H-E-B tech innovation lab will Drive Digital Strategy & Delivery

Food delivery continues to drive incremental sales in every segment of retail foodservice today.  At times that delivery is a direct replacement for an in store visit according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  That said food delivery edifies brand relevance in the minds-eye of the consumer today and should be a tool in every food marketing tool kit.

H-E-B understands that while food delivery hovers around 6.2% within the grocery sector delivery of newspapers once the staple grocery store marketing and messaging has less than 31 million household penetration rate. Grocery stores and H-E-B understand digital marketing is the direct one on one relationship that is replacing the newspaper.

So, once again doing all the right things H-E-B plans to build a two-story, 81,000-square-foot technology facility and innovation lab for its digital team and Favor on-demand delivery service. H-E-B will renovated an industrial warehouse to be transformed into a “world-class” creative and collaborative workspace for Austin-based members of the H-E-B digital team and Favor’s corporate headquarters, according to the company.

H-E-B Chief Digital Officer Jag Bath stated “This state-of-the-art space will be a hub for creativity and innovation as we continue to develop the ultimate digital experience for our customers,” …“Bringing H-E-B and Favor closer together will allow us to promote collaboration between our two companies as we strengthen our commitment to building out H-E-B’s omnichannel services,” noted Bath, who also is president and chief executive officer of Favor.

Note: In support of its efforts to become a digital leader in the grocery arena, H-E-B acquired the Austin-based Favor delivery service in mid-February and then two months later named Bath as chief digital officer of H-E-B.

Meanwhile, H-E-B has steadily extended its online grocery reach via H-E-B Delivery and H-E-B Curbside service, now offered at more than 145 stores in Texas and slated to become available at 165 stores this year. Overall, the company operates 400 stores in Texas and Mexico. H-E-B is doing all of the right things.

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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Food Delivery a Foodservice Cultural Shift to Build Sales On

American consumers are migrating from Eating-In to Eating-Out While Eating-In according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The undercurrents of this sea change in consumers path to purchase was identified, quantified, and qualified by Johnson in Foodservice Solutions® white paper ‘The 65 Inch HDTV Syndrome’

Today 86% of consumers are using off-premise services at least monthly that includes:

1.       78% obtain fresh prepared food from a Drive Thru

2.       75% obtain fresh prepared food as Carry-out or Takeout

3.       64% obtain fresh prepared food from Delivery

According to Melissa Wilson, principal with Technomic “Food delivery, in particular, is projected to grow in the double digits12% per year over the next five years”, In fact year over year food delivery sales are up a staggering 28%. 

Regular readers of this blog know that grocery stores, convenience stores, restaurants, and new non-traditional foodservice outlets are all delivering fresh prepared food. As the lines between food sectors continues to blur so does brand messaging within takeout, drive-thru, and delivery ordering according to Johnson.

Generational shifts are a major contributor to consumers’ growing desire for delivery. By 2026, 80% of millennials will be parents, said Wilson. Combine that, she said, with nearly half of consumers preferring to eat at home. The result is incremental sales growth for operators who can provide the optimal food delivery experience.

One brand doing a particularly good job is Red Robin going where other dare not.  However Red Robin is finding that consumers of all ages are now more open to fresh food delivery and non-traditional branded locations.

Success does leave clues 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 Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant