Grocerant Foodservice Pay and Benefits Upsetting Status Quo

Grocerant niche Ready-2-Eat and Heat-N-Eat prepared food is driving top line growth and bottom line profits for companies that are expanding their fresh food options.  Success does not come easy as the competition for foodservice workers continues to heat up.  Many convenience store operators have targeted legacy pre-trained restaurant workers according to Foodservice Solutions® Grocerant Guru®. 

One example is Thortons who announced that they plan to hire more than 100 employees starting at a new minimum rate of $10.25 per hour in the Louisville area.  That is up 12 percent vs. the current starting rate.  The minimum wage in Kentucky will go from the current $ 7.25 an hour on of August 1, 2016 to $ 8.20 per hour. 

Many restaurants in Kentucky continue to start employees at minimum wage.  Thortons has the ability to leverage one of the hallmarks of the grocerant niche Mix and Match bundling to offset the higher wage rate creating a platform enabling too recruit and retain a good employees.

Higher pay is not enough in fact Thortons has a bundle of benefits that it plans to offer including “Employee Stock Ownership Program, through which employees become owners of the company after one full year of service. The retailer also matches 401K contributions with company stock dollar-for-dollar up to 4 percent. Other benefits include bonus potential, group insurance, free meals and beverages, and discounts on fuel.”

Thorntons operates 183 stores in Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida and understands too continue expanding it grocerant niche Ready-2-Eat and Heat-N-Eat fresh food program that customer are migrating to it needs the ability to recruit, retrain, and retain employees.

Is it time that you consider expanding your grocerant niche offerings?  Are you garnering all you can from you Mix and Match retail foodservice offerings?  Is it time for Outside Eyes? Contact Steve@FoodserviceSolutions.us  or visit: www.FoodserviceSolutions.us for more information.

Chain Restaurant Customer Counts Down Brand Protectionism Does Not Work

Many legacy chain restaurants in every sector continue to practice brand protectionism and blame uncertainty in the economy, health care, weather on customer migration to lower competitors as a reason that sales are off, profits miss and growth has slowed. Nothing could be further from the truth.

According to the latest monthly MillerPulse survey, same store sales were flat in June as both quick-service and casual-dining concepts struggled to bring customers in the door.  However the big news was year over year customer counts fell 1.9 percent for the month.  That by the way was the worst performance for the restaurant industry since January 2014. 

Consumers are dynamic not static. Consumers have moved on and many restaurant chains continue to practice brand protectionism, obviously comfortable where they were 10 years ago, 15 years ago and some 20 years ago and still are today. That may have worked back in the day.  Clearly it’s not working today.

During the golden era of the restaurant industry 1960 -1995 brand protectionism worked. While the restaurants, flourished the grocery store channel was greatly diminished. The grocery store sector woke up and began experimenting with what I have termed the Grocerant niche.  That is to say they began to test fresh prepared Ready-2-Eat and Heat-N-Eat meals and meal components.  

According to Technomic in its Retailer Meal Solutions (RMS) Consumer Trend Report “consumers are purchasing RMS more often; 84% now purchase RMS at least once a month….  This increase is largely driven by younger consumers aged 18-34, who are increasingly reliant on foodservice in general.”

Packaged Facts estimates that the Ready-2-Eat and Heat-N-Eat fresh prepared food sector of the grocery store / supermarket reached $62.45 billion.  More Foodservice Solutions® team estimates that it has been out pacing all other sectors of retail foodservice growth; growing at about 7.5%  per year. Does anyone wonder where the restaurant customers are migrating? 

Garnering such positive results grocery stores are now expanding day-part food sales moving into breakfast, lunch, and dinner.  With each new day-part success the grocery sector is positioning for a battle of share of stomach like consumers and restaurants have never seen.  Is your company prepared for new competitors? Are you still practicing Brand Protectionism?

Invite www.FoodserviceSolutions.us  to complete a Migration Marketing assessment, grocerant program assessment or a grocerant ScoreCard. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant Steve@FoodserviceSolutions.us

Convenience Stores Prepared Food Drives More Profits

There are times in a business lifecycle that everything that you do just seems to be clicking just the way it should.  At Foodservice Solutions® those times are here!  Foodservice Solutions® Grocerant Guru® has been pontificating the benefits of grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food since 1991.  He’s still right.  There is no doubt that a as a C-stores increases its grocerant niche fresh prepared food sold, profitability expands.

We are not alone any longer in a new report from Datassential, they found that “foodservice is the top driver of profitability for convenience store operators. Datassentials found:

1.       In fact, 77% of convenience stores claim that their foodservice offerings are “very profitable.”

2.       Foodservice is ranked very profitable by more c-stores than bottled and canned beverages (69%),

3.       More than Beer and alcohol (56%),

4.       Even more than gasoline (37%),

5.       41% of consumers are buying more c-store prepared items than two years ago,

6.       one-third of those consumers say that is because c-stores are providing a higher-quality experience and more variety,

7.       The biggest increases in offered items since 2012 are ethnic foods such as egg rolls, empanadas and sushi,

8.       43% of c-store visitors buy something that they hadn’t planned on,

9.       74% of operators have seen an increase in their breakfast foodservice sales thanks to offerings of hot breakfast sandwiches,

10.   The top of the list for food items with the greatest sales growth according to operators is pizza.

Without doubt we respect everyone at Datassential.  However success does leave clues and when it comes to helping companies get ahead and say ahead within the Grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food.  Simply put our clients and our insights continue to be five years ahead.  So if you are prepared to Look A Customer Ahead call our Grocerant Guru® 253-759-7869.

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant scorecard, brand, or product placement assistance.  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 

Employee Respect Drive’s QuickChek Success

QuickChek is a family-owned company, which operates 143 locations throughout New Jersey, New York's Hudson Valley and Long Island, was named as the 2016 Convenience Store Chain of the Year by industry trade magazine Convenience Store Decisions. 

QuickChek Chief Executive Officer Dean Durling stated "Our mission is to be a 'Great Place to Work, a Great Place to Shop, and a Great Place to Invest,….This is a tremendous honor that reflects the hard work and dedication of more than 3,700 team members who take great pride in delivering total customer dedication each and every day."

Founded in 1967, QuickChek is regarded as a leader in the industry in key areas such as technology, foodservice, team engagement and innovation.  However what makes QuickChek special is the respect the company has for its employees.

The best example just might be leadership.  Michael Murphy, senior vice president at QuickChek  has offered to work Christmas Day for the past 40 years at a store so a manager (or in the early days an employee) could spend time with family. 

“I’ve always believed if I’m going to ask you to do it, I should do it first,” said Michael Murphy, it’s that kind of solid thoughtful leadership that has help drive top line sales and bottom line profits at QuickChek.  I know that QuickChek has raised its minimum starting salary to $10 an hour and offers employees tuition reimbursement but with all that comes respect for employees.  That is top in my book.

Sure QuickChek is customer focused and they have launched a mobile app allowing customers to use their smartphones to order, customize and select a convenient pick-up time for items ordered off of its menu.  When a company focuses on the customers with contemporized relevance and retains employees there is no wonder how they received such an honor.

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

365 by Whole Foods Oregon Fresh Fast Friendly

Whole Foods has been known as a different kind of grocery store for a since its inception.  One of the things consumers are attracted by at Whole Foods is the fact the company continues to evolve.  From the beginning the company focus has been on the consumer with a ‘halo’ of ‘better for you’ fresh food.  With 365 they have evolved into Fresh, Fast, Meals, with Friendly Service at its new test concept store 365 according to Foodservice Solutions® Grocerant Guru®.

Without doubt at 365 by Whole Foods the consumer will find the ability to buy grocerant niche Ready-2-Eat and Heat-N-Eat meal components that are fresh, fresh prepared, and portioned for one, two then bundled into a meal for the entire family front and center.  

Sometimes service comes with simplicity and technology. At 365 by Whole Foods as you enter the store you have the ability to buy a fresh brewed cup of tea from a ‘Teabot’ or a have a beverage made with fruit, vegetables, and dairy just for you from the ‘Canteen Bar’ that’s an entrance with contemporized relevance.   

The fresh prepared meals are portioned for one or two and not only look good but create a platform for discovery for foodies from Millennials to Baby Boomers with meal offerings the ilk of Egg White Scramble with Sweet Potato, Carrot Cake Oatmeal, and Maple Orange Salmon. 

I know all of those sounded indulgent but none the less our Grocerant Guru® found that consumer believe that interesting bold flavors are deemed ‘better for you’. Remember that differentiation does not mean different it means familiar but with a twist. 

Worry not Whole Foods loyalist one of the stables of 365 by Whole Foods is vegetables. What’s exciting at 365 is they come in every form that a foodie today would desire including raw whole, cut and chopped, peeled and cubed, or as ‘spaghetti noodles’. 

There is plenty of grocerant niche fresh prepared food as well from premade hot and cold sandwiches and wraps to fresh prepared salads and fruit sold from the hot and cold station in a rather plain self-serve offering.  The salads, prepared fruit, and sandwiches were all tasty, fresh, easily portioned into any size.

Fresh food may be top of mind for consumers, preferred by consumers, but like so many other food retailers frozen food still has a role to play.  At 365 that role is highlighted by 365 branded frozen pasta entrees and side dishes meal components that can be mix and matched into a meal for one, two or the entire family.

Made to order grocerant niche Ready-2-Eat and Heat-N-Eat fresh food offerings were a disappointment at best.  365 by Whole Foods was lacking the excitement of consumer interactive participation that comes with personalized, customized, fresh prepared food. They did offer some including whole pizzas, Hot Dogs, and Healthy Bowls.

What Whole Foods did do very well was focus on meals, meal components, portion, pricing, and speed of service.  The small footprint quickens the pace of the shopping experience and that is in the minds-eye of the consumer ‘better for you’.

Interested in learning how the FIVE P’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 Email us at: grocerant@q.com or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

Foodservice Solutions® Grocerant Guru® Shares TEN Foodservice Success Clues

Foodservice Solutions® Grocerant Guru® Steven Johnson speaking this week presented his Ten steps required to build your brand or edify retail foodservice positioning.  Retailers can win customers while fending off competitors by leveraging these Ten success steps.  Here is a recap of my presentation.  Success does leave clues below are 10 of them:

1.  Symbolism.   Why you are there! The most successful brands are inclusive include values greater than themselves. Here is an example: 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, maintaining brand equity requires awareness and awareness requires on-going evolving marketing efforts.

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. 

What Camp are you in What to Cook for Dinner or Where to Get Dinner?

Did you know that 83.7% of American consumers are unsure about what’s for dinner at noon every day!  At 4PM 68.7% still don’t know what’s for dinner.  Your customers are just beginning to think about what's for dinner. Eighty-one percent of American consumers are unsure about what's for dinner; the opportunity is yours for the asking.

Consumers are looking for high quality ready to eat foods and ready to heat meals… Foodservice Solutions® own Grocerant Guru® coined the term Grocerant in an op-ed article in Nation’s Restaurant News called They Call Them Grocerants.  Today Grocerant niche Ready-2-Eat and or Heat-N-Eat fresh prepared food can be found virtually everywhere. Consumer trends point to this - what today's time starved consumer wants is to purchase meal components that they can bundle into a customized family meal that will please everyone without spending time cooking.

Fresh Prepared Food

Consumers today have the opportunity to purchase high quality chef fresh prepared Ready-2-Eat and Heat-N-Eat food from independent restaurants, grocery stores, chain drugstores (Walgreens) convenience stores, chain restaurants.  Including new non-traditional food retailers the ilk of Amazon.com, IKEA, and food trucks. It is at the convergence of all of these new and legacy meal component points of distribution you find the Grocerant niche.

Where is Grocerant Niche Food?

The grocerant niche refers to prepared food that is fresh prepared, portable, Ready-2-Eat or Heat-N-Eat food that is deemed "better for you food". Consumers are finding grocerant niche food in grocery store deli sections at Publix, Kroger, Green Zebra Grocery, Central Market  Whole foods, Trader Joes, Safeway Lifestyle stores, Metropolitan Market and Wegmans Market Café .

Not to be left out, convenience store segment has grocerant pioneers in the brand names of Wawa, Sheetz, Rutter's Farm Stores, and 7-Eleven. Finally chain restaurants and independent restaurants around the world complete the within our evolving retail foodservice sector grocerant niche portable fresh prepared food.

Successful foodservice operators today understand that differentiation in menu items and food products doesn't mean different, rather it means familiar with a twist; taking ordinary daily menu items, adding contemporary relevance. Then presenting, positioning, and pricing competitively. These are the universal footprints of success found within the grocerant niche.

Consumers: Value Equals Quality and PRICE

90 percent of people look for deals to get more value when making food purchases in new national research survey conducted by DiGiorno January 2013. While in 2016 grocery store prices have fallen 5.6% restaurant prices continue to rise, and are up 2.3%.  Restaurant year over year same-store customer traffic fell 3 percent during the second quarter of 2016, becoming the fifth consecutive quarter of negative traffic growth and the worst performing quarter in over five years. Price matters.

Interested in learning how Foodservice Solutions Five P’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 Email us at: Steve@FoodserviceSolutions.us  or visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant