Jordan Anderson, PAR Technology Corp.
Retail Food Safety Forum

The Future of Food Service

By Jordan Anderson
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Jordan Anderson, PAR Technology Corp.

Technological advances are helping to improve the consumer experience.

The food service industry has rapidly changed since Boulanger disputably opened up his doors to the first modern restaurant in Paris over 200 years ago. While soups, sandwiches and pasta dishes continue to be served, the ever-changing landscape of this industry continues to evolve and not only provide new dishes, but innovative practices to cultivate products and introduce technological advances that ultimately enhance the consumer experience.

Localization

In attempts to reduce waste and increase visibility, grocers are looking to localize their product assortments. Whether they garner these products from within their market or a predetermined radius, they can increase traceability best practices while appealing to local shoppers. An example of this would be regional grocery chains selling beer only from local breweries or vegetables from local farms.

In executing this strategy, grocers increase sales by appealing to local shoppers while reducing produce shrink due to shorter delivery times from farm to fork. While some may argue focusing on local offerings takes away focus from more profitable national brand names, keeping your local consumers’ best interests in mind ensures their happiness and strengthens their brand loyalty.

Healthier Foods

Healthy food and beverage options continue to drive demand in grocery stores. As clean eating and heart healthy diets become the responsible practice, grocers must increase their offerings surrounding this category. Companies such as H-E-B have introduced clear labeling to signify certain products were produced without high-fructose corn syrup, while others are removing junk food offerings from checkout lines.

One way grocers are making healthy foods more appealing is by reducing the price of fresh produce by implementing shorter delivery cycles. This strategy ensures food safety, the freshness of the products, and their aesthetic value on display shelves, too. While this makes them more appealing, it also reduces the risk of product spoilage and profit loss due to the perpetual freshness of the product coming in.

Digital Coupons

While paper coupons have been the industry norm for decades, more grocers are turning to digital offerings. Wegman’s recently introduced a mobile app that allows consumers to digitally clip coupons, look up recipes, and find where products are within their stores. With the popularity of mobile devices, this trend will continue to burgeon.

The switch to digital also helps grocers strategically place products and offerings to their customer base. They can optimize sales and marketing approaches this way while discovering patterns and trends in the buying cycle. This allows them to understand their customer base while simultaneously increasing sales.

The Future of Grocery

Like most people, I enjoy eating. However, unlike most people, I actually enjoy the grocery shopping process. Typically, I go hungry while envisioning the endless possibilities of what I could make for dinner. Of course, due to my hunger, I end up purchasing copious amounts of unnecessary items while overspending in an impressive and irresponsible manner.

Due to my rare affinity for grocery shopping, the current and future landscape of the grocery market is interesting to me. I know, pathetic, but we all must have our odd interests.

Walmart Scan & Go

Walmart has developed an app that allows buyers to skip the lines and enjoy a seamless shopping experience. The app allows buyers to scan their desired goods, while keeping a running total of the goods in their cart. Once done shopping, you simply click ‘pay’ and you can check out wherever you are standing. A Walmart employee must verify your receipt before leaving the store but that only takes a moment.

You may be asking yourself, “How do they know I scanned everything?” Well, the honor system comes into play here so just because you hate grocery shopping, don’t rip off the nice people of Walmart, no matter how rich you think they are.

The app is only available at three stores currently – but keep an eye out for a location near you!

Cart MRI

Scan & Go is great for convenience, but if you’re in even more of a rush then this technology is great. The product debuted at Euroshop this past year. This technology allows for buyers to simply push their cart through a device that scans everything within the cart. This technology adds up everything, allows you to pay, and you’re out the door. No more dealing with 10-minute waits or lane closures.

Additionally, the technology provides a touchscreen on the cart that informs you about your selected items, where other products are, and gives you suggestions that compliment your shopping experience.

Sip and Stroll

While the above technologies make the buying experience more convenient—how about something that allows customers to chill out?

As I stated before, most individuals hate grocery shopping. Nevertheless, what if you could have a beer or two while shopping?

Whole Foods first adopted this burgeoning trend. The company sought out on-premise liquor licenses so their patrons could enjoy a few drinks while they shop. This allows for a more relaxed shopping experience while also giving customers insight on different or new brands they may not be familiar with.

Plus, if we’re being honest, if the drinks are good enough… the customers may be more willing to splurge.

The Future of Convenience Stores

Ah, convenience stores, pleasantly reeking of greasy hotdogs, gasoline, and cigarette fumes from the miserable 17-year old cashier outside neglecting the line. That’s generally the perception, right?

Well, not anymore! Convenience stores are now becoming a popular destination for consumers everywhere.

C-stores are beginning to seek alternatives from the slimmer margins of gas and cigarettes. In 2016, the industry saw a 9.2% drop in fuel sales, however, in-store sales increased by 3.2%.

While electric cars and public transportation can explain the precipitous drop in fuel sales—the industry took note of the increased in-store sales. Discovering potential reasons why and how to sustain them.

As the general population becomes increasingly more health conscious, convenience stores are beginning to adapt. Trending now are plant-based protein bars, dried fruits and nuts, and upscale jerky.

“Protein is the new energy,” says Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores. The demand for grass-fed and cage-free offerings are increasing in demand. Leaving the industry to either adapt, or fall behind.

After protein inspired snacks, convenience stores are beginning to incorporate their own restaurant concepts within their stores. The Pride Stores, a small c-store chain in the greater Chicago area, hired a corporate chef and introduced two different concepts, one being taco themed. This allows for consumers to eat-in, spending more time in their stores, or carry out for their convenience.

If you haven’t noticed lately, more convenience stores are beginning to expand their offerings of beer. Craft beer and wine selections are becoming bountiful options within the aisles. The copious amount of microbreweries opening up nationwide has spiced up the masses taste buds and demand for these crafted beers has continued to steadily increase.

National and local brands allow consumers to enjoy their local favorites, or to discover a new personal favorite.

Vineyards have begun to spring up more than ever, too. While the west coast has long been notorious for their wine, the fad has begun to spread nationwide. Whether you want to try something from the west, or upstate, NY, convenience stores are now becoming a go-to for the moderate connoisseur.

About The Author

Jordan Anderson, PAR Technology Corp.

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