College Students Migrating too Convenience Store Food

Consumer migration from traditional meal venues too non-traditional fresh food venues has been fast.  Bill Bishop Chief Architect, Brick Meets Click stated on a recent tour grocerant tour would our own Grocerant Guru that “the pace of change within the food service sector is accelerating and will continue to do so”. 

So, when Sharon Olson, executive director of Y-Pulse stated that “Seventy-six percent of the college students we surveyed reported that they were purchasing food at convenience stores on campus as opposed to only 22% in the previous study (10 years ago),”  no one at Foodservice Solutions® was surprised. 

In a new study by Y-Pulse study found “that 75% of foodservice professionals now use social and digital media tools to engage their c-store and retail customers, compared to 32% in 2010.” With new messaging comes new customers.  

Y-Pulse found “that the majority of on-campus convenience and retail stores are on Facebook, Twitter or a website to digitally connect with their consumers. The largest digital platform increase occurred with 72% of foodservice professionals using a website to engage their c-store and retail consumers, whereas only 33% reported using one in 2010.”

The Y-Pulse Study found:

• Top platforms that college and university foodservice professionals are using to connect with c-store and retail purchasers include Facebook (85%), Twitter (82%), a website (72%) and Instagram (54%).
• Top platforms students choose to obtain information about on-campus food options include Facebook (90%), Twitter (86%), a website (80%) and Instagram (60%).
• Ninety-three percent of students reported purchasing food on campus in 2015, a 26% increase since 2010.
• Sixty-nine percent of foodservice operators surveyed, whose responsibilities included the management of on-campus c-store and retail locations, believe they have a clear understanding of what they hope to accomplish in using social media for their operation, while only 37% felt that way in 2010.

Marketing messaging matters.  What the team at Foodservice Solutions® got from this study was that Millennials are migrating just as fast as Baby Boomers are to grocerant niche mix and match bundled meal options and meal components.  Success does leave clues and consumers are evolving where and how they buy Ready-2-Eat and Heat-N-Eat fresh prepared food faster than ever before. 

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant scorecard, brand, or product placement assistance.  Since 1991 www.FoodserviceSolutions.us   of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us 253-759-7869 

Dollar Stores’ Fresh Focus Pantry Busting Grocer’s Again

Regular readers of Foodservice Solutions® Blog are familiar with the term cherry picking; well once again the Dollar store sector is expanding its focus on food, entering fresh food and once again garnering customers from legacy grocery stores.   

The next big thing in foodservice retail reported lately may just be as “analysts and experts are beginning to wonder if “big grocery” runs the risk of being the “big loser” in the equation.”  In a recent report in Forbes, “the top four chains saw total annual sales grow from $28 billion to an estimated $42 billion. That adds up to a compounded annual growth rate of 8.5 percent.” That makes for some hard times for legacy grocery stores according to our own Grocerant Guru®.

 

The Big problem is the number one growth item driving growth areas for dollar stores are grocery items

1.       Food

2.       Tobacco

3.       Health and beauty

4.       Household paper and cleaning products.

The report in Forbes went on to say that “The top four chains have been able to increased their combined annual grocery category sales by a little over $10 billion from 2010 through 2015, from $18.3 billion to around $28.6 billion.”  Even Donald Trump would say that’s HUGE!

Combine that news with news that Amazon Fresh is building a platform to garner Millennials, Baby Boomers and everyone else by selling meals, meal kits, and fresh food.  Pantry busting is expanding and legacy grocery retailers had better migrate to a grocerant niche platform themselves or simply become the next A&P.

While Dollar Stores, Amazon today are not segment killers we ask what about adding restaurants to the mix?  There are 24 restaurants today for every grocery store and they are simply put pantry busters as well.  Remember that low cost grocery upstart Aldi will have 2,000 units by the end of 2017 and low cost upstart Lidl has yet to open a unit and is planning to invest $ 4 Billion in the United States over the next five years. 

Dollar stores continue to add food increasingly that food is grocerant niche fresh Ready-2-Eat or Heat-N-Eat prepared food that is garnering new customers daily.  Foodservice Solutions® Grocerant Guru® says that void incremental adopting of the Grocerant Niche legacy grocery retailers will be a tough environment to work in.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® or for a Grocerant Scorecard visit http://www.linkedin.com/in/grocerant, www.GrocerantGuru.com  Email: Steve@FoodserviceSoltuions.us

Freebirds Getting Closer to Customers

Fresh food fast while getting closer to the consumers is the aim at Freebirds as they launch a new “food truck concept this spring to make ordering on the go, one step easier…. The mobile eatery will serve much of what the Freebirds’ brick-and-mortar restaurants offer: burritos, tacos, quesadillas, and burrito bowls.” Foodservice Solutions® Grocerant Guru® believes tat new non-traditional points of distribution play an integral roll in brand development today.  

Customers can order their favorite Freebirds dish from the truck’s digital menuboard; cash and cards will both be accepted. The truck has a state-of-the-art recreational kitchen ensures that customers will still enjoy the top-notch experience that Freebirds has offered for nearly 30 years.”  The truck is simply a faster way to get Freebirds food where consumers are according to our own Grocerant Guru®.

Freebirds COO Bobby Shaw stated “We are very excited to launch this new phase in Freebirds’ expansion and rebranding,… “It gives us the opportunity to bring Freebirds where it has never been before, and introduce the brand to an entirely new audience.”

Grocerant niche Ready2-Eat and Heat-N-Eat fresh prepared food is driving change within retail foodservice and Freebirds clearly understands the undercurrents of change developing within the retail foodservice space and taking all the right steps to get closer to consumers, while building brand value according to Steve Johnson Foodservice Solutions® Grocerant Guru®.   Freebirds is Looking a Customer Ahead.

Since 1991 www.FoodserviceSolutions.us   of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant or Contact our Grocerant Guru® at: Steve@FoodserviceSolutions.us

 

Heat-N-Eat Fresh Prepared To-Go Fuels Foodservice Sales Success

Foodservice Solutions® Grocerant Guru® has focused on time starved consumers since 1991 and one thing that continues to highlight the continued growth of grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food is consumers continued increase in time saving fresh prepared Heat-N-Eat meal options.  

In new research from Nielsen Perishables Group showed that the “deli is playing an over-sized role in best-in-class retailers — top fresh retailers make their delis dining destinations in which deli entrees have a key role to play.” 

Nielsen found that “during the latest 52 weeks ending Feb. 27, 2016, average deli dollar and volume sales (per store per week) increased 5.8% and 3.9%, respectively, driven by sales increases in deli prepared foods. Deli prepared foods increased average dollar sales 6.7% and increased average volume sales 2% during this time.”  Here are some interesting facts:

1.       Ninety-six percent of U.S. households already purchase deli prepared foods, but the number of households purchasing deli prepared entrees is closer to 70%, leaving plenty of room for growth.

2.       During the latest 52 weeks, deli prepared entrees was the third-highest selling variety within deli prepared foods behind deli prepared chicken and deli salads, posting average sales of $1,706 per store per week.

3.       The category also posted strong growth, up 7.4% in dollar sales and 5.3% in volume sales. The average retail price of deli entrees was $4.74, an increase of just 2% compared to the previous year.

4.       Top deli entrees beyond the “hot bar” included pasta entrees, followed by franks and dinner sausages, and beef entrees. Pasta entrees posted average dollar sales of $238 per store per week, an increase of 3.3% compared to the previous year.

5.       Franks and dinner sausage entrees (which includes products like corn dogs, smoked, Polish and Italian sausage) posted solid growth over the previous year, up 6.2% in average dollar sales to $152 per store per week, and up 3.4% in average volume sales.

6.       Beef entrees was the most significant driver of category growth during this period, up an impressive 33.1% in average dollar sales to $146 per store per week, and up 33.9% in average volume sales. Growth drivers within beef entrees included meatloaf, meatballs and even steak. Mexican entrees and Asian entrees also posted solid dollar growth during this time, up 6.9% and 8.2% respectively.

Consumer demand for mix and match meal component offerings with the ‘dinner protein’ entrée as front and center item points to incremental consumer adoption to the grocerant niche according to Foodservice Solutions® team.  Looking A Customer Ahead is key when consumer focused meal solutions for Breakfast, Lunch, and Dinner with portability are being offered.  Success does leave clues and grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food is a success clue for all food retailers. 

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard.  For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for.  Since 1991 www.FoodserviceSolutions.us   of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869