Is Fresh & Easy Getting “Better for You” Sowing its Wild Oats?

When the Los Angeles-based investment firm Yucaipa Companies headed by legendary investment Guru Ron Burkle bought Fresh & Easy from Tesco industry insiders including Foodservice Solutions® Grocerant Guru™ speculated that it would not be long until Fresh & Easy incorporated the halo of “better for you” from a brand that Yucaipa previously acquired Wild Oats. 

So, that’s exactly what has been happening.  Now Fresh & Easy is partnering with Wild Oats to introduce several new organic and fresh food products under the Wild Oats label.

Some of the new organic items will include “milk, almond milk, salads, sandwiches, sliced breads and hummus, all of which will adhere to USDA guidelines for organic certification, Fresh & Easy said. Prices range from $3.99 for a half-gallon of milk, a loaf of bread or 8 ounces of hummus and $5.99 for a 7-ounce sandwich to a range of $6.39 to $7.49 for a 14-ounce salad.”…

“Fresh, non-organic items from Wild Oats will include cage-free eggs, which carry a “laid-on” date; handmade tuna salad sandwiches, fresh mozzarella and original parfaits. Prices range from $3.99 for a dozen eggs or 8 ounces of mozzarella, $3.49 to $4.49 for parfaits of between 7 ounces and 8.5 ounces up to $5.99 for a 5-ounce tuna sandwich.” 

Fresh & Easy CEO Jim Keyes stated that “Wild Oats products have been a huge hit and contribute to our mission to make Fresh & Easy the preferred destination for convenient, affordable and high-quality foods.”… “We are excited about bringing innovative new products to our customers and believe that fresh is the natural evolution in organic food offerings.

Foodservice Solutions® Grocerant Guru™ Steven Johnson stated “blending Wild Oats with Fresh & Easy will edify both brands, expanding the halo of “better for you” with fresh prepared food will drive top line sales and bottom line profits.  Clearly Ron Burkle understands the consumer and food retail today.”

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. No other foodservice research or marketing company has focused on the Grocerant niche since 1991.  For brand, product placement, menu positioning assistance simply call Foodservice Solutions® 1-253-759-7869 or visit: www.FoodserviceSolutions.us

Growing Distrust of Legacy Food Brands and Retailers Stirs Discontinuity

In the U.S. if you were growing up during the 60’s most likely you were questioning the establishment for that was the norm.  In the 70’s distrust, distain, disillusion with government lead to the resignation of a U.S. President.  Today, legacy branded food manufacturers and retailers are capitulating market share to private label manufactures, branded store brands too up-start fresh food retailers. 

Equally driven by a quest for self-discovery and growing disbelief or distrust of food labels and legacy brands the largest generation of consumers Millennials or as the Hartman Group calls it “the current “it” generation of consumers” is disrupting the food retail status quo. 

Educated, technology equipped, and when in doubt questioning this "it" generation of consumers, “Millennials know what’s cooking – literally”, according to new research by The Harman Group.

In a new report, Outlook on the Millennial Consumer 2014, details how Millennial consumers, aged 19 to 33, have become a reliable barometer for the future of food culture. Several findings of the report include:

1.       Millennials have the belief that nutritional variety, not excluding the consumption of unhealthy foods, is important to their overall health. Some Millennials even have guilt-free days, commonly referred to as "cheat days" or "total body crash," where they will eat anything, including "the epic breakfast."

2.       "Diets are propaganda," a 28-year-old Millennial female told the researchers. "One diet says one thing and another says the opposite. You need to find your own healthy balance and forget about fad diets

3.       "Millennials are more distrustful of brands and are less swayed by labels and claims that certain foods are "natural," "low-calorie" or "organic."

4.       Millennials lead other generations in paying attention to socially relevant callouts, such as product narratives and origin stories.

5.       Millennials enjoy cooking more than older generations, and these home cools and aspiring cools are crucial to a broader movement towards fresh, less process foods. 

6. Millennials still eat out more than any other generation and prefer fast food, in part because of their age and income level. However, they look for healthier options such as Chipotle Mexican Grill. Millennials are particularly drawn to this chain for its open kitchen and build-your-own ingredient bar that provides them with an authenticity they love. Chipotle also has values that coincide with theirs: organic and local ingredients, and meat with no added hormones or antibiotics.

Ready-2-Eat and Heat-N-Eat fresh prepared food continues to garner favor from every age group today.  Most important to the Grocerant Niche’s booming success is the rapid adoption by Millennials. If success does leave clues, Restaurants, Drug Stores, C-stores and Grocery store formats will need to adapt to accommodate the growing appetite for fresh prepared Ready-2-Eat and Heat-N-Eat Grocerant Niche food. Outside Eyes can Drive Inside Top Line Sales and Bottom Line Profits.

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization contact us via Call 1-253-759-7869 or Visit: www.FoodserviceSolutions.us

Restaurant Brand Protectionism Equals Customer Migration

Within the restaurant sector many chains have been suffering from year over year flat customer counts or decreasing customer counts since 2009. The restaurant sector over has experienced declining customer traffic since 2009. Restaurant brand managers must understand that the customer is dynamic not static and that brands must be as well. 

Today all food retailers operate in an Omni-Channel retail world whether they like ti or not.  Within that environment we find that the price value service equilibrium is resetting and a new set of value drives are required to meet or exceed consumer’s expectations. Today’s Chain Restaurant Value Drivers have a new formula for success that formula developed by Foodservice Solutions® Grocerant Guru™ is:

Customer Value = (Fresh Prepared + Portable + Price + Service + Quality) +( Non-Food*) 

Restaurant chains can no longer simple open copy-cat footprint stores and expect customers to flow in and out endlessly.  Time starved with an ever increasing demanding palate consumers expect flavor, freshness, and service everywhere, all hours of the day and night, with complementary pricing and service.

Increasing in search of time savings solutions and practicality consumer are migrating more and more to convenience stores for food and non-food items that can be bundled into a time saving social currency of sorts. That value momentum continues to pick up speed as companies the ilk of Starbucks, Papa Murphy’s, and Cracker Barrel all over increasingly more and more non-food incrementally valuable items for consumer.

The key to success comes from realizing your brand must be consumer-centric, not “Burger King-centric or me-centric” it must become the driver of brand building ideations. Today restaurants must remember that restaurant brand protectionism equals customer migration. In 2014 Customer Value = (Fresh Prepared + Portable + Price + Service + Quality) + (Non-Food*). Dynamic brands are inclusive not exclusive.

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  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. www.FoodserviceSolutions.us

Grocery Sector Bifurcation Taking a Toll on Legacy Retailers

Kroger, Safeway, and Publix each seem stuck in the middle of the retail grocery sector.  It just might be that fresh prepared food the answer finding profitable differentiation? There can be no doubt that in 2014 Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food has garnered favor with consumers according to Foodservice Solutions® Grocerant Guru™. Legacy grocery retailers are increasingly finding consumer’s migration either to the high end or low end of grocery space and within each space fresh prepared food is has become even more available.

With limited success Safeway, and Kroger have introduced and delivered qualify fresh prepared food consistently.  However each has done it as an afterthought rather than an enhanced consumer focus. Publix is interesting for they have implemented fresh prepared food with regional differentiation however when it comes to operation consistency with fresh prepared food they come up a bit short.

Credit Suisse, recently published a report that found “discounters controlled 22.7% of the US retail food business in 2013, up from 16.9% in 2003. That market share came directly from traditional supermarkets, which saw their market share slip from 30.7% to 26.7% over the same time period.”  Companies the ilk of Aldi, with 1275+ and WinCo are helping drive the migration according to Foodservice Solutions®.

At the other end of the spectrum Wegmans, Whole Foods, and Trader Joes have be garnering share while building more and more new units. The Credit Suisse study found that at the higher end have experienced some “nibbling away at the business too, driving their share of retail grocery sales up from 1.1% in 2003 to 2.8% in 2013. So, at current rates Safeway, Publix and Kroger should expect to capitulate another 10% of market share in as few as 5 years.

Whether it is the 65 Inch HDTV Syndrome or Millennials desire for discovery that are driving the change it makes little difference.  The undercurrents in food retail all point to expanded fresh prepared food offerings will continue to drive top line sales and bottom line profits. With more and more non-traditional points of fresh food distribution cropping up legacy grocery retailers that today are stuck in the middle, must evolve faster or risk capitulating additional market share.

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. No other foodservice research or marketing company has focused on the Grocerant niche since 1991.  For brand, product placement, menu positioning assistance simply call Foodservice Solutions® 1-253-759-7869 or visit: www.FoodserviceSolutions.us .  

Casey’s General Stores Driving Success with Fresh Prepared Food and Delivery

Founded in 1959 Casey’s General Stores today has 1840+ stores and has been driving top line growth above 10% the last three years.  In 2013 same store sales were up 11.8 % with an average margin of 61.1%.  How old is your company, are your same store sales up 36.8%+ over the past three years?

If success does leave clues clearly Casey’s General Stores growing top line sales and bottom line profits is a company to look for clues.  There is one clue that stands out.  That clue is fresh prepared food.  In Casey’s case they chose to focus on pizza.  After years of success rolling out pizza system-wide they began testing delivery.  Wow, that was just over three years ago and sales and profits have never been better.

In an Omni-Channel retail world Casey’s entrance into the Grocerant Niche is no surprise.  Foodservice Solutions® Grocerant Guru™ Steven Johnson say’s “fresh prepared food has provided a halo of “better for you” around Casey’s messaging that has resonated with consumers in both large and small markets.”

 CEO Robert J. Myers understand the importance of operating in an Omni-Channel retail world stating  “Our sales continue to benefit from expanding operations to 24-hours a day, adding pizza delivery, and completing major remodels.

In the mid-west where most of Casey’s stores are located they have become a formidable competitor both restaurants and pizza companies.  In fact Foodservice Solutions® Grocerant Guru thinks that Casey’s will be a strong competitor for years to come, and a competitor that the restaurant sector would be wise to pay attention too.   The fact that they can bundle meal components in a Mix-N-Match customized fashion is inviting, timesaving and complementary to consumers lifestyles and will continue to drive growth for this outstanding fresh food retailer.”

Myers went on to state that in “2015, Casey’s hopes to continue to increase its prepared food and fountain sales by close to 10 percent.” There is not a restaurant chain with 1840+ units that has or will have 4+ years of 10% growth.  How old is your company?  What are you doing differently? What opportunities have you over looked in our Omni-Channel retail world?  Is it time for some Outside Eye’s?

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. No other foodservice research or marketing company has focused on the Grocerant niche since 1991.  For brand, product placement, menu positioning assistance simply call Foodservice Solutions® 1-253-759-7869 or visit: www.FoodserviceSolutions.us

Evolving: convenience-stores now Convenient Fresh Fast Food.

Leveraging legacy locations, convenience, speed of service while integrating branded fresh prepared Ready-2-Eat and Heat-N-Eat prepared food, convenience stores are rapidly garnering customers from both the restaurant and grocery sectors.

Convenience stores foodservice offerings have largely been over looked or dismissed by Quick Service Restaurant chain operators and grocery stores.  Following the lead of Wawa, Sheetz, Rutter’s and now 7 Eleven the convenience store sector is branding food programs from coast to coast.  More importantly they are garnering a larger share of stomach with improving food quality, healthful offerings and speed of service that quite frankly QSR’s can’t keep up with.

David Sprinkle, publisher of Packaged Facts stated "By enhancing foodservice quality and variety, we believe convenience stores are poised to benefit from increased sales of gasoline and other merchandise, as consumers seek to consolidate their purchases in the interest of efficiency"…"Because it is so well positioned, we anticipate that convenience store industry foodservice sales growth will outperform the retail and restaurant foodservice industry average through 2013." Well it happened in 2010, 2011, 2012, 2013. 

So, can you guess what might happen in 2014?  The undercurrents of customer migration and C-store fresh food sales momentum has been unleashed. Consumer adoption is underway and the restaurant industry continues too capitulate customer counts. Denial is not a strategy.  Outside Eyes can provide clues for top line sales and bottom line profits.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant Niche for more visit: www.FoodserviceSolutions.us  or  http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: Steve@FoodserviceSolutions.us

Millennials Want Transparency When Shopping for Food

Seeking transparency when buying food that is Ready-2-Eat or Heat-N-Eat is one way the Millennials are driving change within the retail food sector specifically forcing legacy restaurant chains and legacy grocery stores to evolve. 

While speaking during the 50^th Annual IDDBA conference Laurie Demeritt CEO of The Hartman Group reveled that “Millennials prefer shopping in specialty stores to get quality products like cheeses, prepared foods, specialty meats, baked foods and other deli items.”

Demeritt stated “that of the 850 adult shoppers who participated in the survey, 46 percent of millennials left their primary store (such as a supermarket) to buy fresh prepared foods because of their preference to specialty stores. This is a substantial disparity when compared to the 35 percent of baby boomers who do the same.” …

“They want to know more about the store behind [their food choices], where did [the food] come from, who made it and what the company stands for,” …“They also believe they should have more of a voice, more of a say, in what’s coming out in the market,”

Demeritt speaking of the survey found that 50 percent of consumers will go to another preferred specialty store for specialty cheese, 40 percent for prepared foods, 38 percent for specialty meats, 37 percent for deli items, 36 percent for baked goods and 26 percent for fresh dairy products. Foodservice Solutions® Grocerant Guru™ completely agreed with the findings.

Discovery also drives frequency of visits, Millennials shopped at nine stores in the past three months while baby boomers visited only six. The younger shoppers are not brand loyal and tend to explore and check all the different options the market can offer.  The Grocerant Guru™ has repeatedly linked mix and match meal component bundling to younger shoppers and Millennials.

Companies this ilk of Subway, The Original Soupman, DunkinBrands and Tim Horton’s are shifting to deli like models to attract active young consumers. Lloyd Sugarman, chief executive officer of Soupman, stated ““We expect that all future locations will feature an expanded menu that includes full authentic delicatessen offerings” Positioning new stores in airports, casino environments, and non-traditional locations in integral garnering the attention of new consumers.

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. No other foodservice research or marketing company has focused on the Grocerant niche since 1991.  For brand, product placement, menu positioning assistance simply call Foodservice Solutions® 1-253-759-7869 or visit: www.FoodserviceSolutions.us