Wednesday, November 16, 2011

Chain Restaurant Brand Protectionism Stifles Growth.

2012 is fast approaching and three retail foodservice trends are clear.  First; the convenience store sector will report the highest increase in sales of any retail food sector in 2011. Second; Grocery stores fresh and prepared food is expanding rapidly while driving all the top line growth in the grocery sector in 2011.  Third: there will be fewer restaurants at the beginning of 2012 than there were at the beginning 2011.  This is a trend that continues to plague the restaurant sector.  The reason is brand protectionism.  

The consumer is dynamic not static.  Many companies within the chain restaurant sector have created “brand” silos.  Restaurant industry titans spend way too much time and effort maintaining the silo, protecting the brand, promoting from within too “maintain continuity”.  While they are “maintaining continuity” their customer has moved on.  The brands become trapped in the silo, sales slip, and franchisee’s flounder. Restaurateurs should fear not the evolution of their retail food brand, but the lack of it. 

The evolution of retail foodservice is a blend of operational efficiencies that complement the 5P’s of food marketing: Product, Packaging, Placement, Portability and Price, while edifying the legacy attributes of a specific brand. Operational efficiencies are a required for brand equilibrium. 

The balance between consumer relevance and brand relevance can only be maintained with dynamic positioning.  The consumer is dynamic not static. The legacy ideation of brand protectionism is tied to the C-level management and marketing mindset of the late 50’s,60’s and 70’s and has no place in contemporary retail foodservice.

Outside eyes can deliver top line sales and bottom line profits.  Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Johnson, or

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