Virtual Restaurants Can Drive Chain Growth with Profitability

The chain restaurant business model is evolving.  Last week we saw two legacy restaurant chains that practice brand protectionism file for bankruptcy, The Halal Guy’s has developed a plan for profitability leveraging technology, food marketing, and operational efficiencies that most legacy chains have not according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The Halal Guys currently operates four carts and 95 restaurants, with 400 more locations in the pipeline. Here is what is important they are expanding their portfolio of delivery-only virtual /restaurants /kitchens to meet growing customer demand and enhance its delivery, pickup and group ordering options.

The model explained; The Halal Guys identified cloud kitchens as a cost-effective way for its franchisees to capitalize on the growing trend of online food delivery, a category expected to exceed $200 billion by 2025. Working closely with its franchise management partner Fransmart, The Halal Guys is continuously evaluating territories to determine locations where a cloud kitchen could be successful.

Dan Rowe, CEO of Fransmart stated “The Halal Guys has an incredible reputation, and its franchisees are always eager to expand into new markets,”… “But no two territories are exactly the same, and it’s important to grow in a way that’s strategic and profitable. The small footprint and flexibility of cloud kitchens enables franchisees to unlock opportunities in desirable markets, while avoiding typical barriers like high rent or infrastructure costs.”

The Halal Guys has partnered with Fransmart, as their exclusive franchise development partner to grow the brand.  Who are you partnering with?  Is that partnership driving new electricity into you brand? 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, Online ordering, delivery, plant based foods,  sampling, toy’s, beer, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow?   

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Food Retailers Struggling for Employees the Solutions is Simple

Regular readers of this blog keep telling me ‘the food industry is not brain surgery’.  They also ask why is it so difficult for so many?  So, we asked Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Are you ready for his answer?

Our blog readers are right the food industry is not brain surgery.  When in doubt Johnson says look at companies growing same store sales, store count, and profits as they leave success clues for those who or unsure of simply uninformed.

Having problems getting employees do what Sheetz is doing Pay MORE, while evolving your business model.  Sheetz was one a C-store now its customers consider it a fast-casual fresh food restaurant that sells gas. If your menu, product offerings look more like yesterday than today’s successful retailers its time your business model evolves.

Battle for Share of Stomach

Sheetz is investing $16.8 million to boost its store-level wages, edifying its relationship with employess driving relevance and word of mouth recruiting. Sheetz's goal is to offer competitive wages, which helps attract and retail top talent.

Travis Sheetz, president of Sheetz stated "As a family-owned and -operated business, we know our employees are our most valuable asset," … "We are deeply committed to investing in our employees and creating a great working environment where they feel valued and have the resources they need to succeed."

"Our goal is to provide competitive wages and full-time hours to as many employees as possible, as well as providing quarterly bonuses as a way for employees to share in our success," Travis Sheetz continued.

Now, this latest investment comes on the heels of a $15 million investment in employee wages in 2016. That investment coincided with a significant effort to shift more store employees from part-time to full-time work. Don’t use justification or rationalization as an excuse not to keep you company relevant for consumers or your employees.

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

Just Salads Consumer Interactive & Participatory

Was May the month you were going to slim down for summer? Well if it was and you were one of the luck consumers Just Salads may have been where you have been eating.  Just Salad launched an endless salad bowl promotion in May, joining a number of other chains that have debuted recent pay-upfront deals.

The Just Salad’s $99 Unlimited Salad Bowl, which sold out in about six hours entitled the purchaser to one salad each of the 31 days in May. That includes any chef-designed salad or a custom creation with four toppings and one protein. The deal breaks down to $3.19 per salad if purchased each day. The chain will limit sales to 100 Unlimited Salad Bowls.

Just Salads received lots of ‘buzz’ around the pay-upfront endless salad bowl promo according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  However Johnson wondered aloud during his presentation in Chicago during the NRA Show if this could become a new subscription model for many fast casual restaurants?

Just Salad’s Chief Branding Officer Rosalin Siv “This is the first time we’re doing it, so we’re testing the waters,” Johnson ask why not evolve this model? A number of other chains have found success with similar pay-upfront promotions, most notably Olive Garden’s Never Ending Pasta Pass, which typically sells out in less than one second. That’s just a flash in the pan but how could you move this business model forward?

The Unlimited Salad Bowl promotion meshes with Just Salad’s sustainable, earth-friendly mission. The fast-casual chain already sells a $1 reusable bowl, with which customers can get free toppings during each visit. Some 785,000 consumers have used the reusable bowls in the last year, the brand says.

Amazon has it subscription service Amazon Prime which over 100 million customer pay for. Gym membership are growing in popularity among all ages so Johnson asks could a subscription base drive your restaurants top line sales and bottom line profits?

Restaurant punch cards were big back in the day but could a subscription service become the base of a loyalty program; could it become you new electricity? In the minds-eye of Johnson, there is one dominate element that will power success within retail foodservice over the coming years.  Johnson calls it the new electricity that is partnerships specifically strategic partnerships.   

The new electricity must be very efficient for the supply and includes such things as fresh food, sous vide meal components, portable meals, meal kits, subscription services, urban farming (produce, seafood, etc.), autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing.

Retailers the ilk of Supermarkets, Restaurants, Conveniences Stores, Dollar Stores, and Department Stores that selling food and want to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing portable prepared fresh food.  That will require brands to embrace new fresh food partnerships more now than ever before according to Johnson.

Are you trapped doing what you have always done and doing it the same way?  Where is your new electricity coming from?  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.