Sometimes an industry gets lazy and the
restaurant industry became so use to doing the same things the same way over
and over they became complacent.
Restaurateurs have become very good at brand protectionism but very bad
at brand evolution.
Chain
Restaurant Continuity is Not the New Normal
Industry transition is never easy. Restaurant industry transitions periods have
a history of being devastating on sector leaders. Harkin back when Howard Johnson’s Ice Cream Shoppes, Walgreens
Soda Fountains dotted the highways of America along with Burger Chef . All three
filled an unmet need for choice of flavors, speed of service, and convenience
at the time. They became the restaurant chain leaders until technology
advanced.
Technology Food Industry Seductress
Then the U.S. began its race to space and
technology advances drove companies the ilk of McDonalds to sell food faster,
cheaper with a level of quality service never experienced. One after the other companies copied
McDonald’s success. Today, 80 percent of
meals sold within the restaurant sector are sold at Quick Service
Restaurants.
Today, with restaurant customer migration firmly
underway, and CEO’s and CMO’s of legacy chain restaurants capitulating market
share and customer counts year after year it is once again time for
turnover. This time unlike before
technology has become the seductress of the Millennial consumer not the
industry. Advances in technology are
once again changing the face, the place, and pace of retail foodservice.
Stalwarts leaders capitulating market share,
customer counts or store counts this time around include the ilk of Red
Lobster, Quiznos, Sbarro, Tony Roma’s, Ground Round, Country Kitchen, TCBY, and
Big Boy. This list could go on and
on. Do you need outside eyes for inside
profits?
Mediocrity is the Seductress of
Lemmings
Should your chain restaurant worry? You might if
you’re CEO’s, COO’s, and CMO’s are like lemmings headed to a cliff. Are they flocking to conferences to hear the
latest news delivered by the same experts that delivered it for the past 25
years or their colleagues. While at those conferences are you leaders drinking
the elixir of complacency, the “I’ll
have the same”? There are if your sales
are not up 20+% the past 5 years.
The sales and customer count results are in and for
eight years the industry has failed. The experts failed, and if your sales and
customer counts are not up 20% over the past 5 years your company is failing as
well. Restaurant chains either grow or die a slow death. Where are you headed?
It’s Not
“The New Normal” unless that’s what you expect or accept. When market research firms and industry
leaders accept eight years of market share capitulation, declining customer
counts, without address footprint malaise, menu management, and the
undercurrents of consumer evolution, its time you’re your firm to look
elsewhere.
Growth Hackers Find A Way
New entrepreneurs are asking how can we enter the
restaurant business, the meal business, the food sales industry, while growing
our business faster, cheaper than ever before?
Well here are a just a few companies doing just that. Firs,t is Hello
Fresh a two year old company that delivers meals sold 1 Million last quarter
alone operating in Germany and New York City.
How many meals did you sell last quarter? Have you check out
TryCavier.com? Plated.com? Eat24hourd.com, Munchery.com, or OrderUp.com
It’s not just new entrepreneurs there are chain
restaurateurs and fresh food retailers that are gaining 8% 10%, 14%, and 17% a
year in sales and customer counts. They are doing it by not doing what they
have always done. They are migrating
with consumers. Companies like Wawa, Chipotle
Mexican Grill, Good Times
Burgers and Frozen Custard, Casey’s General Stores.
Are
you trapped doing what you have always done and doing it the same way? Interested
in learning how Foodservice Solutions 5P’s of Food Marketing can edify your
retail food brand while creating a platform for consumer convenient
meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us
or visit: www.FoodserviceSolutions.us
for more information.
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