Retail food consumers are dynamic not static. While food retailers are a fragmented group.
Consumers on the other hand have a plethora of universal commonalities that
indicate just where they may be headed next when buying food. One of the
commonalities is speed of service. Today
consumers want what they want when they want it. Breakfast for lunch or Dinner for Breakfast
as an example however they all want it fast.
McDonalds Café is an example of expanding day-parts and menu
re-alignment with a focus on beverage and “snacking”. While they call it snacking, consumer
research informs us that consumers are searching for portion, price reductions.
This is driven in large part by the
confluence of obesity messaging and the economy. Many convenience stores have focused on
price and reduced portions size combined with speed of service to offer $0.99
take-away food while capturing traditional QSR’s consumers. In fact Sheetz now calls itself a chain
restaurant that sells gas. We agree
Sheetz is a food retailer selling fresh prepared food more important consumers
believe it as well.
While consumer are not all focused on price Panera Bread is
beginning to offer drive thru’s service because it complements their catering and take-Away business which is
near 50% of sales. Consumers do not take
steps backward. They have grown accustom
to quick service yet have a test for “better for you” food and Panera Bread
fits that bill.
Kroger is now testing convenience stores again research highlights
that the overriding universal commonality in food retailing that consumers
desire for speed of service. It’s simple
smaller store less time to get in and out.
Whole Foods has reduced the size of all new stores to 30,000SF while
increasing ready-2-eat and heat-N-eat fresh prepared food.
Clearly retail foodservice channel disruptions are underway and
lead by the consumer. Exactly the way it
should be. Food retailers must react and focus on consumer commonalities for
success. Migration Marketing helps legacy retailers create differentiation in a
world where the line between restaurants and food retailers is growing even
thinner.
www.FoodserviceSolutions.us specializes in outsourced business
development. We can help you identify, quantify and qualify additional food
retail segment opportunities or a brand leveraging marketing integration
strategy. Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche and
has been since 1991 Contact: Steve@FoodserviceSolutions.us
IHOP, syrup and Olive Garden, salad dressings, new product launches are the most recent examples of Migration Marketing.
ReplyDeleteThese brands have the ability to showcase their retail products in their restaurants with tabletop marketing as well as engage their army of servers.
Since they are used to being the king of their turf… It is to be seen if they can adapt to the retailer controlling the space.
These restaurant CPG brands have the unique ability to launching in their units first in order to get trial and word of mouth prior to a supermarket new product launch.