Friday, April 30, 2010

Fresh prepared ready-to-eat and ready-to-heat food has found a home in C-stores.


David Portalatin, industry analyst for NPD’s convenience store channel research recently revealed via a new channel study that ‘Mid-to-late thirty something’s, tend to buy more convenience store prepared foods, as convenience is key to this demographic.”

In addition using fresh food as an example of the aging curve's impact on purchase incidence, Portalain’s NPD’s report found that young adults tend to purchase less prepared convenience store foods as they age within the 18–33 brackets. “Fresh food” was defined as food prepared on site, including pizza, burgers, and some fresh fruits and veggies.

While the convenience store niche continues to expand it’s offerings of grocerant style fresh prepared food. It was interesting to note that as consumer age particularly boomers they are looking for healthier food options. The trend for fresh prepared better for you food looks as if it a perfect fit for the convenience store sector. The upside is current consumers will be happy with the fresh options and additional (boomer) will not only take a look but will follow.

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Thursday, April 29, 2010

Foodservice private label brand managers are needed in the grocerant niche.


Increasing top line revenue, customer continuity & bottom line profits in the food industry should be an ongoing focus. Customer continuity means maintaining a level of excitement in your menu or food products that drive contemporized relevance for your customer in order to maintain or increase frequency levels.

Creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part is an area each brand must focus. Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables will place you in a select industry grouping.

The food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist. In industry speak, differentiated does not mean different to the consumer it means familiar.

Outside eyes can bring new light and assist in your pace of growth, redevelopment and deployment of your new menu’s with appropriate COG’s. Foodservice Solutions is very good at assisting people reach their goals. The grocerant niche is in need of private label brand managers to assist in building long term brand value for both individual product and brands.

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Wednesday, April 28, 2010

National Brands gain ground on private label via Digital Signage.


Winston Churchill once stated: “However beautiful the strategy, you should occasionally look at the results”.

Walmart recently added digital signage to select end caps with their stores. National branded products provide high quality visceral information and consumer are drawn in. This allows Walmart to create and look and feel within the store of contemporized relevance.

I had a friend remark that after a recent visit to Wal-Mart she was impressed and please to see how viscerally attractive the store was. Visceral attractiveness is now a contemporary standard in retailing. BP is going to Install Digital Signage at the Pump and in the store at over 1,000 units. Digital signage is not an operational efficiency it is now a required step in the consumer’s path of contemporary progress. The consumer is not static they are dynamic all retailers must keep pace with the customer.

Supermarkets, Convenience stores and Restaurants all must avoid unwittingly practicing Brand Protectionism and saying no too items that consumer comes to expect. Visceral attractiveness is now as important as cleanliness and service. The Grocerant sector is leveraging digital informational tools to build a strong consumer base.

I was reminded as well that the NY Hilton hotel has had CNN in it’s elevator now for over 12 years. Visceral information is not new nor is it going away. Don’t let your brand unwittingly practice “Brand Protectionism” Visceral information is a the strategy, that is garnering results

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Tuesday, April 27, 2010

Burger King, McDonalds, Safeway, Walgreens who’s stealing the show?


Mimosas, McMuffns, Smoothies, Junior Bacon Cheeseburger, Onion rings and Egg rolls Mix and Match grab and go; the consumer is delighted with new offerings, price competition and new points of distribution. I must proclaim that channel blurring is dead from the minds eye of the consumer in the retail foodservice space.

Who is going to win this new race to be the lowest price in the marketplace? Chain restaurants were watching as customer began to buy fresh prepared food ready-to-eat and ready-to-heat from grocery stores in increasing numbers. Companies like Harris Teeter, HEB, Central Market, Whole Foods, Safeway and Fresh & Easy all offered low cost fresh prepared meal components with quality.

Customers are now coming back drawn by price, convenience and speed of service. The restaurant sectors players range from Jack In The Box, Boston Market, Qdoba Mexican Grill, Quiznos, Dairy Queen, Wendy’s, Arby’s and yes McDonalds and Burger King. The offers range from $1 for any size drinks, bundled offers from 3 for $3 including cheese burger and egg rolls. Boston Market offered Mix and Match for $ 2.99.

However, don’t expect the grocery stores and convenience stores to give in. They have seen the light, consumer want fresh prepared food. Recruiters from both grocery and C-store sectors are seeking trained foodservice managers and line employees from restaurants. They are now branding some private label fresh prepared products and will soon focus on price competition as well. No way are they giving in. Watch out for the Drug Store sector Walgreens is marching in; so, can Rite Aid be far behind?

The simple answer is the company that can hold the price advantage the longest is going to garner the largest share of market. Walgreens has a successful beverage kiosk and is now entering the fresh prepared food niche. This sector is on fire. We are now seeing new products introduced that are “better for you” with new positioning garnering attention of a new informed consumer. The consumer is watching and moving is your company?

Burger King does brunch with new mimosa, innovative and on target! Watch this video click on the link.

http://www.newsy.com/videos/burger-king-tests-new-brunch-menu/

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Monday, April 26, 2010

Grab & Go fresh prepared food is garnering attention from main line magazines and local press.


The grocerant niche comprised of ready-to-eat and or ready-to-heat fresh prepared food continues to expand its footprint from Quick Service Restaurants (QSR’s), Convenience Stores and grocery stores too retail drug store chains.

Highly respected with a large national following Consumer Reports Magazine recently conducted a study on the types and quality of smoothies being sold in supermarkets /grocery stores. Then WABC reported on smoothie sales. What that they found was a number that was even staggering to me. WABC reported that more than 150 million dollars worth of smoothies are sold in supermarkets and the number is growing.

When you consider how many smoothies are sold in convenience store niche or even just 7 Eleven via the “BIG GULP” alone this fresh prepared beverage category is being mined well and will continue to grow. Walgreens has frozen beverages now in many of its test food units. I believe that the Walgreens beverage kiosk will remain as they expand with additional fresh food offerings.

Points of distribution for all fresh prepared food and beverages are expanding rapidly. These new points of distribution / competition place increased pressure on all retail foodservice operators. Innovation in new forms of industry research, new products both food and beverage and new metrics of success are being defined.

If your company is doing what they did 5 years ago, it might be time to revalidate your positioning. The retail foodservice landscape is changing fast and the consumer is driving the change. Foodservice Solutions in Tacoma can assist you with a grocerant assessment, grocerant tour or niche development plan. Outside eyes can build top line sales and bottom line profits.

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Sunday, April 25, 2010

Convenience stores find consumers willing to pay a premium for fresh prepared and healthy fare.


From coffee, salads and baked goods, convenience stores are focused on moving fresh food forward. Companies from coast to coast including Tedeschi Food Shops to Tesoro Stewarts Shops to Sheetz each is making grab and go food better for the customer and better for you!

Healthy fresh prepared ready-to-and ready-to-heat food remained a top priority for all Convenience stores in 2009 and will continue for some time too come. “Natural” products gained popularity with sales growing in all departments except meat, even posting 166 percent growth in the bakery according to a recent study.

The interest in health and increased distribution of ready-to-eat and fresh-cut produce helped propel produce sales as well in 2009. Increases occurred in the prepared vegetable category including beans, broccoli this reflects a solid commonality with the college student preferences released by Sodexo.  Sales also increased in herbs as well as healthy snack fruits such as prepared pineapple and grapefruit.

Bundling convenience with individual packaging and affordability positions C-stores well for continued growth in the grocerant ready-to-eat and ready-to-heat prepared food niche. Building top line revenue and bottom line profits appears to be better for you as well!

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

Saturday, April 24, 2010

Foodservice innovation provides long term tangible brand value.


Retail foodservice provides consumer an endless supply of new offerings. Daily we can drive down the street and see innovative new retail food concepts, new food products advertised on TV or jazzy remolded stores chain stores. Your customers do the same thing and they try one or two of them. If they like the experience, you have lost a customer.

Julia Stewart one the America’s penultimate proactive retail foodservice success stories utilizes a continuum of innovative tactics intertwined into a dynamic brand strategy that allows DineEquity and it restaurants to prosper even in difficult times. Balancing menu innovation, brand positioning and unit imaging like a conductor of and world class orchestra; Julia Stewart understands that consumers and brands must be dynamic to succeed.

Howard Shultz understands business but has never let that interfere with his compassion for his employees. Innovation in many cases means new products, new look or new packaging. Howard Shultz was the first in the industry to provide Health Care benefits for part-time employees. This created lower turnover than other “QSR” companies positioning Starbucks as a “better for you” and better for it’s employees company. In addition it crated a top of mind value added continuum reference for consumers. The halo affect of such positioning is a platform that was revived and is again thriving all during poor economic conditions.

Both companies’ brands are expanding today outside the US and within the US, building top line value while cultivating current customer with proactive innovating new product services and imaging. Most importantly they are each reaching out via new avenues of distribution and markets attracting new customers.

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson