Urban vs. Rural food retailing is hogwash. It about fresh, fast and convenience!



Wal-Mart and Target each came out this week and restated that they were going to open new units in urban areas that have a smaller format. Let’s cut to the chase, research shows the center of the store is dead! Consumer are focused on prepared food, fresh prepared with fast service.

Try as they might category managers have only delayed the inevitable they have not been able to prevent it. Look how well category managers have done with A & P. Companies that have relied on slotting fees as a solution for profits simply have lost sight of reality. Super Target are going to have “wider aisles” and we all know why; they have too much stuff and the consumer simply walks by it!

Target’s will “increased fresh food selection is designed to make fill-in shopping "quick and easy for guest’s on-the-go." Each store offers a selection of national food brands and Target private-label brands.” Wal-Mart understands the same thing. It’s not about the cost of the land, it is about the consumer. I am glad to see that each of these successful retailers is listening.

Outside eyes can deliver top line insights 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

Safeway leverages customer research for Mix & Match meal success!



Grocerant ready-to-eat and ready-to-heat prepared food bundled mix & match components have been driving top line growth in the Convenience store sector for several years. In fact NPD recently reported that last year sales within the convenience store sector were up 11%. We have been documenting that story here for several years. It was nothing new to us. Lead by companies like Sheetz, QuickChek and Wawa mix & match meal components propelled that growth. Now even 7 Eleven is selling fresh prepared food.

However, when it comes to understanding the customer, Safeway has been utilizing grounded traditional foodservice research and has leveled the playing field. Safeway’s ability to vertically integrate customer focused research with Foodservice Solutions 5 P’s of grocerant marketing has positioned them directly in line with today’s consumer.

Safeway’s “build a Signature Café” which is first prominently positioned in the weekly shopping flyer. Utilizes the Mix & Match to empower consumer choice, leverages their private branded product and priced to drive trial. Interestingly they include and co-brand the ad with Sierra, Mist Natural. This is fantastic!

Research provides insights into consumer beverage choice and most importantly how they buy and consume beverages. Leveraging Natural Mist with the “Signature Café” meal creates an additional halo for the consumer. It’s is a complete meal solutions.

Safeway research has provided a platform for continued success Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables is an art that will drive top line growth and increase customer frequency. The Grocerant niche is about convenient meal participation, differentiation and individualization Safeway gets it.

Outside eyes can deliver top line insights 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

Resurgent independent restaurants may challenge many restaurant chains share of stomach.



While working as a project manager for the US Navy Club system many years ago. I became familiar with Culinary Brands and WR Grace each of which at the time were producing high quality sous-vide products. Culinary Brands was sold to Nestlé and WR Grace spun off their sous-vide operations. The quality food product, versatility and portion control of sous-vide had and continues to have huge potential for the DOD, Schools, C-stores, Drug stores, Hospitals and some restaurant chains but just might create a resurgent independent restaurant scene.

I have been waiting for Nathan Myhryold’s new book reportedly called “Modernist Cuisine”. This book has the potential to do for sous-vide what Julia Child did for cooking. In turn independent restaurateurs will begin utilizing the state of art techniques within the book too garner additional local market share. Retail foodservice is undergoing a transformation, this book will assist.

The US culinary educational system has during the past ten years contributed a new generation of food industry professionals with creativity, sophistication curiosity. The confluence of that and this information in this how-too book will create new; efficient, high quality, independent restaurateurs. Each will have the ability to leverage current sous-vide technology with regional flavor profiles that legacy restaurant chains will have a hard time competing with.

Ready-to-eat and ready-to-heat food has come of age. Consumers young and old are enjoying the simplicity of preparation, versatility of choice and portion control of grocerant ready-to-eat and ready-to-heat food. Success does leave clues and “Modernist Cuisine” will provide the steps too success for many a restaurateur.

Outside eyes can deliver top line insights 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

Restaurant, Convenience Store protein rotation creates opportunity for daypart expansion.



The confluence of solid customer research, media pressured menu calorie count postings, visceral digital menu boards and economic turmoil have created for some protein sectors, huge upside opportunity. Jack In The Box Restaurants understanding this confluence of activity successfully leveraged that knowledge. They were the first national restaurant chain to offer all menu items all day long.

During the past year Subway has entered the protein daypart expansion game by offering breakfast sandwiches and made them available all day. Most retail breakfast sandwiches are comprised of eggs, sausage and or ham. Interestingly, Quick Service Restaurants (QSR’s) on the whole have traditionally not offered a lot of egg or ham products at all beyond breakfast until now. Last year alone it had been reported that 60 plus million more egg related servings were consumer by US consumers.

Egg within sandwiches have in most cases fewer calories than traditional offerings at QSR’s. In turn QSR’s are realizing an increase frequency from consumers aged 25 to 49 years old. Reduced calorie offerings and meal period expansion will continue to contribute to additional protein rotation in restaurants in the coming years. Success does leave clues and lowering calories and food COG’s together is both good for the customer and the food retailers.

Outside eyes can deliver top line insights 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

Better for you food has become very important within the foodservice community.



Last week, industry colleagues suggested I look into the “better for you” food trend and write a blog about it. That was easy, I had just been to a local restaurant witnessed and experienced a medley of vegetables that were perfect to write about on a Friday.

The vegetables were robust in color and fresh flavors. I spotted then at table’s all around me. There were bright orange carrots, green celery with fresh leaves and deep red beets. However everyone enjoying them was under 30 years of age. I have do jump in. Just what was I missing out on. Vegetable martinis; yes they tasted great! The patrons of the restaurant when asked, why a celery martini? Replied if your going to drink you should drink something that is good for you. I should have known. The celery martini by the way was outstanding. Below are some items that are I am told better for us.
Broccoli, It has lots of vitamin C, carotenoids, and folic acid. Steam it just enough so that it's still firm and add a sprinkle of red pepper flakes and a spritz of lemon juice.

Wild Salmon, The omega-3 fats in fatty fish like salmon can help reduce the risk of sudden-death heart attacks. And wild-caught salmon has less PCB contaminants than farmed salmon.

Unsweetened Yogurt, Plain yogurt has a pleasant tartness that’s a perfect foil for the natural sweetness of berries, bananas, or for your favorite breakfast cereal. It has more protein, potassium, calcium, zinc, and vitamins B-6 and B-12 than sweetened yogurt. That’s because it doesn’t have to share the container with the sugary preserves or the sugar that’s in many flavored yogurts.

Sweet Potatoes, A nutritional All-Star — one of the best vegetables you can eat. They're loaded with carotenoids, vitamin C, potassium, and fiber. Bake and then mix in some unsweetened applesauce or crushed pineapple for extra moisture and sweetness

Outside eyes can deliver top line insights 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

200,000 reasons for Restaurant and traditional Grocery stores too worry about sales.



Fresh Food Matters: that’s why new channels of distribution continue to unfold. The confluence of improved technology in packaging, processing and positioning food all have contributed to greatest opportunity for fresh prepared food retailers the world has ever seen. Fresh food that is ready-to-eat or ready-to-heat builds customer frequency and brand loyalty.

Convenience store’s now number more than 144,000 in the US and Sheetz and Wawa have provided a roadmap for top line growth and bottom line profits in this channel with fresh prepared ready-to-eat and ready to heat food sales. Casey’s General stores in trying to fend off two suitors due in large part to the success they have day with grocerant ready-to-eat and ready-to-heat food. The rest of this sector is in the process of testing new and innovative products.

37,500 Drug stores are now selling fresh food with the two largest chains now testing grocerant fresh prepared food. The test began in urban stores but is fast expanding too the suburbs.

20,250 Dollar stores all now have food, many are testing fresh food beyond the mike and eggs they are soliciting innovative new fresh prepared food products.

When you add things up, the consumer will in short order have an additional 200,000 new points of distribution to obtain fresh food. Is your company looking a customer ahead?

Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in consulting within the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions on AOL search Grocerant, at ASK.COM search grocerant or visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson or BING / GOOGLE: Steven Johnson Grocerants

Who is buying food and where?

The following post forwarded to me from an industry veteran to share here on my blog.  While C-store are garnering top and bottom line growth from new fresh food offering restaurants and grocery stores continue to lose market share.  Here we go enjoy.

"For as many years as I’ve been in the business, there’s been a bass line playing in a constant refrain: The supermarket is losing market share to competing formats. The decline hasn’t been precipitous, but it has been consistent. As a result, any sense of immediacy and alarm fades and everyone goes about their business, even though the slide quietly continues.

The latest proof that conventional supermarkets are losing out to their rivals comes from Dr. David Rogers, president of DSR Marketing Systems, a retail research consulting firm. Using newly released data from the federal government’s 2007 Census of Retail Trade, Rogers determined that supermarket sales grew 18%, from $395 billion in 2002 to $466 billion in 2007. Not bad, you might say.

Yet, a look at other channels puts everything in context and places the supermarket numbers in sharper focus. For example, sales in warehouse clubs (Costco, BJ’s) and supercenters (Wal-Mart, Target) increased by a whopping 70% during the same time period, from $191 billion to $325 billion.

“As a result, the supermarket share of the total grocery and foods market continued its long-term decline from 66% in 2002 to 63% in 2007… and a projected 62% in 2009,” Rogers wrote.

Who knows? The loss of market share might even have accelerated during the recession, as dollar stores joined with club and mass to siphon off frugal customers. The monthly retail census data was showing as late as last year that overall retail sales were down about 8%, while sales at warehouse and superstores were up 2%.

Rogers’ research found that along with sales, clubs and supercenters improved their market share, from 15.6% to 19.9% in 2007 and 20.6% in 2009. Value-oriented packaging in the former and low prices in the latter were the primary reasons they became preferred venues during the recession, though other formats also gained,

Dollar stores were a big winner, according to Rogers. This channel’s market share doubled between 2002 and 2007, and the expectation is that this rate will continue as more stores open. Drug stores also performed well, increasing their piece of the pie from 1.2% to 1.7% during the same period.

As the nation emerges from the recession, it will be interesting to see if some sort of balance is restored. Deflation has crushed supermarket margins and even low-price leader Wal-Mart is unwinding its experiment with “Project Impact” and going back to basics and everyday low pricing, according to the new chief operating officer of Wal-Mart U.S. Meanwhile, Target is busy introducing its PFresh food format in roughly 350 stores by the end of this year, also to remain competitive with thrift-minded, one-stop shoppers.

Supermarkets still might be losing share, but it seems as if the competitors have their own problems to worry about."

Outside eyes can deliver top line insights 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