Three of the world’s largest fresh prepared food companies continue to expand relevance in the fast growing grocerant niche (Ready-2-Eat and Heat-N-Eat fresh prepared food). Both McDonalds and Burger King are adding customers, frequency and daypart relevance for the fast paced consumer. McDonalds via coffee and Burger King into brunch and Starbucks more and more food.
Burger King is testing a new brunch menu in parts of the US and Canada. Burger Business reports “The brunch menu is being offered daily until 10:30 a.m. -- the same time as breakfast is offered until in other Burger King locations -- but includes a few brunch-specific items. One is a non-alcoholic mimosa. Instead of orange juice and champagne, it's a family-friendly blend of orange juice, Sprite and ice The other brunch-specific item is a new BK Ciabatta Breakfast Sandwich that combines scrambled egg, cheese, tomato, ham and bacon with a smoky tomato sauce on a ciabatta roll."
McDonald's Corp. reported a better-than-expected profit, crediting its coffee business for boosting U.S. sales. Same-store sales rose 1.5 percent during the quarter and 4.2 percent in March thanks to the chain's McCafé coffees and other beverages, according to Reuters.
McDonald's has had success with its coffee despite early complaints about the minimal cost to franchisees, who were squeezed by the economic downturn, the report stated. This quarter, the fast-food chain encroached further into Starbucks territory by introducing lower-priced frappes designed to compete with Frappuccinos. McCafe or grocerant? Starbucks profit rose on food sales? Ready-2-Eat and Heat-N-Eat fresh prepared food is taking off!
Shifts in the availability of fresh foods via menu expansions across retail channels are focusing on the consumer and will create more competition among retail food sectors. These are transformational times in the food industry and food manufactures and retailers jockeying for a winning position.
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