Grocery stores need new sales metric’s and LTO’s.

Consumer demand for ready-to-eat and ready-to-heat food that is fresh prepared, portable and profitable ala the grocerant niche, continues to grow. 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 rely exclusively on category and brand managers focusing on paid shelf space and outwitting consumers with category management or continuous category management tools will see continued erosion of top line sales and bottom line profits. Have you looked at A&P lately?

While successful food retailers are focusing on the consumer, making adjustments addressing concerns of the consumer; they are gaining market share. The average size of the American family is smaller today than it was 10, 15, 20 years ago, however category and brand mangers continue to focus on “basket size” rather than customer, customer frequency or new measurable brand value attributes.

Deli / fresh prepared food must stop 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? Or do they have degree’s in that’s what we do?

Consumers want small portions or portions sized for today’s family particularly ready-to-eat meals. Buying 10 ingredients for one entrée or side dish is the not goal of 90% of consumer Monday – Friday. With family size much smaller than it was in the 70’s and people living longer and many living alone, the demand for quality food prepared continues to grow.

The winners, Safeway’s life style stores – smaller check average and higher frequency the same holds for Harris Teeter. A word of caution here grocery stores must look at utilizing LTO’s to prop sales and garner interest going forward much like restaurant chains. Product freshness, visceral attractiveness and consumer focused flavor and texture attributes will continue to dive frequency, loyalty and top and bottom line profits.

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

The evolution of innovation in foodservice 2010 continues.

Differentiation does not mean different in retail foodservice it means familiar. In order for innovation to be successful in 2010 it requires interactive consumer participation. That can come in any number of forms. Let me know which will work the best, here are three examples.

Subway formed a marketing alliance with PlayStation. The Promo is called” Fiery Footlong Frenzy Fueled by PlayStation, will feature Subway's spiciest sandwiches to date -- dubbed Fiery Footlong subs--– including the spicy New Turkey Jalapeno Melt and the back-by-popular-demand Buffalo Chicken. When they purchase a 32-ounce drink, diners will have the chance to win a wide variety of PlayStation prizes, including the highly anticipated PlayStation Move motion controller, before they become available for purchase in stores in September”

Carl’s Jr. is introducing a “Philly Cheesesteak Burger, a meat-on-meat offering of thinly sliced steak on top of a charbroiled burger patty, finished off with peppers, onions, Swiss and American cheeses, and mayonnaise on a seeded bun.”

Burger King is teaming with WWE (World Wrestling Entertainment). “WWE Superstars Triple H, John Cena and Undertaker will be featured on more than 5 million exclusive Superstar plush toys inside BK Kids Meals. A new Superstar plush toy will be available each week during the three-week promotion, and will play the stars' individual catch phrases or entrance music. The Superstars will also appear on BK Kids Meal packaging along with merchandise displays at participating restaurants.”

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

Retail Foodservice success comes from informed, focused, planning and execution.

Whole Foods, Trader Joe’s, Central Market, Wawa, KFC, Sheetz and Wegmans each understands that building customer frequency, loyalty and consumer buzz requires looking past legacy retail metrics. Focusing on Millennials or Baby Boomers alone isolates the brand and limits the growth of the brand.

Baby Boomers and millennials are witnessing a confluence competition for retail foodservice dollars coming from restaurants, convenience stores and grocery retailers. The simple facts are that the size of the “family unit” has shrunk (in 1915 the size was 4.5 people per household, 1960 3.1 and 2004 2.6). Companies selling ready-to-eat and ready-to-heat fresh prepared food portioned properly are winning at the retail foodservice game.

In addition with increased immigration, international travel and the food channel American consumers have been exposed to new vibrant food flavor profiles; and they like them. Even more important they want too continue eating those flavorful foods. However they don’t in most cases have the desire to learn how to cook them. They want restaurant quality in a contemporized portion and package fresh.

Each of the above companies has strayed away from legacy “basket size” metrics for smaller packs of a variety of food. Each is attracting both Baby Boomers and Millennials.

Positioning for success in food retail day requires, that you understand, branding, merchandising and proper new product rotation. Sales drivers must be complemented with the human touch.

It's brand positioning that makes it: "My McDonalds", "My Wawa" properly trained employees always make it better. TGI Friday's did not hire the best bartenders they trained them! Positioning for success in retail food service is not an accident it is informed, focused planned execution.

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

Charles Walgreen understood community, neighborhoods and food.

Bankers, Judges, Lawyers and neighbors used to flock into the lunch counter at the drug store counter on Main Street in Hillsboro, Oregon, where my grandmother worked. Customers crowded the counter each wanting her homemade soup or special of the day. In the early 1950’s this small town drug store was the center of the community and my grandmother after retiring from farming in Minnesota was the towns informal social secretary, and chief cook.

Like thousands of other drug stores this one was modeled the one Charles Walgreen build in Chicago in the 1920’s. To quote from his story “ Walgreen once again demonstrated his knack for helping his company while better serving the public. From then on, through the 1980s, food service was an integral part of the Walgreens story. Every Walgreens was outfitted with comfortable, versatile soda fountain facilities serving breakfast, lunch and dinner. Just as Walgreen had reasoned, customers coming to the stores for food usually stayed to purchase other necessary items. And with its friendly waitresses, wholesome food and fair prices, loyalty to Walgreens increased exponentially.”

Walgreen’s will be successful with retail foodservice. It is their heritage, part of a culture that we see in retail foodservice today: local, sustainability and fresh. Albeit repackaged foodservice with contemporized consumer relevance, Walgreens understands today’s consumer and the grocerant fresh prepared food niche.

Young MBA’s from top tier schools and legacy consultants focused on only the here and now don’t understand the retail foodservice culture. In turn creating local culture in a large company is a near impossible task for many a company but not for Walgreen’s. The Hartman Group understands culture, for those of you need assistance you might want to call them!

To quote a good friend of mine “What goes around comes around. Foodservice in the drug stores used to be standard practice and a key place for people to meet 40 years ago. They prepared meals, coffee, ice cream. etc. Everyone in small towns used to hang out at the local drug store. Today's marketing whiz kids don't understand history because they never study it or respect it.”

The legacy of Charles Walgreen will contribute too the success and efforts of reintroducing fresh food into the community, neighborhoods around the US; building top line sales and bottom line profits. Success does leave clues and the team at Walgreen’s has picked them up! Understanding retail foodservice success is an art.

Grocerant program assessments available visit: www.FoodserviceSolutions.us . Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven  Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook 253-759-7869

Get in line with the consumer to win!

Grocerant ready-to-eat and ready-to-heat fresh prepared food is simple to prepare, save time and filled with bold flavours. With an increase in consumers reading the package label or branded product label Mintel recent analysts reports that “ The concept of simplicity in the food industry has become a mainstream consumer demand.”

Food simplicity is taking hold, packaging, product and specifically the number of ingredients. Speaking at the IFT expo in Chicago, David Jago and Lynn Dornblaser stated that this is a trend that is developing and that is more about the change in the consumer desires.

They noted “We have noted for example that the average number of ingredients used in a product in the US has actually dropped,”. Mintel figures show that there has been a decline in the average number of ingredients in 56 percent of the food and beverage categories covered by the organization..”

Grocerant ready-to-eat and ready-to-heat fresh prepared food a solution to enable quality home cooking. Lynn Dornblaser stated: “Simplicity as a message and a product is here to stay… “There has been a shift from ‘junk free’ to one hundred percent natural, all natural, 70 percent organic,” Dornblaser said. “It is all about positives rather than negatives.”

Fresh prepared ready-to-eat and ready-to-heat food provides a platform for successful meal Mix & Match food component bundling. The grocerant niche empowers consumer choice.

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

Mixing Meals & Medicine, legacy retail foodservice consultants / pundits scoffed at the future.

In a well written article Mixing Meals & Medicine published in Supermarket News. Legacy retail foodservice consultants-researchers turned pundits scoffed at grocerant fresh prepared food offerings entering the marketplace within the retail drug store channel. Utilizing metaphors and metrics of the 70’s & 80’s they have yet to properly estimate the power of today’s consumer. That consumer is dynamic not static.

Here is a direct link to the article:http://supermarketnews.com/retail_financial/mixing-meals-medicine-0809/

In most cases these are the same consultants that have advised, worked with and created the shrinking retail grocery store sector we find today. In fact we have 15,000 fewer grocery stores today than we had 20 years ago; and we have a growing population.

New formats including Trader Joe’s, Fresh & Easy and Wawa are out drawing many a grocery store in retail customer frequency, while building a loyal brand following developing top line sales and bottom line profits. Those legacy pundits continue to reposition legacy grocery stores near the bottom of the retail foodservice sector.

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

What do you do when your grocery store is too big?

Grocery stores customers have been complaining about the length of time it takes to go grocery shopping for years. The problem is the legacy grocery managers want to address the problem from within the “box”. They have added cashiers, express lines, customer service centers and yet still never addressed the wants and needs of the consumer.

Trader Joe’s reduced the size of the footprint! Ah think about it. Trader Joe’s customers do not complain about the length of time it takes to shop. Legacy grocery retailers seem constricted to legacy metrics. Particularly BASKET SIZE. If your goal is to fill a basket and get consumer to walk up and down every isle you can’t get them out fast!

Publix reportedly started “Publix Curbside, a test of online grocery ordering and at-store pickup, debuted in one Atlanta store yesterday and will launch at a single Tampa, Fla., location in the near future, according to the Lakeland, Fla.-based Publix Super Markets”. If you don’t want to go into the store, why buy form Publix at all?

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

Innovation trumps complacency in retail foodservice! 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. I wish Publix well, but it might be time to remember success leaves clues and the 5 P’s of retail foodservice might be a good place to start.

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