Food it’s all about Fresh in retail today: Roll, Roll, Roll, Away Roller Grill!

Harkin back to the days that employee’s uniforms were back & white. Employees all dawned paper hats, a time that the roller grill was introduced and ready-to-eat hot prepared food was introduced in the Convenience store channel. It was a time when the availability of food staples in extended hours of operations drove sales in this dynamic channel. The Convenience store channel continues to be dynamic, currently it is booming in the prepared ready-to-eat and ready-to-heat food sector or what I call the grocerant sector. I believe that differentiation does not mean different it means familiar within each food niche and this one is no different. Consumers young and old are demanding more choice, fresher quality and more contemporary food options.

Niche and industry global leader 7-Eleven has left the roller grill at the back door and recently has introduced Stay Fresh Bananas, Pizza, Chicken Wings. They are testing in new pilot stores their “latest insights into market trends to provide a range of 45 freshly prepared food products, including a hot breakfast menu and toasted sandwiches cooked to order.” This test includes a “café-esque range of hot lunch alternatives and will combine with Lavazza to offer barista-made coffee.”

Sheetz & Wawa both offer a full range of prepared food choice including fresh salads and fruit options. Good companies do good things over and over again. Recently Wawa CEO Howard Stoeckel detailed several efforts the convenience store chain is undertaking in during the economic slump the US is in, He stated "we're performing better than the vast majority of retailers," Fresh prepared ready-to-eat and ready-to-heat food products are strongly contributing to on-going sales and profit success. The Grocerant niche is filled with “better for you” food and continues to boom.

Quick Service restaurants are now focusing on “better for you” food. KFC hasa new meal and focus for this past “holiday promotion for its Kentucky Grilled Chicken combo meals. The meals, which contain a grilled chicken drumstick and thigh, green beans, and mashed potatoes and gravy, are now on sale at participating restaurants for $3.95. Louisville-based KFC Corp. said in a news release that the meal is rated at 395 calories. Yum brands Taco Bell is now pushing the “Drive Thru Diet”. Better for you grocerant meals are here to stay.

Foodservice Solutions is the global leader in the Grocerant niche. For more read this article: http://www.anything4restaurants.com/blog/index.php/2009/07/restaurant-consumer-discontinuity-the-consumer-moved-first/

It’s 5 PM in January where will you have dinner?

It’s cold, windy, snowy for most of the United States and it’s 5 PM, dark outside, the kids are hungry and you have noting in the house to eat. Your getting in the car to head home now what do you do?

What is your first choice stop and pick everyone up and go to a restaurant? Which one? Will it cost too much? Will everyone like that spot? How long will it take to bundle everyone up and sit down, order, eat and return home. Should I order from my I Phone and stop at the restaurant and pick up food? I guess the questions is How tired am I?

Second choice should I stop at Metropolitan Market, Central Market, HEB or Wegmans and pick up one ready-to-heat fresh prepared pizza, prime rib with all the trimmings and a chicken Cesar salad? Ok I’m set but will everyone else be happy?

I could simply stop at Wawa, Subway or 7 Eleven and get a fresh selection of prepared fresh sandwiches with fresh fruit on the side? What type of sandwich and what in the world do they want on them? OK I might give up?

I want to know where you go to eat at5PM in January and why? Email me privately at:stevejohnson77@msn.com or leave a comment below. Next week I publish the results of this completely unscientific results.

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche providing ready-to-eat and ready-to-eat program assessments.

Food retailing competition intensities; Grocery stores, C-stores and restaurants fight for survival.

Regional food retailers risk being marginalized by new concepts with smaller footprints, lower cost of goods and faster service. The struggle for in 2010 will be one were those companies that understand the new dynamics in the industry and react properly will accelerate growth. While other will close more lack luster stores pontificate on repositioning and capitulate marketshare for years to come.

Here is what we understand; consumer discontinuity in food retailing began in 2005 and continues. New points of distribution are growing, becoming smaller in size and worked out many of there problems. Fresh & Easy for example reports last quarter sales were up 34%. Marketside by Wal-Mart is rebranding some of their meals ready-to-heat with small portions that were so successful they are now popping up in traditional stores as a private label product. Walgreens will enter the prepared fresh food arena in unban locations to include high quality grocerant style fresh prepared meals portioned for one or two and fresh coffee. Will Rite Aid follow?.

“The future has already arrived; it’s just not evenly distributed.” A quote made famous by William Gibson sure comes to mind don’t you think. Subway’s successful small footprint is growing fast and they will open another 80 units in Japan alone this year. Fresh prepared “better for you” food and food options are in the grocerant niche and growing rapidly. Single-unit healthful pizza concept Naked Pizza that has garnered strong funding and signed a 50-unit development deal while Calbi Fusion Tacos and Burritos, a mobile vendor truck concept is now offering franchisee opportunities fresh small and fast. It’s a new world.

Successful convenience store operators the likes of Sheetz and Wawa once two notable regional players are now seeing 38,000 unit 7 Eleven entering the fresh food meal niche and Casey’s General Stores continues to boom, they should reach 1,500 units this year. With Walgreens around each corner this niche is about to change and change fast.

Many restaurant companies the ilk of Darden and Brinker will need to undergo continue and additional scrutiny in order to find a repositioned niche that will sustain them over time. Legacy grocery stores that are seemingly stuck in the middle will simply fade away. Wal-Mart’s supply chain advantage and industry research advantages will simply prove too much. The added points of fresh prepared food distribution in the retail channel offered by Walgreens and Rite Aid will renew the local neighborhoods and rekindle community to that sector.

William Gibson quote: “The future has already arrived; it’s just not evenly distributed.” How many of you are prepared for 2010. If you have been waiting to see what’s next? If so you might have just missed the bus.

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. More about us: http://www.linkedin.com/in/grocerant or leave a comment or question below. If you would like to read the latest interview of Steve Johnson on Grocerants here is the link: an interview of Steven Johnson at: www.goodfoodsales.blogspot.com/2009/12/grocerants-steven-johnson-shares-his.html

Grocerant prepared food niche leaders can learn lessons from college students.

Grocery stores, Convenience stores and Restaurant menu engineers will all be studying this list and you should too. College students remain a bright light in our society. Filled with hope, anticipation and idealism. We look to them for a renewed sense of contemporized relevance and food is no exception. We all can rest assured that change comes slowly and the new normal is a blend of our past and present. Sodexo one of the largest contract university feeders released the top 10 college foods for 2009. Here is the list:

1. Apricot glazed turkey

2. Meatloaf with frizzle-fried onions

3. Vietnamese pho

4. Vegetarian lentil shepherd’s pie

5. Chicken adobo

6. Stuffed port chops

7. Vegetarian jambalaya

8. Lemon herbed baked tilapia

9. Rotisserie chicken

10. Home-style pot roast

We continue to see that America is a cultural melting pot, and pot roast will be around for some time. What is exciting to see from this list is that bold flavors and “better for you” foods continue to make there way up the priority list of the young. This list is a glimpse of future menu’s trends / development we will begin to see during the next decade. The assortment of flavors will continue to escalate and the value proposition of vegetarian entrée’s will put added pressure on the menu mix overall.

Contact me for more at: http://www.linkedin.com/in/grocerant or leave a comment below. For more read this article: http://www.anything4restaurants.com/blog/index.php/2009/07/restaurant-consumer-discontinuity-the-consumer-moved-first/

“More than a Mouthful” Hooter’s shows why the Restaurant sector will continue to lead.

Grocery stores and Convenience stores are in competition for the share of stomach with Restaurants daily. Last year (2009) particularly we see that both the grocery sector and convenience store sector have picked up marketshare on restaurant sector. They may in fact continue to do the same at least during the first half of 2010. Then Hooters comes along targeting the valued 21 to 35 year old consumer with excitement and fun. Excitement, interactivity and visceral attractiveness has driven restaurant concepts growth for over 25 years. It’s my advice for 2010 don’t count out the restaurant sector. Hooters new menu item is a hamburger! Exciting no but it has been positioned to be exciting. McDonalds is pushing $ 1.00 breakfast you choose. Now that is exciting as well it a promo based of interactive with ad’s that are viscerally appealing.

What’s disappointing is that the Grocery sector exhibiting success with grocerant ready-to-eat and ready-to-heat prepared portable food continues to use extreme restraint when marketing or communicating the value, quality and portability there ready-to-eat and ready-to-heat food. My question is why? Who do they thing their competition is? Not only do they not bring excitement to the fresh prepared grocerant style food, in many cases they let it sit under heat lamps and “crust over” diminishing any value attributes consumers may have seen. Restraint remains the new normal for grocery stores prepared food marketing, when it changes so might the consumer value position.

Convenience stores on the other hand have learned to package, display and assemble fresh food with a qualitative point of differentiation. 2009 the number of new products tested, rolled out and presented to consumers in the C-store niche was exciting. Companies large and small were at it, from Rutter’s and Quick Chek to Casey’s and 7 Eleven. Most impressive is the proactive marketing, PR and visceral display changes in food within this sector (by by Roller Grill).

2010 is sure be exciting and “More than a Mouthful” in the grocerant prepared food niche!

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. More about us: http://www.linkedin.com/in/grocerant or leave a comment or question below. If you would like to read the latest interview of Steve Johnson on Grocerants here is the link: an interview of Steven Johnson at: www.goodfoodsales.blogspot.com/2009/12/grocerants-steven-johnson-shares-his.html

Convenience store sector the stage is set for consolidation in 2010.

Grocerant prepared ready-to-eat and ready-to-heat food soled the stage in 2009. Companies with a solid footing in the niche clearly lead the sector. Foodservice sales rose 7.7 percent on a per store basis in 2008, and prepared foods led the way with a 9.1 percent sales gain per store, according to a Convenience Store News 2009 Foodservice Study. What we must take note of is that the margins within the prepared food niche were much higher than other parts of the C-store sector and impressively higher in the Grocery sector. The restaurant sector gained ground via the drive-thru and strong competitive price points with ready-to-eat prepared food.

Most exciting to watch is the Convenience sector where those in the grocerant niche or those conducting multiple fresh prepared food product tests are growing in both per store volume and new units. Prepared food has provided new life for companies like Kum & Go the 50 year old convenience chain that added 21 new stores this year to bring it total to more than 430 units by the end of 2009. Growing units at more than 4% a year Casey’s General Stores selling prepared food including pizza, now has in excess of 1,488 units according to CFO Bill Walljasper. Watch for Casey’s to continue to enter new markets gobbling up marketshare.

7 Eleven with 38,000 stores worldwide is repositioning US stores to become more like Grocerants. They are testing new coffee formats, fresh prepared breakfast and lunch options and rolling out pizza. In fact they are planning 750 new units in the US in the next year or so. More interesting 7 Eleven is driving growth via consolidation. From coast to coast they are soliciting locations, operators and regional players. This will be a success for them as they role out new grocerant prepared food offerings. Momentum for this recruitment is garnering new franchisee partners and will continue grow.

QuikTrip is growing in both units and geography from Tulsa, Kansas City, Atlanta, Phoenix, Dallas, Wichita, St. Louis, Des Moines and Omaha markets utilizing commissaries to serve all 534 units sales of the fresh deli-sandwiches, salads, fruit cups and muffins are all exceeding company expectations. This company is one to watch organic growth is in play here.

Two companies that are conservative in growth Sheetz and Wawa both are high volume regional players with outstanding grocerant style prepared food. These are my takeover or take-out targets for 2010; each seems stifled in there ability to grow outside there current operating borders. Each would be a plum for companies searching for volume, highly skilled management teams and premade template for success. If they don’t begin a strong push for growth they may be inadvertently and unintentionally marginalized by an industry on the move.

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. More about us: http://www.linkedin.com/in/grocerant or leave a comment or question below. If you would like to read the latest interview of Steve Johnson on Grocerants here is the link: an interview of Steven Johnson at: www.goodfoodsales.blogspot.com/2009/12/grocerants-steven-johnson-shares-his.html

Welcome to the New Year

We hope this year is good for you, your family and companies, enjoy the Holiday.