Ingredients

The farm-to-table movement isn’t exclusive to fancy bistros. Convenience stores are embracing locally sourced ingredients. By partnering with nearby suppliers, they offer fresher produce and support local communities. This commitment to freshness resonates with consumers who appreciate knowing where their food comes from.

Want Top-Line Sales Growth

Bottom-Line Profits 


Focus on Building Share of Stomach 

5. Customization and Convenience

Convenience stores understand that one size doesn’t fit all. They allow customization—whether it’s building your own sandwich or personalizing your coffee. Plus, their extended hours mean you can grab a fresh meal at any time, even when other eateries are closed.

The Numbers Don’t Lie

According to the National Association of Convenience Stores (NACS), convenience store foodservice sales hit new highs in 2022. Here’s a glimpse of the data:

·         In-store sales accounted for 33.4% of industry sales, totaling $302.8 billion.

·         Average basket spending increased to $7.52 per visit.

·         Foodservice sales represented 25.6% of average monthly in-store sales and 36.1% of in-store gross margin.

·         Prepared food, commissary items, and dispensed beverages (hot, cold, and frozen) contributed to this growth.

The Future of Convenience Food


As convenience stores continue to evolve, they’re poised to become even more formidable players in the food industry. Their commitment to freshness, customization, and quality positions them as serious contenders. So next time you swing by your local convenience store, don’t be surprised if you find a delicious meal waiting for you alongside the chips and candy.

In the battle of fresh food, convenience stores are proving that sometimes the best bites come from the most unexpected places.

Don’t over reach.  Are you looking for some fresh food ideations to drive top line sales and bottom-line profits?  Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation 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



Sunday, August 22, 2021

FreshRealm’s Grocerant Niche Growth is Stellar

 


There is no doubt that grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues too be the undercurrent of consumer demand driving growth in both traditional avenues of distribution and in new non-traditional avenues distribution for fresh food sales according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Most legacy grocery retailers have noticed that the prepared food section and the fresh perimeter have been busy during the pandemic, if not just look at the numbers from Nielsen. Strengthening its position in the high-growth grocerant niche filled with Ready-2-Eat and Heat-N-Eat meals and meal components, FreshRealm has plans to expand its operational facilities nationally. When complete FreshRealm facilities will allow the company to generate more than 100 million meals per year across its complete range of ready-to-cook, ready-to-heat, and meal kits.

The continuing increased demand for fresh meals and meal component solutions doesn’t show any signs of slowing down. In a February 2021 report from IRI they estimate a $30 billion retail grocery market opportunity for fresh meals. 

Then according to May 2021 data from Acosta Research, more than 90% of families say they plan to continue or increase home dining post- pandemic. Now look closely at this next fact Piplsay’s recently found that  42% of Americans subscribed to a meal kit service this past year, with 45% of subscribers planning to continue using a meal kit service going forward.

There will be four new FreshRealm facilities in California, Georgia, Indiana and New Jersey each will be fully operational in fall 2021. A fifth facility, located in Texas, is set to be online in the first half 2022. The expansion will further extend the company's reach, providing access to the top 20 metropolitan cities in the United States and reaching 85% of the U.S. population in just 10 hours. The strategic locations also will ensure just-in-time delivery to maximize the shelf life of the company's product lines, ensuring delivery within 24 hours of meal assembly.

In a Battle for Share of Stomach

are you Winning


Michael Lippold, founder and CEO of Ventura, Calif.-based FreshRealm, stated, "Our new state-of-the-art facilities will provide FreshRealm with increased agility, better quality control and rapid line expansion to ensure we can produce superior short-shelf-life meals at a scale that's relevant to the retail industry," explained. …"Through extensive research and development, we've been able to optimize our production runs and capacity to create fresh meals for today's most innovative and forward-thinking retailers, while keeping our costs extremely competitive."

Note: FreshRealm provides a complete retail solution, from product design, sourcing, implementation, meal assembly and logistics to marketing and promotion. The company recently received an infusion of capital, raising $32 million from investors for its launch of fresh meals in the grocery channel. Will you be able to sell 100 Million grocerant niche Ready-2-Eat or Heat-N-Eat fresh meals next year?

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 participationdifferentiation 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



Friday, June 18, 2021

Amazon Fresh Grocery Just Walk Out Stumbles


 

At the intersection of yesterday’s grocery shopping, a time consuming chore, and grocerant niche fresh prepared food, Amazon Fresh pays employees well and is a step by step guide to the future of grocery shopping according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

There is however a problem.  The Amazon branded invitation for food discovery via Amazon Fresh, is strong on technology, weak on grocerant niche fresh prepared food.    Our Grocerant Guru® visited the new “just Walk Out” Amazon Fresh store in Bellevue, Wash., on June 17, 2021.

While the functionality of Just Walk Out is amazing, as regular readers of this blog know from his other visits to Amazon Go stores, that he blogged about, and has spoken about around the world.  This experience was not up to previous experiences or expectations.

So, the debut of cashierless checkout for a ‘full-sized’ urban grocery store had a couple of little technology hick-ups, that’s to be expected. However, much of the grocerant niche fresh prepared food looked as if it was brought in from a slow Mariano’s grocery store from Chicago and should have been left there.

That said it’s clear the technology folks and data crunchers were in charge of defining, stocking, and pricing the products within the store.  They overlooked the fact it is consumers who buy the food.  This is a stumbling block not a road block. One might think the data crunchers used data from the past 18 months to construct the product mix within the store. If they, did you just might think the pandemic would be with us forever.  It won’t.  The data crunchers did not look a customer ahead, nor did they look a back at what the consumer was buying prior to the pandemic.  


According to conversations of consumers shopping near him in the store, our Grocerant Guru overheard shoppers marvel at the prices (high), comment on freshness (poor), all while talking about the ‘technology’.  Remember this is a store centered in the Seattle metro area filled with techies. Here is how our Grocerant Guru® summed up his trip to the team at Foodservice Solutions® HQ; “consumers could not find the ‘price, value, service equilibrium.  

Consumers will not think, I want to shop Amazon Fresh first, it will be an afterthought. The “Just Walk Out Amazon Fresh Grocery store today is more about IQ (Intelligent quotient) than EQ (emotional quotient) according to Johnson. Once again this is a stumbling block not a road block.  The team at Amazon is smart, they are smart enough to evolve their store and technology simultaneously. This iteration of Amazon Fresh will garner trial but will fall short on adoption according to Johnson.

There were areas of the store that did excel when it comes to fresh food. Those items are the pictures you see in this blog post.  It is the consensus of the team at Foodservice Solutions® that Amazon is going to fix this store, so that the branded fresh food offerings, will reflect a proper balance of IQ and EQ in order to drive customer adoption.

So, just how does the technology work?  Get this, Just Walk Out system uses overhead computer-vision cameras, weight sensors and deep-learning technology to detect merchandise that shoppers take from or return to shelves and track items selected in a virtual cart. At the store’s automated entry gates, customers are prompted to select Just Walk Out shopping or use the traditional checkout lanes.

Those choosing Just Walk Out enter the store by scanning the QR code in the Amazon mobile app, scanning their palm on the Amazon One palm signature device, or inserting a credit/debit card linked to their Amazon account. When shoppers exit the store, using the same method for entry, the Just Walk Out technology automatically debits their Amazon account for the items they take and then sends a receipt to the app.


As shoppers exit the store, Just Walk Out automatically debits their Amazon accounts for the items they take and then sends a receipt to their Amazon mobile app.

Customers who want to use conventional checkout lanes enter the store through the designated gates and use one of the staffed checkout lanes to pay with cash, credit or debit card, Amazon One or an in-store code in the Amazon app. Participants in the Supplemental Nutrition Assistance Program (SNAP) also can use their electronic benefits transfer (EBT) cards to pay. Checkout lane users will get a paper receipt, and recognized Amazon customers will receive a digital receipt as well.

Dilip Kumar, vice president of physical retail and technology at Amazon, stated, “Customers have enjoyed the effortless shopping experience enabled by our Just Walk Out technology at our Amazon Go, Amazon Go Grocery, Amazon Fresh stores in the U.K., and third-party retailer stores. The feedback has been fantastic, with customers noting that skipping the checkout allows them to save time and reduce contact in stores,”, …. “Bringing Just Walk Out technology to a full-size grocery space with the Amazon Fresh store in Bellevue showcases the technology’s continued ability to scale and adapt to new environments and selection. I’m thrilled it’ll help even more customers enjoy an easier and faster way to shop and can’t wait to get their feedback on this latest Just Walk Out offering.”

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 participationdifferentiation 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