Fun, Food, Flavors, Evolving with Foodies and Manufactures.

Time-starved yet demanding consumers are evolving flavorful ready-2-eat and heat-N-eat fresh food.  The grocerant niche comprised of fresh prepared ready-2-eat and heat-N-eat food, are building top line sales and bottom line profits in all sectors of the foodservice industry.  The ability to mix and match meal components or ingredients for a particular meal or specific sandwich is empowering to the consumer. This niche is thriving in Convenience Stores, Restaurants, Drug Stores, and Grocery Stores.

Food Manufactures are focusing on restaurants and prepared food for the grocery sector. It is important to understand the differences between cooking a food product for immediate consumption and manufacturing a product with adequate shelf life and safety profile to be on the shelf.   There are systematic differences between cooking ready-2-eat and heat-N-eat food.  Maintaining food safety and quality will allow products served at restaurants to also be available in the grocery store with brand integrity.

New non-traditional points of food distribution are cropping up monthly.  Retail food brands must continue to find ways to place products in new avenues of distribution where current customers are going and future customers of the brand will come from.

Many Co-packers of refrigerated entrees and side dishes are preparing products for quick casual restaurants and even fine dining chains.  Then they manufacture the similar products under for a different avenue of distribution i.e. grocery or convenience stores under the restaurants chain label. 

Grocery store deli operators are now seeking private label fresh prepared proprietary menu items with identity for their national grocery/ supermarket distribution. With sales picking up month after month in this category this will become a very successful business proposition for many a manufacture and or co-packer.

Join me on my blog for insights, information and inspiration at www.grocerants.blogspot.com   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. 

Who Is Winning the Food Customer Contest?

The battle for retail foodservice customers has tilted and at this point in time ATKearney, Technomic, IRI, and The NPD Group all have concurred with Foodservice Solutions® industry leading data that ready-2-eat and heat-N-eat fresh prepared food aka the GROCERANT NICHE is leading the way. 

Foodservice Solutions® clients and regular readers of this blog are not surprised by the findings of all of the above companies that issued press releases or white papers just this week on fresh prepared food sales. We on the other hand welcome them to the Grocerant niche.  Here is what we have been talking about and know. Consumers have been attracted to new fresh prepared food offerings from our clients at new non-traditional locations including Liquor stores, chain drug stores, convenience stores and much improved supermarket delis.

In a nutshell collectively the independent findings from IRI, Technomic, ATKearney, and The NPD Group found that concurred with our years of continued findings:

1.       Over the next ten years grocerant niche food growth will grow faster than traditional restaurant table service.

2.       18 – 34 year olds, 35 -65 and 65+ all utilize ready-2-eat and heat-N-eat fresh prepared food at increasing rates.  The difference is meal period by day part, food types, hand held vs. plated, and portability.

3.       Non-traditional locations of fresh food sales were identified by all, but none of them seem to grasp the significance of the plethora of new points of distribution and the competitive risk nuances as being disruptive too the current competitive landscape. Legacy retailers including restaurants, c-stores, grocery stores must all evolve with the consumer or lose market share.

Foodservice Solutions® was first to identify, quantify, and qualify food consumer migration when we named the undercurrents of food consumer migration The Grocerant Niche.  Foodservice Solutions® was first to identify, quantify, and qualify the market uptick in customer migration The 65 Inch HDTV Syndrome. 

Foodservice Solutions® was also first uncovering five universal commonalities of successful food retailers today Foodservice Solutions® 5 P’s of Food Marketing. First with integrated marketing solutions for  restaurants, supermarkets, C-stores, drug stores, and liquor stores wanting to garner additional market share via Foodservice Solutions® 5 P’s of Food Marketing.  Is your brand capitulating or gaining market share?  Are you keeping pace with the evolving food retail landscape?

Interested in learning how the 5P’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

Pinkies Liquor Stores Expanding Success Selling Fresh Prepared Meals To-Go

Ready-2-eat and heat-N-eat fresh prepared food customer migration continues to unfold.  Grocery delis are garnering customers from restaurants, C-stores expanding fresh food offerings are garnering customers from the QSR sector.  Pinkies located in San Angelo, Texas is garnering customers from everyone.

New non-traditional points of fresh food distribution are expanding customer’s opportunity to purchase grocerant niche ready-2-eat and heat-N-eat food.  Regular customers need not worry Pinkies still has a huge selection of liquor including bourbon, gin, rum, vodka and a quality selection of Single Malt Scotch.

Pinkies now is featuring Take-Out meals prepared fresh in the store daily including entrée’s sandwiches salads and desserts. Pinkies has elevated the quality of fresh side orders, dips, fresh fruit cups, and customer satisfaction with its expanded take-out fresh prepared food options.

Success does leave clues CEO Mike Ellington has informed me that since he added the new in-store kitchen sales have increased across the board in every category within the stores including sales of his over 850 imported beers, 2500 wines from around the world and yes liquor. Ellington was attracted to the grocerant niche in large part because of the Mix and Match bundling grocerant fresh prepared food is renown.  

Pinkies offers a wide variety of items on its menu.  Entrée’s from Brisket, Rotisserie both Pork Loin and Chicken to Green Chili Stew.  Pinkies offers side orders for every occasion including; Collard Greens, Green Beads w/Bacon, Mac and Cheese, Spinach Soufflé, and Glazed Carrots.

Customers drive sales.  Pinkies has no table seating inside or outside the store. What Mike Ellington understood was his customers were time-starved looking for meal solutions.  Not only has he found an additional profitable sales niche it has proven to be complementary too every existing category in his store.

Success does leave clues Pinkies is a new avenue of distribution for fresh prepared food.  The success clue: ready-2-eat and heat-N-eat fresh prepared food drives top line sales and bottom line profits.

Outside eyes can deliver top line sales 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 Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant 

Pizza Chains Threatened by Non-traditional Fresh Food Delivery

Restaurant customer migration has been well documented by Technomic, The NPD Group and Black Box Intelligence showing or predicting nominal or flat growth for the restaurant industry of late. Some sectors could be more vulnerable than others to new non-traditional points of distribution. 

The pizza sectors continued battles within the sector over price and product selection has an intensified competitive threat on the delivery front from the Quick Service Restaurant (QSR) sector.  Pizza once the suburban dinner savior with its delivery option is seemingly under attack from the QSR sector.

Leading the way is Burger King now offering delivery in parts of 72 different cities and suburbs around the country.  Other QSR’s are now considering offering delivery.  We asked David Decker of DemandTracker who are the customer most likely to want delivery from QSR’s and which chains would be most likely to benefit from offering the highly coveted service.

Here is what the new DemandTrack survey asked consumers who are “aware of the twenty largest quick-service restaurant chains what changes the restaurant could make that would cause the person to visit the restaurant more often…. Among the top twenty quick-service chains, Wendy’s has the highest number of people, 14% would use the brand more often if delivery were available. McDonald’s has the second-highest number at 12% and Subway, Church’s Chicken, Popeye’s, and Taco Bell each had 11%.  If any two of the aforementioned chain QSR’s were to begin delivery Foodservice Solutions® team see’s serious consequences for the pizza sector and a minimum loss of 5% of total market share.

Who wants delivery the most? The QSR’s leading demographic and coveted industry demographic consumers who are “18-34” years old according to the DemandTracker survey that who.  “As quick-service restaurant companies consider offering delivery, it’s important to understand to which restaurant consumers that service would most appeal” said David Decker, President of Consumer Edge Insight stated.

Regular readers of this blog have been exposed to many new non-traditional points of fresh food distribution.  None of those points threatens a particular sector like this one does the pizza sector.  Is your company new to the grocerant niche?  Do you want to understand how to succeed within the grocerant niche when under attack?  Well here we are we can help. If you want to grow within this niche here we are.

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. For brand, product placement, menu positioning assistance simply call Foodservice Solutions® today.  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

Restaurant Industry Icon Subway’s Fred DeLuca Seriously Ill

In an email to Subway development agents that went out from Subway sandwich chain president and co-founder Fred DeLuca on Monday stated: Deluca has been diagnosed with leukemia.

While on a trip to Ontario, Canada three weeks ago, Fred DeLuca fell ill. There, he was diagnosed with double pneumonia and leukemia. He was then air lifted to Yale Medical Center, some ten miles from the Subway world headquarters in Milford, Connecticut.

Treatment was started immediately for leukemia.

An email to the Subway development agents (area developers) went out Monday to inform them of DeLuca's poor health. In the email, DeLuca stated: "I won't be able to attend convention this month because I'll be in the middle of treatment." The chain's annual convention will be from July 26-28 in Nashville, Tennessee. Some 5,000 franchise owners, affiliates, vendors and corporate employees are expected.

"My number one job is to take care of my health and get well," wrote DeLuca. "Do I have a succession plan? Yes, I have organized a succession plan. Should we need to implement it, the details will be shared with you then."

The letter went on to say that he cannot receive visitors.

Leukemia is a blood cancer that begins in the bone marrow and quickly spreads through the body, which can cause death. Some forms are treatable while others are not.

In 1965, Fred DeLuca borrowed money to start the first Subway sandwich shop. Since then it has grown by number of units to be the largest restaurant chain in the world, consisting of some 40,000 franchised units.
A Subway spokesperson said: "We can confirm that Subway restaurants' president and co-founder Fred DeLuca has been diagnosed with Leukemia and is currently being treated. Fred is doing well and focused on his health right now. The senior management team for the brand continues to manage the day to day operations of the company and no significant changes are being made at this time."


Our thoughts and prayers go out to our friend Fred and his family.  I have full confidence that this industry leader will lead his way back to good health soon.

Grocerant Guru

Food Retailing Never Take’s a Step Backward

Meal components are drive home viewing and home dining in 2013. Grocery stores, C-stores, and Club stores vie for Dinner customers threatening the restaurant sector’s market share. The 65 Inch HDTV Syndrome edifies the dinner at home trend. The choice between dining-out or cooking at home could be the size of the HDTV.  At the intersection of the consumer, technology and retail food sales we find the grocerant niche creating and expanding points of quality food distribution.

 It’s at that intersection that Foodservice Solutions® Grocerant Guru Steven Johnson identified one universal commonality driving consumers buying pattern changes.  Johnson calls it “The 65 Inch HDTV Syndrome” consumer like HDTV’s have invested heavily in them they are key to the evolving food space.

The grocerant niche is the result of the blurring line between restaurants, grocery stores, convenience stores, and drug stores all selling fresh prepared, portable, convenient meal solutions.  Targeted at the time-starved consumer with Ready-2-Eat or Heat-N-Eat fresh prepared food components that are perceived “better for you”, and portioned for one or two. Consumers like the Convenient Meal Participation, Differentiation, Individualization / Family Customization that these retailers offer.

Restaurateurs need to be particularly mindful of developments within the grocerant niche for they are driving the change within the price, value, service equilibrium in retail foodservice. It is at the intersection of the consumer, technology and The 5 P’s of Food Marketing: Product, Packaging, Placement, Portability, and Price that retail food sales competition is expanding. Driving ever greater Mix and Match bundled meal options and new points of distribution for consumers.  Consumers love the on-the-go options in fact Zaget’s 2013 NYC Restaurant Survey found that in New York at-home meals surpassed dining out for the first time in 30 years.

Legacy Home Meal Replacement (HMR) or Retail Meal Solutions (RMS) focus quickly faded away in the Restaurant side of business. However in the Grocery, C-store and Drug Store sector it continued to be studied, tested, and implemented. Today HMR and RMS have been replaced by the grocerant niche. It is the strategic path of choice for non-traditional food retailers, targeted at restaurant customers, profitable and expanding at an ever increasing pace.

Food Quality Never Takes a Step Back. The grocerant niche is driving new competitive points for food distribution which are a step above consumer expectation in most cases.  Food quality never takes a step back, these evolving new points of fresh food will continue to improve over time increasing industry competitiveness. Dunkin Donuts, McDonalds, and Starbucks, here comes the C-store sector.   When you look at the menu items offered by these legacy conveniences store operators it is clear to see that the grocerant niche is a platform that is creating customer focused equilibrium.   In other words C-stores are not discouraged or intimated by competition from any sector and customers are responding positively.  

Food Retailing Never Take’s a Step Backward.  Consumers are dynamic not static always looking to save both time and money.  The grocerant niche is propelling new quality points of fresh food distribution and competitors that are well financed.

Interested in learning how the 5P’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

Are Restaurant Marketers the Rip Van Winkles of Food Marketing?

Restaurant brand marketers are once again scrambling for customers counts and sales.  June’s restaurant sales numbers were flat once again. All the while grocery store deli sector and convenience stores continue to garner both top line fresh prepared ready-2-eat and heat-N-eat food sales and profits. There is a battle for share of stomach underway and many restaurant marketers seeming slept through the undercurrents of change in denial, or continued leveraging the outdated metric of brand protectionism.

Understanding differentiating drivers of today is key if a food retailer wants to grow or maintain share of stomach particularly within the ready-2-eat and heat-N-eat fresh food grocerant niche marketplace.  Consumer marketing migration is underway.  New avenues of fresh food distribution are emerging and garnering acceptance from consumers. Is your brand growing both the top and bottom line?

Background with Facts

The United States Census reported that 50% of adults over the age of 18 are single. No one can be surprised by the evolution of and rapid developments in the retail food space.  Nielsen reports that in 2013 there are more convenience stores in the United States than the number of drugstores, supermarkets and dollar stores combined.

Well-Funded Competitors within Ready-2-Eat Space.

Wawa a Northeastern U.S. based C-store company has committed 575+ Million dollars too entering the Florida market looking for fresh ready-2-eat food sales success. Wawa has positioned themselves as Fast Casual To-Go. Yes, a C-store finding success in the restaurant industry Fast Casual Space.

Grocerant niche ready-2-eat and heat-N-eat fresh prepared food is blurring the line between Convenience stores, Restaurants, Chain Drug stores, and Supermarkets. Grocerant food targets the time-starved consumers, not with ingredients to make from scratch rather with ready-2-eat or heat-N-eat food components that can be bundled into a personalized customized family meal. What is it some restaurant chains don’t understand?

Where are your customers going to get dinner?

81% of American consumers are unsure about what’s for dinner at 4 PM, found Foodservice Solutions® in 2011 Grocerant study. Consumers are looking for high quality ready-2-eat foods and ready-2-heat meals.  A 2013 RetailNet Group webinar stated that time starved consumers want to purchase fresh prepared meal components that they can bundle into a customized family meal that will please everyone without spending time cooking. Mix and Match meal component bundling is a hallmark of the Grocerant niche. Restaurant consumers are time starved? How has your company addressed time starved consumers?  Are you still doing what you did 10 years ago?  Are you or is your company Rip Van Winkle?

Differentiating Drivers: Consumers Want Fresh Ready-2-Eat Food

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.

US consumers estimate that restaurant rewards program would increase their visit rate to a particular restaurant by average of 35%, according to new study; 65% would recommend restaurant more to others if that restaurant offered rewards program in a study by LoyaltyPlus January 2013

Taco Bell CEO Greg Creed June 2013, “the term “marketing” is dying out and, in its place brands are becoming “publishers” and telling their own stories” Grocerant niche fresh food is the story-line consumers are attracted too.

US millennials seem to be spending more money than other generations when it comes to dining out, industry officials noted as reported by Ginia Bellafonte of the New York Times as a percent of income January 2013.

Food Value Equilibrium in Flux

The food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar.  Outside eyes can bring new light and assist in your successful growth by creating a platform of insights for consumer convenient meal participation, differentiation and individualization. Don’t wake up one day and find that you or your company slept; while consumers were on the move.

Interested in learning how the 5P’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