Thursday, May 9, 2013

Is Amazon.com Experimenting with Fresh Food the Last Mile Solution?



The grocerant niche is a fresh prepared food focused sector focused on consumer meal customization.  With the convenience of fast-food, the quality of full-service restaurant dining, without the hassle laboring around an entire grocery store or sitting in a restaurant and paying a tip the grocerant niche is booming. Amazon Fresh via “Seattle Spotlight” just might become a new power-player in fresh food retail.
Amazon Fresh is  the solution that is evolving across many retail food platforms empowering the consumer, simplifying the meal process while saving time starved consumer both time and money. Chain Restaurants, Convenience Stores, Grocery Stores and Chain Drug Stores are all offering meal component options. Amazon Fresh may be the only company that can focus on all simultaneously.
Consumers respond positively when components with a “better for you”  element are bundled as part of the meal focus.  It’s a mix and match game that is very empowering for the consumer.  Consumer’s select by meal occasion what “better for you” attribute they want.  It can be fresh hamburger, low salt, cooked to order, green packaging or delivery.

Don’t discount the value of consumer choice or limit the world of “better for you”.  Mix and match of small portion, fresh products, green packaging is making meal time a time of convenient meal participation, differentiation and individualization. The meal component can come from a restaurant, drug store, grocery store or convenience store and aggregated by Amazon.com.

Today you can find retail foodservice outlets that don’t offer seated dining rather they utilize call ahead and take-away or delivery only business template blending the benefits of different segments. In fact, according to a 2011 survey done by the National Restaurant Association, nearly half (47 percent) of adults said they would be likely to use a home delivery option if it was offered by a full-service restaurant.
In the same survey, more than one-third of adults (37 percent) agreed that purchasing meals from restaurants, take-out and delivery places make them more productive in their day-to-day lives. The grocerant niche is consumer driven and garnering share of stomach from legacy retailers.
                                                                
Simply look at the retail foodservice growth and sales leaders of today. Trader Joe’s, Chipotle Mexican Grill, Five Guys Burgers & Fries, 7 Eleven are all growth leaders.  Trader Joe’s leads in sales per square foot at over $1,750 per Sq. Ft. Chipotle, Five Guys and 7 Eleven are all growing units and garnering share of stomach from everyone else.  All are members of the grocerant niche.  Amazon may be next to join the list.  Are you expanding points of distribution for your food products?

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant 

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