Ready-2-Eat Food Fight between Grocery stores, Restaurants, C-stores and Drug stores.

Global food industry research giant Nielsen finds “An all-out food fight is taking place as grocers are seizing the moment to grab a share of restaurant sales through innovations relating to ready-to-eat foods for consumption in and out of their stores.  We also see this as an initial phase of lifestyle retail formats as retailers look to enhance the entertainment value of the mundane shopping trip and entice shoppers to spend more per shopping trip.” 

It must be noted here that Nielsen also found that the six  “fastest growing chain drug store categories are all edibles & six are frozen or refrigerated” food. Led by Walgreens Duane Reade fresh and prepared food is becoming an important part of building customers loyalty moving forward in the retail drug store sector.  Chain drug stores are garnering customers from both grocery stores and restaurants with high quality fresh food. 

While regular readers of the blog know that for the past three years the Convenience store sector is the only retail food sector to back to back to back positive sales growth. That growth has been driven by fresh and prepared ready-2-eat and heat-N-eat food. I agree with Nielsen that in the coming two years we will see an all-out food fight within the fresh prepared retail sector leveraging innovation or lack thereof. 

Duane Reade is a consumer relevant hybrid urban market aka grocerant that can and will be adapted for suburban stores. Food manufactures are enabling rapid concept migration for these grocerant hybrid urban market products by assisting all retail chain foodservice directors develop new copy-cat products and rolling them out in competitor’s retail outlets.  

The fresh food landscape is evolving rapidly, Trader Joe’s, Walgreens, Starbucks, H.E.B., Whole Foods, Sheetz and Wawa are all leading the way garnering share of stomach from other legacy retailers. We call this the grocerant niche.  It’s clear to see the grocerant niche developing new stores, new formats, new locations.  The consumer is dynamic not static is your brand food dynamic? 

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more visit http://www.linkedin.com/in/grocerant

Why Cook tonight; it’s time for H.E. B.'s Café on the Run!

Working late, going to the theater, have an after school meeting, football practice taking up to much of your time or you simply don’t want to cook.  Not to worry.  H-E-B understands today’s time starved multi-generational families.  They also understand that 50% of US adults are single and simply have other distraction and not the time, talent, training to cook.  Simply put H-E-B understands the grocerant niche.

Mix and Match bundling of meal components is a hallmark of all quality grocerant programs. H-E-B’s Central Market’s Café on the Run is filled with chef prepared restaurant quality fresh options.  No matter the make-up of your family, Café on the Run  has awide selection of your favorite chef-prepared dishes, including Turkey Chile Meatloaf, Spicy Chicken Diablo, French Bean Salad, Mozzarella Tomato Basil sandwiches, soups, take-and-bake handmade pizzas, fresh pesto and a plethora of homemade sauces.

Café on the Run is ready-2-eat and heat-N-eat fresh prepared food with the full flavor of home cooking without the work or the price of a restaurant meal.  Success leaves clues and the ability to mix and match a quality office lunch or family dinner for one, two, for or the entire office or family is a perfect solution in today’s time starved world.

Central Market has even taken menu planning to the next level.  You want help here is  the special for (tonight) Thursday November 10, 2011 menu Beef Enchiladas, Spanish Rice, Borracho Beans, CM Flour Tortillas and Friday November 11, 2011 Buttermilk Pecan Chicken, Yukon Gold Garlic Mashed Potatoes, Green Beans Amandine, Whole Wheat Dinner Rolls .  Only one thing left, set the table. Thank you Grocerant niche.

Steven A. Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. He can be found on LinkedIn at: linkedin.com/grocerant, facebook.com/Steven Johnson, Twitter.com/grocerant

McDonalds moving up but who’s moving down?

During the past 4 decades hamburgers drove sales and propelled the overall restaurant industry.  Without a doubt the hamburger is now globally recognized as a penultimate American food.  It is ready-2-eat, hand held and prepared to eat on the run; convenient, simple and affordable.  Contrary to popular belief Americans do not eat hamburgers daily.  Today there simply is not room in the US marketplace for all of the hamburger chains in America today. Things are about to change.

McDonalds with innovative new products, continually reimaging stores and a focus on the consumer is the global leader in restaurant sales and the hamburger niche.  In the United States the undercurrents of a sector in upheaval and transition is emerging for every position except number one.  McDonalds is and will remain number one for many years to come.

However legacy second tier hamburger chains the ilk of Wendy’s, Burger King, Sonic are circling in a quagmire of their own making.  Each is trying to re-energize the halo of success they have not seen in years.  Success to date has proven allusive for each in their effort to re-energizing.  It is very likely that one or two of the three might very well be much smaller in five years than it is today.

One of the reasons is that there are new chain hamburger companies that are growing while garnering momentum including upstarts the ilk of Five Guy’s, Smashburger. Each is garnering market share from legacy second tier players and growing new units fast.

The next company in the QSR niche to watch will be In-N-Out Burgers.  If In-N-Out Burgers does half as well in Texas as they do in California and Nevada they will accelerate growth and watch out.  One of these three; Wendy’s, Burger King or Sonic might just scale back the way Burger Chef did.  Carl’s Jr. and Jack In The Box have repositioned and staked out a differentiated path yet the California economy nagging the sales door.

In fact we may have seen the tipping point at the mid-priced burger category now that seemingly all celebrities including the likes of, Bobby Flay, Emeril Legasse each have opened and are more and more gourmet burger restaurants.  While Red Robin and Fuddruckers struggle to maintain market share, The Hard Rock Café and TGI Fridays are trying to pull away from the burger category. 

Clearly some of the legacy players have lost focus. If they refocus on the consumer rather than hamburger niche they can regain momentum.  The upstarts with a focus on a “better burger or better for you burger”  are positioning to win; have momentum on their side and will continue to garner maker share. I believe a shake-out in the hamburger niche will begin with McDonalds staying at number the new momentum players will continue moving up.

Steven A. Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. He can be found on LinkedIn at: linkedin.com/grocerant, facebook.com/Steven Johnson, Twitter.com/grocerant

Fresh prepared ready-2-eat and heat-N-eat food continues to drive success.

Alice May Brock said: “Tomatoes and oregano make it Italian, wine and tarragon make it French, sour cream makes it Russian, lemon and cinnamon make it Greek, soy sauce makes it Chinese, garlic makes it good.” I say: grocerant meal components bundled and portable make a family meal, a happy meal!

Regional retailers can build differentiation via quality fresh prepared ready-2-eat and heat-N-eat food leveraging regional flavor profiles, local ingredients, allowing for meal component bundling which in turn creates family individualization and personalization.

Enabling customers to select from Italian,” American”, French, Spanish or Greek meal component, then utilize the components at home any way they like is a success step for a profitable grocerant.  The new American meal can be a composite of any prepared food components that the individual may want and they can mix and pair them any way as well.  Our society is a composed for people from all over the world, with different cultures, traditions and flavor preferences.  The new American meal is a melting pot of flavor and choice.

Consumers have been exposed to a plethora of flavors and have not the time to master the skill of cooking each.  This growing trend is empowering the consumer to establish new customs and traditions in eating better, more flavorful food.  The Grocerant niche is about convenient meal participation, differentiation and individualization.

Steven A. Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. He can be found on LinkedIn at: linkedin.com/grocerant, facebook.com/Steven Johnson, Twitter.com/grocerant

Subway is leveraging day-parts for success.

Subway’s message of better for you sandwiches and better for you concept has resonated with consumers.  The consumer interactive participatory assemble of the sandwich combined with the aromatic and visceral fresh baked bread has created a halo of better for you around the brand.  

 Unit sales were propelled higher with the price point promotion of the $ 5 dollar foot long.   Not only did the $ 5 dollar foot long edify the franchisee it edified the consumer with the brand creating additional contemporized consumer relevance.   

Currently Subway is running a bogo buy a sandwich before 9AM and receive another one of the same or lesser value for free.  The signal that Subway is sending to the rest of the retail food industry is look out we are serious about building breakfast and don’t intend on giving any ground on lunch.  This is one bogo that is a two meal deal.  Buy breakfast and get lunch.

Subway clearly is utilizing Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price; leveraging all brand attributes with the 5 P’s. Subway is building strong sales with an integrated grocerant niche food program leveraging distinctive differentiated food consumables as an entity with identity by day part which can be seen in the pictures above.

Steven A. Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at: http://www.grocerants.blogspot.com. He can be found on LinkedIn at: linkedin.com/grocerant, facebook.com/Steven Johnson, Twitter.com/grocerant

Holiday Food Trends 2011 finding comfort in traditional foods.

Recession, stagnation or double dip this year consumers are looking for food focused with “Flavor Flashback” albeit with touch of contemporized relevance. While the US unemployment rate is roughly 9.1% it is estimated that combined with the underemployed and those not even looking any longer the rate is 15.7% it’s clear a large portion of America is going without. Unemployment numbers are disproportionately high for those under 24 and over 55 increasing anxiety while creating a climate of disorder in the workforce it no wonder “flavor flashbacks” will be popular this year. 

According to the National Pork Board's second annual "Holiday Table Trends" survey. “Nine out of 10 Americans are looking to incorporate retro dishes into their holiday menus this year, Whether you're hungry for nostalgic flavors or modern twists”.

The report finds that consumer will be looking to include “trendy takes on deviled eggs and reinvented brunch classics make their way to the table.”  They found that consumers will be focusing on cooking strata’s to reduce the kitchen work while leveraging leftovers. Families will focus on finger-foods that are adult and kid friendly allowing for variety and smaller portions. Then for traditional with a new twist the suggest “Shaved Brussels Sprouts with Frizzled Ham”   

Here are some trends that we have heard about mashed potatoes with bacon gravy, green bean casserole with smoked ham and prosciutto wrapped deviled eggs.  Recession, stagnation or double dip this year consumers are looking for food.  Everyone here at Foodservice Solutions® asks that if you can, please donate to your local food back. 

Steven A. Johnson is Grocerant Guru at Tacoma, WA based foodservice consultancy Foodservice Solutions® and writes a blog at:http://www.grocerants.blogspot.com. He can be found on linkedin at:linkedin.com/grocerant,facebook.com/Steven Johnson, Twitter.com/grocerant

Its 4 PM do you know What’s for Dinner?

When 4PM rolls around most Americans start wondering what am I going to have for dinner and very few will even entertain the idea of cooking from scratch. Most people don’t have a clue what they want let alone what is for dinner. At least that is what research has shown over the past several years. 4 PM is the time that the competition between Supermarkets, Grocery Stores, Convenience Stores and Restaurants for share of stomach heats up. 

The grocerant sector, that is to say fresh prepared ready-2-eat and heat-N-eat fresh prepared food is booming. Grocery stores tout rapidly growing Takeout or Take Away foods that are fresh prepared ala restaurant quality. 7 Eleven is slowly rolling away from the roller grill and into fresh prepared consumer focused ready-2-eat and heat-N-eat fresh or prepared food. 

Grocery Stores and Supermarkets are pushing the high margin prepared portable food section all the while Convenience Stores are bundling and pricing ready-2-eat and heat-N-eat food extremely competitively. Whole Foods hot food stations are thriving all around the country. 

Restaurateurs are packaging, bundling and marketing Take Away and Togo food better than ever. The consumer focused on menu selection, portion size and price have responded nicely to the restaurant new offerings and customer counts are growing again. Subway is now entering breakfast in a big way with better for you products. 

Here at Foodservice Solutions we specialize in understanding successful bundling of the fresh prepared ready-2-eat and ready-2-heat food. It is the increasing margins and growing sales that are attracting restaurateurs, grocery stores and convenience stores into this sector.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com