Wednesday, February 10, 2016

Arby’s Price Value Drives Success




When you have a consumer focused price driven new product / LTO that records sales of 29 million units in September alone, positive results are sure to follow.  In the case of Arby’s that is just what happened. In fact Arby’s Restaurant Groups same-store sales rose 8.1 percent in 2015.  That by the way was the best performance for Arby’s in more than 20 years. 

Arby’s,” CEO Paul Brown stated “We are particularly pleased with our significant increase in guest traffic throughout the year.” Foodservice Solutions® Grocerant Guru® insist that “the lingering effects of the great recession combined with Wall Street / Stock Market volatility have elevated consumers focus on the food price, service, and value equilibrium.” 

In 2016 Price has become a barrier in retail foodservice according to Foodservice Solutions® team. Arby’s sliders were perfectly perceived, positioned and placed to drive maximum consumer adoption while expanding Arby’s brand value.

Consumers have re-established new a price, value, service equilibrium which our team unveiled in late 2015 after following the undercurrents of consumer consumption patterns evolving.

Here is Foodservice Solutions® New Price, Value, and Service Equilibrium Formula:

(Mobile Access + Digital Payment +Delivery) X (Price + Food Quality + Speed) = Value

 Incremental Value:  Constantly Changing Menu (Seasonally / Sustainability with Creditability).

Arby’s with system wide sales of $3.5 billion have grown sales now for 21 straight quarters, and increased 13.8 percent on a two-year basis those percentages were the highest in two decades. That is a clear success clue.
Brown went on to say in a prepared statement, “We have unlocked a powerful recipe for success, which is resonating with our guests, and our strategy will continue unchanged in 2016 as we look for opportunities to outpace our competition.”  Success does leave clues and in 2016 price is still a key drive of traffic and incremental sales. 

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify, and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  www.FoodserviceSolutions.us  of Tacoma WA is the global leader in the Grocerant niche visit, Linkedin.com/in/grocerant or twitter.com/grocerant, Call: 253-759-7869 for more.

Tuesday, February 9, 2016

Can you Hear Domino’s Pizza Now? It’s Echoing Success!




Peyton Manning and the Denver Broncos were not the only winners of the Super Bowl! Ok, maybe the byline gave it away!  Domino’s Pizza edified its position in the restaurant industry and pizza sector as the leader in digital ordering relevance with the integration of Easy Order, using Amazon Echo and Domino’s Tracker. 

Dennis Maloney, Domino's vice president and chief digital officer stated  "Ordering via Amazon Echo marks Domino's eighth platform in the suite of AnyWare technology,… "We want to continue making ordering pizza as convenient as possible, and this is no exception. Customers can order from anywhere they are, including from the comfort of their couch while watching Sunday's football game."

Rob Pulciani, director, Amazon Alexa stated "The magic of ordering pizza without lifting a finger and just using your voice is now a reality with Alexa and Domino's," We've made it easy for companies like Domino's to use the Alexa Skills Kit to create more natural, intuitive ways for customers to interact with their services."

Here is how it works “In order to place an Easy Order or most recent order, customers must enable the Domino's skill within the Amazon Alexa app by linking their account to their Domino's Pizza Profile. To simply track their order, Domino's customers must enter the phone number associated with the order and Alexa will provide its current status.”  Now back to Game Day facts from Domino’s

Domino's Game Day Fun Facts
  • Football's final Sunday is one of the busiest delivery days of the year for Domino's in the U.S.
  • Domino's expects to sell more than 4 million chicken wings nationwide on game day.
  • On football Sunday, in the U.S. alone, Domino's delivery drivers will cover the equivalent of more than 700 round trips from Denver to Charlotte – more than a 25-percent increase over a typical Sunday.
  • Over the years, Domino's stores have seen sales tend to increase when the game is close and viewers are glued to their TVs.
  • While both Denver and Charlotte's Domino's stores will see high sales at the beginning of the game, the city of the winning team will likely see higher sales at the end of the night.
  • During last year's game, Domino's delivered enough pizzas to stretch across more than 4,200 football fields.
Technology is a component within grocerant niche mix & match meal component platform which is the New Normal in retail foodservice. Edifying your foodservice operation with customer focused meal personalization, customization, and local differentiation is a success clue no retailer should overlook. Alexa adds personalization, customization, differentiation with real time relevance. 

Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment excel, expand, and extend, your brand.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche, Linkedin.com/in/grocerant or twitter.com/grocerant Contact: Steve@FoodserviceSolutions.us
 

Monday, February 8, 2016

Ikea’s Evolves from Fit Furniture to Fine Food Fast




Ikea’s furniture will fit in any room of any house even a studio apartment in New York City.  Back in 2013 the Wall Street Journal reported that Ikea its “Food division is was fast becoming a behemoth…with nearly $2 billion in annual revenue.” Grocerant niche mix and match bundling has continued to fuel success at Ikea according to Foodservice Solutions® Grocerant Guru®. 

Ikea’s U.S. president Lars Peterson said in a recent interview in the Washington Post that “Ikea food is becoming a core business” for the privately-held, Sweden-based company” Clearly the $2 Billion was just the platform to drive incremental growth. 

Peter Ho, a product developer in Ikea’s food division reported that “Ikea Food saw sales surge 8 percent in the U.S. over the previous year, outpacing the 4.5 percent sales growth seen at its U.S. stores open more than a year” Did your restaurant drive sales 8% last year? 

Ho went on to say “Foot traffic to Ikea’s restaurants is also “trending better” than foot traffic to the furnishings areas of their stores… In other words, there are a significant number of customers who come to Ikea just to eat, and the chain is trying to figure out how to cater to them better.”

All of Ikea’s 41 US stores are getting restaurant makeover in the next several months. “Instead of the current setup, which is a spare, open space, the goal is to create three zones for different types of diners.” According to Ho.

1.       One area will be outfitted with high tables and barstools suited for scarfing down a quick bite.  
2.       A second will aim to be family-friendly, with activities for kids and tables for their parents to dine nearby.
3.       The third area they call “Fika,” which is a Swedish word for a coffee break that involves socializing.  As the name suggests, the space is meant to offer something of a coffee house vibe: Cushy chairs and couches that are changed out several times a year to create a homey, seasonal spot where you’d feel comfortable lingering and chatting with friends. (And that might also inspire you to buy the furniture you’re sitting on, which will always be pulled directly from Ikea’s current line-up.)

Ikea’s grocerant Ready-2-Eat and Heat-n-Eat strategy is part of a broader push in casual and quick-service dining that is likely to become more competitive by leveraging existing restaurant space for different meals, or “day parts,”. 

New menu items reflect consumers’ changing dietary preferences Ho explained that “foe starters, there’s now a veggie version of the famous meatball, which contains chickpeas, kale, peas, and other ingredients.  They’ve also added a chicken version of the meatball, which they say is produced in a more sustainable way than their traditional meatball.”

At Ikea “better for you” includes sustainable seafood as of last year Ikea is now “sourcing all of its fish from supplier that use sustainable fishing practices.” Is your retail brand ready to drive incremental sales?  Have you considered entering the grocerant niche?  Maybe it’s time.  

Restaurants, Grocery stores, C-stores, Liquor stores, furniture stores or any retailer it time to invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment before you start your remodel or new test concept.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche, Linkedin.com/in/grocerant or twitter.com/grocerant Contact: Steve@FoodserviceSolutions.us
 

Sunday, February 7, 2016

Winn Dixie’s New Concept Store Is A Winner





Re-positioning to regain momentum is a daunting task for any retailer.  When Ian McLeod, president and CEO of Southeastern Grocers, Winn-Dixie's parent company began to look for industry success clues to build upon he gravitated from a category management regiment to a food merchant skill-set and according to Foodservice Solutions® Grocerant Guru® it’s working. 

Winn Dixie’s new concept store has incorporated and integrated the ‘halo of better for you’ to edify it’s brand promise of quality, fresh, made-to-order, organic, and local food.  As regular followers of Foodservice Solutions® team know fresh and local trumps organic and sustainable everywhere every day.  


The new Winn Dixie store strikes a balance between legacy brand attributes and a consumer relevant brand promise of fresh, quality, and value that will resonate with consumers today.  McLeod stated that “This store provides us with an opportunity to redefine what Winn-Dixie can provide for its customers in a contemporary, friendly and exciting in-store environment focused on stunning quality fresh food, specialty stores-within-stores and very competitive prices,”. We agree and think they did a much better job with this store than Kroger did with its new concept store Main & Vine


Ian McLeod is much more a food merchant than a category accountant. McLeod focuses on the customer according to our team at Foodservice Solutions®.  One important example is how the grocerant niche Ready-2-Eat and Heat-N-Eat fresh food is all located at the front of the store, so that the quality made-to-order Grab-N-Go food can be fresh food fast. 

Winn Dixie’s new concept team did an excellent job incorporating the ‘halo of better for you’ into the brand messaging everywhere in the store.  They clearly understood how value plays key role in communicating with customers and growing competitive forces. 


Winn Dixie’s ability to build-in a consumer interactive participatory feel will be a corner stone to its future success.   McLeod said the store was designed to emphasize freshness, quality, value and the “sense of something cooking in the kitchen,” referring to the on-site food preparation.

That ‘sense of something cooking in the kitchen’ expands the ‘halo’ of freshness throughout the store. McLeod also expanded freshness by partnering with innovative startups like, Eat Fresco, for Grocerant Solutions. Eat Fresco sells restaurant quality prepared meals that are vacuum sealed to lock in freshness. Challenging yesterday's frozen dinner model, its food is never frozen, made locally and utilize all natural and organic ingredients. Eat Fresco meals are ready to eat in under two minutes they are delicious, portable, and convenient and recommended by our own Grocerant Guru®.


This new Winn Dixie is empowering for employees who can drive the consume interactivity and participatory feel as they  smoke meats; bake breads, cook pizzas and pastries; fry mini-doughnuts; roll sushi; and even age fresh meats to customer specifications in the butcher area inviting customer customization and personalization each hallmarks of grocerant niche success. 

The new concept Winn Dixie has fresh made-to-order coffee.  Customers can drink the coffee while shopping, thanks to new shopping cart coffee cup holders. It’s a quality experience to be sure at a price that consumers with embrace. Here are some examples:

■ Beef brisket smoked in house. (Burnt ends sandwich, $5.)
■ Pizza made in house, cooked there or take it home and bake.
■ A machine that fries mini-doughnuts. Children get a free doughnut, which seems like an unfair business practice.

McLeod the food merchant understands that the consumer is dynamic not static. This new concept store was built to last by being built to evolve.  Currently Winn Dixie plans to remodel about 50 stores in the next 12 months, reevaluate and then remodel more. 

Success does leave clues and Winn Dixie picked up all of the right clues with this new concept store.  Millennials are willing to try different brands and our Grocerant Guru® believes that Winn Dixie has hit the perfect balance in value, quality, service, and freshness with this concept store that highlights grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food. 


The grocerant niche mix & match meal component platform is the New Normal in retail foodservice. Edifying your foodservice operation with customer focused meal personalization, customization, and local differentiation is a success clue no retailer should overlook.

Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment before you start your remodel or new test concept.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche, Linkedin.com/in/grocerant or twitter.com/grocerant Contact: Steve@FoodserviceSolutions.us