Grocerant niche Mix & Match Meal Components are America’s Melting Pot

 

Conversation and food, meals, snacking, and beverages has become the one universal commonality that really has the power to bring everyone together. No matter what country, culture, or climate, eating inside or eating outside around the world, people get together to eat. Then we talk about wither what we ate or what we cooked and how according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solution®.

Today the U.S. multicultural population is projected to grow by 98 million people in the coming decades, multicultural shoppers will continue to have significant influence in determining what’s for dinner; according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

I was looking back at some research titled Multicultural The Why? The Behind The Buy™ that provided insight into the preferences of U.S. Hispanic, African American and Asian American shoppers that will continue to drive change.  Here is some of what they found:

·         More multicultural shoppers enjoy grocery shopping. Seventy-two percent of African American shoppers, 65 percent of U.S. Hispanic shoppers and 61 percent of Asian American shoppers reported this versus 56 percent of White/Caucasian (Non-Hispanic) shoppers.

·         Shopping with other people is more common among multicultural groups. Seventy-two percent of Asian American shoppers, 67 percent of U.S. Hispanic shoppers and 63 percent of African American shoppers reported shopping with others during their routine, regular grocery trips versus 55 percent of White/Caucasian (Non-Hispanic) shoppers.

·         Multicultural shoppers purchase groceries across more channels than total U.S. shoppers. Twenty-three percent of U.S. Hispanic shoppers reported shopping in a Hispanic/Ethnic grocery store in the past six months versus three percent of total U.S. shoppers.

Multicultural Shoppers Are Engaged with Brands

·         Forty-nine percent of U.S. Hispanic shoppers and 46 percent of Asian American shoppers agreed that they buy grocery brands that are authentic to their ethnic heritage.

·         Sixty-five percent of African American shoppers and 59 percent of U.S. Hispanic shoppers agreed that they are passionate about their favorite grocery brands.

·         Compared to total U.S. shoppers, more multicultural shoppers agreed that they buy brands that are socially responsible.

Convenient Meal Solutions Are Important

·         More multicultural shoppers brought grocery prepared foods home in the past thirty days. Seventy-six percent of U.S. Hispanic shoppers reported doing this in the past month versus 59 percent of White/Caucasian (Non-Hispanic) shoppers.

·         Seventy-six percent of Asian American shoppers reported ordering from a restaurant for pick-up/carry-out in the past 30 days versus 53 percent of White/Caucasian (Non-Hispanic) shoppers.

Multicultural Shoppers Comfortable with Grocery Digital

·         Forty-four percent of U.S. Hispanic shoppers reported reading a digital grocery flyer versus 35 percent of total U.S. shoppers.

·         Thirty-eight percent of African American shoppers reported using a search engine to find recipes online versus 28 percent of total U.S. shoppers.

·         Thirty-seven percent of Asian American shoppers reported using a shopping list on their mobile device versus 26 percent of total U.S. shoppers.

Do your food marketing ideations reflect the inclusion of today’s population? Or do you marketing ideation 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.

Cinnaholic Plant-Based Ingredients Drive Growth

 

How does your brand spell success?  At Cinnaholic the halo of ‘better-4-you’ is all about plant-based ingredients. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® brands that elevate messaging around the halo of ‘better-4-you’ garner trail and adoption faster than those that do not.

Hand held food for immediate consumption is at the center of all 67.9% of all restaurant transactions, according to the NPD Group.  Regular readers of this blog know that, Cinnaholic, is the brand that sparked a nationwide love affair with gourmet cinnamon rolls on ABC’s hit show, Shark Tank, is accelerating its expansion plans and is set to open 20 new locations across the country this year and another 80 locations by 2025.

Now with 54 locations open and 60 in development, Cinnaholic has earned a loyal fan following, setting itself apart as a “better-for-you” option exclusively using plant-based ingredients without sacrificing taste. The brand has set its sights on targeted franchise growth, zeroing in on key markets throughout the United States.  

Spencer Reid, President of Cinnaholic, stated, “Our franchise model has proven successful time and time again and we are excited to continue the momentum as we look to excel growth,” … “Last year was extremely successful year in terms of franchise development and systemwide gross sales growth overall by of 29%, further emphasizing Cinnaholic as a brand with incredible staying power.”

That’s right, Cinnaholic has set itself apart as a “better-for-you” option exclusively using plant-based ingredients without sacrificing taste. Its variety of frosting and topping options make each customer experience truly unique, appealing to sweet-toothed dessert lovers across North America. The brand also provides online pick-up and third-party delivery, catering services, serving sweet treats for events large and small from birthday or office parties to baby showers and weddings. Customers can expect nothing less than the highest quality ingredients, as the plant-based, vegan bakery franchise was founded upon a commitment that all ingredients must be animal-free and free of dairy, lactose, eggs and cholesterol.

In addition to low startup costs and manageable operations, franchise owners are provided extensive corporate training as well as real estate, construction, operations, marketing and grand opening support, making for a truly sweet franchise opportunity. This high performing business model has made Cinnaholic a highly sought-after franchise brand.

New business is driving growth and works well in upscale lifestyle centers, major city centers and near college campuses. A notable contributor to franchisees’ success is the relatively low cost of owning and operating a Cinnaholic location, specifically the small footprint (around 1,000 square feet) and low food and labor costs.

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 one of the following links: Facebook,  LinkedIn, or Twitter

At Casey's Partnerships Focus on Customer Touchpoints

 

Building top-line sales and bottom-line profits is the goal for all food retailers.  At Casey General Stores doing that means edifying customer touchpoints proactively.  According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® one of the best ways to do just that is building a ‘basket’ size.  In short giving customer more of what they want builds brand relevance and new electricity according to Johnson.   

In a new partnership, Casey's, teamed up with Buffalo Trace Distillery to develop a single barrel bourbon that is now available at select central Illinois locations.

Buffalo Trace single barrel select bourbon is available in 375-milliliter bottles at 65 Casey's locations in central Illinois. The offering is part of the company's work to innovate its beer, wine and spirits offerings, Casey's press release stated, adding that the partnership was formed as whiskey holds the number one spot in the spirits category.

Chris Stewart, director of packaged beverages for Casey's, "We are excited to bring our guests new and different items alongside industry leaders like Buffalo Trace Distillery," "The single barrel select bourbon will be a special find for our guests that get it while it lasts, and we plan to build more partnerships with iconic brands like this in the future."

Buffalo Trace Bourbon uses the distillery's mash No. 1 recipe, which is also used in popular Eagle Rare and George T. Stagg bourbons. Additionally, Buffalo Trace Bourbon won a Gold Medal at the 2020 World Whiskies Awards. The team at Foodservice Solutions® thinks Buffalo Trace Bourbon will create electricity.

How is your brand building 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, Hemp, developing brands, unique urban hemp 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 in Atlanta its all about ‘local’.  How is your brand building 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.”

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 GrocerantGuru.com 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.

 

Get Ready CBD-Infused Menu for 4/20 at Wings Over

 

Yes, 4/20 is the unofficial holiday for the ‘cannabis culture’.  Some say ‘420’ was a code for police officers back in the day when people were smoking ‘pot’ in public. Now that 19 states have ‘legalized marijuana 4/20 has come to mark the day that many restaurants introduce a new menu item infused with CBD according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Better act fast for one day only, Wings Over is infusing its signature Garlic Parm with CBD. The new flavor will be served on its famous wings, tenders, and tots.

Wings Over is serving up a special lineup on 4/20 with CBD-Infused Garlic Parm! Wings Over will be serving CBD Garlic Parm on its crispy wings, tenders, and tots! The limited-edition CBD Lineup will only be available while supplies last on Tuesday, April 20th!

Wings Over Chief Wing Officer, Dan Leyva, stated, “In 2019, guests loved our CBD Garlic Parm Tots so much that we decided to not only bring them back this year but also expand the lineup to include crispy wings and hand-breaded tenders.”

So, the CBD Lineup consists of three items: Tots, 4 Tenders, or 6 Wings tossed in a CBD-infused version of Wings Over’s signature Garlic Parm dry rub. Guests can order the CBD Lineup online via order.wingsover.com or on the Wings Over app at participating locations. Local age restrictions and ID verification apply when receiving these orders.

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

At Intersection of Tomorrow’s Hotel Industry and Fresh Food

 

Success does leave clues.  Today, we have a guest blog by Jean-Philippe Nuel.  Like Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® Nuel believe that now is the time evolve not remain as we once were ‘back in the day’ aka 2019. Nuel believes that hotels need ‘to reinvent, revitalize and reposition’ and the team at Foodservice Solutions® agrees.  Here is what he has to say:

It has already been a year since Covid-19 developed into a pandemic, along with its panoply of urgent measures to contain, combat and defeat the devastating effect of the virus. Confinement, curfews, travel restrictions—including the recent border closures in Europe—and frequent mandatory quarantines for international travel.

In the United States, New York City has gone dormant. The dynamism of the American megalopolis—the world's meeting point for business, art, diplomacy and tourism—has collapsed. The luckiest New Yorkers have been living in the countryside or in Florida for a year, and tourists are logically absent.

More than 67 million visitors were expected in New York in 2020. Only 23 million came, a staggering 66% drop. The impact on the hotel industry is spectacular. In September 2020, the New York Times headlined “A Complete Cleanup.” Iconic hotels have permanently closed their doors. Thousands of people lost their jobs. To get back to the numbers of 2019, we will have to wait until 2024, according to the New York tourism agency, NYC & Company.

Hospitality is one of the main collaterals and economic victims of Covid-19. The decline in clientele will continue even beyond the economic consequences of the health situation. Businesses have also realized that they can prosper with less travel. They can switch from in person meetings far away from the office into a virtual online meeting. Tourists are now more concerned about the environmental impact of short trips. While tourism is not expected to decrease, the consideration of carbon footprints of air travel may dissuade many in the future from flying around the world just for a weekend in New York. The fight against climate change should eventually lead people to travel less for short and distant tourism. 

The only alternative to this crisis is to reinvent, revitalize and reposition the entire hotel industry by offering fewer rooms and more space dedicated to activities other than lodging: relaxation (sports/spa), catering (restaurants and boutiques), work (meetings/co-working) and welcoming families (services appropriate to a family stay). The development and creation of these activities will be done in conjunction with the neighborhood or the city where the establishment is located.

The hotel will thus become a multi-purpose living space, both traditional and new, and will be able to propose synergies between all its services.

A new space layout will allow the hotel to offer:

    
    * Workspaces unlike the ones in a home or a meeting room in a business office. The objective is to create environments that are conducive to meeting, creativity, isolation and/or presentation. These work rooms can be rented on a one-time basis. Some of them, such as connected tables in a hallway opened on a green garden, could even be made available free of charge to guests or as a subscription for people living in the hotel's neighborhood. In order to optimize the return on investment of these spaces, the meeting rooms could even become a children's club on weekends, led by professionals, as part of a staycation offer.
    
    * More diversified entertainment services to welcome daytime, weekend and local vacationers. There will of course be areas for sports, swimming, yoga, meditation, connected bicycles and treadmills, and the possibility of taking group or individual classes. The hotel will offer an almost infinite list of possibilities to get together with friends or to get some fresh air: a private screening room, a cooking class, bike ride to discover the city in a different way, an art exhibition or a conference with a local author. Finally, there will be shops that meet the needs of guests and residents alike. The hotel will thus be able to create more life in the establishment and diversify its attractiveness as it is already the case with a Bakery at The Hotel in Barcelona or the Grand Hyatt in Mexico City.
    
    * More personalized, perhaps bigger, rooms with a more functional space for heating and preparing a meal, a more discreet desk, homier and more flexible than ever furniture and decor. The objective is to cater more to families and win back customers today seduced by community rental platforms such as Airbnb.
    
    * The second floor could be connected by a bright and wider staircase, lit with daylight to offer a hybrid function: suites composed of family and mini meeting rooms. The living room of the suite (equipped with a sofa bed, a table, and a micro kitchenette) can be transformed either into a living space for a family connected to one or two bedrooms, or a small meeting room for six to eight people.

Above all, let’s create products for everyone:

    
    * Local customers will find along with sports, swimming, cinema, shops, catering, and workspaces, a whole series of products to be consumed punctually or as a subscription. Nothing will prevent them from also choosing a hotel for a local getaway, a staycation.
    
    * Travelers will first look for an accommodation in a different setting, close to that of a house or an apartment, but will find within the hotel an access to entertainment, professional meetings and sales services, which will constitute a definite advantage over renting an apartment from an individual.
    

These two clienteles will constantly cross paths.

The hotel's sources of revenue will become even more diversified. Hotels will no longer be just a place to sleep, work, play sports, eat, and attend a conference, but will become a personal destination, a club in the heart of the city, inhabited by locals and a reflection of its environment. This upcoming hospitality industry does not break entirely away from the past. The Covid-19 is just accelerating its transformation.
 
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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Are Multi-branded Restaurant Companies a Platform for Success or Debacle?

 

Are holding companies that own a collection of chain restaurants a creating value for each brand or simply creating a melting pot of sameness? According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, “collecting mediocre chain restaurant brands without a point price, value, flavor differentiation that is distinct, without a plan to make them so, is not a good idea in 2021.”

Does Which of these companies could be the next ‘Sun Capital; Bloomin’ Brands, Landry’s, American Blue Ribbon Holdings, Golden Gate Capital, Ignite Restaurant Group?  I would like to know how many of our regular readers of this blog can name all of the chain restaurants own by each holding company listed?

We all know that customer is dynamic not static.  We also know that Sun Capital bought brands then practiced ‘brand protectionism’ all the while the customer moved on.  Does your brand look more like yesterday than today or tomorrow? Do you own a holding company filled with restaurant brands you are waiting to resurface, regain, re-energies consumers like they did when the brand was launched?

Many restaurant brands that at one time not only had ‘cachet, customer relevance, they had the pulse of the consumer, and an understanding of how to drive brand value.  At that point in each of the chains lifecycle other legacy retailers were running flat bought by investment groups have clearly had mediocre leadership that focused on the past glory days rather than the leadership skill-set to drive relevant growth. So, we ask, is that what is going on once again? If you can’t name their brands, it just might be.

Regular readers of this blog know that Sun Capital closed more Boston Markets than they opened, and have reduced Friendly’s from 500 units to 174.  Why, buy a chain restaurant that has lost its ‘mojo’ without a clear path drive top line sales and bottom-line profits?  How many mediocre restaurant brands have been stifled by those doing what they have always done and doing it the same way?

The value of a product or brand at times diminishes in consumer relevance as consumer evolve.. The team at Foodservice Solutions® understands that the consumer is dynamic not static. Here are 10 clues to keep your brand dynamic:

1. Symbolism. Why you are there! The most successful brands are inclusive include values greater than themselves. A lifestyle, a philosophy, an emotion a point in time.

2. A story. Most major brands have a story. Examples: if you like Ford vehicles, you might be familiar with the story of Henry Ford or if you love your Nikes, you probably know how the Nike swoosh logo was created.

3. A track record. When your business is first starting out, don't fool yourself into believing that your marketing efforts are 'brand building' efforts. They're not because to build a real brand, you have to have an extensive track record with consumers.

4. Trust. When you've consistently delivered for your customers long enough, you'll gain the type of trust that many brands have. Case in point: a friend of mine always reminds people that he won't buy an automobile that isn't a BMW. He's had a good experience with his and trusts so much in the company that he doesn't believe there's a better-made car.

5. Expectation. When a consumer chooses a product or service because of brand association, he or she is buying an expectation. Perhaps it's the expectation that the branded product is of higher quality or that the service will be provided in a more efficient manner.

6. Differentiation. Expectation is often borne of differentiation. Many brands offer products and services that are commodities but they're successful in developing some differentiation for their products and services that consumers are sold on.

7. Imitators. Imitation is the sincerest of flattery and you're probably not a 'brand' until you have competitors trying to copy you.

8. Market leadership. Top brands are usually looked at as leaders in the markets they compete in.

9. Adaptability. The best brands are flexible and capable of reshaping and reinventing themselves and their messages over time. Coca-Cola is a good example of a brand that has never abandoned its core product but has evolved its message over time to keep up with changes in the marketplace and society at large.

10. A strong marketing presence. Although it's nice to believe that you can market yourself for free on Facebook and Twitter, the reality is that brands aren't advertising on television and radio because they're dumb. Building and maintaining brand equity requires awareness and awareness requires broad marketing efforts.
Steven Johnson is Grocerant Guru® at Tacoma, WA based www.FoodserviceSolutions.us , with extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert.  www.GrocerantGuru.com  Office: 1-253-759-7869

Are you winning the Battle for 

Share of Stomach? 

FreshDirect Grocerant Growth is Customer Focused

 

Companies evolve, several years ago I was at a dinner with a group of industry leaders including founders of FreshDirect.  Like most companies starting out, they were highlighting their business model, and touting their success. I was touting the attributes of grocerant niche, meals, and meal components and questing if FreshDirect would every get into the niche. 

The answer was not never, not no, just kind of brushed off the question as not serious.  I guess I made my point.  While prepared foods and deli operations initially shut down at supermarkets across the country and many restaurants shuttered completely just as abruptly, savvy partnerships formed to bring consumers what they still wanted food from their favorite restaurants.

Today the question is, as vaccines continue to roll out and restaurants reopen to 50% or even full capacity, will grocery shoppers still want access to not only restaurant-quality, but actual restaurant-made food from their local supermarket? The answer according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® was simple. 

Back in the day when the grocerant niche was identified, quantified, and qualified, 1996 it was tabulated as 3.5% of food sales at restaurants, in 2019 it was hovering at 23.75 of sales.  Grocerant niche growth is not a forced fad, it is a trend that will level out but it is an accepted standard point of distribution today, tomorrow and I will continue to grow five years from now.

Now FreshDirect is counting on it. Acquired by Ahold Delhaize earlier this year is looking to meet its customers still at home while providing a new revenue stream for itself and local restaurateurs looking for ways to expand their business model and bottom line. So, FreshDirect’s merchant team, three New York City found culinary favorites, including Carbone, Nom Wah, and Milk Bar.  Which are debuting restaurant-inspired products for customers to prepare in their kitchens and enjoy at home, available for delivery through the online grocer. 

Get this, Carbone is partnering with FreshDirect to launch its line of Italian-American pasta sauces. Founded by James Beard award-winning pastry chef Christina Tosi, Milk Bar will be offering its tasty dessert treats through FreshDirect. And Nom Wah will launch a line of dumplings through the online grocer. Our Grocerant Guru® asks is that enough? Is it meals focused?

Not all restaurant meal components should be made into a CPG product.  That’s what Kroger, Walmart, and others have tried to do and have repeatedly failed at according to Johnson.

FreshDirect Chief Merchandising Officer Scott Crawford, stated, “Online grocery adaptation was the standout trend of 2020.  But we all know why. Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food has been growing at the rate of 9.7% a year for the past 6 years pre-2020.

A note to all grocery stores, there is a difference between a trend and a fad.  The grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food is not a fad, it is a platform that is garnering customer migration from all retail food sectors. Over look the sector at your own peril. Success does leave clues, so does our own Grocerant Guru®.  

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 us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter