Burger King is Hot, Spicy, as Sale’s Roll

Burger King has sales momentum and it all started with chicken fries. Restaurant Brands International the parent company to Burger King posted a comparable-store sales gain of 6.2 percent in the second quarter of 2015 and this week posted 6,7% growth.   

Success does leave clues and after seeing sales gains during the third quarter, Burger King said it has introduced a Buffalo version of its fan-favorite Chicken Fries. Foodservice Solutions® Grocerant Guru® insist “you have to dance with the one that brought you to the party”.  

That is exactly what Burger King plans to do.  As we noted; The original Chicken Fries—a past LTO that was brought back as a permanent offering in March—and its follow-up, Fiery Chicken Fries, have been key sales drivers for the chain in recent months, spurring comps growth of 6.7 percent in Q2 and 6.2 percent in Q3.

Now Burger King is getting hotter the newest iteration “eschews traditional Buffalo sauce, opting instead for a Buffalo-flavored breading, the chain said. A nine-piece order of the limited-time item sells for $2.89.” That is both turning up the heat in flavor and price competitiveness a formula that will work once again. 

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit, Linkedin.com/in/grocerant or twitter.com/grocerant Contact Steve@FoodserviceSolutions.us

UK’s My Local A Convenience Store Positioned to Win

Success does leave clues and Mike Green CEO of the newly-formed retailer My Local said the hell with running a company like it was 1990.  His plans include driving top line sales and bottom line profits locally empowering store managers, district managers with direct input on customizing each store with its local customer base.

My Local is the company formed the acquisition of 140 convenience stores previously operating under the Morrisons owned 'M Local.” So, how does Green think he can make money where Morrisons failed?  Simple fire the category managers and office staff that push products not customer outcomes.

Here is what he told Retail Week in a recent interview “The reality is, these stores turnover more than double the average convenience store turnover in the UK, so it’s hard to say they are underperforming stores. The rent is between 3.5%-4% of sales in all of these stores, so relative to sales, it’s not in a bad place. The stores were performing, but the thing that was causing this business a problem and creating the loss in the business was actually above store and distribution. Above store there were 150 people very much pushing things into stores”

Foodservice Solutions® Grocerant Guru® has described category managers as the “Achilles Heel” of many legacy grocery retailers while speaking at the SJU Fresh Food Summit 2015.  Green went on to say “rather than working with managers to pull through the product that was right for their locations."  So, now rather than pushing product through they are focusing on fresh and local.

Garnering success requires a plan and Mu Local has one.  Greene detailed that  success was going to be achieved through what he calls the "five Fs": a fresh offer, full shelves, fair prices, friendly staff and fast service.”  Foodservice Solutions® Grocerant Guru® concurs with Green calling the “Five F the right focus at the right time.”  

Quality differentiation can be gained by empowering store managers, district managers according to Green.  In fact one key element of the success plan included requiring My Local stores to select their own local charity from within a one-mile radius as 80% of their shoppers travel less than a mile to store. 

Greene believes in localization and that localization can really show a difference to the customers that Morrisons stores was unable to accomplish.  Yes, once again category managers are the “Achilles Heel” of the traditional grocery business our team cannot stress that enough. In the U.S. the legacy grocery retailers have lost 50% of their business since 1998 according to Willard Bishop Consulting. Do you have and food merchants on your team, grocerant experts, or outside eyes? Or are you doing things the way you always have?  

Success does leave clues.  Are you trapped doing what you have always done and doing the same way.  Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us

 

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  With extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking he educate and elevate everyone while providing success clues for all.  www.FoodserviceSolutions.us or www.GrocerantGuru.com

Starbucks More Food, More Lunch, More Dinner, More Cheer

Success does leave clues and Starbucks is a brand nearing 50 years in the making and they continue to post industry leading top line sales and bottom line profits.  Howard Schultz understands that the consumer is dynamic and brands must be as well.  Foodservice Solutions® Grocerant Guru® calls Schultz” the foodservice industry best merchant.” 

Once again Starbucks posted very solid 9 percent same-store sales gain for the third quarter. Starbucks outline what initiatives for sustaining growth would look like going forward. Here are three:

More Take-Out / To-Go Lunch sales during the A.M.

Domestic stores are assembling what management calls the Wall of Chill, an area showcasing refrigerated lunch and snack items that customers can pre-order and pay for on their phones and then grab in the morning when they pick up their coffee. The notion is to provide foods that are just as easy to grab on the run as beverages ordered through the chain’s Mobile Order & Pay service. 

More Dinner / Evening Food and Alcohol sales

About 100 units now offer a menu of shareable plates in the evening, along with beer and wine selections, and “we're going to open several hundred more during the year,” said Cliff Burrows, president of domestic operations for Starbucks and its sister brand, Teavana.

More Music for The Third Place 

A previously announced collaboration with Spotify, the online music service, will begin in a few weeks, revealed Kevin Johnson, president of the whole company. The partnership will enable in-store customers to vote on what songs should play over the sound system. Johnson said the upshot would be a “rich digital musical experience.” Users of Spotify will also be rewarded for purchases with points redeemable for foods and beverages from Starbucks via the latter’s Stars loyalty program.

More Merchant Means More Holiday Cheer

Johnson revealed during the chain’s quarterly analyst call that Starbucks intends to make the year-end holidays particularly merry through a series of enhancements. He explained that Starbucks’ online gift shop will be expanded to provide more gift ideas, with promotional tie-ins at the store level. Unit visitors will also find new holiday drinks available this year, including a riff on the Flat White.  Finally, management spoke cryptically about efforts to promote holiday gift cards, which were loaded with $1.6 billion in Starbucks credits in the holiday season of 2014.

Don’t get trapped doing what you have always done and doing it the same way?  Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information

Sheetz, Wawa, and Rutter’s Farm Stores Lead Fast-Food Frequency

Foodservice Solutions® industry leadership in the Grocerant Niche (retail outlets selling Ready-2-Eat and Heat-N-Eat fresh prepared food.) has since 1991 documented the success and leadership of C-store sector leaders Sheetz, Wawa, and Rutter’s. 

In a new report from The NPD Group QSR Plus Retail Market Monitor concluded that “As convenience and grocery stores improve the quality of their foodservice offerings, an increasing number of consumers are choosing to visit these retail outlets for their prepared meals and snacks in addition to quick-service restaurants (QSRs)”. 

The report found that “The number of fast-food purchases made at retail outlets (Grocery/C-store) per customer from the March 2015 through June 2015 time period is more than six visits higher than those made to QSRs in an average four-week period.

Foodservice Solutions® Share of Stomach (see below) is an example of how a consumer eats, shops, or prepares a meal.  They shop and eat everywhere utilizing mix and match meal components to compile a family meal or dinner for one. 

The NPD report confirmed that “The majority of consumers use multiple channels, retail outlets and QSRs when purchasing prepared meals and snacks. The report went on to say “Less than 25 percent of QSR customers only go to traditional QSR outlets in a four-week period, and most QSR customers use all available retail channels to meet their quick-service meal requirements.”

Like a page out of our own book Bonnie Riggs, NPD's restaurant industry analyst stated "The lines between retail foodservice and QSRs are blurring for consumers, and these channels are competing for visits from consumers looking for a quick meal or snack."…"Consumers use QSRs, convenience and grocery stores interchangeably for fast food, particularly when they find the same quality and variety," 

Today, C-stores hold the highest shares of coffee, snacks, breakfast foods, soft drinks and Mexican foods. Riggs went on to say “QSRs that offer morning meals are the most likely to feel the impact of c-stores on their customer base”.  Foodservice Solutions® understands the grocerant niche customer and can help your restaurant team drive top line sales and bottom line profits. 

Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment.  Since 1991 www.FoodserviceSolutions.us  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   Call: 253-759-7869 or Email: Steve@FoodserviceSolutions.us