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  • RESTAURANT BRAND EXPANSION: FRANCHISE, RETAIL OR MORE LOCATIONS?

    Expanding your restaurant brand is a pivotal decision that can significantly impact your business's future. Opening additional restaurant locations is the typical choice; however, there are two additional avenues restaurant brands should consider: Franchising or expanding into the Consumer Packaged Goods (CPG) retail/grocery market. Each strategy offers distinct advantages and challenges.  This article delves into the pros and cons of both of these options. Franchising: Pros and Cons Pros: Accelerated Growth with Reduced Capital Investment:  Franchising enables rapid brand expansion without the substantial capital expenditure typically required for opening new locations. Franchisees invest their own resources to establish and operate outlets under your brand, facilitating growth with minimized financial risk. Enhanced Brand Presence and Market Penetration:  By leveraging franchisees' local market knowledge, your brand can establish a presence in diverse regions. This localized approach can lead to increased brand recognition and customer loyalty across various markets. Operational Efficiency and Resource Allocation:  Franchisees manage day-to-day operations, allowing the franchisor to focus on strategic initiatives such as brand development, marketing, and supply chain optimization. This division of responsibilities can lead to more efficient resource utilization.  Cons: Potential for Inconsistent Quality and Brand Representation:  Maintaining uniform quality and service standards across all franchise locations can be challenging. Variations in management practices may affect the customer experience and, consequently, the brand's reputation. Complexity in Franchisee Relations and Compliance:  Managing relationships with multiple franchisees requires robust support systems and clear communication channels. Ensuring compliance with brand standards and operational guidelines can be resource-intensive. consequently, the brand's reputation. Systems must be Locked In:  If your current restaurant locations experience any inefficiencies in supply chain, operations, management or marketing, these inefficiencies will only multiply under a franchise model.  Franchisees are looking for a “paint by numbers” business where they can simply plug in and go.  If there are any weaknesses in your infrastructure, there is no value to the franchisee.  Expanding into the CPG Market: Pros and Cons Pros: Diversified Revenue Streams and Increased Resilience:  Introducing CPG products allows restaurants to tap into retail markets, creating additional income sources beyond traditional dining services. This diversification can enhance financial stability, especially during economic downturns. Extended Brand Reach and Consumer Accessibility:  Offering packaged versions of your signature items in retail outlets enables customers to enjoy your products at their convenience, broadening your market reach and reinforcing brand loyalty. Capitalizing on Established Consumer Trust:  Restaurants with a loyal customer base can leverage their existing reputation to introduce CPG products successfully. Familiarity with the brand can encourage trial and adoption in the retail space. Ability to Scale Outside Region:  With a strategic approach to retail partners, even a modest local restaurant brand can expand to a national presence within a few short years of launching a successful CPG product.  Brand Valuation and Potential Buy-Out:  It is not uncommon for innovative retail food products to scale to the point where a large national food brand makes an offer.  Smaller food brands are typically more agile and innovative than larger competitors, making their CPG product offerings very attractive to consumers and retail partners.  A successful, profitable line of CPG products adds considerable valuation to a restaurant brand.   Cons: Navigating a Competitive Retail Landscape:  The CPG market is highly competitive, with numerous established brands vying for shelf space and consumer attention. Breaking into this market requires strategic planning, innovative product offerings, shelf-competitive packaging design and a strong marketing platform. Operational Challenges and Resource Allocation:  Developing, producing, and distributing CPG food products necessitates a different set of operational capabilities. Restaurants may need to invest in new infrastructure, partnerships, and expertise to manage these processes effectively.  In the alternative, they can outsource management of the channel to a reliable CPG systems service provider.  Services are generally broken down by R&D for product development, packaging design firms, co-manufacturers, brokers, warehousing partners, and distributors; however, firms like Pivot North Consulting Group/PNC Specialty Foods bring all services together under a single managed service program (Menu to MarketⓇ).  Key Considerations for Restaurant Owners Brand Alignment and Consumer Demand:  Assess whether your restaurant's offerings have the potential to succeed in a retail format. Products that resonate well with your existing customer base are more likely to perform effectively as CPG items. Regulatory Compliance and Quality Assurance:  Entering the CPG market involves adhering to stringent food safety and labeling regulations. Establishing rigorous quality control measures is essential to maintain product integrity and consumer trust. Strategic Partnerships and Distribution Channels:  Collaborating with experienced manufacturers, distributors, and retailers can facilitate a smoother entry into the CPG market. These partnerships can provide valuable insights and resources to navigate the complexities of product development and distribution. Both franchising and expanding into the CPG market offer viable pathways for restaurant owners seeking growth. Franchising allows for rapid expansion with reduced capital investment but requires diligent oversight to maintain brand consistency. Conversely, venturing into the CPG sector can diversify revenue streams and extend brand reach, though it demands careful navigation of a competitive and complex retail environment.  Evaluating your restaurant's unique strengths, market positioning, and long-term objectives is crucial in determining the most suitable expansion strategy. By aligning your approach with consumer demand and operational capabilities, you can position your brand for sustained success in the evolving food industry landscape. If your restaurant brand is considering whether a CPG retail strategy is right for you, Pivot North Consulting Group can help you navigate the concept validation process.  For more information, see website and contact information below. _______________________________________ Gail Kurpgeweit, CEO Pivot North Consulting Group www.pivotnorthconsulting.com

  • Will Jackfruit Save the Plant-Based CPG Industry?

    The plant-based CPG industry is at a crucial turning point: Once heralded as a transformative force in sustainable eating and a game-changing alternative to meat, the sector is now facing a noticeable slow-down. A significant challenge for the plant-based industry lies in improving the texture, taste, and overall appeal of its products to attract a wider audience, particularly “flexitarians” who alternate between plant-based and meat-based options. Successfully engaging this consumer group is vital for expanding beyond the vegan and vegetarian niche and capturing a larger share of the market. In this challenging landscape, jackfruit, a tropical fruit from South Asia, is positioning itself as a potential game-changer for the plant-based industry. With its meat-like texture, flavor-absorbing qualities, and resilience to high-temperature cooking, jackfruit is quickly becoming a standout ingredient in plant-based food products. This white paper delves into how jackfruit could revitalize the plant-based CPG industry and drive consumers back to the category. Current Challenges in the Plant-Based CPG Industry The plant-based CPG industry has grown rapidly, driven by increasing consumer awareness of health, ethical, and environmental issues associated with meat consumption. However, recent trends indicate a slowdown. Market research points to several challenges: Taste and Texture : Many plant-based products fail to mimic the taste and texture of meat convincingly. Flexitarians, who represent a significant portion of the target market, are not fully satisfied with the current offerings, leading to decreased repeat purchases. Ingredient Quality : Consumers are increasingly wary of highly processed ingredients and artificial additives, which are often used to replicate meat-like textures and flavors in plant-based products. Sustainability Concerns : Although plant-based foods are generally seen as more sustainable than meat, some consumers are concerned about the sourcing and environmental impact of ingredients used in traditional plant-based products. Jackfruit: A Natural Solution Jackfruit offers several unique attributes that position it as a promising solution to the challenges facing the plant-based CPG industry: Meat-Like Texture:  Jackfruit's fibrous, "meaty" texture makes it an ideal substitute for shredded meats such as pulled pork or chicken. It offers a more natural, less processed mouthfeel compared to many pea-, soy-, or wheat-based alternatives. Flavor Absorption: Jackfruit has a mild flavor profile that readily absorbs the taste of spices, marinades, and sauces. This versatility allows it to be used in a wide variety of dishes, catering to different culinary preferences. Nutritional Profile:  Jackfruit is low in calories and fat but rich in fiber, vitamins, and minerals. It provides a healthful alternative to meat without the cholesterol and saturated fats associated with animal products. Sustainability:  Jackfruit trees are highly productive and require fewer resources to grow compared to other plant-based protein sources. They are drought-resistant, require minimal agricultural inputs, and produce a high yield, making jackfruit a sustainable option for food production. Minimal Processing Requirements:  Unlike many other plant-based protein sources that require significant processing to achieve a desirable texture and taste, jackfruit can be used in its natural form with minimal processing. This not only reduces production costs but also aligns with consumer preferences for clean-label products, enhancing its appeal in the plant-based market. Research and Market Insights The potential of jackfruit as a meat alternative has been supported by various studies and market analyses: Sustainability and Growth Potential : According to Lombard Odier's report, jackfruit’s high yield and low resource requirements make it an economically viable and environmentally friendly option. The report emphasizes the fruit's potential to support food security and reduce the ecological footprint of plant-based foods . Consumer Appeal and Product Development : VegNews highlights the appeal of jackfruit among consumers seeking natural and less processed meat alternatives. Jackfruit-based products are becoming increasingly popular, suggesting a growing acceptance of this ingredient. Market Integration : Companies like Jack & Annie’s are leveraging jackfruit's unique properties to create a range of products that cater to health-conscious consumers. Their success illustrates the potential for jackfruit to gain a foothold in the competitive plant-based market. Scientific Research : Research published in The Pharma Journal and ResearchGate has demonstrated the feasibility of using jackfruit in developing healthy meat analogues. These studies confirm jackfruit’s ability to replicate the sensory properties of meat and its potential to be a key ingredient in plant-based formulations. Strategic Recommendations for the CPG Industry To capitalize on the potential of jackfruit, the plant-based CPG industry should consider the following strategies: Product Innovation : Develop a diverse range of jackfruit-based products, including ready-to-eat meals, snacks, and frozen entrees. Emphasize flavor variety to cater to different consumer tastes. Consumer Education : Educate consumers about the benefits of jackfruit, including its sustainability, nutritional value, and versatility. Highlighting its role as a minimally processed, natural ingredient can appeal to health-conscious consumers. Sourcing and Supply Chain Management : Invest in sustainable sourcing practices to ensure a steady supply of jackfruit. Partnerships with jackfruit-producing regions can support local economies and strengthen supply chains. Branding and Marketing : Position jackfruit-based products as innovative, sustainable, and health-conscious choices. Marketing campaigns should focus on the natural, authentic eating experience jackfruit provides, distinguishing it from other plant-based options. Collaboration with Culinary Experts : Work with chefs and food scientists to develop recipes and formulations that maximize jackfruit's culinary potential. Culinary collaborations can lead to products that not only taste good but also offer an authentic meat-like experience. The plant-based CPG industry, while facing a temporary slowdown, has a significant opportunity to reignite consumer interest through the strategic use of jackfruit. With its naturally meat-like texture, flavor versatility, nutritional benefits, and sustainability, jackfruit addresses many of the challenges that have hindered the growth of plant-based products. By leveraging jackfruit’s unique qualities, the industry can create products that appeal to flexitarians and a broader audience seeking tasty, healthy, and environmentally friendly food options. To fully realize the potential of jackfruit, plant-based CPG companies should focus on product innovation, consumer education, sustainable sourcing, and targeted marketing strategies. By doing so, they can position jackfruit-based offerings as a compelling alternative that meets consumer demand for clean-label, minimally processed, and flavorful products. As evidenced by the success of brands and restaurants that have already embraced jackfruit, such as Tacotarian, there is a clear appetite for innovative plant-based solutions. By capitalizing on this momentum, the plant-based CPG industry can not only overcome its current challenges but also lead the way in redefining the future of sustainable, plant-based eating. At Pivot North Consulting Group (PNC), we specialize in transforming popular restaurant menu items into high-velocity CPG products that meet the demands of today's discerning consumers. Our proprietary Menu to Market system guides restaurant brands through every step of product development, from R&D and legally compliant labeling to packaging design, retail placement, and distribution.  A great example of our success in the plant-based sector is our partnership with Tacotarian, a popular restaurant that offers innovative plant-based tacos. Through our collaboration, we have successfully launched Tacotarian's signature jackfruit-based taco filling into the retail market, allowing customers to enjoy their favorite plant-based meals at home. By leveraging our expertise, we help brands like Tacotarian scale their plant-based innovations, ensuring they reach a wider audience and contribute to the growth of the plant-based CPG industry. References Lombard Odier. "Jackfruit Leads the Cash-In on Healthy and Sustainable Food." Retrieved from   Lombard Odier . VegNews. "Is Jackfruit the Affordable and Sustainable Meat Alternative of the Future?" Retrieved from   VegNews . Food Dive. "Plant-Based Meat’s Next Hero Ingredient: Jackfruit." Retrieved from   Food Dive . ResearchGate. "The Application of Jackfruit By-Product on the Development of Healthy Meat Analogue." Retrieved from   ResearchGate . The Pharma Journal. "Jackfruit as a Potential Source for Plant-Based Meat Analogues." Retrieved from   The Pharma Journal .

  • Huckleberries as an Emerging Food Trend

    Huckleberries, native to the forests of the Pacific Northwest, are gaining attention as a growing food trend in the culinary and food product development industry. Historically, these berries have been prized for their unique flavor and nutritional benefits. Recent market research indicates that huckleberries are becoming more popular due to their versatility and appeal in various food products, such as energy drinks, snacks, and desserts. Market Growth and Projections The huckleberry market is anticipated to grow at a compound annual growth rate (CAGR) of 6.1% from 2022 to 2029, reaching approximately USD 1.30 million by 2029. This growth is driven by increased consumer interest in natural and wild-sourced ingredients that provide both flavor and health benefits. Huckleberries are particularly noted for their high antioxidant content, which resonates with health-conscious consumers ​(tastewise, Bondhusova - The Hunger Fighter) . Consumer Preferences and Trends Data from Tastewise, a food and beverage trends analytics platform, suggests that huckleberries are gaining traction among consumers who prioritize natural ingredients and are looking for unique flavors. This trend is part of a broader movement towards superfoods and exotic fruits that offer distinctive tastes and health benefits. The growing popularity of huckleberries in artisanal and small-batch products is also indicative of the trend towards authenticity and craft in the food industry ​(tastewise). Applications in Food Products Huckleberries are increasingly being used in a variety of food products. Their rich, slightly tart flavor profile makes them a popular choice for jams, syrups, and beverages. Additionally, their nutritional profile, which includes antioxidants, vitamins, and minerals, has spurred their inclusion in health-focused products such as energy bars and functional beverages. Major players in the food industry are starting to incorporate huckleberries into their product lines, recognizing the consumer demand for both taste and nutrition. Competitive Landscape Several companies, including Huckleberry Industries and other established players like Dole Food Company and PepsiCo, are entering the huckleberry market. These companies are leveraging the growing demand by incorporating huckleberries into their product offerings and exploring innovative applications. The competitive landscape indicates that companies are investing in product development and marketing to highlight the unique attributes of huckleberries​. A category leader is Swamp Shop, LLC, a division of Heritage Restaurant Brands, who has recently launched their premium syrup and jam products into the retail marketplace. Based on the nationwide popularity of their Huckleberry's Breakfast and Lunch restaurants, the brand is poised to dominate on retail shelves just in time to capture market share for this emerging flavor trend. Huckleberries are poised to become a significant trend in the food industry due to their appealing flavor, health benefits, and versatility. As consumer interest in natural and unique food ingredients continues to grow, huckleberries are likely to see increased usage across a range of food and beverage products. For food product developers and marketers, focusing on huckleberries could offer a strategic advantage in catering to health-conscious and flavor-seeking consumers. Recommendations Product Development : Leverage huckleberries in innovative products such as health-focused snacks, beverages, and gourmet food items. Marketing Strategy : Highlight the unique taste and health benefits of huckleberries in marketing campaigns to attract health-conscious consumers. Collaborations : Partner with local producers to ensure sustainable and authentic sourcing of huckleberries, enhancing brand authenticity and appeal. By capitalizing on the emerging huckleberry trend, companies can align with current consumer preferences and expand their market presence in the health and wellness sector. At Pivot North Consulting, we specialize in transforming popular restaurant menu items into successful retail food products. Our expertise in CPG and retail food product development has allowed us to effectively bring innovative and high-quality products to market, supporting restaurant growth and expanding brand presence in retail. Our work with Huckleberry Premium Jam and Syrup exemplifies this approach. By leveraging the unique flavor and appeal of huckleberries, we've developed products that not only align with current consumer trends but also help restaurants extend their brand into new markets. Our strategies focus on capitalizing on emerging food trends, driving restaurant growth, and creating products that resonate with consumers in the retail space. As the demand for huckleberry-based products continues to rise, Pivot North Consulting remains committed to delivering innovative solutions that enhance both restaurant menus and retail offerings, solidifying our clients' success in a competitive market.

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