Looking back, during the late
Home Meal Replacement frenzy grocery stores, C-stores and restaurants all
studied with excitement the successful developments of Phil Romano's
Eatzi's. Recently revived Eatzi's is where Phil turned the page
from restaurateur too foodservice retailer, food merchant and Grocerant leader.
Phil's experiment was a smashing success. It was and remains consumer
interactive, participatory with visceral authenticity recording sales of 17
Million a year at the original store. Now in NYC Eatlaly is
Eatzi's on
steroids doing close to 60 Million a year in sales.
Legacy Home Meal Replacement
focus quickly faded away in the Restaurant side of business. However in the
Grocery, C-store and Drug Store sector it continued to be studied, tested, and
implemented. Today the grocerant niche is the strategic path of choice for
non-traditional food retailers, targeted at restaurant customers, profitable
and expanding at an ever increasing pace.
Food is Part of
the Broader Consumer Omni Channel Retail Trend
Wawa was once considered a
convenience store now the Wawa positions it's brand asFresh First, Built-ToOrder and
Ready-To-Go with
focus of serving Fast Casual Food- - To Go. At Wawa
customers are now finding What's for Breakfast, What's for Lunch and now what's
for Dinner. Sheetz once a convenience store now calls themselves a restaurant that sells gas.Sheetz Made To Order food is a hit with customers.
Sheetz is successful contemporizing legacy C-store products with differentiation,
customization and personalization. Consumer like the variety, 24 hour menu
serving all day parts - all day long - a wide range of consumer meal and
snacking needs. Sounds and acts like a restaurant doing all the right things.
Rutter's is another convenience
store in transition. Rutter's understands the unique balance between palate,
price, pleasure and the consumer's drive for qualitative distinctive
differentiated new messaging and Rutter's is meeting that need set. The food
value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all
blended into something with a twist. In industry speak, differentiated does not
mean different to the consumer it means familiar. Rutter's is an example of brand
identity extending beyond consumer expectations within the traditional
conveniences store sector. Too the consumer Rutter's is a direct valued
competitor within the QSR space.
Examples of
Today's Grocerant
The grocerant niche is a result
of the blurring of the line between restaurants, grocery stores, convenience
stores, and drug stores all selling fresh prepared, portable convenient meal
solutions. Targeted at the time-starved consumer with Ready-2-Eat or Heat-N-Eat
fresh prepared food components that are "better for you", portable
and portioned for one or two. All of these operators want a larger share of the
retail food market. They want to take share from the restaurants.
Whole Foods is
no longer Whole Paycheck but Whole Fresh Food Fast and consumers find that is
"better for you". They are driving customer frequency while building
loyalty with Fresh prepared ready-2-eat and heat-N-eat better for you food.
Whole Foods focus is on convenient meal participation, better for you
differentiation, and individualization.
Safeway's has integrated Mix and
Match Meal Bundling marketing into daily and weekly iphone app's and legacy
print flyers. With a focus on Fresh Prepared Food, Safeway is leveraging The 5
P's of Food Marketing: Product, Packaging, Placement, Portability and Price
establishing contemporized consumer relevance. In what was once restaurant food
space alone grocery stores, C-stores and Drug stores are now garnering consumer
attention.
Walgreens Fresh
Food Is a Disruptive Force in Retail Foods
This video of Walgreens in
San Francisco entering the fresh food space is evidence that no food retailer should dismiss as not my
competitor. Walgreens with over 78 Billion in sales they has the capital and
resources to repeatedly try an try again unitl they get it right. Walgreens
might just be the next Next Biggest Competitor in the retail food space.
Walgreens Fresh with Duane Reade
have 7,500+ retail outlets. Who is selling what in your back yard? With
Walgreens entering the fresh food area again with meats, wraps, soups "and
other on-the-go meal options, as well as convenient alternatives for tonight's
family meal, it is clear that the future of fresh food retail leadership may be
up in the air.
A Final Thought
For Retailers and Food Brands
Food Retailing never takes a step
backward. Consumers are dynamic not static always looking to save both time and
money. The grocerant niche is propelling new quality points of fresh food
distribution and competitors that are well financed. Remember, when it is 4pm, do you know what
your customers want to make for dinner ?
Steven Johnson is Grocerant Guru
at Tacoma, WA based Foodservice Solutions, with extensive experience as a
multi-unit operator, consultant and brand/product positioning. Since 1991
Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant
niche for more on Steven Johnson and Foodservice
Solutions® visit The Grocerant on LinkedIn or @Grocerant on Twitter
Here is another
interesting article: Can Meal
Replacements Accelerate Weight Loss? You can check it out
here: http://dbolmusclesecret.com/meal-replacements-accelerate-weightloss/
A very educative post that indeed revamps my perception on the same.
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