Why Do Grocery Stores Fresh-Takeout Look more like Yesterday

 

While many grocery stores have remodeled and made the grocerant niche Ready-2-Eat and Heat-N-Eat food the welcome mat / ‘centerpieces of the in-store shopping experience’. Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® ask why have many of the remodeled stores and most of the legacy stores continue to treat grocerant niche Ready-2-Eat and Heat-N-Eat food as if it were a legacy CPG product?

Regular readers of this blog understand “consumers do not want to cook from scratch’.  Ok, yes some do most however will cook from scratch on the ‘weekends’ 83.1% according to the most recent Grocerant ScoreCard.

Johnson continues the recent Grocerant ScoreCards found 88.7% of consumers bought Ready-2-Eat or Heat-N-Eat fresh prepared food because it was Fresh. With 86.4% of consumers saying they were seeking a specific Flavor, 82.6 % believe it is restaurant quality and 77.2% were buying because it was a Fast Meal. 

The International Dairy Deli Bakery Association (IDDBA) has emphasized the importance of creating a dynamic in-store experience for shoppers leveraging fresh foods. To help educate the IDDBA members and the industry, they teamed up with the Produce Marketing Association (PMA) on a series of webinars that delved into this issue, from a case manufacturer, retailer and culinary viewpoint. Among the trends and suggestions shared by panelists representing the aforementioned groups were:

·         Modifying existing hot and salad bars to better accommodate pre-packaged and grab-and-go products, including the use of risers, sneeze-guard extensions or complete removal of sneeze guards, removing pans and divider bars from the cold wells, and installing hot tiles.

·         Offer packaged do-it-yourself meal kits and/or pre-packaged items sold individually to create meals at homes. Consider seasonal themes and products used to create them, such as summertime grilling.

·         Convert all or part of the bar into a made-to-order service area, whereby associates can take orders and deliver the meal container hands-free via an attached chute.

·         The customer will determine the future of salad and hot food bars, based on their shopping habits and comfort levels.

·         Continue to focus on the benefits of packaged items while thinking of other creative ways to utilize the bars.

·         Devote half of the bars to pre-packaged items and the other half to bulk items.

·         More single-serve, packaged options.

After reading that one thing is clear.  They should have asked outsiders not insiders.  The reason most grocery store delis look like yesterday rather than today or tomorrow is that all they know and tomorrow who they asked.  How about asking the customers?  Success does leave clue and one clue we have all learned is doing what you have always done and doing it the same way does not is not the formula for tomorrow.  

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

At Zippin Fresh and Prepared Food too Drive Growth

Complexity free foodservice saves consumers time and time pressed adults value complexity free choices when it comes to deciding just ‘What’s for Dinner’ according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

While cashier-less retail has proven popular at saving time consumers still want grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food.  Technology is great but it is still food, meals, menus that drive the path to purchase according to Johnson. 

So, while Zippin uses vision cognition technology, machine learning and smart shelf sensors to provide a frictionless payment solution it is the newly positioned fresh food options that will drive topline sales and bottom-line profits.

Zippin, originally opened in August 2018; but recently reopened with longer hours, an updated design and an enhanced selection of products, including more fresh and prepared food items which our grocerant guru could have told them is what consumers want without having to retool.

Now, consumers can simply use an app on their phone to enter the store, grab what they want and leave. So, “When the receipt comes, we tell them exactly how much time they spent in the store,” said Krishna Motukuri, Zippin CEO and co-founder, noting that getting lunch can take a matter of seconds. 

Complexity free foodservice does not mean free from political tinkering as San Francisco passed a law in May banning entirely cashless brick-and-mortar stores to ensure residents without a smartphone or a bank account can still access the same services as other residents.

So, in response to the new law, Zippin now also accepts cash. Employees are available outside the store to assist — and to explain the technology to customers who are new to the concept. Why, outside? Well, because the actual shopping area is only 250 square feet, there might not be any employees inside the retail space. Think small footprint no cashier and profitability?  Who will be your next competitor?

Today, Zippin does not sell age-restricted products like alcohol and tobacco. But Motukuri believes this is simply a technological roadblock stating “Technology will get better,” .. “For instance, age-restricted products today, by law, require a human to check the customer’s ID. That could be something that could be automated. … in the next five or 10 years, most of them (could be) automated.”

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.

Starbucks Elevates Service with Digital Technology Success

Success does leave clues and chain restaurants once again can watch how Starbucks drove year over year sales with digital innovation according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The momentum from digital innovation is credited for driving a 4% jump in U.S. same-store sales for its most recent quarter, but the coffee giant is still having trouble cracking the code to unlock a traffic boost much like the rest of the chain restaurant sector.

Starbucks added 1 million active users to its “app-based members-only program in Q1 2019—a year-over-year increase of 14% and the company’s largest jump since 2015—and now has 16.3 million customers enrolled in the rewards program”.   Starbucks loyal users typically outspend other customers, according to Starbucks which is the case for most retailers. 

Expanding it digital focus with delivery, Starbucks revealed plans to expand delivery  to six new cities in coming weeks, said it is working to upgrade its software so customers can place delivery orders directly through the Starbucks app and not just via Uber Eats.

Starbucks revenue increased 9% to $6.63 billion for the quarter. Transactions, however, remained flat, and the comps boost was due in large part to a 3% lift in average check size.

Kevin Johnson Starbucks CEO stated “We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience,” Remember, Kevin Johnson came from Microsoft so integrating technology is something he understands.

The company reported growth in iced beverage sales and announced plans to expand its nitro coffee line from 40% of U.S. stores this quarter to 100% of units by the end of the fiscal year. “This platform is differentiated, provides theater and drives incrementality,” Johnson said.

Technology has invaded consumer life in the way of the smart phone and integrating pro-active marketing directly into the palm of your customers hand is an intrical part of brand marketing today.

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

Corner Bakery Evolves Customer Relevance with Drive-Thru

Consumers are dynamic not static according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Customer counts continue too decline within the restaurant sector in fact same-store traffic during December was down 0.9 percent, and traffic for the fourth quarter was down 1.6 percent.  

One company Corner Bakery thinks that the time has come to put an end to brand protectionism and move outside their operations comfort zone.  So, Corner Bakery will debut a drive-thru window on Monday, January 14, marking Corner Bakery’s first drive-thru in Arizona.

This will be a remodeled cafe that originally opened in June 2016. The drive-thru feature will allow customers to place their orders onsite, online or on their mobile devices and have their orders ready at the window, all at the convenience of not leaving their vehicle.

Corner Bakery will in a lowkey way introduce the new service with an offer for a free regular coffee or fountain beverage with any purchase to customers who mention the offer on January 14, 2019. The promotion will be valid all day in the Wilmot drive-thru only, limit one per transaction/vehicle. I think they kinda miss the point about value of introducing the new service, don’t you?

Corner Bakery recently was recognized as a top restaurant chain in the U.S. by TripAdvisor for 2019, ranking in the top 10 of the large restaurant chain category of 101 or more U.S. locations. Based on millions of reviews and opinions from TripAdvisor diners, the first-ever list recognizes restaurant chains offering high-quality service and exceptional meals at a great value. That said they need to continue on the path of growth offering new avenues of distribution and a drive-thru is just that according to Johnson.

Corner Bakery CEO Frank Paci stated “We are thrilled to be able to continue to serve guests in the Tucson community with our newly debuted drive-thru,” … “Corner Bakery has many fans throughout the area who love our naturally delicious recipes, abundant with fresh ingredients. This drive-thru line is a perfect example of how Corner Bakery is evolving to offer our flavorful menu items and unmatched service more conveniently.”

The restaurant sector needs to continue to evolve offering the bundled meal components offering the ilk of Corner Bakery Café has to offer in new avenues of distribution and a drive-thru is exactly the right avenue in many locations to drive growth.  However, don’t keep it a secret?  If success does leave clues and it does; promoting and communicating the attribute of the drive-thru is as important as the drive-thru itself.

Are you evolving with consumers? Do your food marketing ideations look more like yesterday than tomorrow? 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.

Piccadilly Elevates Customer Relevance with Grocerant Niche Location

Evolving a restaurant brand with relevance today includes expanding the brands reach into grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food if you don’t want your brand to look more like yesterday than today or tomorrow according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Piccadilly Restaurants menu was a perfect complement for its entrance into grocerant Ready-2-Eat and Heat-N-Eat fresh prepared food.  Regular readers of this blog know that 83.2 % of dinners service at home include at least one grocerant niche Ready-2-Eat or Heat-N-Eat fresh prepared item according to Foodservice Solutions® most recent Grocerant ScoreCard. 

New points of distribution provide increased consumer interest while elevating ‘fresh food discovery’ for many dinners today according to Johnson. Piccadilly’s new “Piccadilly’s To Go will have about 1,320-square-foot, offer convenient online, call-in and walk-in orders for Piccadilly’s freshly made classics. Every day Piccadilly To Go will feature a large selection of classic favorites, prepared on site and served behind a traditional serving counter inside the restaurant. As a To Go facility, there is no dining room or seating inside.

The new units will focus on speed and convenience including featuring a full-service, drive-thru window, where guests can order and pick up fresh meals. Drive-thru orders can be placed online, by phone or at the window for quick pick up.  At the new Baton Rouge location delivery is available through the Waitr mobile app and Uber Eats.

Piccadilly To Go menu offers classic favorites like chopped beef, fried chicken, chicken tenders, Southern fried fish and more. New recipes and menu items rotate daily, including baked fish, grilled chicken, soups and more. Favorite sides such as carrot soufflé and macaroni and cheese will be featured daily. Pecan pie, red velvet cake and a selection of freshly prepared sweets will also be available.

 Piccadilly CEO Azam Malik stated “We are very excited about the response to our first Piccadilly To Go, and we are planning to open multiple new Piccadilly To Go restaurants next year,” “Families want fresh, affordable, homestyle meal options, even though they don’t always have time to shop and cook. That’s what Piccadilly To Go provides.” Success does leave clues and grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food drive incremental top line sales and bottom line profits.  Are you ready to move forward? 

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, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

Grocerant Fresh Prepared Food Disrupting Legacy Grocery Stores

Change is coming to your local grocery store faster than you may want it.  However the problem is it is coming much faster than your local grocery retailer wants it as well.  Grocerant niche Ready-2-Eat & Heat-N-Eat fresh prepared food continues to drive customer acceptance and incremental adoption driving change at an ever increasing rate according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Here is but one example from Canada. Dalhousie University professor Sylvain Charlebois in food distribution and policy says consumers are becoming "obsessed with convenience". Regular readers of this blog know the ability of the consumer to save time drives convenience and fresh prepared meal components do just that.

In a recent article in Retail Insider, Sylvain Charlebois stated "The most disturbing of the recent statistics are the retail sales generated by the food sector," … "Supermarket and grocery store sales decreased 3.1%, in a single month (in Canada). Food retail sales dropped by $221 million in May." 

According to Charlebois, that's enough to force the shutdown of "almost 30 decent-sized stores and put nearly 2,000 people out of work". Charlebois continued “that food sales rose six percent at convenience stores and jumped 10 percent at specialty stores.”

The increased availability of Ready-2-Eat and Heat-N-Eat fresh prepared food in the form of meal components offered for takeout from restaurants, convenience stores, grocery deli’s and dollar stores has created a platform we call the grocerant niche one that consumer adoption has progressed from sampling to adoption creating new avenues of fresh food distribution and solutions to the daily questions What’s for Dinner according to Johnson.

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 speaker will leave success clues for all. Visit: www.FoodserviceSolutions.us for more information.

Restaurants struggle as consumers are forced to take a step backwards

US labor force participation rate for June 2018 was 62.9% according to the US Bureau of Labor Statistics. While there was an increase in jobs during June many of those jobs continue to be part time jobs notably less than 35 hours per week.  Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believe cash strapped part time workers simply can’t afford to eat out as often as they use too.

In a new survey Nielsen  found “fully 45% of consumers are preparing more meals at home” in addition 45% or more have cut back on restaurant meals which includes both at restaurant visits and restaurant food delivery.

Talking about taking a step back in time topping the list of actions consumers are doing “about as often” or “more often” today versus a year ago are:

1.        Checking the pantry for inventory before shopping 94%;

2.       Preparing home cooked meals, 93%; serving leftover meals at home, 93%;

3.       Trying to reduce food waste to save on food bills, 93%;

4.       Stocking the household food pantry, 91%;

5.       Making healthy food choices when eating at home or away-from-home, 90%.

6.       Checking prices or deals before deciding where to buy food, 88%;

7.       Preparing meals at-home or taking leftover meals to eat at work or school, 84%;

8.       Checking prices or deals before deciding where to purchase a restaurant meal, 79%.

Well that same survey found that consumers are doing less of this:

1.       Buying meal kits online, 54% of households claimed to be doing less often;

2.       Buying meal kits at a retailer, 50%;

3.       Ordering meals via phone or online that are delivered to the home and eaten at home, 50%;

4.       Eating at higher-end restaurants, 50%;

5.       Eating at fast-food restaurants, 47%;

6.       Ordering meals via phone or online that you or another household member pick-up and eat at home, 46%;

7.       Purchasing meals out during work or school (to eat there or at the restaurant), 44%; eating at fast-casual restaurants, 44%;

8.       Taking prepared meals purchased at a retailer to eat at work or school, 42%;

9.       Serving ready-to-eat prepared meals purchased from a retailer, 42%;

10.   Serving heat and eat frozen or refrigerated meals purchased from a retailer, 39%.

So just what does that mean for the grocerant niche.  Simply put Americans are taking a step back due to higher gas prices, doubts about the Trump tariffs, and continued economic uncertainty according to Johnson.  Remember Foodservice Solutions® findings on SNAP (food stamps) users from 2014 that found McDonalds was an aspirational brand.  Well the team at Foodservice Solutions® believes that millions of part time workers want eat at a restaurant more often than they can.  Consumers continue to find the middle ground in grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food.

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

Rutter's Menu Innovation Edifies Local

Success does leave clues and Rutter’s understands innovation does not mean something completely new or different it means something familiar something local something liked by current customers according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Rutter's has include two local favorites to its menu: Pork Belly and Pepperoni "Roni" Rolls. Pork Belly rolled out across the York-based convenience store retailer's menu on Wednesday and is available as an additional topping for items including burgers, sandwiches, and mac & cheese, in addition to a standalone sandwich, sub or wrap. It will be featured on Rutter's menu exclusively for two months.

Keeping the flavor profile local Rutter’s Pork Belly is supplied from local vendor Garrett Valley in Swedesboro, N.J. According to Rutter's, it is the only c-store chain in the country to initially have this item.

Rutter's partnered with another local vendor, Mom's Wholesale Foods in New Castle, Pa., to introduce Roni Rolls. The menu addition is soft, Italian dough stuffed with pepperoni and mozzarella cheese, and topped with cheese.

Rutter's focuses on local manufacturers and suppliers to help it bring high-quality ingredients to customers. The c-store retailer describes local food items as products that come from producers/manufacturers within a 100-mile radius from its corporate office, or in the state of Pennsylvania, Rutter's Director of Foodservice Ryan Krebs noted.

Success does leave clues 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

Circle K Fresh Food Fast Breakfast Lunch and Dinner

With over 3,300 locations in the United States alone Circle K is a player in the convenience store sector and it was more than notable when they opened a new stores in Chicago that was the first c-store to offer prepared food such as fresh-made pizza, breakfast sandwiches.

Circle K as regular readers of this blog let me know last week was making statement with this new store that centered around grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food.  Even more impressive I was reminded that Circle K was focusing fresh food for all day-part breakfast, lunch, dinner, and snacking.

Why is this such big news, simple Circle K is a wholly owned indirect subsidiary of Laval, Quebec-based Alimentation Couche-Tard Inc. and they have over 12,000 convenience stores around the world.  Success does leave clues and our clue of the week Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food sells and will drive top line sales and bottom line profits.

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

Speedway’s Speedy Cafe Healthy Food Fast

Today there are more than 154,535 convenience stores in the United States.  That is three times the number of supermarkets, yet a shadow to the 620,807 restaurants in the United States. Today convenience stores serve 160 million people a day, with a combined $750 billion in annual sales and 2.5 million to 2.6 million employees.

Anthony Kenney, CEO of Speedway understands that to lure more millennials into stores, Speedway needed a healthier fresh food and that Speedway must compete for customers with legacy restaurants, grocery stores, current C-stores and new entrants including non-traditional points of fresh food distribution.

Note: Speedway's has over 2,730 stores with 33,000+ employees in 21 states east of the Mississippi River. Speedway sees 4 million customers a day and posted $19.7 billion in sales in 2015, according to parent company Marathon Petroleum Corp.

Kenny has refocused the  company too focus less on fuel and more on other things like foodservice.  Speedway has 's launched a new food-focused concept in a few dozen stores. The “Speedy Cafe” features a kiosk with fresh food that is fast, such as healthy hot dogs, which the current generation has pushed.

Fresh food fast is the key to growing grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food sales according to our own Grocerant Guru® and Kenny stated that the “Speedy Cafe business is built around time, they want to get in and get out,”.. “If we have them come into the store they are there an average of three minutes, so if you want to sell, you have to sell fast.”

Kenney continued we have a “whole new kind of customer in millennials”. Speedway has  formed its service model around baby boomers, now ages 51-69, who had simpler service desires, who make up just 17.7 percent of its customers today. Generation X, those 35 to 50, are 31.3 percent while millennials aged 18-34 are 42 percent.

“It's a different ball game with millennials, they all have smartphones and they’re all connected, which allows more engagement, we can connect with them through that mobile app," Kenney said. "It redefines how we think about marketing going forward."  Foodservice Solutions® team commends Kenny. 

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