Which restaurant and grocery store chains will go the way of Tower Records?



The grocerant niche is evolving faster than legacy chains are willing to admit. The grocerant niche is developing new avenues of distribution, top line fresh prepared food sales/growth and bottom line profits for companies that never or haven’t in years sold fresh prepared food the ilk of Walgreens, Rite Aid, Sears, Amazon and 7 Eleven.

When Dominos pizza started opening “delivery only” locations around the country, Pizza Hut was the sector industry leader with Red Roof Pizza Hut locations nationwide. Pizza Hut senior executives at the time scoffed at the brash upstart and never took it seriously. After years of denial and market share capitulation by once proud industry sector leader, Pizza Hut was sold to Yum Brands.

Today the pizza industry is now 50% grocery and 50% restaurant sales. O ’how times have changed. Restaurant and grocery chains are learning denial is not a step to success. Burger Chef, grocery store chain A & P, are both all but gone. At one time each was # 1 in units and sales within their niche

Technology and consumer meal preference behavior are driving change. We all know how fast Tower Records collapsed to online music downloading. The foodservice industry is moving fast, with the grocerant niche garnering the lion’s share of new business.

The WSJ reports that “Cable companies have been losing TV subscribers at an ever faster rate in the last few months, and satellite TV isn't picking up the slack. That could be a sign that Internet TV services such as Netflix and Hulu are finally starting to entice people to cancel cable, though company executives are pointing to the weak economy and housing market for now.” This action has been called “cord-cutting”.

Where is your food brand going, where are your customer going? Don’t let your retail food customer cut the cord too your brand. Its time to understand why the Convenience store industry, Drug Store industry, Dollar Store industry and legacy grocery stores have all starting selling fresh prepared ready-to-eat and ready-to-heat food. This convergence of food consumers and new avenues of distribution will forever change food industry retailing.

Is your company ready for the grocerant niche it or will your company go the way of Tower Records. Dominos Pizza took the first step and I am sure will continue to evolve with the times, changing and adding new core prodcuts.  What is your company doing?

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Ready-to-eat and ready-to-heat prepared food leverages better for you to drive grocery sector sales.



Food manufactures continue to find success with ready-to-eat and ready to heat prepared food. The grocerant niche driven by cultural trends; particularly meal assembly rather than cooking from scratch. Has turned it focus on better for you products

Food Marketing Institute (FMI) 2010 U.S. Grocery Shopper Trends report found consumers “choose to save money by eating at home but they also believe, overwhelmingly, that the food they eat at home is healthier than eating away from home. It is clear supermarkets are positioned to help their customers save money and help them make healthier choices when it comes to food.”

The mix and match meal components options allow the family to customize a home prepared meal. This may drive the “check average / basket size” down but it increased frequency. The FMI report states that “weekly trips to the grocery store, which continues an upward trend averaging 2.06 visits per week”. There was a decrease in “primary store trip’s, but that may be a outdated legacy metric’ focused more on Wall Street than the consumer.

While it was documented that last year consumer were eating at restaurants less. Restaurateurs have lowered prices, introduced new menu items and sales are trending up. There has been but one winner here and it is the grocerant niche.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

The global attractiveness of the grocerant niche drives sales.



“How can you govern a country that has 246 varieties of cheese?” by Charles de Gaulle

The French have been producing and selling sous vide products for years. In fact Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price was in large part developed visiting, studying tracking the success of sous vide and other prepared food products in France.

The grocerant niche focusing on fresh prepared ready-to-eat and ready-to-heat food was made to order in France. The French consumer loves to eat customized food products that are or can be localized with flavor or product the sous vide process allows them to do that.

In a country with at least 246 types of cheese chef’s understand the need for customized products. The grocerant niche continues to grow in France and expand with some chefs now utilizing molecular gastronomy. Fear not the focus is on Artisans and Authenticity no matter how the food is prepared will continue to rule the day in France and around the world.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

The decade of the grocerant niche is evolving at break neck speed.



Ready-to-eat and ready-to-heat fresh prepared food that can be portable is now being sold at traditional restaurants, grocery stores, drug stores, C-stores and dollar stores. Blend in new avenues food of distribution, with traditional products packaged with a “twist” and witness sales success.

Baby boomers continue to drive sales of new grocerant food products, demographic shifts particularly empty nesters living longer and living is smaller family units than ever before will continue to drive this change for years to come.

Richard Cope was quoted saying “as people are working longer into retirement, there is a greater need for products geared towards vitality and health in a more senior workforce. “At the moment energy drinks, foods and snacks are marketed towards the youth market,” he said, “but they will become more about getting people through the day at an older age.”

We are entering a new era in food retailing, it is bringing new products and new avenues of distribution. Men are increasingly shopping for the family looking at products for the first time or for new products that either cater to traditional male preferences or new family focused products. Cope wonders “While retailers may presume they are pitching to women shopping for families, Cope questions whether there is a need for more masculine takes on health and value. Times are evolving and the grocerant niche is leading the pack in foodservice.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Under the Foodservice umbrella growth can be found in the grocerant niche.



Is your retail foodservice chain like a Disney Movie, where everything is happy at the end of each month where sales and profits are up. Then you most likely have entered the grocerant niche. Grocery stores, Restaurants, Convenience stores, Dollar Stores, Mobile food trucks and Kiosk are all improving the quality of the food that they sell. The race for share of stomach has never been at a faster or more focused pace.

Consumers want to feel connected to you brand and your brand must remain relevant in the minds eye of the consumer. The convergence of non traditional points of distribution, an evolving grocery fresh prepared sector and lingering economic conditions have created the perfect opportunity for retail food brand expansion. Drug stores and Dollar stores are now clamoring traditional restaurant and grocery stores customers.

Its time that brand managers challenge the premise of all new food product ideations, pressing, probing and prodding development teams to develop new products for each new avenue of distribution. Brand protectionism never works. The retail foodservice consumer is dynamic not static and the opportunity for ready-to-eat and ready-to-heat fresh prepared food has never been greater. Its time to take a close look at what is under your foodservice umbrella.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Top 6 reasons consumers are buying ready-to-eat or ready-to-heat food!



Companies that develop a platform that allows meal co-creation; in the car, at the office or at home are winning the heart’s and minds of today’s retail food consumer. The grocerant niche comprised of the ready-to-eat and ready-to-heat fresh prepared food is driving the success of the retail foodservice today.

Each sector has innovators; Restaurants started with Kentucky Fried Chicken (KFC), Chipotle Mexican Grill, Panera Bread, Domino’s Pizza, MCD, BK and a whole lot more! Grocery started with Wegmans Metropolitan Market, Whole Food and now fast charging Safeway and the “lifestyle stores. Convenience Stores have Sheetz, Wawa, with fast charging Casey’s General stores and 7 & Eleven.

1. Visceral presentation, Freshness based on how it looks and is presented.

2. Bundling, the ability to build your meal with components family member will eat.

3. Individualized portions, power to select quality and quantity of items viewed.

4. Convenience, unit /store location on the drive home from work.

5. Time Saving, ability to evaluate price vs. time to cook from scratch.

6. Portability, empowering choice eat in or take home / office

Success does leave clues and many retail food operators are now adopting Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price.

Outside eyes can deliver top line sales and bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant

Consumers like Private label food both ready-to-eat and ready-to-heat.



Food retail brand managers can find jobs in the grocerant sector. Renewed and refocused opportunity for food marketing brand managers is developing in the Grocerant niche. The unheralded stellar performance produced by national private label product brand managers established metrics for future success.

In a 2010 Consumer Reports in a head-to-head qualitative blind taste test 29 store branded food products were tested. Get this, 23 of the 29 private label store branded products scored as good as or better than the national brand. Private label products are set to continue garnering share in 2011.

Grocerant prepared food that is ready-to-eat or ready-to-heat is now finding its way in large store formats like Safeway’s Lifestyle stores, HEB’s Central Market, Harris Teeter and Buehler’s. Utilizing traditional category management techniques all of these companies are seeing success. However those that have incorporated Brand Marketing into their food offerings and positioning strategy have seen increased customer frequency and niche margins rise.

The same is occurring in the Convenience store side with companies like AMPM bundling meal deals and new products, Racetrac improving coffee and Quick Trip growing with solid consistent product offerings.

Branding the food offerings by day part or entrée time will bring with it the opportunity to build top-line revenue and bottom-line profits. Watch for Brand Managers being hired in each of these channels.

http://www.foodservice.com/articles/show.cfm?contentid=4112&title=Restaurant Consumer Discontinuity

Outside eyes can deliver top sales and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson