Grocery Store Customer Migration Continues

 

At the intersection of food sales, technology, and consumers is the focal spot that most retailers are working hard to please consumers according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson stated, consumers are dynamic not static when the consumer moves you must move with them or risk losing customers to another grocery store or another avenue of fresh food distribution entirely.

Today research show that grocery retailers continued to shift their customers toward store pick-up and away from grocery-delivery in 2022 as they seek to unlock the potential profitability of online grocery.

In case you did not know, grocery store pickup and delivery vied back and forth for share of the digital grocery market through the first half of 2022, pickup pulled away as a preferred method of fulfillment for customers during the last several months of 2022, according to research from Incisiv and its Grocery Doppio digital grocery data platform. Overall, 52% of all digital grocery sales in 2022 were fulfilled via pickup as opposed to delivery.

Here is what we found previously written about the shift and wanted to share;  “Within, delivery, meanwhile, in-house fulfillment has gained against third-party services, increasing from 23.6% of deliveries in August to 25.8% in December.

Many grocery retailers continued to expand their partnerships with third-party delivery services in 2022, however, as they sought to capture the growing percentage of sales that take place online and, in some cases, meet demand for rapid fulfillment of orders.

Grand Rapids, Mich.-based Meijer Inc., for example, in December reached an agreement with Uber Technologies for the ride-services company to provide grocery delivery through the Uber and Uber Eats apps. That agreement followed similar partnerships between Uber and Smart & Final, Albertsons, Grocery Outlet and SpartanNash.

Meanwhile, Cincinnati-based Kroger Co. recently unveiled a partnership with DoorDash, known for its restaurant delivery services, to deliver sushi from 900 store locations and floral orders at 1,600 store locations.

“By offering customer-favorite sushi options and premium floral bouquets through third-party marketplaces we are continuing to evolve and meet customers where and how they are shopping,” Stuart Aitken, Kroger senior VP and chief merchant and marketing officer, said in a statement at the time.

Kroger also has partnerships with other third-party delivery services, including Instacart and Shipt, and has been aggressively expanding its own capabilities with the addition of “spokes” that expand its delivery reach via its partnership with European e-commerce automation specialist Ocado.

Kroger also has been among the leaders testing autonomous delivery. It launched a partnership with Nuro, a provider of robotic delivery vehicles, in 2018, and last year unveiled plans to expand it in the Houston market. Modesto, Calif.-based Save Mart also has tested the autonomous Nuro vehicles for grocery deliveries.

Discount grocer Aldi, meanwhile, is among the retailers that appear poised to take more of their delivery in-house. In October, the retailer said it was working with German-based Spryker Systems to develop a new online platform for its U.S. locations that would include grocery delivery and / or curbside pickup service. Aldi has long worked with Instacart for both pickup and delivery.

Another model some grocers have adopted is to leverage white-label online grocery fulfillment services, as exemplified by the new partnership between Southeastern Grocers and DoorDash. The Jacksonville, Fla.-based retailer, which operates the Winn-Dixie, Harvey’s and Fresco y Mas banners, described the service as “an extension of shopping our local stores.” It allows the retailer to better align its online and in-store pricing, the company said.

 

Up-Date Ultra-fast delivery: gains and losses

Several retailers also partnered with third-party firms in 2022 to offer rapid delivery, sometimes in as little as an hour or two, or even less.

Save Mart in October said that Save Mart banner stores in Lathrop and Ceres, Calif., began offering two-hour grocery delivery via Amazon, and that the company planned to expand the service to additional locations.

“The Amazon partnership represents The Save Mart Cos.’ ongoing digital transformation to serve our shoppers and fulfill their needs with innovative and affordable solutions,” Tamara Pattison, senior vice president and chief digital officer for The Save Mart Cos., said in a statement at the time.

That agreement followed a partnership between Ontario, Calif.-based Cardenas Markets and Amazon, announced in September, through which the e-commerce giant began offering two-hour delivery at several locations in California and Nevada.

St Louis-based Schnucks, meanwhile, in October unveiled Schnucks Now, offering delivery in as fast as 30 minutes for a limited assortment of fresh groceries, pantry, household essentials, alcohol, meals, and snacks. The service is available to customers via the Schnucks Rewards App and the Instacart Convenience Hub, an Instacart marketplace product feature.

Schnucks’ launch of 30-minute delivery followed the debut of 15-minute delivery at Lakeland, Fla.-based Publix Super Markets, which partnered with Instacart’s Carrot Warehouses fulfillment solution to offer the rapid-delivery service at a small number of Florida stores.

Customers can access the service either through the retailer’s own mobile app or website or Instacart.

Overall, however, the ultrafast delivery model, exemplified by companies such as Gopuff, Gorillas, Buyk, Getir, Jokr and others, struggled in 2022, after enjoying a surge during the pandemic.

Russian-owned Buyk filed bankruptcy and ceased operations in March after sanctions imposed following Russia’s invasion of Ukraine, and Jokr in June said it was shutting down its U.S. operations.

Gopuff, meanwhile, announced multiple rounds of layoffs and facility closures in 2022.

Other ultrafast grocery delivery services consolidated in 2022, as Getir agreed to acquire rival Gorillas in a transaction reportedly valued at $1.2 billion. Both companies have a broad European presence but only entered the U.S. in 2021. Berlin-based Gorillas, which promises 10-minute delivery from a network of micro-fulfillment warehouses, began operating in New York City in May 2021, while Istanbul-based Getir launched in Chicago in November 2021, followed by New York and Boston.

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

Visceral Food Marketing Works

 

What looks good on the menu is the question asked time and time again.  Back in the day menus were are about the written descriptors.  Today, consumers have migrated to digital devices.  In fact, Americans decide what to have for dinner when they want to go out to eat digitally.  The most common ways that people find somewhere to eat are on Google (76%). Enough said.  Do your menu item’s look good on-line?

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® who regular readers of this blog know reads to many studies, stated “the real world of food marketing messaging has evolved into a hand-held device.” Now it’s been said time and again that augmented reality marketing is “the future,” but for Gen Z, augmented reality is part of the purchasing journey already.

In today’s competitive market, consumers have more options for mealtime decisions than ever before, so connecting with them in personalized and memorable ways is crucial to any restaurant’s success. But launching big marketing campaigns can be costly, and physical brand experiences have many limitations, including reach, effort and scalability.

Meet augmented reality: The only engaging brand experience that has massive reach, is highly effective at driving ROI and provides depth of connection via meaningful interactions. This innovative approach takes social advertising from mere exposures that are easy to scroll past to full-on immersive experiences that users actually want to engage with and share with their friends. In fact, the earlier restaurants jump on this, the better, because by 2025, nearly 75% of the global population and almost all people who use social/communication apps will be frequent AR users.

Great Photo’s will drive the first bite of your meal

Here we go again a new study.  In a 2022 Ipsos Augmented Reality Shift Study commissioned by Snap Inc., four out of five brands stated that using AR Filters and Lenses improved their brand awareness metrics.

While video advertising is an effective way to get a message across, campaigns that leverage both traditional video ad content combined with AR ads via the camera, can be more memorable for consumers and more impactful for businesses across the funnel. 

A sprinkle goes a long way: Augmented reality has the power to drive real business results

AR can be used to increase brand awareness with always-on messaging, to promote limited-time offers or digital conversions and to drive recruitment. Reach new guests and remind frequent ones why they come back again and again, all via easy-to-execute creative that helps them visualize menu items and ingredients, discover new seasonal ones and lead them to the check-out counter or online ordering site.

Are you Building a Larger Share of Stomach?

Additionally, AR inspires co-creation, inviting the whole community to engage with them, further amplifying brands through user-generated content. Augmented Reality turns people into more than just puppy dogs or potatoes—it has the power to turn them into brand advocates. Social media users constantly look to their friends and family for advice on where to eat, celebrate milestones and order meals from, so AR allows brands to be part of the conversation organically, without appearing promotional.

Snapchat is where consumers eat with their eyes first through augmented reality, enabling brands to build consumer appetite and drive brand relevance." AR on Snapchat is a tested and proven product, driving full-funnel results for UberEats,” said Kevin Watterson, Brand Marketing Manager, Paid Social Media at Uber in a statement.

Over 360M users express themselves through pictures and messages every day, and with the platform reaching 90% of all 13-24 year old’s in the US and 75% of all 13-34 year old’s in the US[4], it’s the prime location for restaurant brands to get in front of their audience.

 

2021 Global Deloitte Digital Study commissioned by Snap Inc. 2021 AR Consumers based on people who use AR weekly or daily from 2021 Global Deloitte Digital Study commissioned by Snap Inc. 2022 to 2025 forecasted in line with 2000-2003 growth rate of smartphone users since AR is in the Toy-launched phase of adoption; if we look at where this transition took place with mobile phones, one can argue that this was when games like 'snake started being available (e.g., 1997: Nokia 6110 device release. Global population includes people ages 13-69 (5.61B based on UN World Population Prospects 2019).

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

Domino’s Driving Top-Line Sales with Fewer Drivers

 

Inflation, is top of mind and at the intersection of the consumer and all food retailers today according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Domino’s excels at marketing messaging, finding consumer facing solutions in tough time and this is why they are the largest pizza company in the world today.

Domino’s is the leader of carryout pizza in the U.S. They are going to edify that position with this new interactive participatory marketing messaging as Domino's wants to thank its carryout customers for making the brand No. 1. To show our appreciation, we're bringing back carryout tips!

Christopher Thomas-Moore, Domino's senior vice president – customer and store experience "We know the effort it takes to get up and leave the house in pursuit of a hot, delicious carryout pizza," … "Domino's diehard carryout customers are really like carryout heroes, and to show our gratitude, we're giving them $3 to use on their next carryout order. We hope they take advantage of it. After all, they've earned it!"

In case you did not know, Domino's customers claimed more than 17 million carryout tips during the first campaign in early 2022. Carryout customers who order online now through March 26, 2023, are eligible to claim a $3 carryout tip again, which is redeemable for an online carryout order placed the following week (with a minimum purchase of $5 before tax and gratuity). Carryout customers may combine their $3 coupon code with their favorite carryout offer, making for a tasty deal.

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  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

PizzaForno Fresh Fast Revolutionary Restaurant Competition

 

Retail foodservice is evolving faster than most legacy restaurants can understand or keep up with according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. New grocerant niche Ready-2-Eat and Heat-N-Eat fresher and faster food platforms are garnering customer attention and migration.

Have you heard of PizzaForno? It is one of North America’s only automated pizzerias that bakes artisanal pizzas in less than three minutes, has announced it is expanding throughout the Houston area, with two new fully-operational units; one in downtown Houston (625 Fannin St, Houston, TX, 77002) and the other in Galveston’s Tiki Island (101 Tiki Dr, Galveston, TX 77554). We urge you to go give them a try.

These units are accessible 24/7 at the tap of a digital screen, this revolutionary brand with exclusive distribution rights offers a selection of innovative menu options, each made with top quality ingredients.

In a Battle for Share of Stomach

Fresher and Faster Wins

So, there are some local entrepreneurs developing PizzaForno in the Houston marketplace, master licensees Daniel Albelice and Keith Stephenson, are keeping the momentum going following the success of their first two fully-operational units, located at Social Beer Garden HTX (3101 San Jacinto St. Houston, TX 77004) and 3312 FM-528, Friendswood, TX 77546. They plan to open an additional 12 units by September of 2023, which will extend into a 50-unit development deal. 

Albelice stated, “Customers are flocking to our first two PizzaForno units in the Houston area, and pizzas have been flying out of the ovens at a rapid pace. The positive feedback we are receiving is an encouraging sign, as our two new locations get up and running,”... “The people of Houston have made it clear. They crave the convenience of PizzaForno, along with the brand’s commitment to create a fresh, quality product for pizza lovers and beyond.”

Building a better company every Tuesday, the PizzaForno Houston licensees will donate $1.00 for every pizza sold at their Texas locations to the Ronald McDonald House Charities of Greater Houston/Galveston (RMHCGHG), helping to pay for vaccines, exams, and quality medical treatment for thousands of children.

Now you just might want to consider this; Albelice and Stephenson are also seeking spirited entrepreneurs who are looking to expand their portfolio or add this turn-key, fully automatic gourmet food concept that can be placed indoor or outdoor with as little as 60 square feet onto their existing business. They have already garnered interest from potential sub licensees within the community. 

Les Tomlin, Co-Founder and President of PizzaForno, stated, “The proof is in the pizza! Daniel Albelice and Keith Stephenson are demonstrating with their success that PizzaForno is an in-demand product in the Houston area,” ...  “There are endless growth opportunities throughout Texas and we are excited about the potential to bring on more licensees and sub-licensees into the PizzaForno Family.”

Regular readers of this blog know that PizzaForno not only offers a high ROI but has the ability to operate 24/7 with zero on-site labor costs, limited waste and gives the option for licensees to scale quickly. Unlike most on-the-go pizza options loaded with added preservatives, PizzaForno has selected healthy, natural ingredients to deliver on quality and consistency to scale the business.

As volume demands, each unit can hold up to 70 fully prepared pre-boxed pizzas made fresh in the U.S. and replenished frequently. As soon as the customer selects their preferred menu item, the state-of-the-art oven gives the customer the option to Take-n-Bake or bake the 12” premium artisan pizza in under three minutes.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

7-Eleven’s 7NOW App Offers Pick-Up

With over 70,000 retail stores around the world no one can say that 7-Eleven does not do a lot of things right.  We talked a lot about carbon footprints this week.  So, it’s once gain time to talk about sector leaders staying dynamic to maintain customer relevance. According Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® that is just what 7-Eleven is doing once again.

When the customer moves 7-Eleven moves with them.  So, adapting to new consumer preferences at the speed of convenience and contactless service amid the COVID-19 pandemic, 7-Eleven Inc.'s 7NOW delivery app now offers customers the option to order and pay for items ahead of time.

The move provides customers with added convenience and minimized time spent in stores, according to the convenience store retailer.

7-Eleven Chief Operating Officer Chris Tanco, stated, "As people struggle to adapt to new routines in response to the COVID-19 pandemic, 7-Eleven is committed to helping customers get what they need — when, where and how they need it," … "The new pickup option on our 7NOW delivery app is an example of how we're meeting customer's needs to be in and out of stores quickly with minimal touchpoints and increased physical distancing, while also making life a little easier."

To utilize the new service, customers:

·         Download the 7NOW app via the Apple App Store or the Google Play Store;

·         Enter their location in the top left corner, then select "Pickup" instead of delivery;

·         Add items to their cart and pay in the app to complete their purchase;

·         Track the entire order process as it is "picked," "packed" and "ready for pickup”; and

·         Head to the store, show the nearest store associate the four-digit code on the 7NOW app and pickup their items.

In addition to the new pickup feature, 7-Eleven is doubling its delivery footprint to ensure more customers can access the convenience of delivery and pickup. Both experiences will soon be available to 60 million households in more than 1,300 cities across nearly 2,000 stores, according to the retailer.

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

Target Getting Fresh for 2 Million New Customers

Success does leave clues and Target is getting fresher faster by listening to it new first time digital drive-up customers.  According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® “Target is giving customers more of what they want, when they want it”

Regular readers of this blog know that consumers increasingly want more grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food. So, get this, more than 5 million customers shopped on Target.com for the first time during the first quarter, including over 2 million first-timers for Drive Up service.

Consumers are dynamic not static according to Johnson and Target Corp. is evolving faster making fresh and frozen food available through its in-store Order Pickup and curbside Drive Up online grocery services. Giving consumers what they want when they want it.

Digital sales are working at Target  as sales in Q1  were up 141%.  The move adding fresh and fresh frozen into the mix, adds another 750 produce, dairy, bakery, meat and frozen items to the product selection for in-store and curbside pickup, according to Target.

The company noted that the expansion now enables online customers to order key perishables — such as milk, bread, eggs and ice cream — along with grocery staples already available through Drive Up and Order Pickup. Ok, so regular readers of this blog say why did it take them so long.  Who cares, they are beginning to get it now. 

Target Chief Operating Officer John Mulligan, stated, “The speed and convenience of our fulfillment options are unmatched across the country, and they’ve become even more critical for our guests searching for easy and safe ways to shop during the pandemic,”  “By adding fresh grocery to the pickup services our guests already love, we’re giving them even more reasons to shop at Target.”

More than 5 million customers shopped on Target.com for the first time during the first quarter, including over 2 million first-timers for Drive Up service. When you get new customers are you giving them what they want?  Consumers are dynamic not static.  Are you evolving with your consumers?

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