Monday, August 9, 2010

Can you count the Starbucks on Route 66?


This weekend I was fondly recalling stories from my dad of crossing the country on US HWY 66 commonly called Route 66. He stayed at new Ho-Jo’s (Howard Johnson’s) or Holiday Inn’s. Went swimming in the pool and ate ice cream any flavor he wanted. Mid-day they would stop at a Burger Chef and get a hamburger and fries. He thought that was living large!

The Interstate HWY system came along and changed how and where people crossed the country. The time it took to make the trip from sea to sea in the car was reduced. Consumers flocked to the Interstate HWY system. Burger Chef’s and Ho-Jo’s began to fade in relative consumer importance.

Airlines reduced prices and suddenly even the cross country value for all but commercial vehicles began to slip away from the Interstate HWY system. Retail foodservice customers are dynamic not static.

Successful food retailers have repositioned themselves in the ready-to-eat and ready-to-heat fresh prepared grocerant food niche. Trader Joe’s, Whole Foods, Central Market, Wawa, Sheetz and Walgreens have all stared utilizing the 5 P’s of contemporary retail foodservice; Product, Packaging, Placement, Portability and Price. Understanding the consumer of today requires updated metric’s.

Restaurants, convenience stores and grocery stores are all trying to reposition for today’s consumer. Many brand manages however are “managing” the brand into non-viability. Brand protectionism of the 80’s & 90’s wont’ create a platform for success in 2020. New avenues of food distribution are reshaping the industry faster than many legacy companies want to accept. This opens up opportunity for regional players to expand and new joint ventures to strike up. Food manufactures, distributors and brokers are reevaluating there viability and relationships in a changing retail foodservice world.

Does your broker network have relationships with Route 66, is your manufacture pricing structure the same as it was in the 90’s, is your restaurant on Route 66 or have you relocated to the a new location? The grocerant niche is not a new consumer location. It is however where the consumer today feels most comfortable. If your brand is not evolving with the consumer then it is dying.

Grocerant program assessments available; 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 or BING / GOOGLE: Steven Johnson Grocerants

Friday, August 6, 2010

Visceral attractiveness for all food retailers is as important as cleanliness.


Restaurants specifically Quick Service Restaurants (QSR’s) understand consumer contemporary relevance. The QSR’s most frequent consumer are more visceral engaged on a daily basis than someone born fifty years ago. They are in fact visceral tuned on, plugged in, online or utilizing mobile texting at the fastest rate ever. Visceral attractiveness in décor for food retailers is as important as cleanliness don’t get left out in the cold. Interactive Graphic filled menu boards or wall mounted “TV” units that are both informational and engaging should be considered.

McDonalds is testing its own proprietary entertainment network billed as “McDonalds Channel at 19 units currently. With wifi in must units around the US currently this program will ““will entice the customer to sit down and enjoy their meal — and perhaps to stay a little longer.” Competitor Burger King had introduced flat screen tabletops and reportedly interested in rolling the program nation wide.

Convenience stores and grocery stores will need to install at minimum digital signage in the “deli” or ready-to-eat and ready-to-heat sections of there stores. Walmart is leading currently with “TV monitor” units located at end-caps sponsored by national brand manufactures. Visceral attractiveness and consumer relevance are moving forward hand in hand.

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 or BING / GOOGLE: Steven Johnson Grocerants

Thursday, August 5, 2010

Grocerant ready-to-eat and ready-to-heat fresh prepared food growing fast in Russia.


 
Fresh Food Russia takes place at the Hilton Leningradskaya, Moscow on the 11-12 November 2010.Fresh Food Russia Forum is an annual forum for the chief executives of production companies, agrarian enterprises that develop commoditised production of fresh produce, and the heads of the fresh produce divisions of the leading retail networks of Russia and the CIS.

Its agenda includes the analysis of Fresh Food market trends and the discussion of solutions to improve business performance by implementing new systems, financial control, and IT technologies. The joint development of the fresh food sector by the retail and agro industries in Russia. Fresh produce in the retail networks today. The current dynamics of demand by category. Overcoming the logistical issues of fresh food supply. A look at fresh technologies and the standards necessary to work with the retail networks.

Audience: The chief executives of production companies, agrarian enterprises that develop commoditised production of fresh produce, and the heads of the fresh produce divisions of the leading retail networks of Russian and the CIS.

Format: panel discussions, supplier practicums, as well as exhibits of technology and service providers for the industry, and gala dinner. See our website www.freshfoodrussia.com for the updated speaker list and agenda. Please contact Dominic Manley, +44207 193 7863 or manley@b2bcg.ru, for more details.

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 or BING / GOOGLE: Steven Johnson Grocerants

Wednesday, August 4, 2010

Private label Brand Manager now focusing in on Fresh Prepared Food


The unheralded stellar performance produced by national private label fresh food product brand managers established metrics for future success. Creating unbounded opportunity for food marketing brand managers within the Grocerant fresh prepared ready-to-eat and ready-to-heat niche.

Grocerant food that is ready-to-eat or ready-to-heat is now finding it’s way in large chain store formats including Safeway’s Lifestyle stores,, Target, Walgreens, 7 Eleven, HEB’s Central Market, Harris Teeter and Buehler’s. Blending traditional category management with menu rationalization techniques these companies are seeing success. However those that have incorporated brand marketing into their food offerings including product or line positioning strategy have seen increased customer frequency and niche margins rise.

Successful fresh food grocerant ready-to-eat and ready-to-heat programs include interactive participatory consumer interaction. Restaurant brand managers have utilized this strategy for some time. Other chains are beginning to utilize new metrics to leverage consumer success.

The same is occurring in the Convenience store side with companies like AMPM bundling meal deals and new products, The Pantry improving coffee and QuickChek growing with solid consistent product offerings. Branding the food product offerings or food lines resonates with the consumer. Watch for Brand Managers being hired in all of these channels. Interested in a grocerant program assessment; if so contact Tacoma, WA based Foodservice Solutions.

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 or BING / GOOGLE: Steven Johnson Grocerants

Tuesday, August 3, 2010

Taco Bell beyond the Bun; from standup food, too sit down restaurant territory.


Understanding and utilizing the 5 P’s of grocerant fresh prepared food marketing; Product, Packaging, Placement, Portability and Price with a consumer focus Taco Bell is rolling out a new line of Mexican Restaurant style tacos with carnitas.

Taco Bell’s Chief marketing Officer David Ovens stated: “Our Cantina Tacos are based upon authentic-style Mexican street tacos, which are designed using simple, fresh ingredients that customers regard as high quality,"… Not only are they a great-tasting addition to our menu, and one that was mainly found in Mexican-style restaurants, but they're also a great value that we know our customers love from Taco Bell."

Channel blurring is not in the minds eye of the consumer. It is only in the minds eye of the legacy marketing managers in legacy companies. I am convinced that consumer will respond to the offer in a positive way!

It’s time for many in the industry to reconsider individual brand positions. Who are you and where do you want to be. QSR’s are moving into fresh prepared better for you food. Grocery stores are selling bundled meal components that are fresh prepared. Grocerant fresh prepared food is going main stream.

Product, Packaging, Placement, Portability and Price are the 5 P’s of successful grocerant fresh prepared food retailing. Combine the 5 P’s with technology, a consumer focus and success follows.

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 or BING / GOOGLE: Steven Johnson Grocerant

Monday, August 2, 2010

A retail foodservice trend that lasted and continues to boom while evolving!


A Danish Philosopher once said: “Life can be understood by looking backward, but must be lived by looking forward.”

Homemeal replacement niche is the future of Foodservice. By: Steven A. Johnson (Published in Nations Restaurant News August 19, 1996.) Harkin back with this success clue by me (Steven Johnson) you will soon understand why this niche continues to boom exceeding even my expectations.

Combine an intelligent, sophisticated grocery store food operations manager with a contemporary, insightful restaurateur and what you get is a grocerant called Eatzi’s.

Most of you have read or hear of the $260,000 per week that Tony Tedesco of Brinker International Inc. and Phil Romano have generated with their concept Eatzi’s. It took three years and an untold sum to create and is not the end of the evolution of the home-meal-replacement niche. It is the most successful step so far. Together they understand that the eating habits of the American public have changed and continue to do so. A recent government study of 15,128 individuals more than 20 years old showed that 27.2 percent of women and 25.5 percent of men have four eating occasions per day, and another 15.4 percent of both men and women have five eating occasions. Even more surprising, 7.5 percent of the population have six occasions.

Than finding creates a huge increase in customer opportunities for all concepts branded or otherwise. Romano and Tedesco combined the variety, freshness, quality and an interactive feel that restaurants need in today’s market with the speed, efficiency and value people expect from grocery stores. Mindful of portion sizes and the additional eating frequency of today’s consumer, they have packaged and provided items to fill the “gaps’. They have combined the best of restaurants, food courts and home meal replacement concepts with the quality food and beverage items from the grocery segment. That flexible blend is extremely consumer acceptable and has a formidable natural frequency rate as its core customer base. Eatzi’s customers frequency rate alone is a strong indicator that home meal replacement is a trend rather than a fad.

The single most import argument that it is a trend may be its attractiveness to the sophisticated consumer who is more that 50 years old. Estimates are that one third of the U.S. population will be more that 50 by 2010, up from one quarter in 1991. All business in the sectors from computers, home business and retail operators need to take note of this group’s growth rate, disposal income and eating habits. The Senor Network, a Stamford, Conn. Based marketing and research company geared to older consumers. Recently stated that “simply based on population growth trends, if a product is marketed to the 50 plus audience and maintains its market share, it should increase in sales be 35 to 40 to 50 percent in the next 20 years. A brand targeted at the zero-to-50 age group will be flat in sales.

Understanding that the frequency of eating for people in their 50s,60s, 70s, is on the increase while their dining out experience many be tapering off, we should all be convinced that Grocerants will flourish well into the future with national branded chains and independents vying for a piece of the pie.

The evolution of the home meal replacement niche is far from complete; it will be growing rapidly in the future. Don’t fear, it will increase consumer satisfaction, complementing both the grocery and restaurant segments. It will not be replacing the restaurants or grocery stores of today. However, it will change the types of food and the way they are sold at each. Great credit should be given to Romano and Tedesco for understanding and identifying new and powerful niche. They understand that profit does not just happen, it is created, and it should be deliberate.

Grocery store operators and restaurant operators need to remember this rule. Say no to change and don’t grow; say yes and try your very best. Reputations are success come when you are searching for things that haven’t been done and doing them. Dual or multi-branded concept engineering is here, successful and growing rapidly. Combine with a forward thinking home meal replacement; it is a sure formula for continued growth and outstanding success for Grocerants.

Wow it’s been quite a ride; I thank all of you for your business and participation in this niche. For more on the continued growth of this niche Bing or Google: Steven Johnson Grocerants

Sunday, August 1, 2010

Evolving Retail Foodservice not consumer discontinuity will drive sales.


I phone, I touch, I pad Apple computer is evolving with technology, and consumer increased desire to simply daily task with technology solutions. The new “I” line of devise has propelled Apple to the top of the fortune 500 list! Apple understood that consumers would accept, buy and utilize products that provide solutions while simplifying daily life. I know some may argue that they are not that easy to use, get over it! They are and consumers know it!

Recently legacy retail food industry insiders have been writing about “meal solutions” coming of age. Articles appearing in Progressive Grocer, Supermarket News, Convenience Store News and Nation’s Restaurant News decrying a battle between Grocery vs. Restaurants, Convenience Stores vs. QSR’s etc.

That fact is retail foodservice success is about simplifying the daily life of the consumer. There is no discontinuity, the consumer is evolving and wants more options, in flavor, portion size and points of distribution. If your company is not evolving with the consumer it’s dying. The grocerant niche of fresh prepared read-to-eat and ready-to-heat food is growing both the top and bottom line for food retailers today.

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 or BING / GOOGLE: Steven Johnson Grocerants