Unilever and Robomart are Targeting Generation Alpha Are You

 

Food Marketing professionals never take a break, and they are always looking a customer ahead.  Global CPG retailer Unilever is actively targeting Generation Alpha.  So just who is Generation Alpha?  They are the children of Generation Y, and often the younger siblings of Generation A.  More that 2.5 million are born globally ever week.  When they all have been born (between 2010- 025) the will number almost 2 billion and they will be the largest generation in the history of the world.

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes “CPG food retailers and fast-food restaurant chains are all looking for ways to get their ‘hooks’ brands in the minds-eye of the parents and Generation Alpha early and often and Unilever looks as if they are hitting all of the right messages to build the bridge that is comfortable for both the parents and kids.

It’s at the intersection of technology and frozen treats that you can find Unilever’s new Ice Cream Robomart. It will enable consumers to use an app to summon a vehicle housing an automated store and have it arrive in minutes at their location.

That’s right, an automated “store on wheels” platform Robomart has partnered with CPG giant Unilever to deploy a fleet of robotic vehicles for ice cream delivery this summer.

Santa Monica, Calif.-based Robomart said yesterday that its mobile mini-marts will carry ice cream and novelties from brands such as Ben & Jerry’s, Breyers, Good Humor, Magnum and Talenti available through Unilever’s “The Ice Cream Shop” virtual storefront.

In a Battle for Share of Stomach

You Can Win

Described as a “store-hailing platform,” Robomart’s technology enables consumers to use an app to summon a vehicle housing an automated store and have it arrive in less than 10 minutes at their location, where they choose from a selection of products. Unilever’s Ice Cream Shop allows customers to use major food delivery apps like Doordash, UberEats, GrubHub and Postmates to order from a selection of Unilever ice cream brands. The company said The Ice Cream Shop is available in most major metro areas — including New York, Los Angeles, San Francisco, Seattle, Baltimore, Philadelphia, Chicago, Boston, South Florida and Washington, D.C. — and continues to expand.

“We’re excited to work with Unilever — the world’s largest ice cream maker — to pilot The Ice Cream Shop as one of the flagship storefronts on our new marketplace,” Robomart CEO and co-founder Ali Ahmed said in a statement. “Putting a spin on the classic ice cream truck by bringing it to consumers on demand, we have pioneered a new way for everyone to get their favorite ice cream treats in as little as two minutes. This rollout brings to life the original vision my co-founder and I had over a decade ago while working at Unilever to create ‘The Everywhere Store,’ the fastest and most accessible way to get all your essentials.”

The mobile mini-marts will carry ice cream and novelties from brands such as Ben & Jerry’s, Breyers, Good Humor, Magnum and Talenti available through Unilever’s “The Ice Cream Shop” virtual storefront.

Consumers hail The Ice Cream Shop Robomarts to their location using Robomart’s proprietary mobile app and patented one-tap grocery ordering technology. When the vehicle arrives, customers swipe across the app to open the vehicle’s door. The Robomart then lets users handpick their selected products and walk away without physically checking out or swiping a credit card.

Robomart noted that its platform stands out in the online delivery realm by bringing the store directly to homes, eliminating the need for consumers to shop on a website, fill a basket, check out with a credit card, select a delivery window and communicate with delivery staff.

Russel Lilly, general manager for Unilever North American Ice Cream, stated, “We’re thrilled to partner with Robomart to offer a new way to bring our virtual store, The Ice Cream Shop, to fans in Los Angeles in an innovative way,”... “Our pilot program with Robomart is revolutionizing ice cream delivery for consumers and making it even faster to get our beloved brands to our ice cream fans. What better way to shop for your favorite ice cream than just a few steps from your front door?”

Robomart made its commercial debut last June with the launch of on-demand pharmacy and snacks autonomous mini-marts in West Hollywood, Calif. The company said it recorded its fastest end-to-end experience — from the time a consumer opens the app to the time they have goods in hand — at under two minutes. Active users, on average, hail a vehicle to their location 2.3 times a week, Robomart said, adding that the company has seen 9% user growth and 10% order growth weekly as it has gained market share.

In cae you did not know, the Pharmacy Robomart offers health and personal care items such as shampoo, hand sanitizer and ibuprofen, while the Snacks Robomart serves up chocolate, chips, soft drinks and other ready-to-eat snack items. Slated to debut in the coming months, the company said, is a Grocery Robomart offering fresh produce and refrigerated products as well as Deli (meals) and Café (coffee and doughnuts) Robomarts.

Currently, Robomart’s vehicles include human drivers, but plans call for the company to add self-driving vehicles as it fine-tunes the autonomous technology and as local regulations permit. Ahmed has indicated that Robomart is open to partnerships with grocery chains, which would lease the vehicles and stock them. In early 2019, Northeastern grocer Stop & Shop announced a pilot of Robomart’s autonomous vehicle in Boston.

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

Food Discovery Autonomous Vehicles and Youthful Experimentation

While the line between food retail channels may be blurring in the minds-eye of the consumer both Gen Z and Millennials quest for personalized food discovery seems to have few limits according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Understanding digital native’s is fundamental for companies the ilk of Sodexo focused on feeding students on college campuses.  Success for Sodexo like many other food companies requires customer relevance enough to create new electricity according to Johnson. 

To that end in a new partnership between Sodexo and autonomous vehicle developer Starship Technologies formed to provide autonomous vehicles that are now delivering groceries from a campus grocery store and food from several foodservice outlets to students across campus at George Mason University.

This new avenue of distribution provides services to supply 25-plus small vehicles, allowing George Mason's 40,000 students, faculty members and staffers to have products delivered anywhere on campus, within minutes, for $1.99 per delivery.

The Starship Deliveries mobile app, which is compatible with iOS and Android, allows users to order items from campus grocers including 2nd Stop, Blaze Pizza, Starbucks and Dunkin'. More partners will be revealed in the coming weeks.

The service, which works in conjunction with student meal plans, is intended to make food and beverages more accessible to ease the hectic lives of students and faculty.To use the technology, customers:

·         Open the Starship Deliveries app on their mobile device;

·         Choose from a range of food and beverage items;

·         Drop a digital map pin on the screen where they want their delivery to be sent;

·         Upon receiving an arrival alert, meet the robot and unlock it through the app; and

·         Retrieve their order.

Mark Kraner, executive director for campus retail operations at George Mason University  stated; "We're excited that our students, faculty and staff get to be at the forefront of this pioneering campus food-delivery service," … "This will enhance life for everyone at the university, and that's something we're continuously looking to build upon. Our commitment to providing an optimal campus experience is one of the things that distinguishes George Mason University as a place where everyone can thrive."

Each robot can carry up to 20 pounds, or roughly three shopping bags full of products, and is able to cross streets, climb curbs, travel at night, and operate in both rain and snow. They make their delivery in no more than 15 minutes — depending on travel distance and items ordered — and are stored in pods located around campus, where their batteries are automatically switched so they can continue operating.

Food retailers today must understand that relevance drives trial and adoption this new partnership drive relevance with digital natives.   Is your brand is searching for the new electricity to help drive the brand forward. So, just what is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Can you Win the Battle for Share of Stomach 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, free food / sampling, 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 retailers 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 not different.   Sodexo and Starship Technologies plan to expand the foodservice- and grocery-delivery technology to additional campus locations globally in the future.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? 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.

10 Grocerant Niche Success Clues for 2019

Digital hand-held technology specifically smart-phones have driven a decline in traditional network TV viewing driving change in how and where consumers eat according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  The value of a product or brand at times diminishes in consumer relevance as consumer evolve as well. The team at Foodservice Solutions® understands that the consumer is dynamic not static. Here are 10 clues to keep your brand dynamic:

1. Symbolism. Why you are there! The most successful brands are inclusive include values greater than themselves. A lifestyle, a philosophy, an emotion a point in time.

2. A story. Most major brands have a story. Examples: if you like Ford vehicles, you might be familiar with the story of Henry Ford or if you love your Nikes, you probably know how the Nike swoosh logo was created.

3. A track record. When your business is first starting out, don't fool yourself into believing that your marketing efforts are 'brand building' efforts. They're not because to build a real brand, you have to have an extensive track record with consumers.

4. Trust. When you've consistently delivered for your customers long enough, you'll gain the type of trust that many brands have. Case in point: a friend of mine always reminds people that he won't buy an automobile that isn't a BMW. He's had a good experience with his and trusts so much in the company that he doesn't believe there's a better-made car.

5. Expectation. When a consumer chooses a product or service because of brand association, he or she is buying an expectation. Perhaps it's the expectation that the branded product is of higher quality or that the service will be provided in a more efficient manner.

6. Differentiation. Expectation is often borne of differentiation. Many brands offer products and services that are commodities but they're successful in developing some differentiation for their products and services that consumers are sold on.

7. Imitators. Imitation is the sincerest of flattery and you're probably not a 'brand' until you have competitors trying to copy you.

8. Market leadership. Top brands are usually looked at as leaders in the markets they compete in.

9. Adaptability. The best brands are flexible and capable of reshaping and reinventing themselves and their messages over time. Coca-Cola is a good example of a brand that has never abandoned its core product but has evolved its message over time to keep up with changes in the marketplace and society at large.

10. A strong marketing presence. Although it's nice to believe that you can market yourself for free on Facebook and Twitter, the reality is that brands aren't advertising on television and radio because they're dumb. Building and maintaining brand equity requires awareness and awareness requires broad marketing efforts.

Steven Johnson is Grocerant Guru at Tacoma, WA based www.FoodserviceSolutions.us , with extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert.  www.GrocerantGuru.com  Office: 1-253-759-7869

We Told you 'Grocerants' Are The Future Of Food Shopping

Since 1991 Foodservice Solutions® Grocerant Guru®, Steven Johnson’s focus has been on Hand Held Food and technology to improve food quality, customer service, and convenience of ‘better-for-you’ fresh food fast.  Regular readers of this blog know that Johnson was the one who coined the term GROCERANT back in the day after he identified quantified, and qualified the emerging retail space.

In fact, Johnson first warned the restaurant industry in 1991 about the undercurrents change within the consumer mind-set.  Then in 1996 Johnson penned an Op-Ed article titled: Call Them Grocerants in August in both FoodService Director and Nation’s Restaurant News which highlighted undercurrents of food industry evolving consumer migration patterns.

Now a year after consumer spending on restaurants finally surpassed grocery sales, evidence in two new reports is suggesting that neither restaurants nor grocery stores are the future of food shopping. Instead, what could dominate is a hybrid of the two: "grocerants."  OK, times they continue to evolve Foodservice Solutions® team was there at the beginning and continues to be the leading industry expert.

However, let’s look at what we can learn from some others. Here we go “according to evidence in one NPD group report and one research note from Oppenheimer, both recently released, Americans (and Millennials in particular) want someone else to cook for them, but they don't want to stop going to the grocery store, either. The compromise between the two? Purchasing prepared food from the supermarket.

NPD's food-service market research found that in-store dining and take-out prepared foods from grocers has grown 30% over the past eight years, accounting for $10 billion of consumer spending in 2015. By NPD's count, more than 40% of the U.S. population purchases prepared food from grocery stores -- and this number could grow as Millennials increasingly warm to the crazy idea of getting their food not from Seamless but from the supermarket.

“Millennials’ interest in the benefits and experience supermarket food-service offers will continue to be strong over the next several years,” David Portalatin, NPD's vice president of industry analysis said in a statement accompanying the research. “This forecast bodes well for food manufacturers and retailers who have their fingers on the pulse of what drives this generational group. Give the Millennials what they want — fresh, healthier fare and a decent price — and they will come.”

According to NPD spokesperson Kim McLynn, "grocerants" can range from yuppy-chic (see New York City's Eataly) to conventional-seeming grocers, like H-E-B Grocery in San Antonio, Texas, Buehler's in Wooster, Ohio, Hy-Vee in Bloomington, Illinois and Whole Foods in Austin, Texas.

While many grocery chains seem to be catching on to this trend, it's Whole Foods that has made some of the largest strides in capturing dining dollars for its prepared food offerings. "We were impressed by the overall prepared foods offering, which could represent a point of differentiation versus other specialty concepts such as Trader Joe’s," he wrote. "The main components of the prepared foods offering included two cold salad bars and two hot bars that included items such as pizza, soup, chicken wings and samosas. There were also other “prepared food venues” including a case filled with pre-made sushi, sandwiches, salads, etc. and an area where customers can order via iPad select items such as hot dogs, pizza, and rice/veggie bowls."

Beyond simply offering prepared food, Parikh and his team said they saw "an extensive assortment of value-priced prepared foods," too, including Seared Albacore Sashimi for $10.00; a Chinese-style salad with chicken for $4.50; peanut butter and jelly sandwiches for $3.50 each; a BBQ-style chopped salad for $4.00; and a chicken Caesar salad bowl for $10.00.

Ultimately, the Oppenheimer team estimates that Whole Foods after integrating all of Whole Foods 365 units could capture 20% to 30% of its market share from traditional restaurants:

"Based on our study of the concept and competitive backdrop, we believe the 365 format can help to attract a new customer and broaden the market share potential for the chain," Parikh concluded. "We view the new concept as very on-trend, catering to some of the hottest trends out there currently including fresh, natural/organic, and growth in away-from-home spending."

Whole Foods isn't the only grocer beefing up it’s pre-made meals. Now Convenience store sector players the ilk of Sheetz, Wawa, Green Zebra Grocery and others are filling the void left by many legacy chain restaurants and grocery chains unwilling to adapt to today’s dynamic consumers.

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

Tom Thumb Customers want food fresh and fast so will open First Convenience Store

When the customer is on the move retailers must move with them or risk losing the customer altogether according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Grocery stores are not different when consumers are on the move grocery stores must evolve with them or simply fad away according to Johnson.

The new retail ‘C-store’ is called Tom Thumb Express and will occupy about 2,500 square feet of space. It will operate from 7 a.m. to 10 p.m. with self-service at six fuel pumps available 24 hours a day as reported by the Dallas News.

In a bit of a twist from what other retailers are ding the Tom Thumb Express In-store offerings will include fresh food from an already operating Tom Thumb supermarket, such as sandwiches, cut fruit, salads and hot food to take home. Beverage options include coffee, f'real milkshakes and smoothies, and ICEE drinks.

Grocery store trying the ‘Hub and Spoke’ format is nothing new but in this case in the Dallas marketplace the timing might be right for this format according to Johnson. 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.

Subway’s Three Steps to Renew Customer Relevance

Regular readers of this blog know that there are three things Subway must do to garner top-of-mind meal relevance with consumers.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® those three things are edify Subway’s platform with branded convenient meal participation, freshness differentiation, while edifying the platform with individualization.

That said consumers migration from Subway has been due to lack of freshness innovation even more than consumer consternation with price point abandonment.  Once the industry leader with the $ 5 Footlong consumers have move on to Del Taco, Taco Bell, McDonald's, and Wendy’s we all know there is no need to keep going.  Price is an issue for sure but the key driver is a lack of freshness innovation according to Foodservice Solutions® Grocerant ScoreCards. There is a battle for Share of Stomach and Subway is on the sidelines today.

All Subway franchisee including members of NAASF must understand that Subway’s platform for success has deep roots within the franchise organization and its franchise must insist that the core of the brand be renewed with new electricity focused at edifying the brand with menu freshness including new menu items that highlight freshness and flavor.  

Chain restaurants that look more like yesterday than tomorrow are simply stifling top line growth and bottom line profits. Subway we ask just what is your new electricity?  What new meal components, meals, menu items do you have in the pipe line with a branded clear point of differentiation?  

Branded innovation is the platform for the new electricity, according to Johnson; partnerships specifically strategic partnerships are driving retail success today.  Johnson stated that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, grocerant consultants, urban farming (produce, seafood, etc.), family meals, meal components, meal kits, autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing.

Retailers the ilk of Subway 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.  That will require brands the ilk of Subway to embrace new fresh food partnerships more now than ever before according to Johnson.

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 or reach to Steve@FoodserviceSolutions.us

Dunkin’s Mobile Grab-N-Go Drive’s Customer Flow

Regular readers of this blog understand the strength and key drivers of grocerant niche growth and Dunkin Donuts new prototype emphasizes those attributes.  The team at Tacoma, WA based Foodservice Solutions® believes that Nancy Luna of Nation’s Restaurant News captured some of the visceral customer touch points in her recent NRN article. We have added out view and included some of Nancy’s NRN article photos to drive home our points.

Dunkin’s store of the future edifies consumer increasing demand for fast service, quick payments, and grocerant niche mix and match meal component bundling all while edifying customer choice with relevance according to Steven Johnson our Grocerant Guru® convenience, takeout and tech

The relevance comes in as pointed out by Nancy in the form of a pickup counter for mobile orders, nitrogen-infused cold brew and tabletop outlets to power devices all focused on convenience, takeout and technology that edifies speed of service. 

Dunkin’ Donuts plans to open 50 of these store of the future units by the end of 2018 according to the company. While calling itself a beverage first company these new units underscoring the interplay between food and beverages creating a platform that enables mix and match meal component bundling superiority to that of McDonald’s and Starbucks.  

The new eight-tap beverage system empowers choice including cold-brew coffee infused with nitrogen which continues to garner new customers. This new display will prove inviting to consumers and elevate product sampling according to Johnson.

The Donut display puts the doughnuts out front, instead of behind the counter like in traditional locations.  Combine that with an expanded to-go section is stocked with a variety of snacks and merchandise, such as bottled drinks, yogurt parfaits, nutrition bars, coffee mugs, beef jerky and mints the grocerant niche mix and match bundling will enhance the consumer experience.

Mobile order and pay add relevance to Gen Z and Millennials as the mobile pickup counter enable consumers to simple skip the line when they pay online. How is your brand expanding consumer choice?

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

10 Things Foodservice Retailers Can Learn from McDonald’s

From time to time when the team at Foodservice Solutions® sees something posted that we know will benefit our regular readers we repost it here.  This is one of those cases.  We found this article at 1851 Magazine written by Mary Zavell.  McDonald’s has firmly cemented itself into consumer minds across the globe our team thinks Mary nailed this article.

The yellow arches alone are iconic and recognized across countries and cultures. How does this brand go about building an empire and what lessons can other franchises learn from it? Here they are 10 things Mary Zavell noted in her article:

1. Never underestimate the power of marketing.

McDonald’s is constantly engaging in marketing efforts and doing so with a strong sense of consistency in order to reinforce its messaging.

2. Adopt healthy options to appeal to changing consumer taste without compromising the speed of your service.

While it is important to be aware of consumer preferences, it is also critical that speed is not diminished. Fans expect a certain level of efficiency from brands.

3. Be innovating in a way that continues to service clients as markets change.

McDonald’s has always been willing to change. Having this adaptability will help brands reach long-term success because they will be able to grow with the industry.

4. Embrace new technology.

McDonald’s has never been afraid of utilizing new technology, and these investments have paid off for the company by increasing its operational efficiency. The integration of kiosks allows fans to place orders quickly and reduce time spent waiting in line.

5. Keep it simple.

McDonald’s offers a streamlined number-based menu system that helps move people through the ordering process as quickly as possible. Rather than listing out all the menu items a customer would like to order, a simple number suffices to cover nearly everything.

6. Do not fear change.

McDonald’s has shifted its approach to real estate over the years. Though locations now require a smaller footprint, they have increased drive-thru opportunities. This change has helped them to capitalize on changing consumer preferences towards taking food to go.

7. Grow with existing owners.

One way that McDonald’s has been able to maintain efficiency and consistency is by growing within and focusing on multi-unit operators. These franchisees are able to personally oversee and deliver the same experience over a range of restaurants which helps the brand maintain the same level of quality.

8. Keep your process tight.

Brands with streamlined procedures tend to experience more consistent results and are able to replicate this success from one location to the next. Having structure and set guidelines for all aspects of the business will help with creating a standardized experience.

9. Remember that ubiquity doesn’t breed success.

The biggest player doesn’t always experience the most financial success. While McDonald’s is a widely recognizable name, it is not necessarily on top from a monetary perspective.

10. Keep things in perspective.

Just because a brand is on top does not mean that this will always be the case. Be aware of what is happening within the industry and adapt to changes. McDonald’s has experienced dips and surges in popularity over the years, and this can be expected from other franchises.

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.