Grocery stores on the other hand focused on raw ingredients, struggling with cost of distribution, and fluctuating commodity cost. The consumer does not pay specific attention to either of those cost. What the consumer pays attention to is the end price. The value that the consumer is willing to pay is higher on a prepared meal than raw ingredient.
Recent studies show that the margins are substantially higher on prepped and prepared food. No matter what business your in today, you will be getting into the grocerant business soon enough. The metrics of how it works is difficult for long established companies to overcome. Departmental “rice bowling” will have to end for some legacy companies to succeed in the future. The big picture will be on the end result a happy customer not which department managers wins.
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 visit my blog at:www.grocerants.blogspot.com.