Is Food Delivery a Retail Channel of its Own

Amazon, Grubhub, Postmates, Instarcart, the list goes on and on for many of our readers you remember the start-up’s that were just a bit too early and a bit underfunded and internet speeds were simply to slow companies the ilk of CyberSlice.com, Webvan.com, CyberMeals.com, Food.com, and EZ2Get.com and you remember that Foodservice Solutions® Grocerant Guru® Steven Johnson was there at the beginning of most of those building the marketing foundation that is now a retail channel of its own Fresh Food Delivery.

O’ how times have changed Delivery is 'delivering' sizable gains in both visits and sales over the last five years for restaurant operators, according to a new NPD Group study on delivery. The research company said that both a 20 percent increase in delivery sales and 10 percent gain in delivery foodservice visits were buttressed largely by the growth of digital ordering, which now represent over half of all delivery visits. In short smart mobile phone ordering changed everything according to Johnson.

NPD Senior VP of Industry Relations Warren Solochek  stated "Delivery has become a need to have and no longer a nice to have in the restaurant industry,"… "Restaurants need delivery in today's environment in order to gain and maintain share.  It has become a consumer expectation." 

This is important the study found “Consumers are so accustomed to ordering delivery that they are ordering it at breakfast and lunch in addition to dinner, which historically has been the most popular daypart to order it.”

Yes, the “Growth of delivery at dinner has remained flat over the last five year and has grown at breakfast and lunch. Although digital ordering is a major contributor to the growth of foodservice delivery, using the phone to order still represents 49 percent of delivery visits.” 

Third party delivery services, like UberEats, Grubhub and DoorDash, account for much of the digital delivery growth. However, the share of digital delivery by third party services is more than double among full service restaurants than quick service outlets. NPD forecast that delivery will grow over the next five years and the growth with source to non-traditional delivery outlets and dayparts,"

Do you now how to make delivery your New Electricity to drive sales? Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us

Subway’s Three Steps to Renew Customer Relevance

Regular readers of this blog know that there are three things Subway must do to garner top-of-mind meal relevance with consumers.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® those three things are edify Subway’s platform with branded convenient meal participation, freshness differentiation, while edifying the platform with individualization.

That said consumers migration from Subway has been due to lack of freshness innovation even more than consumer consternation with price point abandonment.  Once the industry leader with the $ 5 Footlong consumers have move on to Del Taco, Taco Bell, McDonald's, and Wendy’s we all know there is no need to keep going.  Price is an issue for sure but the key driver is a lack of freshness innovation according to Foodservice Solutions® Grocerant ScoreCards. There is a battle for Share of Stomach and Subway is on the sidelines today.

All Subway franchisee including members of NAASF must understand that Subway’s platform for success has deep roots within the franchise organization and its franchise must insist that the core of the brand be renewed with new electricity focused at edifying the brand with menu freshness including new menu items that highlight freshness and flavor.  

Chain restaurants that look more like yesterday than tomorrow are simply stifling top line growth and bottom line profits. Subway we ask just what is your new electricity?  What new meal components, meals, menu items do you have in the pipe line with a branded clear point of differentiation?  

Branded innovation is the platform for the new electricity, according to Johnson; partnerships specifically strategic partnerships are driving retail success today.  Johnson stated that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, grocerant consultants, urban farming (produce, seafood, etc.), family meals, meal components, meal kits, autonomous delivery, cashier-less retail, cash-less payments, digital hand held marketing.

Retailers the ilk of Subway to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar but with a twist.  That will require brands the ilk of Subway to embrace new fresh food partnerships more now than ever before according to Johnson.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us or reach to Steve@FoodserviceSolutions.us

Sneak a Peak at Panera’s Undercurrents of Customer Attraction

Success does leave clues and regular readers of this blog know that integrating the Foodservice Solutions® FIVE P’s of food marketing drives top line sales, brand awareness, and bottom line profits according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The line between retail channels has nearly vanished as it gets thinner and thinner brands must edify their relationships with consumers by extending an invitation in new non-traditional channels of distribution. Panera Bread said that its retail sales for Panera at Home’s refrigerated soups exceeded $100 million in 2017. Its retail sales grew by nearly 27 percent in 2017, according to company press releases.

Mike Bufano, Panera at Home’s senior vice president and general manager stated “Consumers are gravitating towards the perimeter of grocery stores, looking for food with our cafe-fresh taste, made with real ingredients,”…“Across categories, Panera at Home delivers on this consumer need for food that is not only 100% clean, but convenient and craveable too, from a brand they love and trust. It is a true extension of the Panera Bread brand beyond the bakery-cafe.”

It’s not a surprise to anyone that Panera’s strong growth in refrigerated soups can be attributed to the company’s commitment to 100 percent clean food, which is free from artificial preservatives, sweeteners, flavors and colors, according to Bufano.

Did you know that the Panera at Home portfolio, consists of approximately 100 products available at grocery retailers, supercenters and club stores nationwide. Panera at Home offers more than 15 varieties of soup, including broccoli cheddar, kale & quinoa and turkey sausage. The broccoli cheddar soup is Panera’s best-seller across its restaurants and grocery retailers, the company said.

In addition to soups, Panera at Home also includes mac & cheese, salad dressings, sliced sandwich bread and ground coffee. So we ask you what are you selling and where?  Are you ready to sell fresh prepared food in a new non-traditional, non-grocery, non-conveniences store outlet?

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us 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.

It’s True Gen Z and Millennials Opt Social Aspects of Dining Out over Technology

Many consumers today look at their phone first when considering What’s for Dinner according to Tacoma, WA based Foodservice Solutions® Grocerant Guru® Steven Johnson.  That said although millennials and Gen Z love technology, younger consumers are not using it to replace human interaction, but instead use it to enhance their social experiences when dining out, according to a new study from Culinary Visions Panel's Mindful Dining Initiative.

This new study looked at 1,500 U.S. consumers ages 18 and up they were surveyed about their attitudes toward ethics-based dining and how it impacts their food choices and purchasing decisions outside the home.

Sharon Olson, executive director of Culinary Visions Panel stated "With more and more restaurants and foodservice establishments turning to technology to solve labor shortage issues, it is important to understand the role of technology in consumers' dining experiences. Our studies show younger adults, in particular, enjoy the social aspects of dining out," … "Today's younger consumers grew up with technology and their facility with it allows them to use technology to make their lives more convenient,"

The study revealed four main takeaways on consumer attitudes toward technology and human interaction:

PERSONAL TOUCH

Younger consumers like using technology to make the ordering process quick and error-free, but millennials and gen Z consumers are some of the most appreciative demographics when it comes to quality customer service and positive in-person interaction, as 64 percent of those surveyed between the ages of 18 and 34 said they would love to go to a restaurant where the server calls them by their name.

In contrast, 58 percent of those between the ages of 35-54 and 54 percent of those aged 55 and older said the same. The pervasiveness of technology has boosted the need for quality interaction, according to Culinary Visions Panel. As millennials and gen Z are some of the most engaged consumers of the digital world, a personal touch during away-from-home dining experiences goes a long way.

A WAY TO SOCIALIZE 

Consumers consider dining outside the home a great way to catch up with friends. Younger consumers enjoy sharing food and swapping bites and, in general, are more influenced by what their peers order than what their older counterparts order. The 2018 Mindful Dining Study found that half of consumer’s ages 18-34 said their ordering decision is influenced by what others are ordering. Only 37 percent of those between ages 35-54 and 25 percent of those aged 55 and up said the same thing. It may be a classic generational difference, but younger consumers are much more likely to use the group's preferences to shape their dining decisions.

SHARING TO SOCIALIZE

Millennial and Gen Z consumers see dining experiences as social experiences to be celebrated through sharing on social media. Nearly six in 10 (58 percent) of consumers ages 18-34 said they like to take pictures to share on social media when dining with a group, while 44 percent between the ages of 35-54 and 22 percent of those 55 and up said the same. Additionally, 39 percent of those between ages 18-34 said they think about whether a restaurant is a good place for photos when going out to eat, and 38 percent said they have eaten at a restaurant before with the express purpose of sharing a photo on social media. Breaking bread is a universal experience that all humans can relate to and sharing those experiences with friends on social media is a way of furthering them — not replacing them, Culinary Visions Panel said.

QUICK CONVENIENCE 

Younger consumers may be quicker to embrace technology in foodservice because as a generation, they value quickness and convenience. Nearly half (48 percent) of those ages 18-34 prefer to use kiosks or touchscreens to order because it is quicker compared to 32 percent of those ages 35-54 and just 12 percent of those ages 55 and up. Younger consumers' ease in opting for technology when they need quickness and convenience reflects how they use technology as a tool, rather than as a default, to respond to their different dining situations and needs.

With a range of 36 percent across all three demographics, interest in using technology may be the biggest differentiating factor across generations, according to the report. However, it is not because younger consumers aren't interested in human interaction. Technology enables and facilitates younger consumers' lives, but they do not want it to replace face-to-face customer service.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

FIVE P’s of Grocerant Niche Food Sales Success

Foodservice Solutions® Grocerant Guru®, Steven Johnson identified, quantified, and qualified five key drivers of fresh prepared food sales.  Foodservice Solutions® FIVE P’s turned into an integrated marketing program for many fresh food retailers including Chain Restaurants, Chain Convenience Stores, Chain Liquor Stores, and Service Dili’s around the world.  The FIVE P’s are: 

When grocerant Ready-2-Eat and Heat-N-Eat fresh and prepared food are thrown into consumer view of options a retailer is offering they become top of mind for consumers are return visits.  Integrating the FIVE P’s will help you increase customer frequency, build loyalty while simultaneously increasing unit margins driving top line sales and bottom line profits.

Simply look at the US retail foodservice growth and sales leaders of today. Trader Joe’s, Chipotle Mexican Grill, Five Guys Burgers & Fries, 7-Eleven are all growth leaders.  Trader Joe’s leads in sales per square foot at over $1,750 per Sq. Ft. Chipotle, Five Guys and 7-Eleven are all growing units and garnering share of stomach from everyone else.  All are members of the grocerant niche. 

One of the most interesting new developments is bundling of the meal components with a “better for you” focus.  It’s a mix and match game that is very empowering for the consumer.  Consumer’s select by meal occasion what “better for you” attribute they want.  It can be fresh hamburger, low salt, cooked to order, or green packaging.

Don’t discount the value of consumer choice or limit the world of “better for you”.  Mix and match of small portion, fresh products, green packaging all are contribution to making meal time a time of convenient meal participation, differentiation and individualization and consumers are responding.

Are you looking a customer ahead? Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on  www.FoodserviceSolutions.us  Contact: Steve@FoodserviceSolutions.us

Subway’s Problems: Price, Portability, Possibility

Foodservice Solutions® Grocerant Guru® Steven Johnson was the first to identify, quantify, and qualify the restaurant sector “65 Inch HDTV Syndrome” back in 2012. The undercurrents behind the 65 Inch HDTV Syndrome have not abated but rather they have become more pronounced according to Johnson.

Take Subway for example since 2012 customer traffic has declined by 25%. The leading reason has been Subway’s franchisee’s desires to get away from the $5 foodlong according to Foodservice Solutions® Grocerant ScoreCards.

While Subway is seen by consumers as a ‘fresh / better-for-you’ brand when price was the impetus for customer adoption and migration it is natural to see customer trial and migration continue. According to Earnest Research, another consumer perceived ‘better-for-you’ brand Chick-fil-A had the largest growth in orders from former Subway customers from 2015 through 2017.

However once again not a surprise for the team working at Tacoma, WA based Foodservice Solutions® but the next three most likely destinations for Subway customers defections in 2017 were ‘third-party delivery services’ Grubhub, Postmates and DoorDash. Regular readers of this blog know that back in 2013 Technomic edified Foodservice Solutions® meal portability as a key driver of consumer choice.

The line between consumer empowerment and choice offered by ‘third-party delivery’ services have elevated the path to purchase in a very competitive retail foodservice landscape. Branded meal and menu possibilities offered by ‘third-party food aggregators’ enhance consumer choice and will continue innovating providing customized meal solutions for families of any size.

The question today becomes ‘where will you be selling dinner’? The second question is how can you sell both meals and meal components competitively on a non-branded platform? Success does leave clues and the team at www.FoodserviceSolutions.us  can help you do just that. Contact: Steve@FoodserviceSolutions.us 

Wahlburgers On your Grill are What’s for Dinner

Building a brand with consumer relevance requires giving the customers what they want according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The brothers Wahlberg are understand that consumers are dynamic not static so they are extending their brand Wahlburgers fast-casual restaurant brand into the grocery channel with a new line of beef products available in supermarkets.

Chef Paul Wahlberg is bringing Wahlburgers into consumers’ homes with a new line of beef products which is the new electricity driving sales at Wahlburgers. How do you plan to drive incremental top line sales and bottom line profits according to Johnson; partnerships specifically strategic partnerships will be driving retail success in 2018. Are you looking for a partnership to drive incremental sales?  

Johnson stated “in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as digital hand held marketing, local fresh food,  grocerant positioning, urban farming (produce, seafood, etc.), autonomous delivery, better-for-you, cashier-less retail, cash-less payments, delivery, and voice ordering.

Wahlburgers developed in strategic partnership with ARKK Food Co., will include ground beef, pre-formed patties, pre-formed sliders and brick pack, all made with the same proprietary Wahlburgers Angus blend of brisket, short rib and chuck found in its restaurants across the country.

Executive Chef Paul Wahlberg stated “In all our restaurants and now in our new retail product, we offer a custom blend of angus brisket, chuck and short rib for great texture and flavor,”, who, along with his celebrity brothers Mark and Donnie Wahlberg, founded the restaurant chain in 2011. “We wanted to provide the best cuts of angus beef that’s always fresh, never frozen to ensure that every bite is tender, juicy and packed full of rich flavor.”

Looking for a big push the new retail beef products will be available at grocery store locations nationwide, with an initial launch over the next 30 days at Hy-Vee, Jewel-Osco, Acme, Safeway, Shaw’s and Winn-Dixie. Upon rollout, Wahlburgers beef will be available at 1,300 stores.

So just what is your New Electricity? Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us