Friday, August 30, 2013

Macro Food in Micro Locations Non-traditional Growth Riles Legacy Food Retailers

Herfy’s restaurants are thriving once again.  This time around very rarely will you find a Herfy’s as a free standing building, it all about ROI and micro sites simply have better metrics. The once dominate regional hamburger restaurant chain is back.  Currently with 41+ locations in strip centers and other non-traditional locations driven by new empower licensee driving sales and new unit growth.  

Pinkies liquor stores recently remodeled are now selling fresh prepared meals and meal components for customer to bundle into a customized meal.  Once fresh  prepared deli food was the found only in suburban grocery stores, now both liquor stores and drug stores are selling fresh prepared food in much smaller locations that a suburban grocery stores.  

In New York City Simply Sliders occupies on 85 square feet of retail space. Then there is Baked by Melissa that opened a nearly 100-square-foot storefront on Spring Street in NYC. Yes, I know these are in NYC my point is in every city, every sector of retail foodservice new companies are finding a way to sell more in less space.   

Within the grocerant sector the number one food retailer is Trader Joes selling $1750.00 per square foot of retail space.  Trader Joes is not only a viable option for consumer to buy groceries they are winning the space with a smaller foot print selling meal components again that can be bundled into a customized family meal.  More importantly they are selling portions for one or two people at a meal.  Remember 50% of Americans over the age of 18 are single. 

Non-traditional locations with less overhead take less shopping time for consumer are appealing. Legacy operators stuck in footprint malaise are vulnerable to new non-traditional competitors. When building a Ready-2-Eat and Heat-N-Eat fresh prepared food brand position it isn't difficult to develop a relevant and differentiated brand promise. Two things are difficult driving the brand deep into the organization so that you deliver a consistent message at all consumer touch-points, and understanding your customer’s entire journey. 

Foodservice Solutions® outside eyes deliver inside results helping you with both.  In our Omni-Channel retail world Looking a Customer Ahead is where Foodservice Solutions® excels.  Integrating Foodservice Solutions® 5 P’s of Food Marketing will edify your positioning while empowering consumer choice. 
Foodservice Solutions®, specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit, or

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