Thursday, June 10, 2010

Restaurateurs thinking outside the box can draw inspiration with traditional foods.



Revitalizing your restaurant concept? Is it time to reposition a traditional product within your brand; maybe a burger, salad, side dish, desert or do you need a new product or avenue of distribution? Are you ready to catapult sales of the product while building interest and greater brand value? Consider the Grocerant niche of fresh prepared food that is better for you and portable.

Here is an example the age old apple. Consultants at Foodservice Solutions knew sales would boom if you cut the apple first; then placed it into a different channel sliced and packaged sold as Apple Fries at Burger King and Fresh Better For You Wedges at McDonalds. If you were raised in Washington State you might have known there would be winners and they are the Apple farmer, the healthier consumer (kids) and the QSR niche via TOP LINE SALES & BOTTOM LINE PROFITS for all.

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

Grocerant products are a multi-channel products consisting of traditional foods prepared fresh that are ready-to-eat and ready-to-heat foods that are/can be portable; found in grocery stores, convenience stores, restaurants, supermarkets, mobile food units and kiosk. You have them in your current portfolio, are you leveraging to the benefit of your brand?

We are seeing each niche create its own answer for convenient ready-to-eat foods; and when they do the consumer rewards them with purchases and increased frequency. Utilizing traditional food and food products but updating with a new twist.

Success does leave clues; it’s time to revitalize your brand, your products and positioning. Consumers want ready-to-eat and ready-to-heat food more often than in the past by all age groups and income levels.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. 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, June 8, 2010

Convenience stores growth outpaces supermarkets for obvious reasons.


In a special report by Convenience Retailing 2010: Future Trading Strategies, with focus on United Kingdom the report showed that “the C-store sector is growing at a faster pace than the overall UK grocery market”. What is of particular interest to all of us is that the report also states that consumers “make more frequent trips to smaller shops instead of one large supermarket shop each week.”

That reflects the messaging that has dominated the grocery sector for years here in the US. Time starved consumers do not want to spend all day walking around up and down isle after isle looking for the 6 – 8 items they want! Thus the growth in the Grocerant niche, prepared ready-to-eat and ready-to-heat fresh portable food. Legacy grocery stores that are worried only about “basket size” days are in fact number (this is a attribute only important to the retailer). There are other attributes more important to the consumer. Companies that focus on the consumer will win. Not those focused on legacy metrics.

C-stores are responding to consumer with new item’s, faster service and inviting promotional offerings. I believe that that differentiated does not mean different to the consumer it means familiar: Here is just one fun example of a Fresh & Familiar food that a regional C-store is leveraging to their advantage .Rutters Farm Stores has added fresh-cooked waffles -- a regional favorite -- to its food menu.

They begin with the standard fare: “Waffle ice cream sandwich, with a choice of vanilla or Neapolitan ice cream, served with powdered sugar on top”; then the intriguing and fun for the consumers begins a “Waffle sandwich, with chicken and gravy; and,-- Waffle dinner, with chicken, gravy and mashed potatoes;”. Then too top things off and make the offer interactive and participatory for the consumer “Rutter's also added waffles to its bread options, joining white, wheat and rye” bread.

If success leaves clues it clear the convenience stores sector has picked many of the clues and is running away with consumers.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. 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, June 7, 2010

Safeway Lifestyle stores are examples of integrated category management and Grocerant success.


Viscerally attractive with interactive mix and match ready-to-eat and ready-to-heat fresh prepared food components, Safeway is building a successful future. Coupled with inside seating, fireplace, CNN on the large flat panel TV; Safeway’s lifestyle stores are evolving faster than Kroger, A & P and Walmart. Utilizing an integrated category management approach with a focus on the customer, fresh prepared food and meal component bundling it is easy to see why customers are returning to Safeway.

Beginning with a contemporary sandwich station, hot Chinese food station, sushi station, soda fountain/with free refills (Coke Cola) or consumer can visit the Starbucks kiosk; Safeway is moving from a legacy deli while skipping the food court and moved head first into the grocerant niche. Ready-to-eat and ready-to-heat fresh prepared food is fully integrated into and active category management plan with Safeway’s newest remodeled store in Washington State.

Walmart recently added digital signage to select end caps within their stores. Digital visceral attractiveness is a contemporary standard in food retailing Walmart is doing a good job with it. Safeway is missing the boat particularly in the ready-to-eat and ready-to-heat fresh prepared food area with digital signage.

On the other hand Walmart obviously focused on the “center store” has missed a huge opportunity to build customer delight and meet the consumer focused demand for quality fresh prepared meal options within what many legacy operators continue to call deli. Upon recent visits in multiple states Walmart’s deli harkens back to the early 70’s with a miss guided attempt by grocery retailers even think about quality fresh prepared food offerings and customer service.

Kroger is utilizing an incremental approach enhancing continually the fresh prepared food offerings. It appears however that incremental approach may not be sufficient enough to hold consumers in the ready-to-eat and ready-to-heat grocerant niche. Safeway, Whole Foods, Wegmans, Central Market and HEB are all moving with the consumer or are a step ahead.

Supermarkets, Convenience stores and Restaurants all must avoid unwittingly practicing Brand Protectionism and saying no to items that consumer come to expect. Visceral attractiveness is now as important as cleanliness and service. The Grocerant sector is leveraging digital informational tools that sell freshness, attractiveness contemporary relevance.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. 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

Friday, June 4, 2010

Grocery stores and Convenience stores are in a race to obtain Restaurant consumers.


Proactive and entrepreneurial both Grocery stores operators and Convenience stores operators are entering the ready-to-eat ready-to-heat prepared food niche. Full speed ahead from coast to coast, each sector is increasing the number of new high quality offerings to entice restaurants consumer to make the switch.

Here are just a few new menu offerings:

1. Publix Bacon Peppercorn Flavored Rotisserie Chicken

2. Trader Joe’s Wine Country Chicken Salad: with white-meat chicken, pecans, celery, poppy seeds and dried cranberries

3. Rutters Breakfast subs with double egg, double cheese and double meat

4. Central Market with Chimichurri Rostisserie Chicken

5. Whole food roman style pizza

6. Sheetz Grilled Chicken Cesar Wrap and Garlic Fryz

NPD Group restaurant industry analyst Bonnie Riggs. Stated "This is something that had been happening prior to the recession, and it has only gotten exacerbated by the recession,…Riggs expects supermarkets to continue to see decent takeout business as the recession fades, largely because NPD projects takeout meals eaten in-home will grow by 20 percent during the next decade.

Grocerant ready-to-eat and ready-to-heat food is growing in number of locations, quality of offerings and in many cases a pricing advantage over traditional restaurants. Consumer retail foodservice patterns are repositioning and new sector leaders are beginning to surface.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance. 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, June 3, 2010

Better for you food just might not be all that is better.



Are people buying “better for you” food today and how? They are utilizing a confluence of new tools including mobile app’s, from wireless phone, On-line ordering from computers and PDA’s, IPad’s to name just a few. More over the younger the consumer the more likely they are to find any of these alternate forms of ordering preferable. This is also perceived as better for you from the consumer perspective.

Foodservice consumer responded to a research survey conducted by the International Food Information Council (IFIC) on Functional Foods. The survey found that “89% of Americans agree that certain foods can have benefits for long term health including reducing the risk of disease or other health concerns. Consumer identified the following:

1. Fruits and vegetables

2. Fish / seafood

3. Milk & Yogurt

4. Meat & poultry

5. Herbs & spices

What is most interesting to me is that the number one item on the list also appeared as the number one food preferred by college students in dorm meal plans for the past 20 years!

Now think about it, our customers are looking for a better for you food products when they go out to eat and at home. Grocerant ready-to-eat and ready-to-heat prepared food must be comprised of better for you food and available in better for you formats for contemporize consumer relevance.

Prudent retailers will soon understand the power of the Grocerant niche! Ready-to-eat, Ready-to-heat quality bundled meal options that are better for you, create demand in new and alternative channels of sales and distribution.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance. 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, June 2, 2010

Retail Foodservice one year later, Lane Cardwell guiding Boston Market to success.


With the consumer demand for ready-to-eat and ready-to-heat food that is fresh prepared, portable and profitable ala the grocerant niche. Why do many grocery stores continue utilizing procedures and operating paradigms of the 70’s,80’s & early 90’s that has contributed to a continued decline in market share too the restaurant and convenience store sector.

Grocers that are relying on category and brand managers that focus on utilizing slotting fees and outwitting consumers with category management or continuous category management, results will continue to slip.

In the grocerant sector Boston Market is successfully focusing on the consumer, making adjustments addressing concerns of the consumer, they again gaining market share. Utilizing the Mix & Match meal components bundling Boston Market has successfully demystified the consumer paradox of choice. Credit must focus on leadership. Lane Cardwell has spent years focusing on the consumer, not just the brand and the focus is now paying dividends. If success leaves clues one might be watch this company.

The average size of the American family is smaller today than it was 10, 15, 20 years ago, however grocery category and brand mangers continue to focus on “basket size” rather than customer, customer frequency or measurable brand value attributes.

By focusing on increasing check size and bundling meat in packages of 30 pork chops, a chicken and a half in a package, or mix and match- buy any 10 for $1.00 each. What’s with that? Do they think the industry is going backward? What family are they selling too? Do brand mangers in the grocery industry have degrees in marketing? We all know that frequency contributes to an increase in impulse buying; why then do grocery marketers want to build a basket size so large they keep the consumer away? It might be time to change?

Consumers want small portions or portions sized for today’s family particularly ready-to-eat meals. Buying 10 ingredients for one entrĂ©e or side dish is the not goal of 80% of consumer Monday –Friday. With family size much smaller than it was in the 70’s and people living longer while living alone, the demand for quality food prepared continues to grow. Look at the winners, Safeway’s life style stores – smaller check average and higher frequency the same holds for Harris Teeter.

Product freshness, visceral attractiveness and consumer focused flavor and texture attributes will continue to dive frequency, loyalty and top and bottom line profits.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance. 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, June 1, 2010

Private Label brand managers need to come out swinging vs. lame slotting fees.


Diminished is the role of the legacy national brand manager in a world where private label is branded. When national brand manufactures continue paying slotting fee’s to grocery stores and supermarkets as the easiest way to reach the consumer. The slotting fee’s continue to go for space on the shelf but the key location End Caps are now being filled with the stores own private label products. If your paying a National Brand manager and your brand value is gone, fire the brand manager or pay higher slotting fees and fool some of the people some of the time.

Who likes slotting fee’s well for one wall street analyst love to see sales via pushing slotting fee’s at the end of a slow quarter to meet “goals”. Why they like it is beyond logical reason. Mediocre C-level grocery store chain managers like it better than being force to become merchants. They utilize slotting fee’s to supplement profits. It justifying being a poor merchant with rationalization. By the way wall street likes that too!

The brand managers of the private label products are utilizing a tool out of the National Brand Managers playbook to build loyalty, reinforce value and generate additional sales and profits for the store and their particular private label product. They are taking the end caps for themselves!

Price Chopper is utilizing what they call “power displays”. Wal-Mart is utilizing the end caps to reinforce value of their private label products and consumer is picking them up! Wegmans gets the customers coming and going utilizing the vestibules with the likes of Wegmans private label potato chips and the next week Wegmans own canned tuna and their own mayo for example. I say keep it up!

Deep in the store the private label battle continues with ready-to-eat and ready-to-heat portable food. All prepared fresh and in most cases right in front of the customer. Private Label Grocerant ready-to-eat and ready-to-heat food now has brand managers of their own and they are building sales not slotting fees. Think about it, building sales on demand from consumers? Novel ideation or business fundamentals, you chose.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance. 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