Legacy Grocery Stores Battle: Slotting Fees for Customers

 

Has begging for more and more money in the way of slotting fees become just a way of life.  What is on your shelf does matter.  Are, your customer focused of slotting fees or meals?  

With SNAP participation continuing to grow are legacy grocery stores becoming even more dependent on slotting fees?  Restaurants and new non-traditional fresh food retailers are driving top line growth with customer relevance while legacy grocery retailers focus on SNAP and Slotting fees. 

The relevant question for the consumers is What’s for Dinner.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® slotting fees are distraction and in conflict with keeping focused on the consumers wants and needs.

Consumers do not want to cook from scratch day after day.  The do not have the skill-set to duplicate the international meals and meal components that have become accustom to enjoying.

So, how do Americans decide what to have for dinner when they want to go out to eat? The most common ways that people find somewhere to eat are on Google (76%), through word-of-mouth recommendations (64%), on Yelp (39%), and on social media (30%).

When asked where Americans get dinner, most (77%) commonly eat at home or cook for themselves. 50% say they regularly get takeout or pick up, 31% say they go to restaurants, and 3% say they use a meal subscription box.

No. 1 factor that consumers say would prompt them to purchase from retail foodservice is that the food looks good, and 27% of consumers say that fresher grab-and-go options would encourage them to make repeat purchases from a store’s prepared foods section.

No. 1 breakfast item is a breakfast sandwich/wrap, with 42% of consumers saying they’d purchase if

Consumer Trend Report, 92% of consumers said they expected to maintain or increase their purchases of grab-and-go items in the near future.

So, lets get to the point if you are running a legacy grocery store that has become dependent on slotting fees for your survival. Your business plan is out of date.  Your sales data is driven by what other paid you to put on the shelf.  Not what customers would choose in an open and free marketplace.

In fact, 83.6% of all restaurant meals in 2022 are purchased from a fast-food outlet or drive-thru. That’s right while most of even our loyal readers of this blog know that fact, they will not admit aloud that they too buy meals and meal components for family members at a fast food drive-thru. 

While more food is purchased for at home for more total meals eaten at home than out consider this fact. In 1966 consumers spent $149B for food away from home and in 2022 that number was $955B. The trend is your friend.  Where are you selling meals and meal components in 2023?

Do you want to meet the needs of your customers or get paid my your merchants?

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Meals and Meal Components 

Drive Customer Adoption 

Do you Want a Larger Share of Stomach

Grocerant Niche Snacking Pop’s off the Charts

 

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food has the ‘halo’ of better-4-you in the minds-eye of the consumer according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Johnson stated, snacking has played a big part in the growth of grocerant niche mix and match meal bundling, delivery, and curbside-pick-up. Including snacks in/on your menu as an option will drive incremental sales.

So, get this, the Ready-to-Eat Popcorn Sales category since onset of pandemic has now reached $1.7 billion in sales attributable to at-home consumption, gifting and innovation. With the demand for ready-to-eat popcorn (RTE) has grown exponentially since the onset of the COVID-19 pandemic as consumers took part in movie nights vs. going to the theater.

Over the latest 52 weeks, RTE popcorn generated $1.7 billion in sales, an increase of 9.1 percent over one year ago. In comparison to 2019, sales are up 18.7 percent. Other key reasons for the premium RTE popcorn category's growth include:

·         Gifting — Premium RTE popcorn is often included in gift-ready packaging as consumers look for ways to connect and share in the fun.

·         Innovation — Innovation surrounding a wide variety of on-trend flavors such as sea salt, caramel and dark chocolate are on the rise.

Now according to new research from Mintel:

“Today's consumers are interested in both familiar and unexpected flavor innovation in the popcorn category. Traditional varieties such as cheese-flavored popcorn (in which 49 percent of popcorn consumers expressed interest) and indulgent flavors such as chocolate/caramel covered (32 percent) are popular. 

Consumers also want options that have mixed flavors, such as salty, indulgent and cheesy together (39 percent); have additions mixed in, such as candy (20 percent); and are seasonally flavored, such as pumpkin spice (12 percent).

Additionally, while Americans are interested in indulgent flavors and mix-ins for their popcorn, 45 percent of popcorn consumers are interested in buying all-natural varieties.

"Popcorn sales have been on the rise in recent years and now the category is shifting from traditional flavors toward more dynamic flavors and combinations, driven by the ready-to-eat segment which has seen sales more than double since 2012," said John Owen, senior food and drink analyst at Mintel.

"RTE popcorn brands are finding success not only through an expanding array of creative new flavors, but also by tapping into growing interest in healthy, natural and portable snacks and eating occasions. The popcorn segment, and RTE popcorn in particular, is likely to continue benefiting from a generally healthy image as well as its suitability as a medium for a wide range of flavors and toppings," Owen added.

"As such, there is an opportunity for brands in other salty snack segments to innovate with unexpected flavors to engage consumers, especially among younger generations who, our research shows, are looking for variety in the salty snack aisle," he said.

Meat snacks are also cornering the salty snacks market. As the largest segment of the category, meat snacks take up 30 percent of market share and are also the fastest growing, with sales rising 45 percent over the past five years to reach $3.6 billion in 2017.

Interest in premium products such as meat snacks made from prime cuts (58 percent) is high among meat snack consumers of all ages, those aged 18-34 are most likely to be interested in portable options such as meat snack bars, at 45 percent vs. 38 percent overall.

"While the inherent benefits of protein and portability favor all meat snack brands, we're seeing some of the smaller brands drawing a point of distinction by offering niche flavors and formats. Our research shows that young salty snack purchasers place extra value on the portability of meat snacks, as well as its versatility to be eaten beyond snacking occasions. There is an opportunity for brands to position meat snacks for breakfast, where protein and portability have become essential attributes," Owen noted.

Although the popularity of snacking is obvious, salty snack consumers are more likely to say they are eating fewer salty snacks today compared to last year than they are to say they're eating more (19 percent vs. 16 percent). Although salty snacks are viewed as an acceptable indulgence, with 42 percent agreeing that taste is more important than health, many consumers are looking for more healthful varieties, as 48 percent wish there were more healthy snack options.

Factors that have boosted the salty snacks category include eating while on the go (41 percent) and snacking as an energy boost (22 percent). Over the past year, overall category sales increased 5 percent to an estimated $11.9 billion in 2017. In the past five years, sales grew 31 percent, making salty snacks one of the best performing major packaged food categories in recent years, according to Mintel.

"The diverse salty snacks category benefits from the increasing prevalence of snacking and the blurring line between traditional meal times and snacking occasions. However, salty snack purchasers report eating less salty snacks, suggesting they aren't as willing to admit to their changing behavior, likely due to lingering negative perceptions of the category. Our research shows that because salty snacks are still primarily seen as an indulgence, there are opportunities for brands to shift their messaging and new product development to better position salty snacks as a healthy snacking option, such as popcorn, or more nutrient-dense, such as meat snacks, to continue the category's growth," Owen said.”

What snacks are you adding to you takeout, takeaway meal, menu, as options?

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

Doc Popcorn Rolling Out First PopTruck

What’s faster than a cross country semi on an interstate running late, a bullet train in Europe, or a two year old on a sidewalk as soon as you take your eye of him?  Ah the answer is popcorn popping in a food truck and customers smelling freshness and lining up.  

You guessed it Doc Popcorn, the world’s largest popcorn franchise retailer, as figured that out is currently rolling out its first PopTruck.  Building a brand and loyal followers in an Omni-Channel retail world is a lot of hard work but Doc Popcorn is doing a lot of the right things with its PopTruck.

Twin Cities proprietor Bill Bentz, just happens to owns and operates the Mall of America Doc Popcorn location with his wife and two daughters, is spearheading the brand’s first foray into the food truck industry.

News reports stated that “The PopTruck, essentially a store on wheels, offers a variety of Doc Popcorn’s gourmet popcorn flavors and craft sodas. In addition, it will offer frozen lemonade in the summer, and locally roasted coffee and hot chocolate during cooler months. The new food truck model allows the Mall of America Doc Popcorn location to mobilize and be an active community business.”

In addition “The PopTruck is available for local reservations such as corporate/employee events, customer/student appreciation days, civic celebrations/events, sports tournaments, graduations, weddings and other celebrations.”

Bentz stated “At our Mall of America location, I never tire of seeing kids’ excitement over popcorn,” …“With my eldest daughter taking over the management of my Doc Popcorn store in the mall, I wanted to find a way to expand the business and stay connected to my customers. The PopTruck is an opportunity for me to spread happiness and smiles all over the Twin Cities community.”

Multi-channel is important today.  Rob Israel, founder of Doc Popcorn and ‘Big Pop  explained that  the PopTruck brings Doc Popcorn into the fastest-growing segment in foodservice. The food truck industry has increased 12.4 percent over the past five years and is expected to reach $2.7 billion this year.

Israel continued “Bill’s PopTruck is an exciting opportunity for our brand to test the food truck model,” …“Bill came to us with the idea and we co-created the concept. The PopTruck is the first of its kind for Doc Popcorn, so we’re excited to see how it’s received in the Twin Cities and determine if others in our franchise family may also benefit.”

Positioning is so important according to our own Grocerant Guru® noting that  popcorn is considered a “better-for-you snacking option”, Doc Popcorn creates its own proprietary flavor blends using high quality ingredients free of trans fat, MSG, artificial colors and preservatives. Gourmet popcorn flavors include Klassic Kettle, Sinfully Cinnamon, Triple White Cheddar, Sweet Butter, Cheesy Cheddar, Better Butter, Caramel Kettle, Hoppin’ Jalapeno, Salt-n-Pepper, and can be mixed and matched for a variety. Are you expanding your brand? 

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  the 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. Visit: www.FoodserviceSolutions.us for more information