Grocery Stores Selling Meals Garner Restaurant Customers

 

Menus matter and the price of a meal matters even more. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, “what is even more important today is where consumers are getting meals”.

There is no doubt that the disruption caused by the COVID-19 pandemic has led to a long-term realignment of consumption occasions. The at-home segment will play a more important role going forward than before, necessitating an adjustment in foodservice strategy. Here is the question.  Is there a new avenue of fresh food distribution? Now some facts:

1.       20% of restaurant consumers are familiar with The Metaverse

2.       34% of Millennials and 27% of Gen Z have already participated in The Metaverse

3.       38% of consumers who already participate in the metaverse would be willing to integrate restaurant purchases into this environment

Don’t get the team at Foodservice Solutions® wrong. The Metaverse is not a viable option today nor will it be in three years.  However, if you are a restaurant you need to look and see just how the grocery sector is stealing back your customers.

Americans are eating fewer meals out with friends and co-workers and more meals at home than they were three years ago, though how they're sourcing and preparing those at-home meals has changed from two years ago.

New research from FMI titled U.S. Grocery Shopper Trends Report examines consumers’ views on planning and preparing meals and looks at where meals take place and with whom they are shared.

So, regular readers of this blog know that "More people have been cooking, or at least assembling, at home," but this new report edifies the team at Foodservice Solutions® work; "the trends of more eating at home and with other household members continue despite some shoppers missing the social aspects of eating out and gathering with friends" according to the FMI report.

Today grocery prices continue rising and pandemic-prompted cooking enthusiasm waning, shoppers "are more flexible in buying what they need" as they look both for deals and convenient, easy-to-prepare meal solutions. This can mean sourcing groceries and meals from a wider variety of stores and channels, with preference going toward those offering the best prices and/or the best quality on shoppers' top-priority items, according to FMI; it can also mean grabbing more fresh-prepared and ready-to-prep options from grocers for a convenient but appealing family meal. 

Changed weekday routines resulted in respondents reporting that they "eat together with others" less than they used to, and even at home, lunch and midday snacks often are consumed solo, FMI reported. Also, "challenges in inspiration, inconsistent schedules and other resource constraints create friction to family dinners," according to FMI. While the pandemic brought more people into the kitchen, trying new cooking trends, experimenting with new appliances and learning new cooking skills, the share of those who said they love to cook dropped from 23% of consumers in 2021 to 19% of consumers this year.

Garnering A Larger Share of Stomach

Think Foodservice Solutions

The Grocerant niche Ready-2-Eat and Heat-N-Eat platform continues to garner customer migration from the restaurant industry. Consumers still are planning meals more now than they were prepandemic, but they're spending less time preparing main meals. More than half of consumers plan meals in advance (46% do so early in the day; 30% said they do so days in advance). FMI's polling also found that meal preparation is “getting quicker,” and that “three-quarters (74%) say it takes less than one hour to prepare their meals” (30% say they spend 30 minutes or less preparing meals).

Consumers' need for speed—and affordability—in getting dinner on the table will create challenges for retailers through 2022 despite higher (and inflation-boosted) consumer spending, FMI concluded. Grocery retailers are likely to find themselves "serving a smaller share of shopper needs as shoppers increasingly split their purchases among trips, channels and methods,"

Consumers are time starved and price sensitive.  Are you looking ahead and helping solve the pain point when it comes to What’s for Dinner?  

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

Technology Driven Food Consumers Are Not Loyal

 

Gen Z and Millennials are digital natives and they can turn on a dime, find fresh food fast when they want to according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Regular readers of this blog know that Gen Z and Millennials are in constant search for food discover.  Well during times of inflation they can and will find new avenues of fresh food distribution for less when money gets tight according to Johnson.

Leslie Sarasin, president and CEO of FMI, is concerned and recently stated, “Consumers who grocery shop in-store and online may represent the most dramatic upheaval of the food shopping landscape we once knew,'.

So, in 2015, only 7% of shoppers reported ordering groceries online within the previous 30 days; by 2022, half of online food shoppers said they shop online every two weeks or more, FMI–The Food Industry Association reported in its latest U.S. Grocery Shopper Trends–Navigating a Hybrid World report.

Now let’s take a deeper dive into the hybrid shopper—consumers who grocery shop both in-store and online—FMI reported that the expanding food retail marketplace has prompted new habits for shoppers who have embraced hybrid options and integrated them into their routines.

Sarasin continued, “The recent wave of online shopping adoption and the growing variety of online methods may represent the most dramatic upheaval of the food shopping landscape we once knew,” …“Still, despite shoppers embrace of online grocery shopping, the in-person experience is here to stay. Food is deeply personal, and many shoppers still prefer shopping in person.”

This is important; FMI reported that 62% of online-reliant shoppers believe online shopping saves more time than in-person shopping, while 40% say online is better than in-person at helping them discover new products.

Now when it comes to product quality, nearly half of shoppers (43%) believe they get better quality products when they shop in-store vs. 17% who believe the same about online shopping. Even those who shop online at least some of the time said 70% of their grocery trips are done in-person.

“Online shopping has completely changed the food shopping landscape,” according to FMI.  Now the question is where will a Gen Z consumer or Millennial buy dinner?  Do you think they want to cook or cook from scratch?

Think about Gen Z and Millennials as you read this data. FMI also reported new data on social media’s growing influence on shopping. More than half (59%) participate in one or more food-related activities on social media, while 29% use social medial to gain ideas of what to cook and eat. And 45% of online shoppers say they enjoy grocery shopping as opposed to 27% who don’t shop online. FMI said the data suggests that hybrid shoppers want convenience, value, selection and engagement.

Sarasin, went on, “The expansion of hybrid shopping presents retailers with a variety of exciting opportunities to engage with consumers in new and different ways by improving and streamlining the online shopping experience,”.

Shoppers also indicated to FMI that their pandemic fears are easing but inflationary impacts persist. FMI found that more than half (59%) of shoppers reported spending more on groceries than a year ago and that 85% are concerned about access to food.

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 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

Restaurant Sales Slide as FMI’s National Family Meals Month Soars

 

What is it that prevents restaurants from understanding that the grocery sector under the tutelage and with the assistance of the FMI Foundation once again leverages September to target restaurant customers into grocery stores and away from them?  Who, knows an outsider might just think it is a combination of tunnel vision and sector capitulation? Success does leave clues and the grocery sector in September is doing all the right things.

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes ‘chain restaurants would rather spend marketing dollars where it’s easy, the Thanksgiving-Christmas season, and in March, April, May when comps will be up anyway so it easier to look like your advertising works.”  He, may be right, but that is simply an easy out.

FMI Foundation knows it’s stuff, 87% of U.S. consumers say that they are cooking with their families more than or the same as before the pandemic and 86% report they are having more or same amount of in-person family meals. Another survey conducted earlier this year by market research firm Acosta showed that 92% of families plan to continue eating together at home at least as frequently or more frequently as they are doing now. That said, there are 26 restaurants for every grocery store today and consumers still do not want to cook from scratch according to Johnson. It’s a fight for share of stomach and it should last all year. 

In a battle for Share of Stomach

Who is Winning in September?

FMI, created National Family Meals Month to raise awareness of the benefits of sharing frequent family meals. “We have always intuitively sensed that family meals are good for us,” said David Fikes, executive director of the FMI Foundation, citing FMI’s research tracking tool called “Staying Strong with Family Meals” barometer. “But when COVID-19 turned our worlds upside down, we tangibly discovered the benefits of family meals. When we were six months into the crisis, our barometer revealed that Americans were using family meals to stay strong – physically and emotionally – during the global pandemic. It is encouraging to see, now a year-and-a-half later, that Americans plan to continue this positive practice when the world establishes a new normal.” 

In addition to leveraging information and materials from FMI’s national campaign, several grocers are highlighting their family-friendly fare during National Family Meals Month. This is a great program?  Collective advertising focus on customers and meals.  It works year after year with no resistance only capitulation from the restaurant sector. Let’s see who is doing what:

SpartanNash

Speaking of family fare, the SpartanNash banner Family Fare is providing shoppers with a variety of recipes and meal ideas for National Family Meals Month. Among other resources, the Grand Rapids, Mich.-based retailer is sharing videos from its dietitians showing how to shop for and make family meals like baked chicken nuggets and overnight oats. SpartanNash's other banners, including Martin’s Super Markets, D&W Fresh Market, VG’s Grocery and Dan’s Supermarket, are also celebrating Family Meals Month with suggestions for shoppers.

Food City

Food City’s dietitians are featured in social media videos explaining how customers can find resources to make more meals together at home. The grocer, part of the Abington, Va.-based K-VA-T Food Stores, is also offering a free kids’ meal with the purchase of an adult hot bar item on weeknights during September.

The Giant Co.

The Giant Co., headquartered in Carlisle, Pa., is likewise sharing recipes from its team of nutritionists for meals and snacks, spotlighting in free classes on “Leisurely Lunches” and family meals. Additionally, the retailer is launching a sweepstakes for National Family Meals Month, offering a chance to win a free pantry makeover experience worth up to $150 when attending one of the free classes.

Hy-Vee

West Des Moines, Iowa-based Hy-Vee, Inc. is offering several activities and promotions for National Family Meals Month, including contactless drive-through giveaways of free mealtime dinners, kids-eat-free offers in its foodservice areas, live cooking demonstrations, family-friendly virtual classes, store tours and recipe and meal prep suggestions and recipes. Family-focused events will be held across the retailer’s eight-state regions, highlighting families from all cultures. Given the fact that September is also Hispanic Heritage Month, Hy-Vee is recognizing both occasions by spotlighting Hispanic family meal traditions.

Tops 

Tops Friendly Markets, Williamsville, N.Y., is sharing ideas for easy and affordable meal solutions and encouraging its shoppers to do to the same by submitting their favorite family recipes that can be featured on the retailer’s website. Tops also created a Pinterest board for family meal inspiration and is touting its pickup and delivery services that make family meal shopping and preparation easier.

CPGs

Consumer packaged goods and brands are rolling out their own programs for National Family Meals Month as well. Eggland's Best for example, just launched a “Share a Better Family Meal” campaign that includes live cooking demos, recipes, family activity ideas and a contest.

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. 

 

The Frozen Food Court Continues Courting Restaurant Customers

 

At the intersection of branded food sales and consumer demand grocerant niche Ready-2-Eat and Heat-N-Eat food continues to resonate with consumers.  While new avenues of distribution continue to open-up driving customer trial, the frozen food court is increasingly playing a larger and larger role for many families according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

While, frozen foods proved to be a pandemic powerhouse in 2020, when concerned consumers stockpiled their freezers with longer shelf-life items during the height of lockdowns. The latest report finds 30% of Americans expanded their freezer capacity in 2020 and are still shopping to keep their freezer stocked.

According to American Frozen Food Institute’s (AFFI) 2021 "Power of Frozen" report found frozen food sales up another 9.2% this year. The report compiled information from IRI in partnership with Arlington, Va.-based FMI – the Food Industry Association the report aims to bring an understanding of consumers' perceptions, attitudes and behaviors regarding frozen food. 

Should restaurant worry about price, well according to Johnson if you look deep into the 2021 "Power of Frozen" report it shows that consumers are invested in their frozen foods. “Preparing more meals at home during the pandemic highly favored frozen foods and their longer shelf life — and even prompted consumers to invest in additional freezer space. The report found that 30% of Americans expanded their freezer capacity by adding a second fridge/freezer combination or a stand-alone freezer in 2020.”

So, consumers are not stupid, they are not letting their investment go to waste, consumers continue to highly engage with the frozen food aisle. Over the last 52 weeks ending late May 2021, frozen food sales are still up 9.2% versus the same period a year ago. This is 4% higher than the 5.8% increase in sales seen for all foods and beverages. Branded food retailers need to consider entering the frozen food court and take seriously the opportunity to place their brand in and on a avenue of distribution that their customers have not abandoned.

In a Battel for Share of Stomach

Are you Missing OUT? 

The report continued finding, in May of 2021, frozen foods were still 22.6% over and above their 2019 pre-pandemic baseline. This is still much higher than the 14.8% increase in sales for total foods and beverages. Across all 2021 months to date, frozen food gains have consistently been above 20% versus 2019, with matching unit and volume gains.

Here are some of the growth drivers from the report that prove the demand for frozen foods will remain:

·         The three levers of growth: Every brand, product or category has three ways to increase sales: having more people buy, having people buy more and having people buy more often. Frozen food sales gains are the result of hitting this growth trifecta. Virtually every frozen food category saw an increase in household penetration, trips and the average basket size — an accomplishment not all departments can boast.

·         The 360 win: Many categories play in breakfast versus dinner or indulgence versus health. But frozen foods cover it all: functionality, indulgence and variety. Lunch became a huge growth opportunity during the pandemic, as consumers emphasized time and convenience. With many more consumers continuing to work from home part or all of the time, frozen foods are expected to continue to make inroads across meal occasions.

·         Online food and beverage growth: While all retail channels gained over the past 15 months, it was food e-commerce that exploded, with a 2020 gain of 84%, according to IRI. Online now represents about 10% of all food sold in the United States. Also, online growth has not yet plateaued, with expected market penetration of about 12% by the end of 2021. Here, too, frozen foods ride a growth trend, with very high online conversion and penetration.

The grocerant niche continues to be influential as “The 2021 "Power of Frozen" report shows particular strength in frozen seafood and meals. There is no doubt that grocerant niche Ready-2-Eat and Heat-N-Eat prepared meals and meal components are the key drivers of our evolving food consumption patterns.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

5 Clues to Stop Restaurant Sector Customer Traffic Declines

 

Just in case it slipped your mine, the restaurant sector continues to bleed customers.  In case you don’t understand the consequence of capitulating year over year same store customer counts for eight years in a row; it’s not a good thing according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

2020 was another bad year for the restaurant sector if customer counts are your measuring stick down as customer counts were down 20.9% year over year. The simple fact is consumers food consumption patterns have evolved and many restaurant menu’s look more like a restaurant of the 1980’s, 1990’s, or 2005.  That my friends, that is a long way from what a fresh food restaurant will look like five years from now according to Johnson.  Something has to change. It is time to look a customer ahead. 

The pandemic will end, but it will be the end of your restaurant brand?  If you plan on going back repositioning and brand messaging the ilk of what your brand was three years ago, five years ago, or even 8 years ago.  You are heading in the wrong direction. 

If the restaurant industry leadership of today is comprised of the ‘unwilling to evolve’ as they continue to follow the old CEO adage / first rule of a new CEO ‘do no harm’.  That simply has not worked and will not work moving forward. There is a clear and present danger for many legacy chain restaurant brands.  That danger is an increasing lack of customer relevance according to Johnson.

According to the latest Black Box Intelligence index restaurant sector customer counts for 2020 were down 20.9% year over year.  That is on top of 8 years of negative sector customer count declines.  Just stop and think about that.  Here are our 5 Clues to evolve success:

1.       Look A Customer Ahead

2.       Interactive and Participatory Food Marketing

3.       Don’t let the table wobble. Be prepared to open your dining room

4.       Integrate alcohol in meal planning

5.       Technology is your Drive-Thru

Back in the day the team at Foodservice Solutions® was first to identify, quantify, and qualify The 65 Inch HDTV Syndrome, and few chain restaurants were willing to evolve.  The rest hunkered down and practiced brand protectionism.  Where are they now? Look at this list of chain restaurant closures for this year alone. Then there are the chains that filed bankruptcy. Here is a link to the list of 25 chains and franchise groups that did filed in 2020 alone.

Battle for Share of Stomach

If success leaves clues and it does restaurant brands that embrace change, evolve with consumer relevant touchpoint, will do well moving forward.  If not, many will continue to capitulate customer traffic, lose sales, and close stores.  Are you driving top line sales, bottom line profits, and building customer counts?

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 Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/