Are Virtual Restaurants the Future of Retail Foodservice

Chain restaurants customer counts continue to crumble as convenience stores, and grocery stores develop, create, and display more fresh meals that are Ready-2-Eat and or are just Heat-N-Eat. Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes virtual restaurants with highly trained food marketers will be ‘The Next Big Thing’ or sector to fuel growth within the restaurant sector.

Here is a great example; Junzi Kitchen, which recently received $5 million in an early funding round, is looking at ghost kitchens and other outside-the-box models to fuel its growth. Here is the story:

“Yong Zhao, the co-founder and CEO of Chinese fast-casual concept Junzi Kitchen, noticed a disheartening trend: Neighborhood Chinese takeout restaurants—most of them mom-and-pop operations—are closing at a fast clip as their owners retire and the next generation opts not to carry on the business.

So, the New York City-based Junzi Kitchen, which last month received $5 million in an early funding round, is using a portion of its investment money to explore buying out some of those independent operators and turning their stores into new restaurants focused on “more elevated Chinese takeout,” according to Zhao.

Zhao, who grew up in China and moved to the U.S. to attend graduate school at Yale University. “We can take a huge market share within a short period of time because of the existing infrastructure.”  “We are right now researching it, putting together a team around it and developing a menu,” said

Zhao hopes to have at least one of those refurbished Chinese takeout restaurants running in the next six months. Now, Zhao raised $5 Million how many of you could do the same thing with a food or restaurant sector in which you are comfortable?  Johnson  believes lots of you!

OK, back to Junzi Kitchen, which opened its first unit near Yale in 2015 and now has restaurants near Columbia University, New York University and Bryant Park in Manhattan. The chain plans to open a fifth store in coming weeks.

The concept (in Chinese philosophy, a junzi is a person of integrity), grew out of work at the Yale Entrepreneurial Institute in which Zhao and his partners wanted to create food more as it’s actually eaten in China and less like the deep-fried dishes with sticky-sweet sauces many Americans associate with the cuisine.

“Chinese food in China is so different,” he said. “There’s the rich culture behind it. … Let’s reverse process Americanized Chinese food to the Chinesification of the American restaurant.”

So Zhao and his team have created a menu that blends traditional Chinese flavors with formats familiar to Americans. The Junzi Kitchen menu includes options such as northern Chinese noodle bowls with a variety of toppings and bings (meats and fillings wrapped in thin dough).

Junzi has also partnered with virtual kitchen operator Zuul Kitchens to launch a delivery-only spot in Manhattan later this month. “Zuul Kitchens is a great opportunity for us to understand the delivery landscape,” Zhao said.

Junzi’s $5 million funding round was led by LDR Ventures, an initial investor in Sweetgreen, as well as Union Square Hospitality Group President Chip Wade and others. Zhao is working on raising funds for the concept’s next round of expansion. Ok, all of your regular readers, what are you waiting for? Need help call us? This is where we excel Grocerant niche Ready-2-Eat fresh Food? So, What’s for Dinner?

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.

Food Retail Partnerships Deliver Success

Once again this year our team has been talking a lot about “The 65 Inch HDTV Syndrome” that Foodservice Solutions® Tacoma, WA based Grocerant Guru®, Steven Johnson was the first to identify, quantify, and qualify for clients and the industry. Why, have we been talking about; simply it drives sales.

Foodservice Solutions® team loves leaving success clues and when we learned that Olo, a leading digital food ordering platform for the restaurant industry, announced that it is working together with Google to enable customers to order directly from restaurant brands across Google Search, Maps and the Google Assistant we has to share the news about the new electricity this partnership could drive for your brand.  

So, the integration allows Olo’s network of more than 70,000 restaurant brand locations to be enabled on Google’s platforms so that consumers can order directly on Google from Search and Maps. Users can also use their voice and ask the Google Assistant for help. On Android and iOS phones, users can say, “Hey Google, order food from [restaurant],” or “Hey Google, order food again from [restaurant].”

Olo’s platform called Rails, enables restaurants to efficiently process orders originating from third-party destinations, is now integrated across Search, Maps and the Google Assistant, transferring each order directly into the restaurant’s point of sale and ordering stream to improve operations efficiency and guest experience.

Brands working with Olo and Google enjoy efficiencies of a two-way integration, benefiting from accurate pricing, menu, and product availability, while inbound orders are automatically placed into existing point-of-sale (POS) systems. Rails makes it easy for restaurant operators to list menu items on third-party marketplaces and drive incremental sales without the need to manage multiple tablets on the restaurant counter and disparate order flows. This integration reduces lag, increases order success rates, and enables faster and more accurate ordering experiences.

Noah Glass, founder and CEO of Olo  stated “Search is increasingly becoming the path to purchase in the restaurant space and we are thrilled to team up with Google to make ordering easy while allowing restaurants to own the digital relationship with their guests,” …”Any consumer searching for a restaurant brand should have easy options to order from the restaurant directly with as few clicks as possible, which is what this integration enables.”

The integration is one of the latest tools to help restaurant brands receive online orders. Portillo’s Hot Dogs and Checkers & Rally’s were the first Olo brands to pioneer this integration with Google, providing enablement to their high-volume locations for customers. Is your brand ready to grow? Are you looking for some new electricity?

Consumers are dynamic not static how is your brand keeping up with consumer demand for fresh fast food? How are you driving new electricity into your brand?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain 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 and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

For international corporate presentations, regional chain presentations, local 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

Domino's Simply Getting ‘Better-for Everyone’

Foodservice Solutions® Grocerant Guru®, Steven Johnson identified, quantified, and qualified 2019 as the year of the ‘partnership’ within the foodservice space.  This year Domino's Pizza a continuous leader with the grocerant niche shows us why Domino’s continues to create new electricity.  Domino’s has the best example of a consumer relevant partnership with the National Fire Protection Association (NFPA).  The two are teaming up to deliver fire safety messages to homes across the country; if success leaves clues this is one of them for 2019.

This partnership is valuable because it extends Domino’s brand with a hallmark of the fast, growing sector of food service the grocerant niche; the halo of ‘better-for-you’ according to Johnson. So, during Fire Prevention Week (October 6-12), participating Domino's stores throughout the U.S. will reinforce this year's campaign theme, "Not Every Hero Wears a Cape. Plan and Practice Your Escape!" with flyers on top of pizza boxes. The flyers will include important fire safety tips—such as planning your escape route, testing your smoke alarm and practicing a home fire drill—that customers can use to keep themselves and those around them safe.

Domino’s customers who order from participating Domino's stores throughout the U.S. during Fire Prevention Week may also be surprised when their delivery arrives accompanied by a fire engine. If the smoke alarms in the home are working, the pizza is free. If the smoke alarms are not working, the firefighters will replace the batteries or install fully-functioning alarms. Now that is interactive and participatory extending the value of community for all parties.

Jenny Fouracre, Domino's spokeswoman stated "This is the 12th year in a row that Domino's has brought the program to neighborhoods across the U.S ..Every year, Domino's stores look forward to teaming up with their local fire departments and the NFPA to spread fire safety messages in a fun and unexpected way,"

FYI, NFPA statistics show that the number of reported U.S. home fires in 2018 is half of that reported in 1980. However, the death rate per 1,000 reported fires has remained steady, reflecting the continued challenges of safely escaping today's home fires.

Lorraine Carli, NFPA's vice president of outreach and advocacy  stated "In a typical home fire, you may have as little as one to two minutes to escape safely from the time the smoke alarm sounds,"  "Escape planning and practice help ensure that everyone knows what to do in a fire and use time wisely to get out safely. We hope to raise awareness about these potentially life-saving messages through our partnership with Domino's." Here are some Fire Safety Tips from Domino's and NFPA:

·         Make a home escape plan with your family. Draw a map of your home, showing all smoke alarms and exits.

·         Plan two ways out of each room (usually a door and a window) and a path from each to the outside.

·         Make sure at least one smoke alarm is installed on every level of the home, in each bedroom and near all sleeping areas. Push each smoke alarm's test button monthly to ensure it is working.

·         Pick a meeting place outside of your home where everyone will gather in the event of a fire.

·         Plan and practice your home escape plan at least twice a year.

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.

Del Taco Aromatherapy is Brandtastic

Del Taco understands that its brand needs to be an invitation for trial and adoption all the while consumer interactive and participatory according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consumers are dynamic not static and Johnson askes just what has your brand done for its best customers lately that surprised and delighted them? In the case of Del Taco they found a partner that could add new electricity elevating its brand with its best customers according to Johnson.

Del Taco introduced a Craveable Sweets & Scents Aromatherapy Set that includes three scents.  Yes, Del Taco, with 580 locations across the country, has just introduced a Mini Churro Dipper Shake nationwide, and to celebrate, the brand is launching a limited offering of “Craveable Sweets & Scents” aromatherapy set, crafted with essential oils, in Vanilla, Chocolate and Churro scents.

The Craveable Sweets & Scents Aromatherapy Set, which includes all three scents, will be available for purchase starting this Tuesday, October 1 at 1 p.m. ET on Del Taco’s webstore. They’ll be $1.49 for the set, which is the same price as Del Taco’s new Mini Churro Dipper Shake (shipping/handling of $5 will be on top of that).

Consumers are dynamic not static how is your brand keeping up with consumer demand for fresh fast food? How are you driving new electricity into your brand?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain 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 and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

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.

At Wawa, Record Growth Signals Success

Success does leave clues Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated that Wawa’s growth is customer driven and a clear signal to the food industry that Wawa is exceeding consumer expectations delivery an industry leading price, value, quality, service promise.

Filling in the white space between New Jersey and Florida, Wawa will open 40 stores in northern Virginia over the next 15 years, with the first of these stores set to open in April 2020. Wawa announced plans this week to open 40 stores in northern Virginia over the next 15 years, with the first set to open in Vienna, Va., in April 2020.

The 40 planned stores in the market are expected to bring 2,000 jobs. Wawa excels at looking a customer ahead and customer facing relevance. So, new stores will be around 6,290 square feet with seating areas and will feature Tesla Charging Stations for up to eight cars.

Wawa has been undergoing a massive expansion, with plans to open a record 63 stores in 2019, that close to a $500,000,000 investment in 2019 alone on new stores according to Johnson.

For those of you not on the East coast, Wawa operates more than 870 convenience retail stores (over 600 offering fuel) in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C. The stores offer a large grocerant niche fresh food selection, including Wawa brands such as custom prepared hoagies, freshly-brewed coffee, hot breakfast sandwiches, specialty beverages and an assortment of soups, sides and snacks.

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

Zippin Expands Non-traditional Locations to Expand the Brand

Regular readers of this blog know that Zippin is a check-out free retailer. Well in order to drive adoption Zippin has now has partnered with Golden 1 Center in Sacramento, Calif., to open the first in the world in-arena checkout-free convenience store and according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® that’s the incremental visibility that the brand need.

The new Zippin store will be located at the Southwest entrance of Golden 1 Center and will be open during Sacramento Kings home games and concerts at the arena. Sacramento Kings Chairman and Governor Vivek Ranadivé stated “We are committed to leveraging technology to identify and deliver cutting-edge, innovative solutions that enhance the fan experience,”  “Using AI-driven checkout-free technology we are excited to deliver a first-of-its-kind frictionless shopping experience ensuring our guests are able to get back to the action as quickly as possible.”

Starting this month (October 2019), Golden 1 Center fans and guests will have the opportunity to purchase food and beverage items such as popcorn, draft beer and a variety of snacks and drinks without the hassle of checkout lines and self-scanners.

For those of you who are not regular readers of this blog; San Francisco-based Zippin uses AI technology with cameras and sensors to accurately identify who bought what as shoppers walk around the store shopping naturally. So, here is how it will work:

Using the award-winning dual mode Sacramento Kings + Golden 1 Center app and/or the Zippin app, fans and guests can visit the store, grab items off the shelves, and exit without waiting anywhere or scanning any items. The receipt will appear in the app.

Shoppers who do not have the app will be able to enter the store by presenting a valid credit or debit card at the entrance.

Zippin’s technology also provides real-time inventory tracking allowing concessionaires to re-stock at just the right intervals and maximize sales conversion. As Zippin keeps accurate count of all the products on every shelf in the store, shoppers will be able to use the Kings or Zippin app to browse what is available in the store from anywhere.

Zippin CEO and Co-founder Krishna Motukuri stated “Banish the checkout line. That’s Zippin’s motto,”“I can’t think of a better place than a sports venue to eliminate the checkout line. When Zippin launches in Golden 1 Center this Fall, Sacramento Kings fans will be able to walk in, grab a beer, and walk out in under 30 seconds.”

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, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Grocerant Niche Growth Drives Innovation Food Sector Sales

Foodservice Solutions® Grocerant Guru® once again reiterates convenience is the key factor driving supermarket prepared food sales, as busy shoppers seek quick-and-easy alternatives to cooking meals at home.  

Inmar Analytics recently edified our Grocerant Guru’s findings with new research finding “In 2018, the traditional grocery retail channel — supermarkets, fresh formats, limited-assortment stores, superwarehouses and small grocery stores — saw sales decline 1.1% to $547.63 billion, lowering dollar share 1.7% year over year to 43.8%, Inmar said in its 2019 Future of Food Retailing Report. The channel’s total store count dipped 0.5% to 40,379.

The report continued finding “food and consumables sales for nontraditional grocery retailers — wholesale clubs, supercenters, discounters, dollar stores, drug stores and military commissaries — rose 1.9% to $500.58 billion in 2018, raising dollar share 1.3% to 40%. Store count edged up 0.9% to 64,451.”

Food retailers in every sector can make it even easier by offering bundled meal deals that combine an entree with two sides, for example, or other combinations of ready-to-eat or heat-and-eat items. With the right merchandising and promotion, bundled meals can help drive incremental spending by encouraging customers to “trade up” from a stand-alone entree.

Our Grocerant Guru® believes that by merchandising grab-and-go side dishes for two-to-four people near the rotisserie chicken as part of a meal deal is one way to make bundling easy for shoppers and spur impulse sales. Offering a variety of sides and starches lets shoppers customize their meal based on the preferences of individual family members. Or, consider bundling the entree with a family-sized prepared salad from the deli to make a quick and easy light meal with broad appeal.

The restaurant sector has seen a boom in delivery and takeout that is often attributed to a surge in demand from millennials, but new research shows baby boomers may be the drivers of ongoing growth.  That according to our grocerant guru® is but an other example of customer migration from grocery stores to new non-traditional fresh food retail outlets for meals for home.

Battle for Share of Stomach

New research from the National Restaurant Association shows that 51% of baby boomers—defined for the research as consumers ages 55 to 73—are not ordering delivery and takeout as often as they’d like. That compares with 43% of millennials, or people ages 21 to 38.

Nearly the same portion of the younger group, 42%, indicated a desire to dine on-premise more frequently. That compares with the 38% of baby boomers who said they’d like to eat at restaurants more often.

Sandwiched in between those two generations were Gen Xers, who demonstrated a strong desire for more off-premise meals (49%) and on-premise dining (47%). The research defines members of that cohort as consumers ages 39 to 54.

The research confirms that consumers are still hungering for more takeout and delivery. Forty-nine percent said they would like more off-premise restaurant meals, compared with 42% who cited a pent-up demand for dine-in occasions.

When you look at all of the data one thing is clear consumers do not want to cook, do not want to do dishes, and they all want dinner with ease.  How are you preparing to serve dinner to the next generation of dinners? Do you know where they will want to eat? When the want to eat? Or how they want to eat their next meal?

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