Showing posts with label Branding. Show all posts
Showing posts with label Branding. Show all posts

Friday, January 31, 2025

Grocerant Guru Says Wingstop & OPI’s ‘Snack in :60 Challenge’ is a Brand Invitation Others Should Have Thought of First

 


Food marketing is all about relevance, timing, and creating a brand invitation that turns heads. The latest collaboration between Wingstop and OPI hits all three marks, proving once again that consumer behavior is the key to unlocking incremental sales growth according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In a world where grocerant niche Ready-2-Eat and Heat-N-Eat fresh foods continue to drive consumer migration from traditional restaurants to convenience-driven options, Wingstop’s newest partnership with OPI’s RapiDry Quick-Dry Nail Polish exemplifies a mix-and-match meal solution that extends beyond just what’s on the plate—it’s a cultural moment wrapped in indulgence, convenience, and self-expression.


Why This Collaboration is Food Marketing Gold Wingstop, known for its craveable, sauced-and-tossed wings, and OPI, a leader in nail color innovation, are tapping into a consumer truth: no one likes to wait. This collaboration is built on real-world consumer habits—today’s customers are not only looking for bold flavors, but they also want experiences that fit seamlessly into their fast-paced lives. According to food industry data, 63% of consumers decide what they’ll have for dinner after 4 PM, and nearly 50% of meals today are consumed alone. This means convenience-driven, low-friction dining solutions win every time.

Enter the Snack in :60 Challenge, where fans are invited to paint their nails with OPI’s new RapiDry Quick-Dry Nail Polish and then grab their made-to-order Wingstop wings within 60 seconds—without worrying about smudging their fresh manicure. That’s a mix-and-match meal solution beyond just food—it’s about integrating lifestyle choices into dining occasions.


Why This is a Grocerant-Style Game Changer Grocerant niche success is about bundling, relevance, and timing. This partnership checks all the right boxes:

1.       A Perfect Pairing for Young Consumers: Gen Z and Millennials, the most influential consumer groups today, thrive on social-driven experiences that combine food, self-care, and entertainment. This campaign builds on those consumer behaviors while giving brands a competitive edge.

2.       Driving Incremental Sales Through Bundling: Bundling food with an engaging lifestyle product enhances brand value. Other brands should be asking themselves: Why didn’t we think of this first?

3.       Creating a Brand Invitation: Every retailer, restaurant, and C-store needs to rethink how they engage consumers beyond just food. This partnership extends beyond traditional marketing—it's an invitation to interact with the brand in a new, exciting way.


A Lesson for Foodservice Operators & C-Stores This kind of cross-industry collaboration is something restaurants, grocery stores, and even convenience stores should be exploring. The concept of ‘meal occasions’ is shifting, and brand relevance now depends on how well companies adapt to the consumer lifestyle. From boxed meal solutions to gamified promotions that drive digital engagement, the Snack in :60 Challenge should be a wake-up call for competitors.

So, while fans get ready to take on the challenge with their exclusive OPI RapiDry x Wingstop Snack in :60 Kit—which includes two OPI RapiDry shades, a 60-second timer, and a Wingstop gift card—other brands should be strategizing their next move. Because in today’s fast-paced foodservice landscape, being late to the game means missing out on a feast of opportunity.

The Snack in :60 Kits will be available beginning Friday, January 31 at 12 p.m. ET through Wednesday, February 5 at 9 p.m. ET at Snackin60.com—but only while supplies last.

For the rest of the industry, the Grocerant Guru asks: What are you waiting for?

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 participationdifferentiation 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



Saturday, December 28, 2024

Coffee Sector Conundrum: Price and Innovation Win Legacy Brands Falter as New Regional Chains Shine

 


The coffee sector is facing a dynamic shift as legacy brands struggle to innovate while new regional players capitalize on customer preferences for value, quality, and service. As consumers redefine what they expect from coffee experiences, price sensitivity and innovative offerings are driving a wave of migration away from industry stalwarts. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® predicts this trend is only accelerating, leaving no end in sight for the upheaval in one of the most profitable foodservice sectors.

The Legacy Brand Struggle: Too Little, Too Late

For years, legacy coffee chains have relied on brand familiarity, standardized menus, and their historical dominance to hold market share. However, as inflation pinches consumers' wallets and expectations for personalization, service speed, and innovation rise, these brands appear to be losing touch with their audience. Many are now bogged down by dated operations, stale product lines, and an inability to price competitively while maintaining perceived value.

The conundrum: higher prices without higher customer satisfaction. Recent food industry data reveals that 65% of coffee drinkers prioritize price over brand loyalty. Couple that with 47% of consumers seeking regional specialty options, and the landscape becomes fertile ground for disruption.

 


Predicting Decline: 3 Legacy Brands at Risk

1.       Starbucks: Once the gold standard, Starbucks faces stiff backlash from years of price hikes. Frequent customer complaints highlight shrinking portion sizes, order inaccuracy, and subpar customer service due to mobile order chaos. Its over-reliance on technology reduces the human touch, leaving customers unsatisfied and open to alternatives.

o    Sales growth is slowing in mature markets as customers explore boutique options.

o    Frequent store closures in underperforming locations signal a larger struggle ahead.

2.       Dunkin': While affordable, Dunkin' has struggled with maintaining consistency in product quality and its rollout of innovation. New beverage options often appear half-hearted compared to regional competitors, especially among younger demographics looking for unique flavor offerings.

o    Challenges include limited regionalized products and declining afternoon sales.

o    Store attrition in the West underscores its inability to broaden appeal outside core markets.

3.       Tim Hortons: Despite being iconic in Canada, Tim Hortons has stumbled in the U.S. market by failing to adapt to local preferences. Its emphasis on generic menu items over modernized, niche coffee beverages alienates experience-seeking customers.

o    Sluggish growth in U.S. markets contributes to steady customer churn.

o    Lack of innovative bundling strategies hurts all-day dining sales.

Combined, these brands are faltering in ways that extend beyond short-term challenges. Without reimagining their strategies to include tailored pricing, creative flavors, and exceptional service, the decline in market relevance will continue.

 


The Rise of the Regional Innovators

On the flip side, a new wave of regional coffee chains is redefining customer value by focusing on the elements that drive brand adoption and loyalty: competitive pricing, regional flavor twists, and superior service. These emerging leaders blend experiential elements with functional convenience to steal share from legacy brands. The Grocerant Guru® predicts these chains will lead the next evolution of the coffee sector:

1.       Dutch Bros Coffee: Founded in Oregon, Dutch Bros combines competitive price points with an extensive menu of creative beverages tailored to younger audiences. Its use of drive-thru-only models aligns perfectly with speed and convenience demands.

o    Sales skyrocketed 45% year-over-year in many regions.

o    New store openings across key markets reinforce its upward momentum.

2.       Scooter's Coffee: By specializing in specialty coffee and breakfast items served with a community-first approach, Scooter's Coffee has gained momentum among budget-conscious consumers who still crave flavor innovation.

o    Its focus on regional market expansion and customer service excellence sets it apart.

o    The loyalty of local customers positions Scooter’s for sustained long-term growth.

3.       Black Rifle Coffee Company: Leveraging strong brand messaging, a niche customer base, and bold flavor options, Black Rifle has established a reputation as a premium coffee innovator without alienating middle-market customers.

o    Their growth strategy includes retail diversification and proprietary packaging that empowers fresh coffee adoption at home.

o    A cult-like following ensures stable, loyal revenue streams.

These chains share a critical advantage over legacy coffee competitors: their ability to connect with today's consumer touchpoints. Whether it's Dutch Bros' unparalleled speed, Scooter's personalized customer interactions, or Black Rifle’s distinct branding, these companies are capturing momentum where legacy brands lag.

 


3 Key Ways Regional Coffee Brands Are Winning

1.       Mix-and-Match Flavor Options: New coffee chains attract customers with endless customization opportunities. Limited-edition regional flavors, bold offerings like energy drinks, and iced or hot variations allow customers to make every visit their own.

o    Fact: 78% of Gen Z coffee drinkers value unique seasonal beverages.

2.       Better Price-to-Value Ratio: Competitive pricing without sacrificing perceived quality drives adoption among value-focused households.

o    Dutch Bros leads this charge with strategic pricing in key regional markets, maximizing check averages while maintaining affordability.

3.       Community and Customer Service Excellence: Technology augments the customer experience, not replaces it. High-touch service models with faster, more accurate orders are keeping regional players ahead.

o    Fact: 62% of coffee customers say friendly staff influences brand loyalty.

 


The Grocerant Guru’s Prediction: Innovation Fuels a Coffee Renaissance

The coffee sector conundrum boils down to this: price increases without equivalent innovation spell disaster for legacy players. Meanwhile, nimble regional chains are redefining what success looks like with a hyper-focus on flavors, speed, and price that align with modern customer demands.

Expect Starbucks, Dunkin', and Tim Hortons to face continued erosion of market share, shrinking footprints, and declining sales. In contrast, Dutch Bros, Scooter’s Coffee, and Black Rifle Coffee will not only maintain their upward momentum but drive substantial industry disruption through innovation, value, and brand loyalty.

Coffee brands unwilling to adapt will find themselves relegated to history, while innovative chains embrace growth and steal market share sip by sip. The coffee renaissance has begun—and there’s no end in sight.

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


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Saturday, December 21, 2024

Are You Buying a Floundering Restaurant Brand or the Locations?

 


In the last decade, the foodservice and commercial real estate industries have increasingly overlapped, especially as restaurant chains falter under the weight of declining consumer relevance, rising operating costs, and outdated models, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The key question facing investors today isn't whether the struggling restaurant brand can be turned around—it often can't—but whether the value lies in the locations themselves rather than the banner on the front door. Examining food industry trends over the past ten years shows a stark truth: most struggling restaurant brands are weak and stay weak, while their prime locations remain an overlooked asset.

 


The Historical Picture: Floundering Brands Stay Floundering

The narrative of restaurant brand failure isn't new. Over the last decade, Sbarro, Friendly's, Quiznos, and Blimpie are prime examples of brands once perceived as strong yet faltered due to – among other reasons – poor management, lack of innovation, and a failure to keep up with consumer dining preferences. For brands like these, even changes in ownership failed to inspire enduring growth.

The harsh reality: Most struggling brands don't possess the relevance to rebound. According to Technomic's industry data, nearly 70% of restaurant brands that fall into steep decline fail to regain market momentum, despite reorganization efforts.

Why?

·         Consumer Migration: Customers are increasingly loyal to convenience, quality, and value-driven competitors, such as fast-casual chains, grocerants, and third-party meal delivery options.

·         Identity Loss: Brands too far removed from their original core identity (think: inconsistent menus and uninspired innovations) lose emotional appeal.

·         Market Saturation: A once-beloved concept might fail not because it's universally flawed, but because it became redundant among the dining landscape.

These brands remain locked in cycles of discounting and ‘revamped concepts’ that yield minor bumps but no sustained profitability. In short: A bad brand doesn't age well.

 


The Power Is in the Locations

The locations that these struggling restaurants occupy, however, tell a different story. While the banners above the doors fade, the physical real estate remains a highly prized asset. Prime locations in areas of strong foot traffic, suburban centers, and growing metropolitan corridors hold value far beyond a legacy brand's diminished returns.

Consider this:

·         The National Restaurant Association reported that 50% of restaurant visits over the last 5 years occur in convenience-centric spots such as mixed-use developments or neighborhoods experiencing demographic booms.

·         Well-positioned buildings with drive-thru infrastructure remain particularly lucrative in the age of delivery and off-premises dining, increasing value regardless of whether a restaurant chain fails.

Key takeaway: Investors can often derive more profit from the real estate redevelopment or repurposing of these spaces rather than sinking funds into revitalizing a stagnant brand. A floundering concept may only stand in the way of unlocking greater commercial potential.

Who Are You Competing With for

Share of Stomach


 

Investor Pitfalls: The Skill Set Problem

In many cases, groups acquiring struggling brands fail to identify their weaknesses—either by overestimating their own ability to breathe life into stale restaurant concepts or by ignoring emerging foodservice trends.

Two Major Realities:

1.       Lack of Operational Expertise: Many buyers come from real estate, finance, or outside sectors and lack the hands-on, forward-thinking expertise to rejuvenate failing restaurants. A familiar name, historical familiarity, and perceived nostalgia often trick investors into thinking a brand still holds latent consumer appeal.

o    Example: When Quiznos franchises were acquired by investment groups, owners misread the consumer's appetite for new, healthy QSR innovations, while Subway and Jimmy John's surged ahead with agile branding strategies.

2.       Failure to Create Consumer-Relevant Brands: Most struggling brands falter precisely because they aren't meeting today's consumer expectations. Acquiring firms without the vision to pivot to fresh, on-trend dining models simply accelerate the brand's demise.

o    Meanwhile, success stories like Sweetgreen, Shake Shack, and Chipotle show how forward-thinking brands capitalize on flavor innovation, pricing transparency, and frictionless delivery models.

In essence, many buyers fail to identify whether they're truly purchasing a viable concept or merely saddling themselves with an albatross.

 


Case Study Examples

·         Ruby Tuesday: Acquired several times over the last decade, Ruby Tuesday's core weaknesses persisted—uninspired casual dining, bloated menus, and neglected store upkeep. The high-value real estate that locations occupied (near major retail hubs and suburban crossroads) became more valuable than the brand itself. Buyers failed to capitalize on newer food trends, accelerating its closure rate.

·         Burger King Locations Redeveloped: In the wake of closures across declining markets, numerous Burger King franchises turned into profitable Starbucks or Chick-fil-A spots. Well-situated sites with high-volume traffic lived up to their potential, even when the Burger King banner had not.

The Future Outlook: Redevelop, Don't Rescue

As restaurant industry competition intensifies and consumer expectations evolve, underperforming restaurant brands will remain risky purchases. However, for savvy buyers, the locations present strategic advantages far exceeding their operational histories. When high-demand areas meet physical spaces built for dining convenience—drive-thru, delivery access points, and high-traffic areas—the opportunities multiply.

Consider this actionable framework for buyers:

1.       Prioritize Location Metrics: Location value lies in high consumer visibility and service capability, not in legacy nostalgia for old brands.

2.       Redevelop for Consumer Relevance: Convert failing locations into new QSR concepts, mixed-use retail, or on-trend grocery partnerships (e.g., ghost kitchens).

3.       Assess Market Conditions Aggressively: Brands with sinking operational metrics—plummeting comp sales, shrinking margins—indicate future stagnation regardless of ownership.

 


Think About This: Real Estate Triumphs Over Nostalgia

The last decade has cemented this fact: the restaurant industry rarely rewards outdated concepts trying to claw their way back to relevance. Many investors chase failed turnarounds for far too long—while smarter players recognize the enduring value of prime real estate. Floundering brands are risky ventures, but their locations can serve as fertile ground for the next big concept.

Savvy investors don't ask whether they can revive an underperforming chain. Instead, they ask: How much value can we unlock from where that restaurant stands?

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.



Tuesday, December 17, 2024

Chi-Chi's: Reimagining a Legacy Brand for the Modern Consumer

 


Chi-Chi’s, once a celebrated pioneer in Tex-Mex cuisine within the United States, retains an enduring allure despite the closure of its U.S. restaurants in 2004. Today, the brand survives through a robust retail presence, primarily focused on salsa, tortillas, and related products. With consumers increasingly craving bold flavors and convenient meal solutions, Chi-Chi’s stands at a unique crossroads: leveraging its nostalgia-driven brand equity while evolving to address modern consumer expectations through menu innovation, elevated branding, and updated store aesthetics according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

This transformation hinges on the balance between nostalgia, innovation, and operational adaptability, positioning Chi-Chi’s for a bright and relevant future.

 


A Legacy Reinvented: The Role of Nostalgia in Branding

Chi-Chi’s history is a powerful asset in engaging with consumers who hold fond memories of the brand. Research from Nielsen reports that 67% of consumers are more likely to connect with brands that evoke a sense of nostalgia. Several legacy brands have successfully harnessed this emotional power, providing Chi-Chi’s with a proven pathway.

Reinforcing Familiarity:

·         Revitalize iconic branding elements, such as the original logo, packaging designs, and famed restaurant recipes. These provide visual cues that tie Chi-Chi’s legacy to its present-day offerings.

·         Develop a campaign celebrating Chi-Chi’s historical role in popularizing Tex-Mex cuisine, positioning the brand as a trailblazer in culinary inclusivity.

Appealing to Memories and Traditions:

·         Amplify themes of celebration and community in marketing—emphasizing Chi-Chi’s as “Where Every Night is a Fiesta.” Align this with family-oriented meal kits and snack bundles to drive authenticity and relatability.

·         Draw inspiration from Coca-Cola’s retro branding playbooks, crafting seasonal promotional products with vintage packaging.

Opportunity to Build 


Share of Stomach 


Innovating for Modern Consumers: Beyond Tex-Mex Staples

The foodservice and retail industries are shifting rapidly, driven by consumer demand for authenticity, convenience, and health-forward dining options. Chi-Chi’s can appeal to evolving tastes while expanding its brand footprint in untapped channels.

Expanding Offerings:

·         Introduce innovative Ready-2-Eat and Heat-n-Eat meal kits for grocery stores, featuring core products like tortillas, enchilada fillings, and guacamole kits.

·         Infuse menus with authentic Mexican-inspired options, focusing on regional specialties such as cochinita pibil tacos or pozole, appealing to adventurous eaters seeking global flavors.

·         Develop seasonal recipes that inspire consumers to incorporate Chi-Chi’s products into holiday and celebration menus, supported by robust digital content showcasing meal ideas.

Enhanced Technology Integration:

·         Use QR codes on retail packaging to link consumers to recipes, cooking tips, and even loyalty rewards—turning every product purchase into a direct brand connection.

·         Explore voice-enabled ordering options compatible with smart home devices for quick grocery replenishment, blending technology and convenience.


Engaging Younger Demographics: Staying Relevant Across Generations

Chi-Chi’s must connect with Millennials and Gen Z consumers who prioritize experiences, sustainability, and technology integration in their brand choices. According to Pew Research, these younger consumers are particularly drawn to brands with relatable, contemporary messages.

Interactive Marketing Strategies:

·         Deploy TikTok and Instagram campaigns celebrating user-generated content around Tex-Mex culinary hacks, such as “5-minute Fiesta Bowls” using Chi-Chi’s tortillas.

·         Create a limited-edition product series designed by influential foodie creators, underscoring collaborations that speak to this demographic.

Sustainability as Strategy:

·         Commit to eco-friendly packaging, such as biodegradable tortilla wraps or glass salsa jars, reinforcing environmental stewardship.

·         Highlight transparent ingredient sourcing, emphasizing local and fair trade producers where possible.

Modernizing Store Experiences: Hybrid Retail Solutions

To expand its market reach, Chi-Chi’s could develop hybrid retail models that blur the line between restaurants and retail. The proliferation of ghost kitchens and kiosk-based dining solutions exemplifies growing consumer acceptance of non-traditional dining formats.



Cloud and Pop-Up Kitchens:

·         Operate delivery-only ghost kitchens featuring Chi-Chi’s branded menu items like tacos, burrito bowls, and quesadillas to penetrate urban centers cost-effectively.

·         Partner with national chains like Walmart for in-store branded pop-up counters showcasing Tex-Mex offerings, leveraging foot traffic.

Scalable Automation Solutions:

·         Integrate self-service kiosks in major retail outlets allowing consumers to build custom Tex-Mex meals on-the-go.

·         Employ AI-powered inventory tools in food manufacturing to optimize cost management and ensure consistent ingredient supply.



Operational Upside: The Future Is Bright

Consumer Migration Trends: Recent reports from McKinsey highlight that demand for “elevated casual” dining is increasing by 9% annually as consumers look for value-driven experiences. Chi-Chi’s is uniquely poised to deliver high-flavor, affordable Tex-Mex experiences through bundled solutions that feel premium yet accessible.

Data-Driven Branding: Harness data analytics to identify key retail markets where demand for Tex-Mex products is highest, allowing for targeted activations and loyalty incentives.

Innovation and Growth: Expand R&D teams to consistently identify and anticipate dining trends, from plant-based options to spicier flavor profiles, ensuring relevance.

Chi-Chi’s already has a foothold in consumer consciousness through its grocery products. By melding nostalgia with forward-looking strategies that blend authenticity, technology, and cultural relevance, the brand is positioned not just to survive but thrive. With focused innovation and sharp execution, Chi-Chi’s can confidently chart a course as a cultural and culinary beacon for future generations.

Are you ready for some fresh ideations? Do your food marketing ideas 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 participationdifferentiation, 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