Market
share capitulation can only last so lone.
So we ask is the equilibrium about to shift from non-traditional fresh
food market share gainers back to legacy fresh prepared Ready-2-Eat and
Heat-N-Eat retailers? According to Foodservice
Solutions® Grocerant Guru™ you won’t have
to wait long to find out.
Complacency,
Copy-Cat Menu’s, and Customer Counts declines inevitably lead to change. Will change lead to innovation or simply
more of the same? Who are the likely
winners and losers? Is your restaurant still playing the wait and see don’t act
game? How’s that working? Are Customer
Counts and Sales up?
Companies
the ilk of Casey’s General Stores with 1842 units has a three year fresh prepared
food growth that exceeds 38.5% driven in
large part by fresh prepared Pizza sales.
Wawa
is investing in excess of $550 Million Dollars in the Central Florida market
driven in large part by sales of it’s now famous Hoagies.
All
of this will likely make for an exciting time for the industry in 2015 putting
additional pressure on legacy QSR’s to up increase innovation, or capitulate
more market share. Let’s first look at
Domino’s Pizza clearly the innovation leader within the QSR sector. Domino’s is the only company to completely dump,
abandon, and replace its hallmark product it pizza. Since they boldly replaced the crust, sauce
evolving its brand identity from yesterday’s staple to today’s flavor profiles.
Which in turn drove customer relevance, sales, profits, store counts and
customer counts have posted sector leading numbers.
The
once delivery company Domino’s Pizza is now selling fresh Ready-2-Eat slices at
some units, remodeling others with high definition digital flat screen TV’s,
digital menu boards, seating all creating a platform for what Domino’s CEO J.
Patrick Doyle has suggested is “smart slice” positioning. We might suggest that a gradual progression
into a family friendly Pizza QSR with inside seating featuring ‘better for you”
pizza and more.
While Yum Brands utilized new
products the ilk of the waffle taco to attract customers. The results have fallen short. No matter how
much a company spends on marketing the new product must resonate with consumer. While
Yum’s target customers are millennials.
Millennials are digitally informed, seeking discovery, not
gimmickry. They require integrated
branded marketing messaging and products that proactively edify the brand.
McDonalds is empowering
franchisee choice allowing the franchisee the option this year to run the McRib
LTO which plays better in some parts of the country than the other. Today’s decentralization in chain restaurant
messaging is playing a leading role and McDonalds understand it. Leaders lead and McDonalds is once again
providing industry leadership.
Dunkin
Donuts is building customer loyalty one sip at a time. Dunkin Donuts' "DD Perks" now has a
total of 1.5 million members and is adding close to 70,000 new members a month.
Integrating food and beverage loyalty programs into evolving brand messaging is
a signal that Dunkin “DD Perks” has customer relevance.
When
asking the Foodservice Solutions® team if you could only pick company today
that most likely would become the 2015 innovative fast food leader which would
you select? The unanimous consensus is Domino's
Pizza who will be entering the 2015 with
"Dom,"
a virtual voice-ordering assistant for its mobile app and ‘smart slice. Yes, we know Domino’s is getting better for
you!
Since 1991
retail food consultancy Foodservice Solutions® of Tacoma, WA has been the
global leader in the Grocerant niche for more on Foodservice Solutions® or for a Grocerant Scorecard visit http://www.linkedin.com/in/grocerant, www.FoodserviceSolutions.us
Email: Steve@FoodserviceSoltuions.us
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