Grocerant Niche Mix & Match Meal Bundling Success Clues

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® loves to tell audiences “Back-in the day a drive-in restaurant was something that you drove to, got out of your car, stood in line to order from a window, then waited for either your name or number to be called and informed that your order was ready to pick up at the same window.”

Yes, you had to stand in the hot sun or in the rain to both order and pick-up your food.  It was fast food, it was new, it was the ‘cool’ thing to do. O’ and by the way the Hot food was hot and the cold food was cold. On top of all of that it saved you time and money.  That proposition was so powerful there is hardly a street any where in the world today you can’t find a fast-food restaurant.

That said, consumers are dynamic not static and ‘that fast food era’ has come and gone.  Driven by customer demand, or maybe impatience, consultants began introducing ‘operational efficiencies’ that in time created the drive-thru we all know today. McDonald’s introduced ‘combo meal’ on menu boards as an operational efficiency simply to reduce the time it took consumers to order. 

That was then.  A new study by Revenue Management Solutions, looked at fast food restaurant sales during the pandemic lets see some of what they found:

Revenue Management Solutions, asked over 800 U.S. diners, 88% of whom eat out at least twice a week. The results suggest combo meals are likely to stay on consumers' minds and, most importantly, operators have more pricing leverage than they might have thought.

Combo meals are universally popular

Overall, 65% of respondents purchased a combo meal from a QSR in the past month. While most everyone seems to love "a side of fries with that," millennials with families are the likeliest to purchase a combo, and 47% of frequent buyers have a household income between $30,000 and $74,000.

These demographics have, in the past, led operators to assume that value is the greatest motivator for purchase. Why else would the meals be often dubbed "value" or "family meals"? But our recent survey debunks this theory. It turns out that affordability isn't the only reason consumers buy a combo.

Combo doesn't imply "cheap"

In an open-ended question, we asked consumers the reason for choosing a combo meal. The results were split across three common themes:

·         39% referenced efficiency, including speed and ease of ordering.

·         38% referenced economics, including value and affordability.

·         34% referenced product preferences, including favorite products all in a full meal.

Let's look a bit closer at these responses.

·         Efficiency. Respondents who chose "efficiency" referenced the degree to which convenience, ease and speed supported their decision to order "combo." Others suggested that the "all-in-one" solution reduced the overall cognitive load of orders (we're all tired, it seems). And speed is of major significance these days. The survey also revealed that a full one-third of respondents who reported experiencing a long wait were unlikely to return to the same restaurant.

·         Value. More than a third of respondents did cite "value," "cheap" or "a deal" as the reason for their order, recognizing that the combination of items should be more affordable than the sum of its parts. But when asked "How much cheaper?" no respondents offered a specific dollar amount.

·         Product preference. Respondents whose motivation fell into the "product preference" category chose a combo because they liked the idea of a "full meal" or felt the variety could "fulfill their needs." Others expressed a fondness for or familiarity with the combo meal. Others were just plain hungry.

The fact is today Drive-thru’s define the restaurant sectors, Price – Value – Service equilibrium. With fast food transactions comprising over 83.8% of all restaurant meals served in the U.S.; our Grocerant Guru® believes they set the standard for service for the entire foodservice sector.

Consumers are seemingly more time starved today than ever before and the likelihood they want to cook a meal from scratch 3, 5, or 7 days a week at home are highly unlikely.  So, what are you planning to help consumers put a meal on the table fresher, faster, and more flavorful tonight?

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information.  

Sheetz a Convenient Restaurant Retailer

Sheetz, with a focus on fresh food Made-to-Order, is winning the minds-eye of consumers when they think breakfast or lunch much to the chagrin of local restaurants according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® who stated recent grocerant scorecards found 87.3% of consumer buying food at Sheetz deemed it ‘restaurant quality or better’.

Now dinner is on the way and to help drive dinner sales, Sheetz has partnered with DoorDash to offer on-demand delivery of food and convenience essentials from more than 560 convenience stores across six states, including Pennsylvania, Maryland, North Carolina, Ohio, Virginia and West Virginia.

Now customers can place a Sheetz order for delivery through DoorDash's website or mobile app. In late January, they will also be able to order from Sheetz's website and mobile app, and have their items delivered exclusively through DoorDash Drive, DoorDash's white-label fulfillment platform that powers direct delivery for any business. That means that breakfast, lunch, or dinner mix and match meals and beverages can be delivered to your home or office.

Ryan Sheetz, vice president, marketing & brand, stated, "This new partnership with DoorDash allows Sheetz to significantly expand delivery options and further fulfill our mission to give customers what they want, when they want it, how they want it,". "Customers can still order from our extensive Made-to-Order menu and select custom options with the touch of a finger, and now, they can do it from the comfort of their home."

Now a variety of Sheetz's signature Made-to-Order (MTO) menu and Sheetz Brothers Coffee beverages will be available including, breakfast, lunch, dinner and appetizer options. Convenience items such as bottled drinks, energy drinks, candy, snack bars, chips and medicine will also be available for purchase and delivery through the platform.

Shanna Prevé, vice president, business development at DoorDash, stated, "We are excited to partner with Sheetz to expand selection across the Mid-Atlantic region and give consumers a fast and simple way to access their favorite Sheetz convenience items, Made-to-Order foods, and more, on-demand".

How are you driving new electricity into your brand?  Which daypart are you building?

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 

Everytable Expands the Halo of ‘Better-4-You’ into Industry Disruption

 

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® was one of the very first food industry insiders to write about, talk about and commend the team at Everytable for their food offering and company focus. Back in the day, Everytable (2015) concept focus was to bring healthful grab-and-go food to lower-income neighborhoods at an accessible price that has now grown into an omnichannel fresh prepared food business with big plans for expansion, and they did a good job of that.

Today, Everytable has 13 retail outlets offering grab-and-go meals in Los Angeles. So, get this, in 2022, that number will grow to 60, expanding throughout Southern California and moving to New York City for the first time. The concept also has a booming e-commerce business offering meals for delivery, as well as a subscription service. Technology matters and Everytable will be adding a new app will launch this year for ease of ordering and cashless payment in stores.

Even further, Everytable is growing its more than 100 unmanned Smart Fridges in sites like hospitals or schools with fresh food offerings. The company has partnered with city agencies to feed seniors and folks in temporary housing programs. And Everytable is planning to expand catering in 2022, offering large-format meals for business meetings or events.

Success does leave clues and it now looks as if, 2022 will be the year the first group of franchisees graduate from Everytable University and take ownership of their own stores after going through a rigorous training program that includes coursework on leadership — from financial management to dealing with the loneliness that can come with being an entrepreneur.

A different business model at Everytable is sure to garner industry attention; as those approved will, be able to open units with no up-front costs removing what is often an insurmountable hurdle. Traditional franchising can require operators to bring as much as $2 million upfront.

That’s right no up-front cost, at the center of this franchising initiative, which today has six franchisee candidates, is Christine Hasircoglu, Everytable’s senior vice president of store operations, who has been with the company for almost five years since Everytable was a team of five.

This model may not be for you, but it just might be for a lot of other new companies that are looking for quality people and want to grow according to Johnson. Now, Hasircoglu’s challenge is not only building a vertically integrated food production, and delivery system that makes healthful food available at a price lower than fast food, but also working to put ownership and leadership of that system in the hands of women and minorities.

Christine Hasircoglu, stated, “When you look at women and minorities in our industry, it’s oversaturated at the frontline hourly work level. But as you ascend the ranks, their representation decreases”. “So, when you get to the executive level, the percentage of minorities and women in those roles is low. My big idea is to level up the next generation of hospitality leadership and talent in our industry with the goal of redistributing power and wealth by creating pathways to ownership and pathways to leadership.”

It gets even more interesting, when you consider that working with Hasircoglu is Bryce Fluellen, executive director of social equity franchises, who joined Everytable in September 2020. Previously a regional director for Starbucks who later worked with Magic Johnson Enterprises’ restaurant operations (Starbucks and TGI Fridays), Fluellen cofounded a catering business and worked with the American Heart Association on community education before joining Everytable.

Fluellen believes the Everytable model can transform franchising the same way it intends to disrupt the food system.

In a Battle for Share of Stomach

Will you be Competitive in 5 Years?

Fluellen, stated, “It’s not easy to bring something to life that you see and no one else sees, but I like to be in those situations”. “Three or four years from now, we will have franchisees who not only are successful in their one store, but may have multiple stores, are able to have economic mobility and create wealth for their families, and are able to have a dream of buying a house or investing money and having money saved. That’s when I feel like I’ll be successful.”

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.

Casey's Food Partnerships Drive Authenticity

 

Mix and match meal component bundling is a hallmark of grocerant niche Ready-2-Eat and Heat-N-Eat platform of success.  Consumers love snacks and consider them at times a meal replacement, appetizer, of many times treat for the end of the meal according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Understanding that retail food partnerships can drive trial, top-line sales and bottom-line profits while edifying the brands authenticity. Casey's General Stores recently teamed up with premium hot sauce brand Lola's Fine Hot Sauce to bring some spiciness to the convenience store operator's snack category with three new products, new Zesty Jalapeño Peanuts, Zesty Jalapeño Cashews, and Zesty Jalapeño Pretzels.

There is no doubt that Casey’s is zeroing in on grocerant niche prepared foods sales to drive growth. Ready-2-Eat and Heat-N-Eat food, Casey’s CEO called “the jewels of the Casey’s business,” the breakfast daypart has seen a comeback after taking a significant hit during the worst days of the COVID-19 pandemic. A focus on bean-to-cup coffee has delivered big results, as has a renovated signature handheld item made with fresh dough.

Casey's Chief Merchandising Officer Tom Brennan, stated, "We are excited to introduce these new, tasty snacks with Lola's unique flavor into our Casey's snack offering across our over 2,400 stores," said. "Our guests expect convenient, delicious options at a great price when they stop at their local Casey's. By partnering with Lola's, we're able to deliver on that promise while supporting another business in our community."

The retail prices for the new spicy snacks are:

·         99 cents per pack for Casey's Zesty Jalapeño Peanuts;

·         $3.49 for Casey's Zesty Jalapeño Pretzels; and

·         $3.99 for Casey's Zesty Jalapeño Cashews.

Taufeek Shah, founder and CEO of Lola's Fine Hot Sauce, stated, "Our partnership with Casey's means a lot to our small, family-owned business. Our generational family recipe hot sauce has the perfect flavor with just the right amount of heat that the Casey's guests are looking for and is the perfect partnership"… "With both companies established right here in the Des Moines metro, it's incredible to see a growing, leading retailer like Casey's support local and diverse businesses. We couldn't be more thankful and humbled to be part of the Casey's family." 

Extending the Casey’s brands halo of “better-4-you’, Lola's products are made from all natural ingredients and are vegan, keto friendly and gluten free. In case you are not a regular reader of this blog, Casey's is the third-largest convenience store retailer and the fifth-largest pizza chain in the United States.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Technology Empowers KFC to Think Big act Small

 

Data matters.  Technology had changed how food marketers evolve the brand.  Companies that elevate data’s importance are also edifying the technology they use to garner that data according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Let’s look at an example using Yum China.  They recently announced that its KFC brand is tapping into regional Chinese cuisines and adding traditional local dishes to its menu. In 2021, to support further market penetration and meet the diversified needs of Chinese consumers, KFC launched 12 regionally inspired menu items across dayparts and introduced regional menu items for the first time.  Garnering local data from not traditional sources can drive top-line sales and bottom-line profits. Decentralization of a chains menu works, and drives incremental brand value.

So, in January 2021, KFC launched hot dry noodles at more than 100 stores in Wuhan, making it the first noodle product since entering China. In September 2021, after launching a series of locally inspired snacks in different cities, hot dry noodles became the first regional menu item to launch at KFC stores nationwide as an LTO. Over 1 million bowls of hot dry noodles were sold within a week of launching, becoming KFC's best performing LTO breakfast item in the past three years. What are, your customer eating when they are not eating at your restaurant?  What technology can you deploy to garnering customer insights?

Joey Wat, CEO of Yum China, stated, "China prides itself on having rich and diverse food scenes. Almost every city has its own food specialties, particularly when it comes to breakfast,". "Launching regional menu items is part of our strategy to relentlessly pursue food innovation, which helps us respond to fast-changing consumer demands and keep up with the latest trends."

Once again customers are dynamic not static and edifying your brand with technology can drive positive change while edifying customer relevance. Get this, including the launch of hot dry noodles in January 2021, 12 locally inspired menu items were launched in 10 regional markets during the year, covering breakfast, afternoon tea and dinner dayparts.

The regional breakfast products, including hot dry noodles, xiaolongbao (steamed dumplings) and hulatang (hot pepper soup) have been well received by customers, the company said. The launch of xiaolongbao in Hangzhou was expanded to Shanghai and other cities in the Yangtze River Delta region, generating positive feedback from customers. Hot dry noodles and xiaolongbao have since become permanent fixtures on KFC's breakfast menus in Wuhan and Hangzhou, respectively.

So, selected regional menu items have been added to KFC's retail product portfolio, available both in stores and via online channels. In September 2021, hot dry noodles, hulatang and yanpi wonton were launched locally via KFC's retail channels, including the KFC Super App, and e-commerce stores. If KFC and do it so can you.  Do you need help? Think big with brand building menus while driving brand value in local markets. 

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Panda Express Focusing on Family

Interactive, participatory, brand marketing is the best tool in a food marketers tool box according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  When a brand extends its brand invitation to all members of the family it eliminates the ‘veto’ vote what the most dreaded daily question pops up, What’s for Dinner.

Recently Panda Express introduced the Good Fortune Arcade, an online 8-bit game developed for guests to interact with the rich traditions of the Lunar New Year. Why is this so important? Simple both Millennials and Gen Z consumers are digital natives and gaming is second nature to them.

Putting time bounded limits on the is a call to action that is sure to drive trial. The Panda Express Good Fortune Arcade game is available through Feb. 15. Guests can visit pandaLNY.com to play the game and learn more about the origin story and food symbolism of Lunar New Year, while also receiving exclusive online offers at each level of the game, according to a press release.

As part of its annual tradition, as regular readers of this blog know, Panda is also bringing back in-store lucky red envelopes on the celebration day of Feb. 1, gifting guests with a limited time Family Meal promotion.

Andrea, chief brand officer, Panda Express, stated, "Every year, we look forward to celebrating Lunar New Year with our guests, as this holiday universally signifies the importance of family and togetherness — the key values that also define us as a family-owned American Chinese restaurant,"... "We are in a unique position to share culture and traditions through timeless and innovative experiences that both new and existing Lunar New Year celebrants can enjoy. With the Good Fortune Arcade, our goal is to create an authentic and inclusive way to bring people together over good fun and good food."

Get this, the Good Fortune Arcade game consists of four levels, and players are tasked with catching the legendary monster behind the holiday's origin, Nian, who has stolen their lucky foods. In each level, players will work to collect these lucky dishes, while dodging obstacles along the way. After each completed level, players will unlock a fortune card containing a discount code for online ordering only on PandaExpress.com or the Panda Express app through Feb. 28. How are you extending you brand? Why? To Whom?

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 

Hy-Vee Talking Success

 

Hy-Vee is elevating it branded messaging too drive top-line sales and bottom-line profits the old fashion way but with a twist that they hope with drive new electricity into it brand. Once again, a larger food chain retailers is leveraging a partnership to drive success. How is your brand building new electricity?

According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, “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, free food / sampling, talking, 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 retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, full flavored and fresh, with differentiation that is familiar not completely different according to Johnson.

In a Battle for Share of Stomach

You Can Win

The new partnership is strategically targeting customers at the point of purchase, Hy-Vee has agreed to a multiyear partnership with Vibenomics Inc., a location-based audio out-of-home (AOOH) advertising and audio experience company to elevate its brands relevance. 

So, just what does that mean talking to consumers? Vibenomics broadcasts hyper targeted on-demand audio advertisements and curated playlists, delivered through flexible plug-and-play, proprietary Internet of Things (IoT)-enabled media players.

That said, they can do it within any combination of locations across its swiftly growing national footprint, unlocking a powerful new shopper marketing channel for reaching consumers during the critical final footsteps along the path to purchase.

Through a first-of-its-kind partner program, retailers can receive a portion of revenue for all advertisements sold by Vibenomics that play within their locations, giving them the ability to monetize their private airwaves and transform a legacy expense into a new profit center. Think about this, building your brand, while reducing the cost to do so.  Don’t you just love the retail foodservices evolving business model?

Beginning Feb. 15, Vibenomics will bring targeted, specialized music and messaging into more than 400 Hy-Vee locations across the grocer’s eight-state region. Vibenomics will work closely with Hy-Vee to determine which categories of advertisers, brands or specific products to promote on its airwaves while considering the type of shopper experience it strives to deliver.

Brent Oakley, CEO at Fishers, Ind.-based Vibenomics, stated, “We’re thrilled to continue building our retail media presence by partnering with Hy-Vee, an innovative grocer who sees the potential of monetizing their audio with Vibenomics,” ... “As a company, we’re evangelizing AOOH’s value and partnering with retailers like Hy-Vee to incorporate media capable of creating memorable shopping experiences.”

Get this, Vibenomics has made significant strides in owning the programmatic AOOH, reaching up to 63% of the total U.S. shopper population. The company recently partnered with Vistar Media to expand The Trade Desk’s omnichannel demand-side platform to support AOOH. Vibenomics also has an ongoing ongoing relationship with Kroger at more than 2,500 locations nationwide.

But that’s not all, with its cloud-based technology, licensed background music library, data integration capabilities, full-service team of audio experience experts, and network of on-demand professional voice talent, Vibenomics provides the right revenue-enhancing vibe for 150-plus advertisers in more than 6,000 locations across 49 states, reaching more than 210 million people.

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