Restaurants Focusing on Frozen CPG Sales Are Looking Backward

In the late 1980’s many restaurant chains began looking to frozen consumer packaged food to provide a lift to sales and profits.  Many saw strong growth, some found lost customers while entering the CPG arena.  For others it created a platform for discovery.  However for today’s consumer frozen food legacy CPG frozen food is losing customer relevance.

Glen Terbeek author of Agentry Agenda: Selling Food in a Frictionless Marketplace thinks much like our own Grocerant Guru™ that the marketplace has changed dramatically, and the industry model has not.

Terbeek thinks “Today’s self-service model is built around buying, distributing and reselling to a ‘standard store’ with decision-making centralized is not working.  Terbeek thinks food retailers must begin by acknowledging that food retail success will be found across a virtual and physical shopping experience continuum.  Our team at Foodservice Solutions® agrees.

We add strong evidence points to fresh food consumption in all channels is driving top line sale and bottom line profits. Acosta Sales new report “The Why? Behind the Buy’ finds spending on fresh prepared food has reached an average of $123.70 a month that is up $23.00 year over year.

Gimmicky including bright packaging or curved colored packaging can provide a brief window of opportunity in the frozen CPG channel.  However, little can be done to slow the national decline in frozen CPG meals sales.  I fact chain restaurant early adopters including TGI Fridays’ have eliminated their line of frozen meal entrees all together.

In our Omni-channel retail world today fresh food rules.  Restaurant brands that are limiting the distribution of their fresh product to traditional footprint locations are missing the consumer on many an occasion.  Footprint malaise can lead to accelerated brand protectionism and declining customer value according tour own Grocerant Guru™ Steven Johnson. Is your company looking more like yesterday’s food retailer than tomorrow’s food retailer? Is your brand expanding in the past, present or future?

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant scorecard, brand, or product placement assistance.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869