Albertsons Looking a Grocerant Customer Ahead

 It looks as if the grocery foodservice sector is about to have a great year according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® who stated, “maybe this time grocery stores will capitalize on the consumer trend that has changed the face of food retail the grocerant niche. Albertsons is showing signs that it now understands the undercurrent driving consumers to find the age-old question; What’s for Dinner.

Leveraging customer data, Albertsons is now offering ‘digital’ loyalty members integrated menu-based shopping list creation, auto-replenish. So, in case you forgot, it was this time last year, Albertsons Cos. President and CEO Vivek Sankaran said they were going into “the meals business.” With the recent launch of two new digital offerings—Meal Planning and Schedule & Save—the company takes another step forward on its meals business plan.

Now according to Johnson, when you add that rollout to the news the U.S. House of Representatives recently introduced a bill to allow the SNAP consumers to buy prepared meals (with the backing of the NGA) the stage is set for a Battle for Share of Stomach between restaurants and grocery stores service deli’s like we have never before seen.

At Albertsons / Safeway the new capabilities will offer loyalty members integrated menu planning and shopping list creation and the ability to auto-replenish essential items on their lists. These new features are part of “Albertsons Cos.’ ongoing goal to revolutionize its digital offerings and enhance all aspects of the food experience to save customers time and money,”.

Chris Rupp, Albertsons Cos. EVP and chief customer and digital officer, stated, “Our customers continue to look for new ways to save time and money when planning meals and shopping at their neighborhood Albertsons Cos. banner store,” … “These two new features are important ways we’re helping customers reduce the effort associated with grocery shopping so they can spend the time enjoying meals with family and friends.”

Let’s see how this Meal Planning Program works:

The company’s new Meal Plans feature integrates the Mealime meal planning app to help customers answer the “what’s for dinner?” question. The Meal Plans feature provides an easy, convenient and personalized way to plan meals and cook recipes, the company adds. Members have access to thousands of shoppable recipes developed by professional chefs and dietitians that are curated and refined based on taste and dietary preferences.

The aim is to inspire Albertsons loyalty members to break out of food ruts and complete their weekly shopping in less than 10 minutes with the option for pickup and delivery or in-store shopping.

Battle for Share of Stomach

Schedule & Save

Albertsons Cos.’ Schedule & Save is a new online auto-replenishment offering that allows loyalty members to ensure their grocery and household essentials always remain in-stock. Developed with convenience-seekers in mind, the new offering automates the task of routine shopping. This allows customers to automatically replenish their more frequently purchased items across categories.

The products scheduled for purchase will be offered at “an attractive discounted price,” the company said, “reflecting significant savings off the average shelf price, available for pickup or delivery.”

Currently available to select Safeway customers in Northern California, Schedule & Save was developed in partnership with auto-replenishment and predictive shopping platform Replenium.

In 2022, Albertsons Cos. said it plans to expand the program nationwide and include a continuous expanding list of items for members to add for auto-replenishment. 2022 will be a great year for the sales of grocerant niche fresh prepared meals, meal components, and beverages to-go sales. The Battle for Share of Stomach is on!

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 

Within the Grocerant Niche Two-Tiered Pricing is a Stumbling Block

Grocerant niche customers don’t like two-tiered pricing according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. While consumers embrace food when they Dine-In, or opt for Take-Out, while using Online Ordering / mobile ordering or even a App, even when electing Delivery, Curbside Pick-up, or something in between.   

Economic upheaval continues to linger with employment instability in the U.S to Germany, India, Greece, to South Africa. In developed countries the unstoppable stock market is creating uncertainty and disillusionment as restaurant same store sales lag well behind last year’s numbers in most cases.  Fast Food restaurants are still aspirational for many consumers around the globe.

Recently Foodservice Solutions® grocerant scorecards found consumers are confused with the price of a many food items.  When asked about the price of a single entrée 73.1% of consumers responded the entrée was priced High.  When asked about a bundled meal deal 46.9% of consumers said the price was high.

However; let’s not get confused about two-tiered pricing.  What is Two-Tiered Pricing within the food space in the minds-eye of the consumer.

Two-Tiered Pricing A: When the price a food outlet sells an entrée for within the store is different that when they order it online or for takeout. Not a good thing.

Two-Tiered Pricing B: When the menu or grocerant niche Ready-2-Eat and Heat-N-Eat meal components offered by the retailer not within the set range.  Here is an example a Dollar Menu with 10 items and the rest of the menu 20 items that sell for $ 4+. Not a good thing.

Johnson notes that over the years Foodservice Solutions® grocerant scorecards have indicated that brands do the best that have one set pricing focus. Consumers are looking at brands that have “the same or stable pricing with all entrees or bunded meal deals to be within a “new middle” for that brands menu options and messaging.

While two tier pricing was once required by global brands.  Today branded food retailers need to garner new customer’s they have learned that it is best not to focus on the either end of spectrum to sustain growth to sustain growth.  It is more important for the brand messaging and menu or meal component pricing to consistent with each other.

While the The Euromonitor put it this way.  “Fast food is changing, and not just in the category's dominant US market. Amidst fierce competition, fast food brands have been forced to differentiate themselves with broader menus, better food and higher-end outlet designs. In developed markets this has led to the popularity of the fast-casual segment, but in emerging markets (most of which show a strong preference for full-service dining) it has helped fast food gain traction as a modern, lower-cost alternative to more traditional foodservice formats …

The branding opportunities inherent in the fast food business model have also allowed these chains to appeal to developing market consumers' taste for exciting new dining experiences. South Africa-based chicken fast food brand Nando's, for example, has relied on strong branding, exciting flavours and a unique dining experience to set it apart from other chicken fast food chains, a fact that helped it achieve 19% value growth. Similarly, UK bakery products fast food brands EAT and Pret a Manger have both found success with a positioning of convenient, high-quality food, a modern atmosphere and quick service. “

Mix and match meal component bundling with a focus on both product and price positioning is key to drive growth in a volatile marketplace. Focusing on fresh, high-end ingredients, especially, has helped the brands compete with more traditional fast food concepts, and this kind of above-and-beyond competitive positioning will continue to integral to the success of any new fast food concept….

The universal commonalities in Reay-2-Eat and Heat-N-Eat fresh prepared food are fueling retail success around the globe.  Do you have a pricing strategy? What is your growth rate?  Everyone needs to think about global food growth leader Aldi says daily “Poor People Must Save, Rich People Like To”. What your brands price messaging?

For international corporate presentations, regional chain presentations, local educational forums, or keynotes contact: Steven Johnson 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. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Battle for Share of Stomach

Can Breakfast Save Restaurants after COVID 19, We Think So

Foodservice Solutions®, Grocerant Guru®, Steven Johnson based in Tacoma, WA believes that the numbers behind breakfast may just be the saving solution for restaurant woes. Consider this during 2019 Americans consumed nearly 102 billion breakfasts, with another 50 billion morning snack occasions rounding out the average morning according to The NPD Group.  

The simple fast is not going to work has disrupted, eliminated, that personal time, where getting your favorite coffee was more than coffee it was a personal indulgence of time and treasure. Restaurants can build sales during the AM daypart again by doing three things according to Johnson.

1.       Extended a branded Invitation

2.       Empower that Invitation to be Interactive

3.       Extend the Invitation to Participatory

Price matters all day long but during the AM daypart with over 40 Million consumers unemployed or under employed that AM indulgence will be on the back burner if price is not a key component of your invitation according to Johnson.

Consider this Dollar Stores have garnered so much of legacy grocery store 'Center of the Store' over the last 15 years, that there are now 50% fewer legacy grocery stores. That said, now restaurants after capitulation year over year customer counts for the past 7 years now have an opportunity to recapture customers with breakfast according to Johnson who stated recent grocerant niche scorecards indicated that 46% of those consumers that enter for breakfast will come back for another meal on the same day.

So, I wonder out loud what happens to the grocery sector with huge 'footprints' if one, two, or three of these chains restaurants figures out breakfast again and then expands in to a new GROCERANT platform after C-19?  Fresh prepared Ready-2-Eat and Heat-N-Eat meals and meal components can complement even a breakfast program according to Johnson.

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

In Battle for Share of Stomach

You Can WIN!

Free, Fast Grocery Delivery and More

Success does leave clues and when you are one of the world’s largest companies you must have pick-up many success clues along the way according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  One clue Amazon has picked-up and leveraged for its success is: fast service during the holidays not only drives incremental business it becomes a platform of sustaining a long-term relationship with consumers.

This year members of Amazon Prime can now arrange free grocery delivery in one or two hour windows from Amazon Fresh and Whole Foods Market. The available selection includes meat, seafood, produce, snacks and household staples.  Are you time starved during the Holiday season?  If so, this is great!

Amazon VP of Grocery Delivery Stephenie Landry stated “Prime members love the convenience of free grocery delivery on Amazon, which is why we’ve made Amazon Fresh a free benefit of Prime, saving customers $14.99 per month,”… “Grocery delivery is one of the fastest-growing businesses at Amazon, and we think this will be one of the most-loved Prime benefits.” 

Amazon is enabling Prime members currently shopping grocery delivery to continue using these services, however, and get this all other Prime members in one of the 2,000-plus cities and towns with grocery delivery can make an online request for an invitation to shop Amazon Fresh or Whole Foods Market delivery. So, how fast is your service and what do you charge?

Simply put: Amazon is looking a customer ahead.  Are you playing catch up or are you looking for ways to differentiate your brand from competitors? Are you building a platform for today or tomorrow?

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

Online Grocer Boxed understands Price & Selection Matter

Once again successful growth can be defined understood by looking at two key pillars that are the basics of retail; price and selection.  Fast-growing online grocer Boxed seems to understand the fundamentals and is targeting its growth on Millennials leveraging both price and selection according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In May, Boxed announced that it was joining forces with Lidl to bring online ordering and Boxed Express on-demand delivery to select Lidl locations. Lidl’s stores are known as grocer with great prices and an inviting selection of relevant well priced consumer packaged good and family friended home focused retail items.

So, the story is that Boxed is one of the leading startups in the grocery business, New York-based Boxed has raised $243 million in funding. The company has been the subject of acquisition rumors, and reportedly rejected Kroger’s $400 million purchase offer last year, while holding preliminary talks with Amazon, Target and Costco, according to Bloomberg News Service.

Now Boxed has teamed up with department store chain Century 21 to introduce a curated assortment of beauty and apparel products. The assortment will include brands such as Bare Minerals, Calvin Klein, Polo Ralph Lauren, Adidas and Ray Ban. This is Boxed’s first foray into apparel and cosmetics.

Gindi, EVP of New York-based Century 21 Stores  stated "Century 21 Stores is thrilled to partner with Boxed to bring our incredible designer brands at amazing prices to their audience who love online shopping convenience and value quality goods above all else," said Isaac. "It's exciting to provide a new way to shop a range of Century 21 products for our loyal customers alongside their day-to-day items that they know and love on Boxed."

The team at Foodservice Solutions® believes that Boxed is positioned to focus om meals and meal kit solutions given that Boxed revealed in July that it had hired former Amazon executive Prentis Wilson, who led Amazon Business’ growth to $10 billion in annual sales volume, as Boxed's first president. Stay tuned!

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson 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. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869

Why Do Fast Food Restaurants Account for Most Restaurant Meals in America

Year after year The NPD Group reports that fast food outlets account for 82+% of all meals sold at restaurants in the United Sates. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has informed regular readers of this blog that 65.3% of US household consist of one or two people and that it is simply easier to eat fast food than cook for one or two people night after night.

Recently Unilever reported that a whopping 40% of U.S. households are ‘cash strapped’ and represent $1.6 trillion in spending power. By some definitions, those struggling to make ends meet could be larger—and growing. So, it’s no wonder that as restaurants continue to raise prices customer counts will continue to drop according to Johnson. The Battle for Share of Stomach is a PRICE in 2019. 

Battle for Share of Stomach

Consider this from the Unilever report consumers making about or just less than 400% of the federal poverty level—criteria to be eligible for federal healthcare assistance, for example—comprise more than half of U.S. households and include consumers one might otherwise consider “middle class,” says Sarah Marion, director of syndicated research for the Hartman Group, Bellevue, Wash.

Marion continued “It reaches into the middle class a little bit,” ... “but once we saw the data, the shopping patterns are really different once you cross that line. Those households have to make difficult budgeting decisions every day. It’s, ‘Are we going to have health insurance or are we going to send Johnny to camp this year?’”

 It appears that non-traditional fresh food retailers that can say consumers time and money will win the heart and minds of consumers.  Those retailers are focused on selling grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared foods a competitive price according to Johnson.  

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

Look for a Strong Q4 from McDonald’s

Sometimes life is good and the fall McDonald’s franchisee will be happy with the return of the McRib one of the restaurant industries best Limited Time Offers in the minds-eye of McDonald’s customers and franchisees according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The McRib for those of you who do not know is a seasoned boneless pork, barbecue sauce, onions and pickles on a hoagie-style bun – was last on menus in November 2017; and was first launched in 1981.

Hedging it’s bet on Q4, McDonald’s also unveiled its new value offering a $6 Classic Meal Deal. It launches on Nov. 1 for a limited time at participating restaurants nationwide. The $6 Classic Meal Deal is comprised of one of four McDonald’s menu items – Quarter Pounder with Cheese, Big Mac, 10-piece Chicken McNuggets or Filet-O-Fish – along with any size soft drink or sweet tea, a small fries and a seasonal or apple pie.

The hedge is the McRib will ease the pain of the PRICE hike in the meal deal from the current industry standard of $5 a meal to $6 a meal?  Regular readers of this blog know what happened to Subway when they tried to back away from the $5 foot long that created the customer platform of the $5 Meal Deal.

When McDonald’s CEO Steve Easterbrook stated “The environment is competitive around value,” he was 100% correct.  Easterbrook continued “It’s a market share fight on traffic,” “We don’t see many people out there in the sector growing traffic. It’s a scrap. It’s a market share fight.”

The team at Foodservice Solutions® believes McDonald’s marketing power will elevate the dinner meal deal driving incremental sales and moving consumers from the $5 price point to acceptance of a $6 price point and not only will that be good for McDonald’s it will benefit all fresh fast food retailers. 

The simple fact is according to Johnson in 2019 What’s good for McDonald’s will be good for all fresh food retailers. Success does leave clues and McDonald’s marketing messaging, limited time offers, edifying brand relevance will once again be the platform of retail envy.

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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

Dunkin Donuts Refresh Renew Run Menu

Timely menu up-dates add relevance edifying consumers to your brand.  There are times that when the customer has moved more than you brands product and messaging you need a complete refresh according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

When fast food industry icon and industry leader McDonalds extend its breakfast menu from breakfast only to offering breakfast menu items all day long the consumer mindset shifted from coffee shops and donut shops to fast food burger drive-thru’s according to Johnson.

Dunkin' Donuts once the sole leader in the breakfast daypart has elevated its focus to coffee and doughnuts chain wants to be more competitive in all four day-parts. Leveraging the FIVE P’s of food marketing Dunkin’s new menu is leveraging PRICE to drive trial for the new ‘run menu’. They are offering a handful of items for the welcoming price point of $2.

Tony Weisman, Dunkin's U.S. chief marketing officer stated "We know that the 'Dunkin' Run' is a daily part of many of our guests' lives as they keep themselves and their friends running, so we're excited to launch a new menu offering fresh ways to satisfy any craving any time of day,".

The new menu features the chain's new Donut Fries, chicken tenders with a waffle-like coating, Ham and Cheese Roll-Ups using flour tortillas, and Pretzel Bites served with a spicy brown mustard.  For those with a sweet tooth, the menu also includes a gluten-free fudge brownie, as the brand recognizes "the importance of providing alternative choices for people with dietary restrictions," noted Weisman. 

There are times that a new menu simply is not enough to drive top line sales and bottom line profits.  Then you must consider entering one of the four new avenues of distribution the grocerant niche has to offer.

 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

Taco Bell Fresh Fast Innovation Success

Success does leave clues and Taco Bell continues to edify its fresh food offerings with innovative new menu ideations that complement consumer expectations of affordable fresh flavorful food.  The new product research and marketing team at Taco Bell understand that menu brand differentiation does not mean different it means familiar but with a twist according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. 

Facts first Taco Bell sold 53 million of the fries, starting at $1, over the first five weeks of the promotion, making it one of the most popular product introductions in the chain’s history. In fact one out of every four orders during that period included the fries according to a Taco Bell spokesperson.

Leadership matters and the ‘man’ at the top of Yum Brands CEO Greg Creed stated “Consumers frequently added the fries to existing orders, driving incremental sales. ..The $1 fries helped the business,”. .. “The good news is a 25% incidence is great.” Regular readers of this blog know that price is a key driver within all sector of food retail.  There is little doubt that this was the right product at the right price for Taco Bell according to Johnson.

We must note that Taco Bell heavily advertised the $1 Nacho Fries during the quarter, and aggressively marketed its $1 items this year amid a tough, competitive fast food where consumers have been focused on value. Take note that all of that advertising did not take place online.

What’s next $1 Triple Melt Burritos and $1 Triple Melt Nachos at all 6,400 of its locations. The company is also testing new $1 products, including a Crispy Chicken Taco and a Beefy Crunch Burrito. The chain has vowed to introduce 20 new $1 menu items this year.

Creed continued “We’re not a one-trick pony when it comes to value,”…“We’ve got a lot of really smart plays around value. We continue to do very well in a tough marketplace.”

Without doubt the retail foodservice price, value, service equilibrium is once aging resetting.  There is a battle for share of stomach underway and customer frequency is top of mind with consumers and pricing marketing tool that has been taken out the food marketing tool kit to garner incremental customers, product trial, and customer migration.

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