Finding Food Sales Success at the intersection of Share of Stomach and Share of Wallet.

 

Retail food sales success can be found at the intersection of growing your share of stomach and your share of wallet according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® who stated these two metrics play a crucial role in understanding consumer behavior and competitive dynamic driving success today within the food industry.

The grocerant niche is filled with Ready-2-Eat and Heat-N-Eat fresh prepared food that can be portable and is found at all of the sectors listed below. Let’s first try to understand the term Share of Stomach.  So, Share of Stomach refers to the portion of a consumers food spending allocated to different types of eating options.  It answers the question: “Of all the money a consumer spends on food to eat themselves, where does the consumer spend it.  

The various options include but are not limited to:

1.       Fast food Restaurants

2.       Convenience Stores

3.       Dollar Stores

4.       Grocery Stores including Service Deli

5.       Meal Kits

6.       Full-Service Restaurants

7.       Stadium Food

8.       Street Fairs

9.       Limited-Service Restaurants

10.   Third Party Food Delivery Companies

So, just why is Share of Stomach important?  All food retailers need insights into what the consumers is eating in order to identify emerging trends consumption to evolve their menus, meals, and snack options to maintain customer relevance.

These insights include preference of consumers for the ilk; Hand Held Food for Immediate Consumption vs Sitting down at a table to eat. Drive-thru and pick up a meal vs Walk-in and Order a meal too go at a counter, Burger vs Pizza, Chicken vs a Steak, Spicy vs Bland.

Measuring share of stomach is done by data aggregators use polling or publicly available sources including U.S. Census Bureau and Bureau of Labor Statistics to collect share of stomach data. In addition, some firms track consumer credit and debit card transactions, segmenting them by establishment type / fast food, service deli, convenience store, grocery, bodega, online aggregator, stadium, street fare, etc.

Share of Wallet on the other had focus on how much a consumer spends within a sector aka grocery, convenience, restaurant, dollar store etc. With emphases on “how much a consumer spends on a specific brand’.  That is done within sector for example grocery Walmart, Kroger, Publix, Aldi then the same within Fast food example McDonalds, Burger King, Wendy’s, KFC etc. Then in Grocery for example companies drill down on category brands the ilk of Hunts, Hines, Kraft, Tyson, etc.

Share of Wallet answers the question “What portion of a customer’s total spend does a business capture?” While share of stomach looks at a broader food buying habits, share of wallet zooms in on specific brands. 

All that said, its where Share of Stomach and Share of Wallet intersect that brand value can be found and that is the intersection that can garner new customer if the retailer is leveraging relevant messaging that edifies both the consumers need set along with the undercurrent food trends.

The need to understand both metrics is required to maintain customer relevance as these metrics provide insights into consumer behavior, guide menu and product planning, and help brands adapt to changing trends.

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

Beef ‘O’ Brady’s Right Idea

When customers can’t come in you have to go to them or risk losing sales, profits, and maybe even your business. Understanding the undercurrents driving growth within the foodservice sector is of paramount importance when you are forced to reposition according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consistent unprecedented growth, are three words that best describe the grocerant niche since 1996, according to Johnson.  (Johnson, by the way identified, quantified, qualified, the undercurrent of the evolving food sales sector and named it the Grocerant niche first published in Nation’s Restaurant News in August 1996 -They Call Them Grocerants.)  

Understanding that and keeping up with food industry sales trends, Beef ‘O’ Brady’s is now offering groceries along with usual fare.  This one step has significantly tempered the sales declines of the 20 restaurants in the casual chain that are giving retail a try. “The guy who’s doing the best with it is down 13%, while the rest of the system is down 70%,” says CEO Chris Elliott.

While it’s a start this specific format does not reflect the current trended identified, quantified or qualified in Foodservice Solutions® latest Grocerant ScoreCards.  According to Elliott, “there’s ample reason why the other 130 stores aren’t racing to add shortening or gallons of milk to their product lines.

Part of the hesitation, is location-related “the neighborhood you’re in, the trade market you’re in.”  The demand may not be there, regardless of how stocked or empty local supermarkets might be.”

The team at Foodservice Solutions® understands that these are difficult times. Integrating a clear consistent brand messaging while expanding into new niche with consumer convenience solution is hard work even during the best of times. Beef ‘O’ Brady’s is doing many things right and will quickly learn that the opportunity within the grocerant niche is there.  However, the approach they have taken will need some tweaking to refine consumer relevant touchpoints according to Johnson.

Grocery stores have been selling meals and meal components from their service deli for years. All the while convenience stores have been selling meals, meal components many not describe themselves as ‘fast casual restaurants. So, Beef ‘O’ Brady’s entering the grocerant niche is a natural way to evolve according to Johnson.

Once again there is a battle for share of stomach and share of dollars. If restaurants are required to reduce seating capacity for over a year customer disequilibrium will spiral out of a brand managers control. Consumer migration filed equilibrium where customer relevant touchpoints are located.  Year over year customer count declines can not be tolerated forever.  Are you ready to evolve your business model?  

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Shake Shack Grubhub Delivery Conundrum

Consumers are dynamic not static according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  All successful restaurant operators will tell you the customer come first.  At Shake Shack someone missed that assignment or simply forgot rule number one the customer comes first.

When Shake Shack entered a new exclusive delivery partnership with Grubhub consumers did not like it, were unaware, and clearly disappointed that the delivery options they were using in the past had been removed from service.

While delivery Grubhub was available at nearly all 151 company operated Shake Shacks. Shake Shack CEO Randy Garutti stated that “customers are used to finding the brand on DoorDash, Caviar and Postmates.” The result was clear according to Garutti  “Average weekly sales for domestic company stores declined to $80,000, down from $86,000 for the same quarter last year.” How could this have happened?

Just to stay relevant our Grocerant Guru® stated it was a simple ‘Quid pro quo’. Shake Shack new deal with Grubhub deal was sealed by sharing of consumer data.  Thus, making the delivery relationship more about big data than the current customer base.  

Garutti has some simple justification for over-looking consumers stating “the company went with Grubhub for a variety of reasons. It is less complicated on stores to work with one delivery operator; the long-term economics tied to commission fees are projected to be better; and, most importantly, Grubhub has agreed to share customer data, which delivery companies often hold hostage.”

Garutti over looked the consumer and his sales fell.  That is the simple truth of it. Had he started with an exclusive agreement with on delivery company there would have not been a problem or consumer blow-back. Garutti was caught in within the consumers paradox of choice.  Brands need to empower consumers not confine them. 

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.

Lidl & Aldi Went to School Listened, Learned, now Lead

Within every business sector there are winners and there are losers.  One sure way to determine who is winning is to look within a sector and see just who is growing, expanding by building new units while expanding into new geographic territories simultaneously.  There are two standout companies globally, and in the U.S., they are the same two Aldi & Lidl according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

A new study by Bain found 30% of shoppers at mass and traditional grocery stores also regularly shop at Lidl and Aldi.  Why, well as regular readers of this blog know the leadership of both Aldi & Lidl have listened to the consumer, learned, and then gave the consumer the experience they wanted from a grocery store according to Johnson. Here is more of what they found:

“The figures were especially strong for Aldi, which the survey indicated was gaining customer acceptance along with its move to expand assortment to premium tiers. Its consumer advocacy rose to 55% in 2018 from 46% a year earlier and outperformed in the two areas that according to Bain customers care about most: “best everyday low prices” and “best value for the money.”

Winning the Battle for Share of Stomach

Consumer advocacy is a predictor of future success, because promoters—or a company’s biggest fans—tend to spend more, purchase more frequently and devote a higher share of their overall spending to retailers than do detractors, or consumers giving company a low rating. Aldi had the third-best NPS of 25 retail brands in the Bain study, while Lidl ranked 12th in that group. Bain did not identify the companies in the provided rankings but said the group included supermarkets, mass merchants and warehouse clubs, and excluded convenience stores and dollar stores.

Lidl, which entered the U.S. less than two years ago, is still tinkering to find a profitable model, but has captured 3% or greater share in five of the seven markets studied in summer 2018, gaining spending from traditional grocers, Bain said.”

The simple fact is Aldi & Lidl have given consumer what they asked including price, value, service, and discovery according to Johnson. They did that while edifying operational efficiencies giving them a competitive advantage over traditional grocery retailers who take pride in doing what they have always done and doing in the same way according to Johnson.  We ask Why?  Success does leave clues and giving the consumer what they want should be you first clue every day. 

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

Grocery store App’s Integration of Fresh Food too Targets Restaurant Meals

Grocery stores have come a long way from stocking the pantry to curbside pick, delivery, and App’s that you can pick out your prepared meal or buy a meal kit and have it delivered to your car, your home, or your office.  According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® grocery stores are now leveraging technology ‘App’s’ to answer the never ending question What’s for Dinner?

Today 64.7% of households do not know what’s for dinner at 4PM according to Foodservice Solutions® latest Grocerant ScoreCards.  According to a study from eMarketer, grocery app usage will grow by 50% this year, and 18 million Americans will order food this way.”  We most note that, brick-and-mortar grocery stores are not going away and this is in fact marketing tool being leveraged to garner back customers who have left for restaurants.

The eMarketer study found that one out of five adults will order food through a grocery app next year. “Shoppers are becoming more comfortable with ordering online in general, and grocery is a part of that,” said eMarketer senior analyst Patricia Orsini. In addition, the study shows that grocery app usage among Americans will grow in the future from 18 million in 2018 to 30.4 million in 2022.

Consumers love hand held food for immediate consumption but even more than that they love their smart phones which have turned into a hand held marketing dream platform. In general, mobile shopping is on the rise. For example, Forrester predicts that smartphones will affect more than $1 trillion in U.S. retail sales this year. Globally, mobile e-commerce sales reached $1.4 trillion in 2017 and are expected to increase to $3.5 trillion in 2021.

A Nielsen global survey showed 18% of shoppers used mobile coupons, 15% used mobile shopping lists and 14% used a mobile retail loyalty program. In addition, about two-thirds of shoppers are willing to use these products in the future.

As people become more comfortable with ordering food through an app, grocery stores are taking advantage of this. eMarketer defines a grocery app as one that allows you to order fresh food from a retailer on demand. So, chain restaurants are particularly vulnerable to the new fresh food options from grocery stores?  Is your brand prepared?

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

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

At Tijuana Flats Differentiation Means Familiar

Success does leave clues and regular readers of this blog know that Steven Johnson our Grocerant Guru® regularly states that “in food retail differentiation does not mean different it means familiar’. Tijuana Flats has picked up the right clue as it rolled out a summer Limited Time Offer (LTO).  The new menu item is Dos Cheeseburger Tacos, which includes two tacos with seasoned fries, for just $7.89.

Yes, Tijuana Flats is bringing together the best of both tacos and burgers this summer for one epic mash-up of deliciousness with the Cheeseburger Taco. The LTO  is available at all Tijuana Flats locations from July 30–September 9.

As you can see from the picture and the description differentiation does not mean different.  The Cheeseburger Taco is a tasty concoction consisting of a tortilla filled with seasoned ground beef, cheese, lettuce, tomatoes, pickles, ketchup and mustard. Instead of chips, Flats fans that order the Cheeseburger Taco will receive a side of seasoned fries and queso.

Throughout the summer, Flats guests can order Dos Cheeseburger Tacos, which includes two tacos with seasoned fries, for just $7.89. Fry lovers (and who isn’t a fry lover?) can get a side of fries for $2.99, an order of fries and queso for $5.29 or upgrade Flats chips to fries on any Flats dish for just $0.99.

Rick Van Warner, CEO. “We know Flatheads love a good twist on a classic dish, and we can’t wait for our guests to dig into the best of both tacos and burgers at Tijuana Flats.” How is your brand edifying it’s relationship with consumers? 

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.

Grocerant Meal Solutions 9 Winning Clues for Success

Success does leave clues Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has continually pointed out over the past several years that empowering consumer choice around grocerant niche Ready-2-Eat and Heat-N-Eat fresh food would garner incremental customer transactions, larger share of food dollars, and larger share of stomach.

If legacy restaurant brands are going to survive or thrive they will new a new electricity to drive incremental top line sales and bottom line profits with new strategic partnerships. According to Johnson; partnerships specifically strategic partnerships will be  driving retail success in 2018. 

Johnson stated “in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as digital hand held marketing, local fresh food,  grocerant consultants, urban farming (produce, seafood, etc.), autonomous delivery, cashier-less retail, cash-less payments, delivery, and voice ordering.

Grocery store Service Deli’s and Chain Restaurants to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar but with a twist.  Johnson had identified 9 foodservice undercurrents driving both retail food consumers migration and adoption.  Here they are:  

1. Evolve or Fade Away: Increased completion had elevated the blurring of retail channels expanding foodservice fragmentation.  According to a study by Deloitte, consumers on average shop at four to five different types of stores to fulfill their grocery needs. Foodservice Solutions® team has found increased SKU’s of grocerant fresh food at restaurants, online Meal Kits, drug stores, dollar stores, supercenters, discount, specialty, convenience, club stores and Mobile e-commerce ‘home’ stores. 

2. Ethnic Melting Pot:  The US Census reports the undercurrents of our evolving demographics will continue broaden, expanding the population of “multicultural consumers.” In fact in a new Nielsen study found that the “buying power from the Hispanic, Asian and African-American populations will be 17% of a $4.2 trillion market. The Melting Pot of opportunity is overflowing with grocerant niche success points according to the team Looking A Customer Ahead at Tacoma, WA based Foodservice Solutions®.

3. Halo of ‘Better-for-You’: Consumer tell us that grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food is ‘better-for-them’ as the halo includes not doing dishes or cooking from scratch. Acosta found that “nearly one-third of shoppers surveyed considered leaving a store if fresh and healthy options were not available.”

5. Customization and Personalization:  Retailers the ilk of Green Zebra Grocery, EveryTable, and Wegmans continue to attract loyal customers with convenience, quality, value, and customer service. Customization and personalization via mix and match meal component bundling are hallmarks of success found within the grocerant niche according to the Grocerant Guru®.  Restaurants continue capitulating customers as consumers seek fresh food in non-traditional fresh food retail outlets that are becoming more of a priority.

6. Price and Private label: Trader Joe’s private label products have the ‘halo of better-for-you’ according to non-client information aggraded from over 8,116 Grocerant ScoreCards. A recent Nielsen/PLMA study, sales of private label products generated a record $120 billion last year, and continued to outpace national brands. Trader Joe’s, Aldi, Lidl will continue to increase market share leveraging price and quality private label foods.

7. Hand Held Marketing:  Mobile smart phones continue to garner adopting in fact according Nielsen 85% of Millennials have a smart phone. Consumers of all ages continue to embrace digital technology and social media as a means to connect and communicate about food or when looking for food. A recent study showed that 37% of shoppers use their mobile devices in store for comparing prices, searching for product information, or checking product availability.

8. Mini Meals at Mini Locations:  Rent is expensive and more and more retailers have no locations or smaller locations virtual dining from a home or local kitchen is a growing trend. According to a Package Facts study, even the average square footage of supermarkets has fallen since 2006 and is now approximately 46,000 sq. ft. Even smaller size formats of 25,000 sq. ft. or less, modeled by chains like Trader Joe’s, Aldi’s and Lidl, have proven to be successful.

9. The Price Value Service Equilibrium is Resetting:   Foodservice Solutions® team identified, quantified and qualified a new formula for the foodservice Price, Value, Service, Equilibrium. That formula can be found with this link. Consumers are dynamic not static and food retailers must evolve their brands to both maintain and garner consumers frequency levels.

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