The Lempert Report LIVE

Michelle Obama's Kid Drink, Fast Food Homelessness, Free Wendy's Promotion

May 08, 2023 Phil Lempert Episode 77
The Lempert Report LIVE
Michelle Obama's Kid Drink, Fast Food Homelessness, Free Wendy's Promotion
Show Notes Transcript

Welcome to the Lempert Report LIVE. On today’s broadcast:

Hope you’ve had a chance to check out my multi-part food trends series on Forbes.

Phil:

Welcome to the Lempert Report Live. On today’s broadcast Michelle Obama gets into the food business, a job in fast food can lead to homelessness, Hy-Vee’s new Healthy You subscription, looks like Google told a lie, non-profit grocery stores open a new channel and on the Bullseye Wendy’s latest promotion is all about‘free’. Hope you’ve had a chance to check out my multi-part food trends series on Forbes– if you haven’t yet– here’s a link in the chat to read right after today’s broadcast. Let’s get started. Michelle Obama, who we worked with on Chef's Move Back to School program, has decided to get into the food business, last week at the Wall Street Journal food symposium. Actually it was the Wall Street Journal's Future of Everything Festival in New York. I'm here today because I still believe that businesses can and must move faster when it comes to our kids' health and nutrition. The product, and we'll talk about that in a second, is already in Target, Sprouts and Walmart online. It's called PLEZi. It is a beverage company. So Sally, what do you think about this? Is this a good idea for Michelle Obama?

Sally:

Phil, I think it's a wonderful idea. She was really wonderful in getting the Let's Move Campaign started when she was the First Lady. And so she has always been a champion for nutrition, particularly when it comes to our youth. Now, we have one in five children right now in the US, that's age two to18 that are obese, and those numbers are rising. It's really a frightening time for childhood nutrition. And soda and sugary drinks we have always heard are a big offender for obesity and particularly with children. And so it's really great to see her introduce a beverage like this. It only has six grams of sugar. It does use Stevia as a sweetener. Has 75% less sugar than many of the others we see in the supermarket that are of its kind. And it comes at a pretty fair price as well.

Phil:

Yeah, it's under a bucket bottle. Also, Sam Cass, her partner in the Let's Move program is a partner at Acre Ventures Partners. He's also the board chair of PLEZi. He's been involved every step of the way. So my feeling is that one of the things they're gonna try to do is to get this as part of the school lunch program, which would be really smart to do. But also to be honest with you, and I agree with you, I think this is terrific. I think having her leading up a food program and this beverage is just the first product. They anticipate going into snacks pretty soon as well, but they've also had some social media pushback. So no matter how good you try to be, you're giving 10% back to charity. It's fairly priced and so on. They're coming under criticism because they're packaged in single use plastic bottles that they're also using non-nutritive sweeteners, Stevia and Monkfruit, and that"it's processed." But I agree with you. I think that it's a fabulous effort on their behalf. You talked about the stats of why we need this so often so much. And also what I really like of what Michelle Obama said is that the drinks are not only intended to be less sweet, but they're helping train kids to enjoy less sweet drinks. And that's something that you and I have talked about for years, that we really have to change our taste buds away from this heavily sugar, salt, fat profile that makes us really satisfied into understanding what foods are supposed to taste like. Talking about food. A new report just came out from the economic round table, in California where they found that being employed in the fast food industry is the surest way to end up in poverty as a low wage earner and become homeless. It's amazing to me that when I read this, it's something that I never really thought about. But again, on average, when you take a look at fast food, there's 3.3 million fast food and counter workers in the US. Their average hourly wage is$13 and 53 cents. That works out to a little over$28,000 a year, assuming a 40 hour work week. And that's where the whole thing falls down because so many of these workers don't get 40 hours worth of work, and that's why it leads to homelessness.

Sally:

Yes, yes. And we're hearing, from this report that fast food workers represent one in 17 of the homeless people in California. And Phil, I was just in your state this weekend and saw the situation of the homeless there. And it is very sad to see. And California has the top minimum wage at$15.50 an hour, set in in the country, I believe, are one of the top ones. And so it is very disheartening to hear that this segment of workers is still struggling so much to put a roof over their heads.

Phil:

And CBS news who reported on this also points out that while fast food workers struggle to make their ends meet, the companies employing them are doing fine. McDonald's raked in 1.9 million in profit during the fourth quarter of 2022. So it's not for the year 1.9 million in one quarter. And Chick-Fil-A recorded 18.8 billion in system sales in 2022, up nearly 13% from the previous year. And as we've talked about in our trends report, just a couple months ago, one of the things that our number one concern is employment. when we take a look at employment, we take a look at wages. This is a major issue that is not gonna go away and really needs to be addressed. It's not about, buying robots to really replace these workers. We have a very serious problem as it relates to workers and minimum wage, and frankly, very high corporate profits higher than we've ever seen before. So we need to have this balance taking place. Balance is important and Hy-Vee has created a new healthy use subscription plan. Part of it is about healthy balance for their customers for eating. It's in their eight states to available to individuals 18 and older. It does cost$99 a month, which sounds high, but it includes two 30 minute appointments per month with a Hy-Vee dietitian, unlimited access to short and sweet and short and sweat fitness videos on demand, freezer, meal workshops, wellness classes, nutrition programs, free registration on wellness challenges, Hy-Vee dietitian, private chat portal, and two free health screenings per year. I love this program. Hy-Vee has long been a leader in health and wellness. And while I think that the$99 is high for the average shopper, bottom line is you're getting a lot back. And my hope, my hope, I don't know anything about this, but my hope is that Hy-Vee is working diligently with healthcare providers that all of this or a portion of this can be covered by your healthcare program. What do you think about this?

Sally:

Yes, I agree that there are some really wonderful attributes to this program. Number one being that the two 30 minute appointments per month with a Hy-Vee dietitian, to me that is the key benefit here. Fitness videos and meal plan ideas, I can find those for free on the internet. And so, the people that are signing up for this really need to know the value of meeting with that dietitian and how that can help them. Whether they're dealing with some sort of chronic illness or whether they're dealing with weight management, those are two major issues right now in our society that maybe these dietitians can help them, and maybe it's for people that can't get their healthcare programs to cover meeting with a dietitian. I would also like to see, in addition to this program, some sort of rewards or discounts, for shopping. Maybe great healthy pro, buying certain healthy products in the store, that would be a great benefit to really get people to want to feel like they're getting their$99 worth.

Phil:

Absolutely. And you're bringing up a great point that I hadn't thought of. ShopRite matter of fact, in New Jersey, their dietitians offer when you sign up for their program, which is free, they offer a 10, if I get this right, they offer a 10% discount at their juice bar, and I think a 10% discount on some other foods and so on as well. So, good point. Good catch. Hy-Vee needs to offer some kind of discount for people to make up that$99 as well. Google is under scrutiny. We all live and breathe by Google but basically what they decided to do in 2021, they would stop running ads alongside videos and other content that denied the existence and cause of climate change. But guess what, Google is still running those ads.

Sally:

Yes, it does appear that if you're watching your videos on YouTube and you see these ads beforehand, but some advertisers may not want those ads to run alongside, someone who is putting out information like that. Now many of us in this country believe in freedom of speech on these platforms, and I for one as well, believe that that is important. But, if these people that are buying ad time, these companies buying ad time, I think that they should be able to decide whether or not they want their ads to be, in front of content like that. And I'm not sure what sort of system they have in place to guarantee advertisers that you're only going to be paired up with certain types of content.

Phil:

I don't think that currently they have that as an option. I think that, and people just wanna be able to get a share of that revenue, but in today's world, with everything that's going on, for us to be fighting climate change when all around us, whether it's weather, whether it's storms, floods, whatever, that we keep on talking about, for anybody to be putting out stuff that devoids climate change, that to me is a food crime. Matter of fact. It just doesn't, make a a lot of sense to me. Nonprofit grocery stores look like, according to Axios at least, they're really doing a great job in food deserts. And what was interesting to me about the story in Axios is that, and what I didn't know, when you have small grocers, local gardens and farmers' markets in food deserts, they are"ignored in traditional food desert mapping models". And, so we talk about food deserts and not having a grocery store, and there's 76 counties nationwide that are without a single grocery store in them. So we can all get up in arms, supermarkets should go into these areas. We know that supermarkets that go into food deserts fail for a bunch of reasons. It's just not economically viable. But the fact that all the reports from USDA does not count small grocers, local guards, and farmers markets, that to me was a shocking and telling situation that maybe food deserts aren't nearly as bad as we've been led to believe.

Sally:

Yes, that certainly would be good news if it's not as bad as it seems. But these nonprofit grocery stores are very important to communities that are struggling. And, it's wonderful to be able to not only provide that service to people who are struggling with getting healthy, fresh food, but to also support a small business that is supporting their community and helping their community thrive. And, I think back, you've talked about it a lot that historically, supermarkets, grocery stores, originally have been the center of our communities and a very important part of how a community is doing. And so it is wonderful to have these, there's one in St. Louis, Missouri called Marsh Grocery Cooperative, and you can go and shop at this store, and if you are doing okay, then you can pay up to 20% more for something if you'd like to give, or you can pay 20% less than the price of the product if you are someone in need. And, I think a lot of people that can do want to help these companies, help other people and balance things out a little bit.

Phil:

Absolutely. And I think it's an important initiative, and what we're gonna do is we're gonna make sure that we get the right information out there about these small independent grocers, if you would, and farmers' markets that are in these areas that are really doing a yeoman's job. Thanks, Sally. Artificial intelligence has come to small food businesses in a unique way that can be very effective and a great tool on lost in the supermarket. I spoke with the owner of a specialty brand of sauces and the manager of one of America's best farmer's markets to find out just what AI is doing for them. For the complete episode, just log on to supermarket guru.com. Here's a preview of what they had to say. So, but it all comes down to human beings. So I, I've gotta say that probably, one out of every 10, newsletter marketing tools that I get says dear, and then it says name, so somebody hasn't taken the time to, I guess, press the right button so that my name appears. And for me, as a, as a consumer, when I get that, I immediately toss it out. so it has to be, with consumers. So how is Constant Contact helping Tracy and Mary solve for these kinds of human issues?

Russ:

Yeah, I think you're really getting to this idea of personalization. I would say that we continue to invest in, in personalization on the platform, both AI and otherwise. And, and, I would, I would hope that the folks who are sending you those, those notes that are not even basic personalization of your name would, would consider using Constant Contact because certainly we've, we've, we've got that problem solved, but, but actually much more. Right? And, and, would love to hear from, Tracy as well too. But, personalization to us is the right message. If, if I know, that you are a, a, a cost conscious person who likes a deal, well, you're gonna go on my last minute promos, segment list. If I know that you love to hear about live events that I host because I'm, I'm a wine bar and I have a book club offering, I'm gonna have you in my in persons list. So what you're really getting at is relevance. You're getting at personalization and this generative AI capability that we have. Imagine it can select the message, it can select the audience, and, and voila magic occurs with, really empowering those small business owners to, to drive and grow, and accelerate their impact.

Phil:

On today’s Bullseye– Wendy’s looks to the stars and embraces Mercury Retrograde with free food. Now you have to download Wendy’s app to participate, and the program lunched on April 21st and this is the last week where you can get a free any size hot& crispy fries with any purchase. It’s an interesting 3-week promotion that offered a different free food over the three-week period: by one get one free sandwiches, free chicken sandwich, free 6 piece chicken nuggets and in the last week– the free fries. To be honest I think the tie in with the planets is a bit of a stretch. Mercury Retrograde, the time when the planet Mercury moves slower than the Earth around the sun, purports that during this period we experience meltdowns, false gossip, miscommunication, and technology fails- and the premise that Wendy’s marketing folks have is that by offering free food the company says, it will help us cope with the potential chaos that will ensue. Because of Mercury in retrograde.. Fiirst, I really have no idea how many people actually take heed in Mercury Retrograde. Second, I don’t know if these folks are actual Wendy’s customers– or that this promotion will bring those who follow Mercury Retrograde into a Wendy’s restaurant. And lastly– I don’t know if giving free food will actually soothe these people’s psyche. Wendy’s launched“National Roast Day” in 2018 where they invite people to a three-day event April 12-14 on TikTok asking– and in some cases, begging, Wendy to“roast” them. In previous years, the roasting was on Twitter, but this time it’s on TikTok. On Twitter– where the promotion was just 24 hours, they received over 130 million requests. This year on TikTok, which in all fairness, posting a video IS slightly harder than just writing a tweet, Wendy’s shared 11 videos with over 109 million views over the 3-day period. In looking at a bunch of the videos, frankly, in my opinion, most of them were pretty lame– and talking about lame– Wendy’s automated AI response videos were even more lame. In today’s AI world she could have easily customized the video to include the people’s names and the animation, well, kinda amateurish. The even did a segment on the TODAY show, which I don’t know if they actually paid for or not– but it looks like they did, where they“roasted” Al Roker’s White House Easter Egg roll question to Joe Biden about running again– take a look.

Wendy:

It's me, Wendy and I just wanted to come on the Today Show and celebrate National Roast Day. Woo. I hope to see you all hosting something I'm watching in the background of the thing I'm actually doing for another 72 years. Oh, and Al before you ask, I'm not planning on running for President.

Phil:

Wendy– his name is Al, Al Roker– would have been much more powerful to include that And by the way, As much as I hate to admit it– when you used Twitter it was a lot more fun and interesting. The way the campaign got its start was back in November 2017 Wendy’s tweeted and hash tagged McDonald’s– When the tweets are as broken as the ice cream machine. One of my favorite Tweets came from Gina– I wanna go on a date with@Wendys and take them to a real burger joint@BurgerKing. For me both these campaigns miss the point– sure they are playful– but let’s remember we are talking food. If Wendy’s or whichever fast-food restaurants want to increase sales– let’s look at the menu, make real improvements and tell us about those. And by the way, Wendy’s foods aren’t roasted- they use a flash cooking method that has the burgers in a clamshell grill that’s timed to tell the cook when they are ready. Another lame promotion in my book. The Lempert Report is all about inspiring ideas, making our industry think and challenging each other. Let’s think about“being the shopper” and how we can bring our supermarkets and restaurants closer to meet their needs. I hope you’ll come back to join us on next week’s installment of The Lempert report LIVE when we focus on the biggest and best insights– and the things that really matter. Be sure to visit SupermarketGuru.com for the latest marketing analysis, issues and trends and don’t forget to join us back here next Monday at 2:30pm Eastern for more.