Gen Z is Driving Grocerant Growth Meaningful Relevance

When it comes to leveraging data to develop valuable insights for foodservice including restaurants, grocery stores, convenience stores, drug stores, you can bank on Google, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

First you have to understand that Gen Z is comprised of tech natives who have always had exposure and access to technology, particularly hand-held technology such as smartphones and tablets. This access has created a sense of comfort, immediacy, urgency among Gen Z as well as a reliance on social engagement that impacts their on- and off-premise experience with restaurant brands.

Consider this smartphones, tablets and touch kiosk are for Gen Z complexity free are great for creating a hassle-free dining experience according to Johnson who added those tools should complement the stated brand messaging and goals.

Since 83.6 % Gen Z’s, use technology to determine where to eat the new foodservice sign must first be on a handheld digital devise. Then that messaging, advertisement, or invitation must be integrated into digital payments systems and social media marketing platforms.

Some things never change as regular readers of this blog know the old adage ‘KISS = Keep It Simple Stupid” well Gen Z believes in the old adage as they find food and brand authenticity to be the strongest the simpler and more straightforward the messaging and food with the fewest ingredients win big with this group according to Johnson.

Michiel Bakker, director of Global Foodservice Programs at Google, believes that authenticity extends beyond the restaurant experience to the ingredients people are consuming. “Our search data shows that Gen Z is using food for peak personal performance and behavior,” he said, which makes ingredient lists and nutrition data important to Gen Z decisions around food. “I think the foodservice industry needs to take a long, hard look at what the beauty industry has done. There’s a changing tide around what you put on and in your body.”

With authenticity comes responsibility members of the Gen Z cohort, believe that brands must show some sort of involvement with social responsibility. To start they must provide food for a good value at a fair price to protecting the environment to advancing racial, gender, and income equality. In short Gen Z promotes, supports and engages with brands that embrace social responsibility.

We must note that supporting the idea that social responsibility includes more than protecting the environment.  Today all food brands have a responsibility to deliver what they promise in an era of ‘Trump’ when ‘Truth is not Truth’ members of Gen Z expect food and foodservice messaging to be complexity free.

Foodservice Solutions® specializes in outsourced food marketing and business development ideations. 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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Domino’s Digital Strategies Dazzle for Chipotle, Panera Bread

Restaurant customer migration continues to confound many companies within the restaurant space.  The team at Tacoma, WA base Foodservice Solutions® continues to believe that the only way to prevent that migration is to listen to your customers.

Since 2008, chain restaurants have experienced -14.8 percent same-store traffic growth. Furthermore, throughout 2016, total food and drinking places saw over 2 percent higher sales than chain restaurants, according to Black Box Intelligence’s Market Share report. Essentially, chains are losing their customers to other independent restaurants and thus are suffering the decrease in traffic. We note with the exception of McDonald’s.

Domino’s digital success continues and there are two companies that that have edified their digital strategy and are bucking the trend.  Those companies are Panera Bread, and Chipotle.  Let’s look at what they are doing:

Panera Bread Co. recently reported that digital orders are now 26 percent of total sales at company-owned locations. Panera has added online ordering and kiosks at those locations, and consumers have clearly responded. And same-store sales at those units increased 5.3 percent in the company’s first quarter, and rose 11.5 percent over two years. By comparison, franchisees’ same-store sales are up 7.3 percent over two years. Panera is one of the stronger restaurant chains in the country right now. 

Chipotle Mexican Grill Inc. reported that digital sales increased 53.5 percent in the first quarter. The company used “smarter pickup times” technology that assigns pickup times based on transaction volumes. And the company has a second make line to help with those orders. Chipotle’s same-store sales increased 17.8 percent in the first quarter, far above the 15-percent growth analysts expected. The chain has a long way to go to recover sales it lost last year, but it was a strong report.

While one of the last major retailers to adopt technology Domino’s did it right, did it big and is garnering share of stomach in the pizza space.  Domino’s Pizza Inc., where digital strategies and innovative marketing have combined for a three-year same-store sales increase of more than 30 percent enough said.

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food that is portable continues to garner customer adoption. In fact two-thirds of McDonald’s customers, use the drive-thru. And 61 percent of all restaurant orders right now are takeout, according to market research firm The NPD Group. 

Technology is making all of that possible.  Integrating technology into your operation, marketing, messaging is of paramount importance today according to the team at Foodservice Solutions®.

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us 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:  www.FoodserviceSolutions.us for more information.