Evolving Restaurant, Bodega, and C-store Customers are Dynamic and Migrating to Different Formats

 

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food had been driving customer adoption and migration in every sector of retail food sales for the past 9+ years.  Combine that with forced home confinement during the pandemic and now inflation is there are you asking your self What Next?

If your year over year customer counts are down or trending flat you know that your customers are eating somewhere else.  Let’s face it, American consumers are not all losing weight. Man-Up your customer are moving on. 

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, consumers are dynamic not static.  They don’t want to take the time to cook from scratch, don’t want to do dishes night after night.  They want full flavored food from around the world not just next door.   On top of everything else, consumers want there meal fast and or delivered. 

While Foodservice Solutions® is the global leader in Grocerant niche research and Foodservice Solutions® Grocerant ScoreCards set the industry standard.  NPD excels at evolving eating patterns.  Let’s see just what they have found and I hope it can help you evolve your food retail programs.

All of you know that the COVID-19 pandemic prompted significant changes to the rhythm of Americans' eating patterns, disrupting the usually predictable habits formed by daily routines and needs. Now more than two years later, just as these patterns were returning to pre-pandemic normalcy, inflation has disrupted them again.

So, according to a recent report by The NPD Group, "The rate of change in U.S. consumers' eating behaviors continues at a dizzying pace," said David Portalatin, report author and NPD food industry advisor. "Anyone hoping to return to normal must understand that there is no normal, only an ongoing evolution as we respond to new realities."

According to the recently released 2022 edition of "Eating Patterns in America," six macro themes are shaping the new realities of food and beverage consumption behaviors:

1. Economic transition — Consumer spending experienced a stimulus-fueled surge in 2020 and 2021 that extended into the first quarter of 2022, after which inflation and economic uncertainty rose to the forefront. The positive and negative disruptions in the past few years could make year-over-year economic metrics less straightforward than they would ordinarily be.

2. Inflation — Consumers are unlikely to reduce their food and beverage consumption in the face of inflationary pressure, but they will find ways to manage and allocate their food dollars. Inflation is more moderate for food away from home than food at home, with the typical restaurant meal costing 3.4 times more than in-home food sourced from retail, according to the report. To offset rising food costs, consumers are hunting for bargains when they shop for groceries, eating more meals at home, and cutting back on restaurant visits.

3. Income bifurcation — The difference in behaviors among income groups is a key theme shaping the food and beverage landscape. Trends of upper- and lower-income consumers are starkly divergent, and income bifurcation has profound implications for the total share of stomach trends, retailer and restaurant choice, dealing and promotions and brands vs. private labels.

4. Sticky behaviors — Many eating behaviors adopted during the pandemic reflect a rapid acceleration of behaviors that were established long before the pandemic, such as consumers eating most of their meals at home. Food and beverage behaviors may continue to normalize, but the consumer landscape has been transformed as consumers created new capacities and restaurant operators expanded capabilities to serve a more home-centric consumer.

5. Total wellness — Consumers are finding a balance between foods that contribute to their physical well-being and foods that serve more emotional needs. They are increasingly in tune with the functional attributes of various foods and beverages that can contribute to both sides of this equation.

6. Return to convenience — Going back to school and work create time pressures for home cooks and foodservice customers alike. While home-centricity remains more prevalent, the return of mobility reintroduced the need for speed and convenience. For some occasions, this means a visit to a quick-service restaurant, but for others, consumers want to retain their new at-home capacity while incorporating some shortcuts or time-saving techniques.

"America's eating patterns are shifting to adjust to new realities, and food manufacturers, foodservice operators, and retailers will need to adjust their offerings and services accordingly," Portalatin said. "Although the one constant is change, there is a constant to count on: the U.S. consumer will always need to eat, and then it's a matter of figuring out what, how, when and where." Not bad, thanks NPD.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Does your messaging look more like yesterday that tomorrow?  Visit GrocerantGuru.com 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.

Do you Want to Build a 

Larger Share of Stomach?

Lidl Thanksgiving Meal Feeds 10 for $30 Beat that Kroger, Walmart, Publix

What is more American than a traditional Thanksgiving meal?  Very little according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Regular readers of this blog know that European grocer Lidl excels offering fresh food at fabulous prices.  I call them customer focused retailer. 

Legacy grocery chains stuck in the middle of pricing and service, companies the ilk of Publix, Walmart, Albertsons call Lidl and Aldi discounters as if to disparage them. Lidl and Aldi are both customer focused high quality fresh food retailers that in addition offer choice and flavor discovery.  That garners the attention of Millennials and Gen Z consumers.

This year, Lidl US is touting its Thanksgiving meal essentials that can feed groups of 10 or less than $30.The meal comes with a frozen turkey that sells for 49 cents a pound via Lidl’s free loyalty program. The suggested Thanksgiving bundle also includes a 16-oz. package of fresh peas, 12-oz. bag of fresh cranberries, whole celery stalk, 16-oz. bag of baby carrots, 3-lb. bag of sweet potatoes, pint of heavy whipping cream, three 8-oz. packages of turkey stuffing mix, 12-count package of Hawaiian dinner rolls, pumpkin pie mix and two pie crusts.

In case you did not know, Lidl curated the special Thanksgiving basket based on items chosen by the American Farm Bureau Foundation’s (AFB) annual Thanksgiving dinner cost survey. Last year’s AFB data pointed to a $53 average grocery bill for traditional Thanksgiving items.

Stefan Schwarz, chief product officer for Lidl US, stated, "Even as grocery prices rise nationally, shoppers can rely on Lidl for the best deal to feed their family this holiday season," … "We are proud to offer shoppers at Lidl a delicious Thanksgiving dinner with all the fixings for less than $30. We hope our low prices give families some financial relief as they come together this holiday season."

Lidl is no small start-up. Germany-based Lidl operates around 11,550 stores and is active in 32 countries, employing more than 341,000 employees globally. With U.S. headquarters in Arlington, Va., the grocer operates about 170 stores in nine East Coast states.

Legacy food retailers including the ilk of Albertsons, Publix, HEB, and Walmart must evolve or one of them will become the next A&P.

For international corporate presentations, regional chain 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 GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

At Panera Bread Packaging Helps Drive Success

 

Marketing matters and at Panera Bread packaging is a key took in their marketing tool kit.  Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, stated, “brand messaging is transferred to the consumer via packing and Panera Bread does a very good job utilizing packaging to tell it story.

Recently, Panera Bread announced a suite of new, elevated packaging for its line of grocery products, along with the launch of several exciting new additions to its portfolio. Panera offers a diverse range of grocery products, including bakery-cafe favorites across categories including Refrigerated Soup, Refrigerated Mac & Cheese, Refrigerated Dressing, Artisan Bread, Sliced Bread and Bagels.

So just in case you did not know, Panera’s new packaging for its grocery products has been energized with the most updated Panera brand elements and features a more prominent logo, the use of Panera’s iconic green to help shoppers identify and find the brand, as well as updated photography that communicates the quality and craveability of the products. The new packaging, designed by LAM Design, and signature Panera products at grocery are featured in the retail brand’s new fall campaign developed and executed by Advantage United Commerce. The campaign, titled "Pairs Well With,’ is designed to place Panera grocery items at the center of important family moments.

Do you Want to Build a 

Larger Share of Stomach?

Take a look at Panera’s line of grocery products which have strategically expanded both nationally and in select regional markets over the past year to include new:

·         Italian Wedding Soup – A familiar made fantastic addition to Panera’s flagship grocery category, available nationwide.

·         Chipotle Ranch Dressing and Wildflower Honey Mustard Dressing – Available nationwide and building on Panera’s expansive variety of chef-crafted dressings.

·         Garlic Demi Baguette – Adding to Panera’s existing suite of baker-crafted artisan breads, available nationwide.

·         Bagels – Available in Plain, Everything and Cinnamon Swirl. Make every breakfast fantastic! Select regions only.

·         English Muffins – Extending Panera’s early success in breakfast with bagels by introducing hearty, griddle baked English Muffins. A new category from Panera, available initially at grocers in the Northeast.

·         Refrigerated Bowls – Abundant pasta bowls in Chicken Caprese, Tuscan Style Chicken and Lemon Chicken Primavera, available nationwide.

·         Artisan Cheese Crisps – Available in Parmesan, Everything and Tomato Basil varieties – perfect for topping soups, salads, sandwiches or as a snack. Select regions only.

Zach Soolman, Panera’s VP and General Manager of CPG, stated, “Our mission for Panera’s CPG business is to make craveable Panera products easily accessible wherever consumers shop for groceries,” …. “Our new look & feel and exciting product innovations are sure to delight our consumers who can now stock chef-crafted Panera favorites at home, ready to enjoy whenever they want, for any occasion.”

Just like in Panera bakery-cafes, all Panera grocery items are made with Clean ingredients - food that does not contain the artificial preservatives, sweeteners, flavors, and colors from artificial sources set forth on our No-No list. To learn more about Panera products at your local grocer, recipe ideas and more, visit PaneraAtHome.com

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

C-Stores Mix and Match Meal Bundling with Spirts for Success

 

Getting your shoppers into the ‘Holiday Spirt’ just might be good for business.  If your consumers are happy there is a very good chance that they will be back in to buy more and more.  This Holiday season our Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® suggest that you focus on one of the hallmarks of the grocerant niche Mix & Match meal bundling.  Specifically mixing meal components with liquor, beer or wine. 

Now with the holidays around the corner and the coveted canned cranberry at jeopardy to be missing from the Thanksgiving table, Johnson thinks you should consider,  NÜTRL Vodka Seltzer they want to make sure you get your cranberry fix this season - this year, in the form of a holiday drink!

Introducing: NÜTRL’s Cranberry Vodka Seltzer variety pack - the first-ever all-cranberry seltzer variety pack on the market.  You can mix and match one or the entire variety pack into the meal bundle.

So, NÜTRL’s Cranberry Vodka Seltzer is an elevated, seltzer-inspired take on the bar scene staple, served in a ready-to-drink can. Perfect for holiday party hosts and hostesses, the variety pack features four crisp and refreshing flavors: Classic Cranberry, Cranberry Orange, Cranberry Grapefruit and Cranberry Apple.

Now take a moment to see how C-Stores including Oregon based, Plaid Pantry Inc. has upgraded its wine program edify its mix and match meal component offerings.

When Building a Larger Share of Stomach 

Adding Spirts to a Meal Drives

Top line Sales and Bottom-Line Profits

Did you know that in 2020 is when wine and liquor became a top 10 category in the convenience channel during the pandemic, and then gained an average of 8.5 percent in sales per store in 2021, according to the Convenience Store News 2022 Industry Report. The report went on to say:

“Elevating product offerings and redesigning stores to accommodate expanded selections of wine and liquor have been among convenience channel retailers' responses.

Take Irving, Texas-based 7-Eleven Inc. In June, the nation's largest convenience store chain announced the opening of its fifth Evolution Store in the Dallas-Fort Worth area and the ninth in the country. A wine cellar with an enhanced and expansive selection of wine is among the offerings customers can find in these stores — described as experiential testing grounds where customers can try and buy 7-Eleven's latest innovations in a pioneering store format.

Savannah, Ga.-based Parker's, La Crosse, Wis.-based Kwik Trip Inc. and Des Moines, Iowa-based Kum & Go LC are other c-store chains upping their game in the wine and liquor space. In February 2021, Parker's debuted Parker's Spirits in Pooler, Ga. The liquor-focused brand offers a large selection of premier wines, craft beers, collectible bourbons, and other packaged beverages. Last year saw moves by Kwik Trip and Kum & Go, too.

Kwik Trip launched Kwik Spirits, a new store format featuring a variety of wine and liquor, while Kum & Go worked with E. & J. Gallo Winery to streamline its wine assortment. Together, the companies identified bestsellers nationally and by state and generated a market-specific core list incorporating multiple store configurations. By clustering store configurations by state, the supplier was able to provide a consistent assortment at the right price points and introduce new items. The results were impressive: the retailer saw an 8 percent increase in wine sales year over year, and E. & J. Gallo was named one of Convenience Store News' 2022 Category Captains.

Consumer Preferences Are Key to Success

The ways in which wine and liquor drive consumers to c-stores underscores the important role these categories can play for convenience store operators and the channel overall.

Convenience store visits are highly mission-driven, with each trip usually serving a primary need. Alcohol has been identified as one of nine main trip missions, according to VideoMining, a provider of comprehensive insights on in-store shopper behavior.

When comparing the last three years (first quarter of 2022 vs. first quarter of 2019), the Alcohol trip mission gained 15 percent in share of store trips. Other trip missions that posted strong gains were Refreshment, Meal Building and Snacking, according to VideoMining.

Knowing what customers likely will be looking for when they arrive is key. When it comes to wine, Christian Rogers, Kum & Go's alcohol category manager, says he sees two trends: the premiumization of the wine consumer, and the continued acceleration of wine-based ready-to-drink (RTD) beverages.

"Super-premium wines, tetras [Tetra Paks] and tequila are also driving the wine and liquor categories," he added, noting that tracking trends helps Kum & Go select inventory that ultimately appeals to a broad a base of consumers.

"We have geared our assortment to meet the new demand in these subcategories, while still ensuring we are dedicating appropriate space to the mature subcategories of the wine segment," Rogers explained. "Within the wine and liquor categories, we offer a strong assortment of products at a number of different price points, with the goal of meeting our customers' needs for any occasion."

The approach has paid off, as Rogers reports the company's 2022 wine and liquor sales are up vs. pre-pandemic numbers, although he says they are "a bit softer than we would like to see YTD. Much of this is due to the convenience channel losing share of large packs to large format."

Beaverton, Ore.-based Plaid Pantry Inc. is another c-store chain reaping benefits from upgrading its wine program, according to President and CEO Jonathan Polonsky.

"In our market, selling spirits is not an option in the convenience channel, so we have to shine in the beer/wine categories," he said. Plaid Pantry operates 106 stores in the Northwest.

Layering a selection of "best" wines on top of what Polonsky calls a pretty broad "good" and "better" offering has brightened that shine. And so have local vintages.

"With us living in the Willamette Valley, there are a handful of local wines we offer up that resonate with the Northwest shopper and create a tailored local assortment," Plaid Pantry's Director of Marketing Jon Manuyag said.

The approach is working. "Wine sales are up, and I believe it is a combination of the 'COVID effect' and the addition of the higher-end wines we now offer," Polonsky explained. "We have indexed higher than our local competitors for a long time, and Jon has kicked it up a notch in the last couple of years."

Added Manuyag: "Wine sales are up as we continually invest in space, promotions [and] upgraded assortment to let our customers continue to know we are serious about our wine business." What are you mix and matching with your Holiday meals?

For international corporate presentations, regional chain 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 GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Food Retailers should be advertising on TikTok

 

Regular reader of this blog have heard this old adage many times before.  The trend is you friend.  It is as true today as it ever was according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® TikTok is where brands are making a difference when it comes to garnering new customers.

Targeting Gen Z consumers is on the mind of all food retailers.  So just in case you did not know,  that TikTok is replacing Google as the search engine of choice for Gen Z.. Now for millennials, the video app might be the new Yelp.

So, users between the ages of 26 and 41 are apparently quick to act on cravings piqued while browsing the app. More than half (53%) said they ordered from a restaurant after seeing a video about it on TikTok, according to a survey of more than 1,100 users by marketing agency MGH.

Millennials aren’t the only ones behaving this way: More than a third (38%) of all TikTok users said the same thing.

Now consider this, extrapolated out, that equates to about 52 million of the app’s 136 million U.S. users, presenting a large and impressionable group of potential customers for restaurants.

The app, which serves up an endless stream of short videos, is massively popular and continues to see double-digit annual user growth in the U.S.

It has proven to be particularly influential on users’ offline behavior. A viral pasta recipe led to a feta cheese shortage at some grocers last year, and books that get traction on the app regularly become best-sellers.

That has made TikTok an increasingly important marketing channel for restaurants. The rapid growth of Crumbl Cookies, for instance, has been fueled in large part by its more than 6 million TikTok followers. And many large chains now have a TikTok strategy.

“TikTok truly is a restaurant marketer's dream come true,” said Ryan Goff, EVP, social media marketing director at MGH, in a statement. “There aren't many other tools we have left in our marketing toolbox that can drive the sort of impact promised by TikTok through this survey."

You just might want to read then reread this section. According to the survey, TikTok’s sway on users’ dining decisions can be quite powerful. Three in 10 respondents said they traveled further than they normally would to visit a restaurant they saw on the app. And about the same amount (28%) went to a place that was more expensive than their usual spots after it popped up in their feed.

The driving factor is the appearance of the food itself. Seventy-two percent of respondents said seeing appetizing food on TikTok led them to place on order.

Forty-five percent said it was a unique menu item, and 42% said the restaurant looked like a fun place to go.

Of course, the exposure TikTok offers restaurants can cut both ways. As Bon Appetit reported this week, the app has given rise to amateur restaurant critics who are building large audiences with their scathing 30-second reviews. 

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter