Dollar Store Sector Garners a Larger Share of Stomach

Battle for Share of Stomach

Just in case you were not paying attention Dollar General with 15,597 stores has one of the largest store footprints in the US. Restaurants, Convenience stores, need to pay attention, to the fact that rival discount chains Dollar General and Dollar Tree each reported quarterly results that indicate improving sales trends due in part to stores evolving to meet a larger percentage of their customer’s shopping needs through food. 

Clearly, the grocery store sector has been the hurt the most from the growth of the Dollar store sector but now as regular readers of this blog know Dollar Stores are selling more and more grocerant niche Ready-2-Eat and Heat-N-Eat food as Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been reporting.

Here you go just look at this numbers; Dollar General said sales during its fiscal quarter ending May 3 increased by a robust 8.3%, paced by new store openings and same-store sales gains of 3.8%. Officials said remodeled stores—including an increasing number that have added fresh produce offerings in addition to more cold and frozen items—were outpacing the comp growth overall, with fresh produce offerings at its DGTP models experiencing comps near 15%.

Not to be left out Dollar Tree, which operates the Dollar Tree and Family Dollar banners, said sales in its first quarter ending May 4 increased by 4.6% to $5.8 billion and that comps improved by 2.2% overall.

Looking for a reason to worry? At Dollar General, the addition of food at stores continues to be the chain’s “most impactful merchandising initiative,” CEO Todd Vasos said in a conference call.  The chain’s steady increase in cooler doors since 2013 is also providing the sales volume for the company’s announced move to self-distribution. “In addition to being a great traffic and ticket driver, our success in expanding our cooler footprint has provided the scale necessary to initiate DG Fresh.” The chain added 12,000 cooler doors in the first quarter alone.  Is your restaurant, C-store, or grocery store prepared for this success?

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

Restaurants are Slow to Learn and Evolve with Grocerant niche Fresh Foods

Chain restaurants have not paid enough attention to the growing list of non-traditional competitors eager to garner their customers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  This week’s IDDBA show in Orlando, Fl was filled meals and meal component options for non-traditional retailers to use to help garner customers.

Consider this U.S. convenience stores experienced the 16th straight year of record in-store sales in 2018, according to newly released National Association of Convenience Stores State of the Industry data. Grocery stores have figured out that is they want to garner more customers they need to get them most of them anyway from the restaurant sector.

I guess success does leave clues as grocery sector “refrigerated meals outpaced the deli prepared foods department, with 8.3% sales growth compared to a year ago. This trend is noticeably clear when comparing the entrees and salad categories. Refrigerated entrees grew at 14.9% compared to a year ago, outperforming the 3.4% growth of deli prepared entrees.

While Deli prepared sales declined by 2.4%, while the refrigerated prepared salad/fruit/coleslaw category grew 6.2%. Deli prepared foods, however, remain an important aspect of a retail store offering (accounting for 15% of all perimeter sales) and a trip driver (12 purchase occasions for the average shopper per year). 

The restaurant sector will continue to capitulate year over year customer count the better convenience stores and grocery stores do introducing grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food according to Johnson.

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  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

Battle for Share of Stomach Underway

Dairy Queen Double Dips Summer Partnerships for Success

Look out McDonald’s, Burger King, and Wendy’s , Dairy Queen franchisee are filled with anticipation for a great summer of sales given the focus, attention, and quality of partnership promotions the chain has planned for this summer according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

This week, DQ launched “The hAPPiest Sweeps Ever—a mobile game and sweepstakes created with The Coca-Cola Company. Fans can enter daily at any DQ location, excluding locations in Texas, for the chance to win DQ gift cards and epic family vacations, including NASCAR® VIP Race and Universal Orlando Resort experiences.” 

Maria Hokanson, executive vice president of Marketing for American Dairy Queen Corporation  stated "This sweepstakes embodies summer with games, adventure and lasting family memories,"  "We're helping fans embrace the playfulness of the season, as well as giving some lucky families once-in-a lifetime experiences." Happy at Your Fingertips: How to Enter

From now through June 30, fans ages 18 years-plus can enter The hAPPiest Sweeps Ever by following three easy steps:

o    Download and register for the DQ mobile app

o    Visit any DQ restaurant (excluding locations in Texas), open the app to register for the sweepstakes, then play for a chance to win

·         Fans must be present in a DQ store to register for and enter the sweepstakes (no purchase is necessary)

·         Click on The hAPPiest Sweeps Ever™ banner to register

·         Enter by feeding a variety of popular DQ menu items, such as Blizzard® Treats, burgers and refreshing Coke® beverages to a delightful emoji character named hAPPy 

o    ·         Fans can enter up to once per day from June 3-30

Participants are eligible to win the daily prize giveaways more than once, but only have the chance to win one of the four weekly grand prizes. The sweepstakes is open to legal residents of the U.S. or District of Columbia, who are 18 years or older. Official rules can be found at DQ.com/happiestsweepsever/rules

That’s not all.  Talk about creating new electricity for a fast food brand. Consumers that want more peanut butter or more chocolate? With the debut of two new Reese’s Lovers Blizzard Treats, fans don’t have to choose. Fans can find out which flavor makes their taste buds sing the loudest by visiting any participating DQ location nationwide during the month of June.

Like the limited-edition Reese's Peanut Butter Lovers and Reese’s Chocolate Lovers Cups that give you more of what you love, the new Reese's Lovers Blizzard Treats give fans the option of enjoying more peanut butter or more chocolate, providing new takes on one of America’s favorite flavor combinations:

·         The new Reese's Peanut Butter Lovers Blizzard Treat features bits of Reese’s Peanut Butter Cups blended with even more creamy peanut butter topping and signature DQ vanilla soft serve.

·         The new Reese's Chocolate Lovers Blizzard Treat includes chunks of Reese's Peanut Butter Cups, hand-spun with decadent cocoa fudge and creamy DQ vanilla soft serve. 

“The limited-edition Reese's Lovers Cups are flying off store shelves, making DQ restaurants a go-to destination to get a special Reese’s Lovers experience,” says Maria Hokanson, executive vice president of Marketing for American Dairy Queen (ADQ). “Whether you’re a chocolate fan or more of a peanut butter fan, the only question left to answer is, which Blizzard Treat will you try first?”  

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.

Partnerships Power Peapod

Time and time again our own Grocerant Guru®, Steven Johnson based in Tacoma, WA with Foodservice Solutions® articulates how partnerships drive sales creating a new platform, new electricity, to garner attention, drive sales and edify legacy brands. 

Now picking up on success clues left by our Grocerant Guru® Peapod created a new Fast Pho meal kit is the result of a collaboration between the e-grocer and food writer Mark Bittman. In fact, Peapod has formed a partnership with influential food writer Mark Bittman, author of the new cookbook “Dinner for Everyone.”

Peapod will be spotlighting several of Bittman’s recipes in a shoppable, click-to-cart format, in addition to an exclusive meal kit, Fast Pho, a Vietnamese-inspired dish with pre-measured fresh ingredients, available in serving sizes for two or four.

Bittman, sounding a lot like our Grocerant Guru® as regular reader of this blog will notice asked  “The inevitable, daily question, ‘What's for dinner?’ is one that everyone has asked themselves more times than they can count,”. “I want cooking dinner at home to make people happy, not stressed, and Peapod gets that, too. Cooking – and likewise shopping for the ingredients – doesn't have to be tedious or time-consuming, and I'm excited to share this Fast Pho meal kit in partnership with Peapod that proves exactly that.”

According to Peapod’s third annual meal-planning forecast, 77 percent of Americans say they would rather eat a homemade meal than go out for dinner, and more than 40 percent of Americans value meal kits as a tool to make cooking at home easier, with other welcomed shortcuts including pre-measured ingredients and grocery delivery.

Spencer Baird, SVP of merchandising at Peapod,  stated  “we work to simplify grocery shopping, menu planning and meal time,” said  “Meal kits allow us to introduce shoppers to inspired international flavors and dishes without any intimidation, as every ingredient is selected and packed ready-to-cook. The partnership with Mark and collaboration on the meal kit is another way we want to support making dinner time enjoyable and approachable for shoppers.” Are you looking a customer ahead building new electricity for you business?

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, plant based  foods,  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 food 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

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson 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. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869

Millennial's Abandon Restaurants for C-store Foodservice

The lines between food sectors continues to diminish as Millennials continue their quest for grocerant niche fresh food discovery.  It’s that journey of discovery, trial, and migration that is confounding legacy chain restaurant leaders according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

A new GasBuddy survey found that “43 percent of millennials purchase more food from c-stores today than three years ago.”  The simple fact is in our time starved world, where we count a full-time job as 23 hours and up.   Millennials are in search of fresh food fast and for less.  They are finding that at C-stores.

The new study found

1.       Approximately 56 percent of Americans purchase meals at gas station c-stores at least once a month, while younger consumers purchase food at c-stores more frequently,

2.       A quarter of those aged 30-44 purchase food five or more times per month,

3.       While 20 percent of those aged 18-29 purchase food at c-stores three to four times per month,

4.       Three quarters (75 percent) of respondents believe c-store foodservice has improved in the past five years.

Frank Beard, convenience store trends analyst at GasBuddy  stated "Convenience retailers with compelling foodservice programs are a growing threat to quick-service restaurants," … "Data show that people choose convenience stores over fast food locations because of the convenience of an all-in-one stop for fuel and food, followed by a preference for the taste of the food at c-stores. Couple this with leading convenience brands like Wawa and QuikTrip rapidly expanding across the country, and fast food brands will be forced to find innovative ways to catch up."

So, why should legacy restaurants worry? Well, along with frequent visits to c-stores to purchase meals comes increased dollar spend. The study found that one in four Americans spend $6 to $10 per week on c-store foodservice, with nearly 20 percent of those aged 18-29 spending $10 to $15 per week.

There are undercurrents of commonality that chain restaurants over look but the consumer has not. The most-preferred meals at both c-stores and quick-service restaurants include sandwiches or wraps; fresh salad; pizza; burgers and fries; and fried chicken.

Beard continued "Convenience brands are well-positioned to cater to consumer's tastes because they aren't pigeon-holed into one type of cuisine,". "Our study found that younger Americans prefer more variety, particularly with newer menu items like burritos and pizzas."

Speed is a concern, as nearly one third of consumers are only willing to wait five minutes for their meal. When asked what they dislike about fast food establishments, consumers named unhealthy options as their top concern, followed by food quality, restaurant cleanliness and limited food and drink options.

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.

Olive Garden Revises Grocerant Niche LTO Buy One Take One Home

Success does leave clues and Olive Garden new that they had a winning Limited Time Offer the first time that the introduce the grocerant niche buy one meal and get one to take home.  The smiple fact is this promotion has become an Olive Garden customer favorite according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Regular readers of this blog know we were the first to detail the success of this LTO back in the day. Take home a free entree at Olive Garden with purchase of select entrees, including a new summer pasta dish, through July.

This year you can choose from several entrees starting at $12.99: Fettuccine Alfredo, Cheese Ravioli, Spaghetti with Meat Sauce, Lasagna Classico, Shrimp Scampi, and new Creamy Garlic Tuscan Chicken. It features ziti with chicken, roasted garlic, red peppers and spinach tossed in a white wine rosemary sauce. Some entrees cost a few bucks more.

After dining in, choose one of the first four entrees to take home for free. The food arrives chilled with reheating instructions. Even better, this offer is available for both dine-in and/or online ordering which means you can order to go and split the meal with a friend or loved one right away to score lunch or dinner for TWO for as low as $12.99!  Bringing back a winning LTO is a great way to edify your brands relationship with your best customers.  Do you want to know what the next great Grocerant niche LTO is?

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 for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

Chipotle Mexican Grill Elevates Educates Edifies Customers

In a proactive and unique partnership Chipotle Mexican Grill announced its participation at the 2019 Scripps National Spelling Bee with its very own spelling bee: Chipotle Bee, For Real. Elevating and edifying your brand message is a key drive of future growth and create a platform for a new electricity within the brand according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

This unique proactive branded platform was hosted by Justin Howard, Chipotle Bee, For Real took place on a specially-created stage and featured Chipotle’s 51 ingredients. Chipotle invited spellers to tackle one complex ingredient found at other restaurants, and one simple, real ingredient found at Chipotle. The competitor list included words like carrageenan, dimethylpolysiloxane and lecithin. Chipotle’s list included avocado, beef and cheese.

Chris Brandt, Chief Marketing Officer of Chipotle stated “Chipotle only uses real ingredients in its kitchens, and those ingredients tend to be simple to pronounce and easy to spell,” … “However, other restaurants frequently use artificial or processed ingredients and preservatives that are often much more difficult to spell and say, so we highlighted this difference in a unique way at the Scripps National Spelling Bee.”

Valerie Miller, Communications Manager for the Bee stated “Our spellers have voracious appetites for words and good food, and they were thrilled to have a chance on the Chipotle stage,” …“We are also passionate about Chipotle’s mission of cultivating a better world, which we aim to achieve through the pursuit of education.”

So, the Chipotle Bee, For Real incorporated 102 words which were complete with special pronunciation guidelines, definitions, origins and uses in a sentence. Spellers that were up for the challenge received prizes including exclusive Chipotle Bee pins, Chipotle Bee foil notebooks and Chipotle gift cards.

Chipotle’s presence at the Bee is consistent with it’ Behind the Foil campaign that launched this year. Behind the Foil focused on the transparency of Chipotle’s kitchens by featuring real employees cooking real food from real ingredients. This year’s national finalists can attest that eating real to cultivate a better world is as easy as it sounds.  Have you created a platform for 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, plant based  foods,  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 food 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.

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/