Yes, Gen Z and Millennials Want Grocery Store and Restaurant Gift Cards

 

Eating out or eating in makes little difference for Gen Z and Millennials that are off living on their own according to Steven Johnson Grocerant Guru® at Tacoma, WA, based Foodservice Solutions®.  Inflation is driving the cost of food eaten out or eaten in up, up, up.  This year a large number of consumers are going to request gift cards for necessities this holiday season for meals or meal components.

That’s right, don’t hide grocery gift cards behind the counter this holiday season. Some recipients, especially young adults, are very much hoping Santa brings them one this year, according to new research from fintech firm Givex.

If you run a restaurant, C-store, bodega, or grocery store, consider this, 43% of consumers between the ages of 18 and 34 said they would prefer to receive a gift card for necessities, such as groceries and gas, rather than an indulgence.

This is the first year Givex has conducted the gift card survey, so it’s impossible to make comparisons from prior years. But it’s a clear indication that there’s opportunity there for retailers, according to Givex Chief Commercial Officer Mo Chaar.

Chaar stated, “Gift cards need to be seen,” “Especially down the checkout lanes. That’s where a lot of consumers will buy them, from an impulse perspective.”

Now just over half of U.S. consumers surveyed (51%) said they plan to spend at least $100 on gift cards of all types this year, Givex found. And 87% of consumers said they plan on spending some amount of money on gift cards this year.

This is very important, 66% of those surveyed said inflation would impact their gift-buying plans this season. Regular reader of this blog know that inflation is top of mind, shoppers are out scouting for deals—including ones on gift cards.

Start selling your gift cards, as 57% of consumers polled said they’d be more likely to purchase a gift card this holiday season if it included a special promotion. That might include a discounted card (take 20% off $100), which was a draw for 67% of respondents; or a free gift card with purchase, which was a compelling offer for 64% of those surveyed, Givex found.

“That gives the consumer incentive to purchase or gives them a bonus gift card for themselves to use,” Chaar said.

Gift Cards Can Help Drive

New Customers and Repeat Customers

In a Competitive Retail Food World 

Retail gift cards tied with restaurant ones in terms of what recipients would like to get, with 44% saying those top their list. But open-ended credit card gift cards topped all the wish lists, with 71% of respondents saying that’s what they’d most like to receive.

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

Evolving Technology Continues to Help Restaurants Drive Sales

Remember cyberslice, cybermeals, and Food.com? Back in the day Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® does, as he signed-up the first 7 national restaurant accounts for online food sales. Today, restaurant and most all food online ordering has migrated from the computer to mobile devices. Lots of different devices.

 To that end, the industry continues to evolve this time there is a new company dedicated to help ease the ‘pain points, cost, and speed of service for incoming orders.  That company is Deliverect, a software company that helps restaurants streamline delivery orders, better yet they have raised $150 million, so will be around to keep evolving food retail digital ordering.

Currently there are more than 20,000 restaurants that use Deliverect to route incoming orders from third-party platforms directly to the kitchen. It allows restaurants to ditch individual tablets for each aggregator and eliminates the need for workers to manually enter those orders.

Global growth company, Pret A Manger is one of those restaurants. Sarah Venning, chief digital and information officer for Pret A Manger, stated, "We’ve enabled significant growth for our delivery partner business and introduced a system that our shop teams love and find easy-to-use,".

Deliverect processed an average of 1.5 million orders a week in 2021, an increase of 300% year over year as more restaurant traffic goes digital. It's currently in use in 40 markets worldwide. Deliverect will use the funding to improve its technology as well as get into new industries including grocery and convenience stores as they quickly adopt delivery. It's also launching its own app store.

The last round of funding was led by Coatue and Alkeon Capital. Coatue noted the multiple forces driving the restaurant tech market, including changing consumer habits, the growth of delivery networks and the rise of all-digital ghost kitchens and virtual brands.

"We believe Deliverect is capitalizing on these trends with its goal to become a category leader with a mission to empower restaurants globally," said Sebastian Duesterhoeft, general partner at Coatue, in a statement.

In an omni-channel retail world you need more than one way for customers to reach you.  If you’re going to play within the grocerant niche you will be selling in many non-traditional retail food channels and you will need an application that can help you do that with ease.  Don’t stop now keep looking a customer ahead.

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

Gopuff Dinner and a Drink Made-to-Order

 

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to be the undercurrent of food, beverage, and snacking success in every retail food channel today according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Gopuff’s understanding of the undercurrents driving food consumers channel migration is the best in the industry according to Johnson.

With Gopuff’s new grocerant niche ‘made-to-order’ hot and fresh food placed at retail alongside everyday essentials and beverages the ability to drive incremental top-line sales and bottom-line are on track. Gopuff's new mobile kitchen facilities are within or adjacent to its micro-fulfillment centers, enabling customers to order breakfast, lunch, dinner, and late-night food and drinks alongside any other essentials all in a single order for a flat fee of $1.95.

Daniel Folkman, Gopuff's senior vice president of business, stated, "With today's news, Gopuff is launching a completely new category and raising the bar on how technology is making our lives more convenient," ... "Nowhere else can you order your everyday essentials while also taking care of dinner for the family or getting a quick coffee, all from one platform. This is only possible through our unique business model that features a network of hundreds of our own micro-fulfillment centers, and now, kitchens. Today's milestone represents a new way of thinking about the Instant Needs economy and will redefine consumer expectations."

So, Gopuff uses it proprietary recipes and sources ingredients from local partners to offer a mix of healthy and indulgent menu items, including hot, freshly prepared pizza, chicken tenders, salads, fresh-brewed coffee and matcha, and breakfast sandwiches.

During, the initial pilot program, Gopuff delivered hundreds of thousands of orders across more than 20 micro-fulfillment centers, including in Austin and San Antonio, Texas; Mesa, Phoenix, Scottsdale and Tempe, Ariz.; Miami and Tampa, Fla.; Nashville, Tenn.; and Philadelphia. Gopuff plans to launch additional kitchens across the country by the end of this year.

Regular readers of this blog know that, Gopuff acquired Bandit, the first app-only coffee shop in the United States, launching the company's fresh food offering and jump-starting Gopuff Kitchen. Bandit was co-founded in just two years ago.

Crowley a co-found of Bandit and now Gopuff's vice president of business expansion, is now leading Gopuff's business expansion efforts, including the Gopuff Kitchen vertical. Crowley stated, "We started Bandit with a focus on improving the customer experience, understanding that consumer preferences were rapidly shifting to mobile orders, especially for fresh everyday items such as coffee... "Together with Gopuff, we are taking this mission to the next level and beyond by making it easier than ever to get everyday essentials alongside quality food and drinks all in less than thirty minutes."

Customer relevance matters and Gopuff has made a major push into local products, having launched more than 1,100 local products from more than 300 partners, including local in-market supplier partners, like La Colombe, Au Fournil and Dizengoff in Philadelphia, and Cartel Coffee in Phoenix, as well as Bandit in Austin. Some of those items are also featured in their Gopuff Kitchens.

Extending the halo of ‘better-for-you’ Gopuff Kitchen consists of a proprietary all-electric fleet and maintains "clean cooking," meaning no open flames, odors, propane gas or fryers, and no combustion in the cooking or climate control processes. Gopuff's innovative modular design also allows the kitchens to adapt menus and equipment to the preferences of the communities it serves.

How fast are you growing? If you did not know, Gopuff currently operates more than 450 sites across North America and the United Kingdom, including 285-plus micro-fulfillment centers and 185-plus recently acquired BevMo! and Liquor Barn locations.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Pringles Partners with Wendy's for a Baconator Flavor Chip

Creating new electricity for a brand can be as easy as developing a new partnership. Regular readers of this blog all know about the success many restaurant chains have found within the frozen food court. Stable brands the ilk of Wendy’s can find a partner to put up the slotting fees for a shelf stable product enabling the Wendy’s brand to grow according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

So, the new limited-edition Pringles Baconator packs all the delicious layers of flavor found in the fan-favorite, Wendy’s Baconator, into one perfectly delicious bite. Ok, so the Baconator for those of you not keeping track, is a half-pound of fresh, never frozen beef, American cheese, six strips of crispy Applewood smoked bacon, ketchup and mayo.

The task of Replicating those layers into one single Pringles crisp? Is no up to Pringles, and you can taste for yourself as they will be available for a limited time beginning June 2020 in the snack aisle of grocery stores nationwide. Gareth Maguire, senior director of marketing for Pringles stated  “The Pringles brand delivers insanely accurate flavor combinations that are both delicious and convenient,”  “With such a strong fanbase, we knew we had to nail that fresh, never-frozen Wendy’s flavor perfectly. Luckily, our flavor experts were up to the task. The Pringles Baconator crisps are the perfect way to enjoy the savory goodness, all in one bite.”

Carl Loredo, Wendy’s U.S. chief marketing officer stated “At Wendy’s, the Baconator has long been an iconic Bacon Cheeseburger like no other. With stacked fresh beef, oven cooked Applewood smoked bacon and piping hot cheese, we knew it was going to be a challenge to get all that flavor and goodness into one bite,” says “We’re excited to work with the flavor experts at Pringles to deliver the taste our fans know and love in a unique way. We know our Baconator fanatics will be in for quite a treat when they taste how insanely accurate Pringles made this delicious crisp.” How are you driving new electricity into your brand?

Driving new electricity into a legacy brand with a partnership is a good move and will accelerate the marketing messaging for all companies involved according to Johnson. How is your company positioning to grow your brand, the top, and bottom line?

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,  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? Why? This new partnership does all of that.

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 GrocerantGuru.com 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.

Battle for Share of Stomach

What’s for Dinner? Technology & Dinner Go Hand in Hand

At the intersection of the time starved consumer and the age-old question, What’s for Dinner once again we find grocerant niche Ready-2-Eat and Heat-N-Eat meals and meal components front and center with technology according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Recently Tillster, a global leader in digital ordering and engagement solutions for restaurants, published the results from its 2019 Online and Mobile Ordering Index. The Index examines the digital ordering strategies best serving restaurants as they grow sales and engage with customers. However, there is little doubt that service delis, convenience stores, supermarkets, and legacy grocery stores should be paying attention on how to edify sales and drive customer migration leveraging technology to drive sales according to Johnson.

So, Tillster, partnered with JD Powers SSI, to conduct a study on how online and mobile ordering impacts guest behavior. One thing is clear consumers expect to not only find you on line but they want to buy from you from their mobile device according to Johnson.

Three key findings from the 2019 Index include:

Customers Expect Online & Mobile Ordering

Among the 2,000 customers polled, 70 percent expect a restaurant's website to offer online ordering, while 76 percent said they expect a restaurant's branded mobile app to offer it. These tools are no longer a nice-to-have but a necessity. 

Customers Spend More with Online Ordering

When ordering online, a majority of customers order for more than one person, which generally results in a higher check size. With digital ordering, most customers place an order for an item they didn't previously plan to order and spend more on their total order.  The majority of customers report spending up to $5 on extra items presented during digital ordering.

Online and Mobile Ordering Offers Needed Convenience

Nearly half of all customers polled reported using an order-ahead app when selecting a restaurant, in an effort to beat the line. Index data also indicates that online ordering offers convenience that forms powerful brand allegiance; from busy parents looking to quickly re-order meals customized to their families’ preferences, to working professionals who want a convenient meal without much effort.

“The demand for digital ordering grows with every Index we conduct. Customers today expect seamless and frictionless ordering experiences. For those restaurants already providing online ordering, the task at hand is to optimize efforts. Are you inviting consumers to buy your food on a mobile platform? Why not?

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.

Restaurant Customer Are Eating Some Where Else

At the intersection of the consumers and meal time one thing has become very clear American consumer are not eating less they are simply eating somewhere else according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Today mini-meal have replaced traditional meal periods and eating in front of the 65 Inch HDTV has replaced sitting at the table with the family according to Johnson.

Recently David Sprinkle, research director for Packaged Facts found that “There’s a surging fluidity and interchangeability to modern mealtimes,” “The reality is U.S. adults are increasingly eating differently, if not necessary eating less.” edifying Johnson’s findings once again.

The Package Facts survey data published in the report reveal “in terms of the three main meals, a far higher share of adults consider breakfast to be the most important meal of the day compared with lunch or dinner. Even so, the percentage considering breakfast to be most important has edged downward since 2008, with lunch and dinner each gaining more priority.”

The study found that the percentage of adults who eat several smaller meals throughout the day edged up  from 2008 to 2018. Notably, some essential and increasingly influential consumer demographic segments showed a greater likelihood than average toward eating several smaller meals throughout the day, including Hispanics, African-Americans, and women.

The data further reveals a modest but marked trend toward eating meals later. Between 2008 and 2018, there’s been a slight drop in the percentage of adults who eat breakfast before 9 a.m., lunch before 1 p.m., and dinner before 8 p.m. Gen Z adults (18- to 24-year-olds) are among the most noteworthy diners who tend to eat in later dayparts. Asian-Americans and Millennial adults between ages 25- to 34-years-old are disproportionately more likely to eat later in the evenings.

The one universal undercurrent of both reports continues to be the non-stop migration of restaurant customers to new non-traditional avenues of distribution.  Meal time can best be defined by where consumers eat the meal not time of day and snacking/ mini-meals occur most often on the run, or away from the home and the 65 Inch HDTV according to Johnson.

Stay informed, look a customer ahead. 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/