Restaurant Meals are Flying and Customers are Buying

Everyone has heard the old adage ‘selling like hot cakes’, flying out the window’ well Tony Fernandes, the CEO of AirAsia Group, recently stated that that the company is planning to open its own fast-food restaurant that will sell food in the sky.  The question is will they sell pie? Ok enough this is serious stuff.

Starting a branded fast food concept with proprietary branded products is a huge invitation for a concept and most likely become a platform that can expand on the ground according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

To hedge his bet and let investors know this is no ‘pie-in-the-sky’, Fernandes went on to say that “While it’s rare to hear someone request an airline-quality meal anywhere outside of an actual airplane, the CEO of AirAsia is aiming to change that.”

“Our food is fantastic. We believe in it so much, we’re going to start a fast-food restaurant out of it,” AirAsia CEO Tony Fernandes confirmed. (AirAsia) “Named after the much-loved coconut milk, our Santan menu offers a wide selection of Asean, international and vegetarian options for everyone,” the airline boasts on its website. We ask are you thinking about expanding outside the box?

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

McDonald’s ‘Better-for-You’ Platform is Expanding

Success does leave clues and every now and again we must remind regular readers of this blog that customer relevance requires that brands continually evolve with consumers. McDonald’s is the worlds largest single seller of kid’s toys.  Why, because they understand consumers (kid’s) are dynamic and they must be as well. 

The ‘halo’ of better for you kid’s toys has arrived at McDonald’s that will please both the children and most likely the parents according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  There is little doubt that these new ‘better-for-you’ toys will create a new electricity while driving incremental trial, adoption, and industry buzz.

McDonald’s has Partnered with Discovery on Mind-blowing STEM Toys.  This will be a global collaboration with McDonald’s beginning in select markets and will continue to roll out through 2020 according to press reports.

How is your brand creating new electricity? So, just what is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new menu related products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, free food / sampling, toy’s, beer, developing brands, unique urban clothing, grocerant positioning, Fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers 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 not different.  Consumer like Eating-Out when Eating-In. It’s time to call the Grocerant Guru®

Carolann Dunn, vice president, Consumer Products Licensing, Discovery stated  “Discovery and McDonald’s collaboration reflects our ongoing commitment to kids and families and allows our two companies to work together on new ways to encourage an interest in STEM, or build on one that’s already blooming,”  “We are proud of this collaboration and believe it will help make learning fun for kids while bringing families closer together through meaningful play experiences.” 

Battle for Share of Stomach Today and Tomorrow

Amy Murray, senior director, Global Family Marketing, McDonald's. “We are always looking to bring fun, engaging experiences, as well as balanced meal options, to our Happy Meal customers around the world,

Murray continued; “Our hope is that this meaningful promotion with Discovery empowers hands-on learning, and acts as a catalyst to introduce or foster an interest in STEM all while spending truly together family moments at McDonald’s.”  visit Facebook.com/DiscoveryMINDBLOWN.  McDonald’s will continue to sell more toy’s than any other retailer in the world according to Johnson.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? 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.

Digital Multitasking Generation Z Speeds Foodservice Up

Food marketing is about to undergo another transformation as Gen Z enters the workforce as the generation that says ‘I want it now’ according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The oldest members of Generation Z are turning 22 years old in 2019 creating a tsunami of digital natives demanding fresh food faster than any other generating according to Johnson. When posed with the question, (What’s for Dinner?) they will simply look for the solution in the palm of their hand, there smartphone.   

There is a reason that fast food sales continue inching-up, growing share of restaurant dollars. Just like millennials, Gen Z’s frequently visit fast food / quick service restaurants.  That frequency is another reason that fast casual restaurants check average and speed of service is comparable to that of fast food; it’s keep-up or lose out according to Johnson.

In a new report from The NPD Group, Delivering Digital Convenience report noted:

1.       For the year ending December 2018, the number of foodservice delivery orders by Gen Zers reached 552 million, just 1 million less than millennials' delivery orders despite a small portion of Gen Z’s being old enough to order their own delivery. They are also heavy users of restaurant tablets and order kiosks.

2.       Gen Z’s can FaceTime their friends, text their moms, and order a pizza all at the same time

How are you preparing to engage new consumers?  If your food platform getting faster?

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.

Yum Brands Pizza Hut is Back

Customer relevance, brand renewal, and customer interaction with participatory technology is the under current driving success at Yum Brands and much of the credit can be given to CEO Greg Creed according to Steven Johnson, Grocerant Guru® at Tacoma WA based Foodservice Solutions®.

Just take a look at how Pizza Hut is collaborating with FedEx, specifically to explore the use of the FedEx SameDay Bot, a new autonomous delivery device aimed to revolutionize local delivery. When tested, the bot will serve as support to existing delivery staff in an effort to improve efficiency of the delivery process without compromising the quality of America's favorite pizza.

Nicolas Burquier, chief customer and operations officer, Pizza Hut stated "Our success is built around the best-in-class experiences we provide to our customers," .. "As we look to advance our business and continue providing experiences that our customers deserve, exploring technology solutions that allow our team members to do what they do on an even greater scale is critical to our success. Testing of the SameDay Bot with FedEx is just one more way we're looking to the future of delivery at Pizza Hut."

Brie Carere, executive vice president and chief marketing and communications officer for FedEx "The FedEx SameDay Bot is an innovation being developed to change the face of local delivery and help brands, like Pizza Hut, address the growing needs of their customers," "The FedEx bot looks to redefine delivery for this market in a manner that is cost-effective, safe and environmentally friendly."

The FedEx SameDay Bot is in development by both FedEx and the DEKA Research and Development Corp., and is equipped with proprietary technology that allows it to navigate unpaved surfaces, curbs, and even steps to deliver an extraordinary door-to-door delivery experience. Testing of the bot is slated to begin as soon as this summer in select markets pending final city approvals.

Under Greg Creed, Yum Brands companies have learned too drive top line sales and bottom line his companies understand that customer relevance is elevated when two brands build off each other complementing consumers preferences via a partnership the ilk of NFL and FedEx.

Is your brand is searching for the new electricity to help drive the brand forward. So, just what is your brands new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, free food / sampling, beer, developing brands, unique urban clothing, grocerant positioning, Fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers 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 not different.  Consumer like Eating-Out when Eating-In. It’s time to call the Grocerant Guru®

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche call: 253-759-7869 or visit www.GrocerantGuru.com

Battle for Share of Stomach 

Customers Like Shopping at Costco Online

Battle for Share of Stomach

It’s never to late to cater to customers.  While Costco was late to get serious about internet retail much like Dominos Pizza was when Costco got serious they had picked up all of the right clues and they are now leveraging long standing customer value to drive incremental sales online according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Just like Dominos pizza going from lager to leader with online pizza sales, Costco is now the new ‘King” online retailers, surpassing Amazon, which held the No. 1 spot since 2010, according to the American Customer Satisfaction Index (ACSI) Retail and Consumer Shipping Report 2018-2019.

The ACSI determines customer evaluations of the quality of products and services available to U.S. consumers, with all measures reported on a scale of 0 to 100, so let’s look at what they found:

1.       Costco scored an 83 on ACSI’s scale, likely thanks to its Kirkland private brand, offering quality products at a low cost, which helps keep competing brand prices low.

2.       With its retail business growth slowing since its acquisition of Whole Foods Market, Amazon retreated 4% to an ACSI score of 82, matching the combined score of smaller online retailers, which are up 1% year over year, per the report.

3.       Target Corp. trails Amazon in internet retail with an ACSI score of 80, while Walmart Inc. anchors the bottom of the category with a score of 74.

Here is what all food retailers need to think about according to the ACSI report, “the internet remains consumers’ preferred method of shopping, despite falling 2.4% to an ACSI score of 80.”

4.       Customer satisfaction with supermarkets sank 1.3% to an ACSI score of 78, according to the report. However, 5.

5.       Trader Joe’s Co. and Wegmans Food Markets showed 1% improvements over the last year, with Trader Joe’s rising to a score of 86—bringing it to the No. 1 spot across all supermarkets and retailers, including e-commerce giant Amazon (82)—and Wegmans rising to a score of 85.

6.       Publix Super Markets fell 2% to tie with Aldi, which remained unchanged, at 84. Costco also remained unchanged in the supermarket category, with a score of 83, while most other large chains declined. For example, H-E-B slipped 1% to 82, and Sam’s Club dropped 2% to 80.

7.       Whole Foods also dipped 2% to 79, despite its acquisition by Amazon, bringing it to a tie with BJ’s Whole Sale Club (down 1%), Hy-Vee Inc. (down 2%), The Kroger Co. (down 2%), ShopRite (unchanged) and the combined score of smaller supermarkets (down 2%).

So, how is your brand evolving to drive food sales, beverage sales, online or in the store? What are you doing to expand your brands customer relevance and drive sales better than other food retailers? Is your brand creating a platform that is consumer interactive and participatory?  No, well we can help.

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  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

Can Shake Shack Customized Marketing Cut It

Sure, Shake Shack sales volume per store are impressive today averaging $4.6 Million per unit in Q4 2018.  They did that by offering a ‘better burger’ and you can get anywhere else.  Ok, so now what as Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The problem is Shake Shack is now running into the same problem Whole Foods, Pappadeaux Seafood Kitchen, and all other specialty food retailers find after several years of successful growth. Shake Shack caters to an urban lifestyle consumers with more disposal income and consumers with more exposure to fresh food fare according to Johnson; the problem is those consumers are limited in numbers. 

So, when Shake Shack announced that will be rolling out two food trucks—one in the greater tri-state area (NY, NJ, CT + PA) and one in the Atlanta metro area we ask Why? Do they think they can sustain growth in the suburbs?  That is highly unlikely unless they reduce the average check size substantially.

Sure, fans of Shake Shack can book the truck at www.shakeshack.com/truck by simply filling out the form with their name, email address and event details. The Food Truck menu is customizable based on the event, and can include Shack classics like the ShackBurger, Chick’n Shack, ‘Shroom Burger, fries and shakes. Pricing is based on the duration of the event and the number of estimated people in attendance. 

We ask will that drive sales, build buzz, or simply put Shake Shack in the same league as Red Robin and Burger King?  What is Shake Shack’s goal? Drive Growth, Drive Profits, Drive Brand Buzz and at what cost?

The truth is the next 15 years growth in urban communities will outpace that of the suburbs for most branded food growth according to Johnson.  Who, continued saying urban brands growth needs to be focused on urban customers.  

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

Chain Restaurants Continue to Stumble over Change Why

Foodservice Solutions®, Grocerant Guru® Steven Johnson stated “The restaurant industry is not an industry known for trying to be first as in fastest to market with an ideation, food or technology advance. In the United States the larger the chain in almost all cases the more slowly they are to adopt something than a smaller chain or independent restaurants will.  Chain restaurants goal is simple feed one meal at a time in the restaurant while protecting and edifying the brand.”

Thus, the line between restaurants and food retailers is growing ever thinner. The fight for America’s food dollars continues to intensify as consumers find fresh prepared Ready-2-Eat food options at a wide and growing array of outlets across almost every retail channel including the ilk of convenience stores, chain drug stores, restaurants, grocery stores, club stores, vending and even more non-food retailers like dollar stores. 

Food manufacturers, retailers, and restaurants worry about choice overload, consumers have embraced their new choices and show no signs of returning to the old ways. This fight is taking place in what is called the grocerant niche. In short there is an intense battle for an increase in Share of Stomach according to Johnson.

Battle for Share of Stomach

Historically chain restaurant leaders have denied the credibility of start-up competitors as non-relevant. The pizza sector is a great example; evolving from family dinning independents to national chain of “Red Roof” Italian, then to delivery only outlets and now take-N-bake is garnering market share in the pizza sector. Today, furniture store IKEA has a $2 Billion US dollar grocerant niche Ready-2-Eat and Heat-N-Eat business that is driving growth of the legacy furniture retailer.

At the intersection of the consumer, fresh prepared food and technology we fine that consumer eating behavior is evolving and is now beyond the control of traditional food marketers. Millennials & Gen Z consumers are driving change in eating habits and demand more ‘clean food’ according to Johnson.

Evolving culture and lifestyle, demographics along with the new uncertain economy are all putting pressure on the American food consumer: Demands of work, economic shrinkage, demands of raising a family, commuting, social interaction, kid’s after-school activities, all contribute to a food marketplace where convenience vies with price over legacy brands.

Recent advances in food packaging and new points of non-traditional food distribution have empowered consumer choice, and Americans are embracing these choices even as legacy marketers cringe. Who’s after restaurant food dollars simply put everyone.

Why should you care if Walgreens is selling fresh prepared Ready-2-Eat and Made-2-Order sandwiches? Why should you care if Whole Foods, Trader Joe’s, Safeway and Wegmans are selling Ready-2-Eat and or Heat-N-Eat fresh pizza?  Why should you care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00?

The retail food world is evolving at an increasing pace filled with innovation in food, portion size, points of distribution, and quality fresh prepared meal solutions.      The price, value, service equilibrium is resetting in retail foodservice.   In order to edify the brand and reinforce consumer relevance restaurateurs leverage Foodservice Solutions® 5P’s of food marketing: Product, Packaging, Placement, Portability and Price.

Many legacy food retailers continue to practice brand protectionism, stifle the brand while diminishing consumer relevance.  The consumer is dynamic not static.  Brands must be dynamic, evolving with the consumer.  Four years of watching other retail sectors thrive should be long enough. Success in the restaurant world is no longer simply about what happens within your 4 walls. 

Steven Johnson is the Grocerant Guru at Tacoma, WA based Foodservice Solutions®, with extensive experience as a multi-unit restaurant operator, Food Brand Strategic Advisor, brand / product positioning expert and at public speaking. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant ortwitter.com/grocerant Steve@FoodserviceSolutions.us