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

Time for Brinker’s Doug Brooks to start reading this blog.



Brand protectionism never works. Brinker International Inc lead by Doug Brooks has continued to operate under the Norman Brinker rules of chain restaurant operations. That worked well during the golden age of chain restaurants. The problem is the golden age of chain restaurants ended in 2005 as we have well documented in our white paper on Restaurant Consumer Discontinuity. Doug, the customers are not static they are dynamic. It’s time that Chili’s become a dynamic chain again.

How many employees in the marketing department at Chili’s have Masters Degree in Food Marketing? Heck, how many have Masters Degree’s in Marketing? Great people doing the same things that they have always done worked well during the golden era of chain restaurants. However you will not get the desired results when the customers have moved and your mindset has not.

The picture for the restaurant industry is brightening up and showing signs of recovery. While Chili’s sales continue to decline and today reported down almost 8 percent. Chili’s no longer leads within it’s niche. Chili’s has lost ground in the” beleaguered bar and grill segment” to companies the likes of Ruby Tuesday and Applebee’s.

Doug Brooks stated on the conference call that “if sales gains remain elusive in the short term, Brinker would need to "transform" its business model”. Doing nothing, waiting to see what the economy is going to do is doing harm. Times have changed, the customer has evolved it’s time that Brinker International evolve. Doug, success leave’s clues and many of us have been following what works.

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

The frozen “Food Court” is contemporary consumer relevance.



If success leaves clues then we all need to listen when grocery store category managers continue referring to the freezer aisle as the new restaurant "frozen food court". Sales of P.F. Chang’s China Bistro Inc. frozen retail items climbed 117 percent to $14.5 million in September 2010, according to Information Resources Inc. (IRI) it must be noted that IRI does not track sales at Wal-Mart.

Nations Restaurant News reports that “California Pizza Kitchen’s line of frozen pizzas, now produced through Nestlé, has earned the company tens of millions of dollars in licensing revenues. Sold at 22,000 U.S. groceries, CPK’s frozen items generated $159.8 million in sales for 2009, which in turn created $7.7 million in fees for the gourmet pizza chain.”

Foodservice Solutions® has been reporting on this topic of many years. Steven Johnson’s article The frozen “Food Court” is the new restaurant real estate play! Is the second most view article of all time at Foodservice.com here is the direct link: www.foodservice.com/blogs/show.cfm?contentid=14231

Foodservice Solutions®, the Hartman Group, and Broad Street Licensing Group recently announced a ground-breaking joint venture to study the food marketplace, including the game-changing developments that have rocked the worlds of retailers, manufacturers and restaurants. The Hartman Group, known for its highly-respected research studies, will work with Steven Johnson, President of Foodservice Solutions® and BSLG’s Bill Cross, VP of Restaurant & Food Brand Licensing, and the recognized industry expert on leveraging restaurant and food brands to retail.

If your interested in understanding new channel competition and its impact on retailers and foodservice operators, including restaurants contact Tacoma, WA based Foodservice Solutions®. The study is titled: Share of Stomach: Who’s Eating What—and Who’s Getting Eaten—in Today’s Brave New Food Marketplace. You can request a copy by of the study by leaving a comment below or Email Steve Johnson.

Convenience stores vs. restaurants vs. grocery stores; is a price war brewing?



Convenience store sector sales and profits continue to rise thanks in large part to the vast expansion of ready-to-eat and ready-to-heat fresh prepared food. Companies like Sheetz, Wawa and now 7-Eleven are rolling out expanded fresh prepared food options. While the c-store sector experienced 7 % growth overall the food portion was well into double digits sector wide.

Without doubt the quality of fresh prepared food at most conveniences stores is legions ahead of where it was 5 years ago. Consumers understand that and are responding positively. The conundrum for the restaurateur is how do you market “value” without coming off as cheap or being a direct competitor of an c-stores? Grocery stores are now bundling ready-to-eat and ready-to-heat prepared family meals in a value package recapturing consumers.

The retail food industry is about share of stomach; each sector grocery, convenience store and restaurant all are revisiting food product offerings, meal bundling and product positioning. All are now focused on ready-to-eat and ready to heat prepared food. Many are adopting Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price.

The ready-to-eat ready-to-heat retail food price + value + service equilibrium continues resetting. Which sector, company or product do you see stepping up and standing out?

Understanding, creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part in an area Foodservice Solutions® has out preformed. Outside eyes can bring new light and assist in your pace of concept growth, redevelopment and deployment of new products. Grocerant specialist can work with you to identify distinctive differentiated food consumables call Foodservice Solutions® today.

Restaurant copy cat marketing causes consternation for hedge funds.



Chipotle Mexican Grill Inc., Panera Bread Co., Domino's Pizza Inc. are the names of companies that hedge fund managers called last week and asked why can’t my “---- fill in the blank company” be like that?. Each of the companies just mentioned has recently cited traffic driven sales growth and or double-digit increases in sales, profits or both.

Restaurant sales have traditionally been tied to unemployment. While unemployment relentlessly hangs around 9.6% many hedge fund managers are either ready to bail out of their restaurant investment or bottom fishing and looking for opportunity.

Out of abundance of caution CEO’s and CMO’s that chose not to lead, but rather copy are now either looking for jobs or additional investors. Chipotle, Panera, and Domino’s built on core brand values while focusing on the customer; and it has paid off. Each leads with clear differentiated positioning.

Sonic Corp., Romano's Macaroni Grill, Wendy’s/Arby’s Group, have the same executives or recycled industry veterans that spent more time on “doing no harm” than researching and focusing on the customer.

Each niche within the industry has winners and losers. Some like Wendy’s/Arby’s group interestingly chose not to lead but copy others first and then go backward. If you were to look at their current salad ad you might think this was the third time around. Yes, different salad recycled ad why? The consumer is dynamic not static, during tough economic times no one wants to stay here and no one wants go backward.

Customers look forward; they want new, different yet familiar products. Successful food retail operators are now adopting Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price within each niche of the industry. Here is an example of a company moving restaurants moving forward with technomogy: www.ipadmenu.com.au

Hedge fund managers that are bottom fishing and want to run a food company like the one they remember when they grew up be forewarned. The customer has changed and the brand must as well. The food customer is dynamic not static. Those who sit and wait will lose. Success does leave clues and following the customer is one of them.

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

Evolving Retail Foodservice not consumer discontinuity will drive sales it’s time to standout.



If success leaves clues then one only needs to look at what Apple computer has been able to do to understand the next steps within retail foodservice. The grocerant niche continues too outpace legacy retail food sectors. The grocerant niche saves time and is simplifying how consumers can make meal time a happy time. Legacy companies can step up and standout. 

I phone, I touch, I pad Apple computer is evolving with technology, and consumer increased desire to simplify daily task with technology solutions. The new “I” line of devise has propelled Apple to the top of the fortune 500 list! Apple understood that consumers would accept, buy and utilize products that provide solutions while simplifying daily life. I know some may argue that they are not that easy to use, get over it! They are and consumers know it!

Recently legacy retail food industry insiders have been writing about “meal solutions” coming of age. Articles appearing in Progressive Grocer, Supermarket News, Convenience Store News and Nation’s Restaurant News decrying a battle between Grocery vs. Restaurants, Convenience Stores vs. QSR’s etc.

That fact is retail foodservice success is about simplifying the daily life of the consumer. There is no discontinuity, the consumer is evolving and wants more options, in flavor, portion size and points of distribution. If your company is not evolving with the consumer it’s dying. The grocerant niche of fresh prepared read-to-eat and ready-to-heat food is growing both the top and bottom line for food retailers today.

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

Restaurant brand revitalization is an ongoing process.



Many restaurant brands have lost market share, top line sales and customers during the past several years. Without doubt those losses can be contributed to directly to executives taking their eye off the customer.

I know many of those executives and they would blame blah, blah and blah. They are wrong. They did not act properly, were not focused. There are restaurant chains with double digit growth over the past two years including entire foodservice sectors.

The convenience store sector on the other hand utilizing customer focused research, while taking a page from QSR’s and highlighting QSC (Quality Service Cleanliness) is garnering market share from the entire restaurant industry. Yes, posting double digit growth. The C-store sector is comprised of over 144,000 stores that’s not a fluke. Customer growth and success while building frequency and loyality.

Jean Fitzpatrick suggest that proper” positioning allows for segmentation optimization (targeting) of products or services and allows a business to communicate that it has distinguished itself” Jean understands that the customer is dynamic not static.

Tim Forest suggest that “Restaurant brands are assets and the consumer position piece can be used to great advantage! An associate took a Restaurateurs product, packaged it for retail, and placed it into one of the largest food retailers in the USA and is beating the socks off the leading national supermarket brand.”

Revitalization of any foodservice brand should include looking at new or non-traditional points of distribution. C-level executives that say we don’t do this or that are looking back not forward. The retail food consumer is on the move and it is about share of stomach not just market share.

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