Friday, October 7, 2016

QuikTrip Drive-Thru Convenience Does Drive Sales

Success does leave clues and Grocerant nicheReady-2-Eat and Heat-N-Eat fresh food have fueled new life into QuikTrip according to Foodservice Solutions® Grocerant Guru® Steven Johnson. Given consumers rapid adoption of the fresh food options at QuikTrip the next big thing is expanding drive-thru service at more locations.
As first reported by our own Grocerant Guru® back in 2015 QuikTrip is currently evaluating the launch of its first convenience store with a drive-thru. The chain decided to test a drive-thru at the west Tulsa store after the lease held by a Wendy's ran out.  The drive-thru window was recently added to the QT Kitchens area of the c-store.
Kelly Cooper  speaking for QuikTrip stated "This is a test location to evaluate operations and determine customer acceptance, ….The response has been very good."  Fresh food, fast food, and customer demand have created a platform for the drive-thru test which is part of the chain's efforts to focus on foodservice, according to QuikTrip CEO Chet Cadieux has said that gasoline sales will likely decline in coming years.
With 700 locations QT Kitchens operates from 6 a.m. to 10 p.m. at most locations and features freshly prepared menu items such as sandwiches, pizza and salads. Ready-2-Eat and Heat-N-Eat fresh prepared food drive top line sales and bottom line profits.  Are you prepared to expand your success?

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

Thursday, October 6, 2016

Food Trend Undercurrents that Threaten Restaurant Growth


Local, sustainable new To-Go, Take-Out, and Take-Away fresh food options threaten restaurant growth. Companies the ilk of Buc-ee’s, Green Zebra Grocery, and Everytable are driving change.   These new fresh food options are coming from unexpected non-traditional retailers. Many of these non-traditional food retailers are fast becoming the new normal in food retail.  Do you know how The Home Meal Replacement fad of the 1980’s evolved into the Grocerant Niche and is today is now garnering restaurant customers and market share?
Harkin back in the day during the late Home Meal Replacement frenzy grocery stores, C-stores and restaurants all studied with excitement the successful developments of Phil Romano's Eatzi's. Eatzi's is Where Phil turned the page from restaurateur too foodservice retailer, and food merchant. Phil's experiment was a smashing success.
Eatzi’s was then and remains a concept that is consumer interactive, participatory with visceral authenticity recording sales of 17 Million a year at the original store. Today Eataly is Eatzi’s on steroids doing close to 60 Million a year in sales.
The Home Meal Replacement focus quickly faded away as grocery stores tried to make fresh prepared food a CPG product and in many cases they continue trying to do that today. Today the grocerant niche is the strategic path of choice for non-traditional fresh prepared food retailers, targeted at restaurant customers, profitable, and expanding at an ever increasing pace.
Fresh Food can be Omni-Channel
One example is Wawa, it was once considered a convenience store now the Wawa positions it's brand as Fresh First, Built-To Order and Ready-To-Go with focus of serving Fast Casual Food - To Go. At Wawa customers are now finding; What's for Breakfast, What's for Lunch, and now What's for Dinner.
Sheetz once a convenience store now calls themselves a restaurant that sells gas. Sheetz Made To Order food is a hit with customers. Sheetz is successful contemporizing legacy C-store products with differentiation, customization and personalizing.
McDonald’s learned from companies like Wawa and Sheetz that consumer like the variety, 24 hour menu serving all day parts - all day long - with a wide range of consumer meal and snacking needs. Breakfast 24 / 7 at McDonalds is proof positive success does leave clues.  That’s right Sheetz is a Restaurant that just happens to sell Gas.
Rutter's is another convenience store in transition. Rutter's understands the unique balance between palate, price, pleasure, and the consumer's drive for qualitative distinctive differentiated new messaging and Rutter's is meeting that need set.
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. Rutter's is an example of brand identity extending beyond consumer expectations within the traditional conveniences store sector. Too the consumer Rutter's is a direct valued competitor within the QSR space.
Today's Grocerant  

The grocerant niche is a result of the blurring of the 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 "better for you", portable and portioned for one or two. All of these operators want a larger share of the retail food market. They want to take share from the restaurants.
Whole Foods is no longer Whole Paycheck but Whole Foods 365 Fresh Food Fast and consumers find that is "better for you". They are driving customer frequency while building loyalty with Fresh prepared Ready-2-Eat and Heat-N-Eat better for you food. Whole Foods focus is on convenient meal participation, better for you differentiation, and individualization.
Safeway's has integrated Mix and Match Meal Bundling marketing into daily and weekly iphone app's and legacy print flyers. With a focus on Fresh Prepared Food, Safeway is leveraging The 5 P's of Food Marketing: Product, Packaging, Placement, Portability and Price establishing contemporized consumer relevance. In what was once restaurant food space alone grocery stores, C-stores and Drug stores are now garnering consumer attention.
Duane Reade Fresh Food Is a Disruptive Force in the Retail Food Sector.
This video of Walgreens in San Francisco entering the fresh food space is evidence that no food retailer should dismiss as not my competitor. Walgreens with over 80 Billion in sales has the capital and resources to repeatedly try and try again until they get it right. Walgreens might just be The Next Biggest Competitor in the retail food space.
 Duane Reade is part of Walgreens that has 8,177+ retail outlets. Who is selling what in your back yard? With Walgreens entering the fresh food area again with meats, wraps, soups "and other on-the-go meal options, as well as convenient alternatives for tonight's family meal, it is clear that the future of fresh food retail leadership may be up in the air.
Foodservice Steps Forward
Food Retailing never takes a step backward. Consumers are dynamic not static always looking to save both time and money. The new normal is the grocerant niche propelling new quality points of fresh food distribution and competitors that are well financed. Remember, when it is 4pm, do you know what your customers want to make for dinner ?

Steven Johnson is the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more Foodservice Solutions® visit The Grocerant on LinkedIn or @Grocerant on Twitter

Wednesday, October 5, 2016

Ready-2-Drink and Ready-2-Eat Branded Beverages Booming


Foodservice Solutions® Grocerant Guru® Steven Johnson stated “Grocerant niche Ready-2-Eat and Heat-N-Eat branded food and beverages products continue to expand into non-traditional locations.  The new locations edify legacy food brands with contemporary relevance while reaching a new set of customers.”
Last week Dunkin' Donuts, announced that it will launch a line of Dunkin' Donuts branded ready-to-drink coffee beverages in the U.S. in early 2017. The Coca-Cola Company will manufacture, distribute and sell the hand held beverages in multiple retail channels.
Dunkin' Donuts' would be happy if the new hand held shelf stable coffee reached sales of $100 Million the first year.  However our Grocerant Guru® belives that Dunkin has a real shot at well above $100 Million based on just what Starbucks Frappuccino was able to do.  This is however Dunkins first entry into the Ready-2-Drink coffee category, which has enjoyed very strong growth over the past five years and represents $2.3 billion dollars in annual sales according to Nielsen. The agreement supports Dunkin' Donuts' goal of strengthening its position as a coffee authority and further extends the Dunkin' Donuts brand into new distribution channels.
Dunkin' Brands Chairman and CEO Nigel Travis  stated "We are delighted to be working with The Coca-Cola Company, a world-class partner that will provide us with world-class consumer access, by bringing ready-to-drink Dunkin' Donuts coffee to the refrigerator cases of grocery, convenience stores and mass merchandisers, as well as inside Dunkin' Donuts restaurants, across the United States,"
Travis continued: "This new product introduction will increase consumption of Dunkin' Donuts coffee and increase our brand relevance with existing and new consumers, including many younger customers, which we believe will in turn, drive incremental visits to our restaurants."
Success does leave clues one clue that Foodservice Solutions® team is sure of is in this case one quality brand working with another quality brand will drive top line sales and bottom line profits for each firm with surpassing the $ 100 Million dollar mark the first year.

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. Visit: www.FoodserviceSolutions.us for more information


Tuesday, October 4, 2016

Dairy Queen’s Day-Part Development Success

Dinner Dazzles at Dairy Queen during October.  It’s been driving sales for lunch the past three years and there is little doubt that won’t do the same thing for dinner.  Yes, were taking the about Dairy Queen’s (DQ) famous $5 Buck Lunch value meal.  The $5 Buck Lunch deal is now an all-day offer for a limited time through October 31.
Barry Westrum, executive vice president of marketing for American Dairy Queen Corporation (ADQ) stated:” “Our fans demanded it and we listened. This is a game-changer for our fans and anyone who wants the best lunch deal all day long,”… We’re giving fans the freedom to choose to eat our $5 Buck Lunch at any time: for lunch, dinner or as an afternoon or late night snack. It’s value all day every day.”
Expanding too the dinner-day-part places DQ in direct completion with many fast casual restaurant chains while elevating Price as a key industry differentiator within the foodservice sector once again.  Industry experts and consumers consider the DQ $5 Buck Lunch one of best deals as the offer comes with an entrée, crispy regular fries, a 21-ounce beverage and a world famous DQ sundae.
During October the $5 Buck Lunch All-Day offering, consumers have a choice “of entrée including a deluxe cheeseburger made with a 100 percent beef patty topped with melted American cheese crisp lettuce, thick-cut tomato, sliced onions, ketchup, mayo and pickles or the three-piece chicken strip meal with all-white meat chicken strips. Fans also can upgrade from the $5 Buck Lunch sundae with a small Blizzard Treat for $1.”
This mix and match meal deal complete with a branded desert will extend and expand the dinner day-part for DQ.  Hand held hood for immediate consumption drives success within the grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food.


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

Monday, October 3, 2016

Grocerant Portable Fresh Food Hot Drives Both Sales & Profits


At the intersection of young consumers on the run and meals are 44% of Millennials that say they eat fresh prepared hot ‘snacks’ as a meal replacement. That as regular readers of this blog know is just one of the reasons that sit down restaurants are losing ground to fast food outlets as consumer prioritize convenience and affordability according to  Foodservice Solutions® Grocerant Guru®.

Nearly nine out of 10 convenience store foodservice customers regularly purchase hot foods, and 69% do so at least once a month. What's more, 44% of them indicate they're buying hot food at c-stores more often now than a year ago according to Technomic. .
With eight in 10 C-store operators report they’re investing in their foodservice programs. It’s important to understand some of the fundamentals of grocerant niche fresh hot food sales. Here are some offered by McCain foodservice:
1.       Make sure the products you’re offering have an adequate hold time—three to four hours is optimal—so foods don’t go stale or lose their taste or composition.
2.       Offer combo meals, which shows you’re a competitor to fast-food restaurants.
3.       Draw attention to your hot foodservice program and any specials (think combo meals) through window and pump signage. Also use signage inside at the point-of-sale and throughout the store, “so customers know you offer foodservice wherever their destination in the store,” Broyles said. “You’re upselling and enticing them at the same time.”
4.       C-store operators need to stay on top of the latest trends to ensure they are meeting consumers’ expectations. Millennials and Gen Z are the target consumers that are more likely to purchase prepared/hot foods from c-stores. Food offers must appeal to this generation.
5.       Dayparts are blurring due to demanding schedules, varying work shifts and time constraints. Consumers need all things available all the time (e.g., all-day breakfast offerings).
6.       Offer customization to compete with quick-service restaurants, because this is an expectation of millennials these days—to have it their way.

Coffee can be the foundation of your foodservice program fully 76% of consumers, purchase coffee from a c-store at least once a month.  The fact is if you have them for coffee you can have them for breakfast.  Just make sure you offer fresh, fast, portable options.

Foodservice Solutions® team is here to help you drive top line sales and bottom line profits.  Are you Looking A Customer Ahead?  Visit www.FoodserviceSolutions.us   or Contact Steve@FoodserviceSolutions.us for more information.  Remember Success does leave clue and we just may have the right clue for you.

Sunday, October 2, 2016

McDonald’s Delivery is Strong


Success does leave clues and one of the strengths of McDonald’s is its ability to take time testing systems, food, and service to understand the benefits, complications, and outcomes that will drive continue unit level success.  Foodservice Solutions® team calls this system Build, Measure, Learn, and Repeat. 

When it comes to food delivery McDonald’s has taken its time in rolling out food delivery in the United States but that does not mean that they have done lots of food delivery.  In fact it has been widely reported that last year alone global food sales of food delivered by McDonald’s restaurants reached $ 1 Billion. 

Foodservice Solutions® Grocerant Guru® Steven Johnson thinks sooner than later stating “McDonalds has been testing delivery for several years and seems to have figured it out with the rollout of delivery in Australia. There is little doubt that in time they will roll-out delivery in the US as well.”

Southeast Asia has been the primary testing grounds for McDonald’s delivery including the following countries:
  1. Hong Kong
  2. Signapore
  3. Philippines
  4. Australia
Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food niche aka the Grocerant Niche is a perfect fit for McDonalds.  Leaders lead and McDonalds understands that the customer is dynamic not static and on the move.  Foodservice Solutions® Grocerant Guru™ Steven Johnson stated “McDonalds stop practicing Brand Protectionism long ago and that is one major key reason they have exceed globally and will continue.  McDonalds understands that you cannot do what you have always done and stay relevant.”

McDelivery works like most food delivery service.  There is a minimum order amount depending on country but they seem to range from $15 to $25 dollars, the delivery radius is 1.5 miles of the McDonald’s , most test area allow for both weekday, and weekend delivery and are open until 11PM at night.

Are you 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.usor visit:  www.FoodserviceSolutions.us for more information

Saturday, October 1, 2016

Grocerant Niche Mix & Match Bundling is Family Meal Customization


Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive top line sales and bottom line profits for Restaurants, C-stores, Grocery stores, Drug Stores. There is one universal commonality that contributes to consumer adoption across all foodservice sectors that is Mix & Match meal component bundling according to Foodservice Solutions® Grocerant Guru® Steven Johnson.
Both Millennial and Gen Z generations share a desire for customizable food that’s prepared when they order according to a recent study from CSP “Millennials love customizing, and customize everything from apparel to music to news feeds.” Similarly,“Gen Z is do-it-yourself oriented. … They’re interested in opportunities to customize their food,”
Retailers need to evolve if they want garner both GenZ and Millennial consumers.  Foodservice Solutions® Grocerant Guru® stated “the ability to elevate customization within your fresh-prepared foodservice program and use equipment that can keep up with generations who demand instant gratification and portability. Here are some suggestions from CSP:
1. Toppings: Build your foodservice program around foods that are inherently customizable. A customer craving pizza, sandwiches, paninis, quesadillas or flatbreads will expect to be in control of their own toppings before they walk in the door. According to a recent Flavor Trend Report, more than 50% of millennials prefer mashups and combinations of different flavors, so expect them to switch up their customization with every visit. Meet their expectations by offering an array of freshly made produce and protein toppings, as well as on-trend sauces such as Sriracha, chimichurri or chipotle mayo.

2. Bowls: Younger generations love bowls because they are customizable and showcase a protein without the carbs of a burrito. “As diners continue to look for personalized plates, the build-your-own-bowl trend offers an attractive alternative,” according to Packaged Facts. Bowls featuring made-to-order proteins and freshly roasted vegetables feed consumers’ desire for food that’s fresh, fast and tailored to their needs. 

3. Combos: Creating the opportunity for customers to mix and match allows them to customize their healthy-to-indulgent ratio. Gen Z “[likes] indulgent foods such as frozen carbonated beverages, doughnuts and pizza, but they also want healthy options such as cereal, fruit and yogurt,” according to CSP. Made-to-order dishes such as nachos give customers the option to control the ratio of healthy and indulgent. They can also opt in for ingredients such as habanero or ghost peppers, both gaining popularity as “spicy” grew on convenience-store menus by 14% last year,

4. Speed: Young generations know what they want and they want it now; speed is an attractive quality to this generation, which seeks instant gratification. But how is it possible to deliver on speed when 57% of Gen Zers, according to CSP, are more inclined to buy from a convenience store if their food is high quality? The key is to invest in cooking equipment, such as a ventless, hoodless Ovention Matchbox Oven, that promises both speed and fresh-made quality. 


Are you trapped doing what you have always done and doing it the same way?  Interested in learning how Foodservice Solutions® FIVE P’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.