Foodservice
Solutions® Grocerant Guru® is just about the
only food industry professional that was neither surprised by or confused as to
why a clothing retailer would buy a Pizza chain. It’s simple retail consumers are dynamic not
static and any retailer that does not move with the consumer will capitulate
market share and earnings.
Pizza
is consumer interactive and participatory exactly what a clothing retailer in
striving for in marketing messaging. In
our Omni-channel retail world one cannot overlook the brand commonalities that
bring these companies together. They
are:
Americans
spend 37 billion a year on pizza sales volume
About 1 in 8 Americans eats pizza any given
day frequency
day frequency
Pre-teens eat about two times the national
average demographics
average demographics
More than
¼ boys between 6 and 19 eat
pizza every demographics
pizza every demographics
Girls between 6 and 19 eat more pizza than
any category of guys core demographics
any category of guys core demographics
While
Costco customers have no problem buying a Latter, a HDTV, Toilet paper,
Rotisserie chicken, and a $1.50 Hot Dog and Coca Cola on the same visit why
would anyone think Urban Outfitters could not do the same? By the way the ‘café’ stand where you buy
your Hot Dog and soda at Costco reports sales on its own $1.72 Billion dollars
and is profitable!
Then
we have Ikea which reports $2 Billion in sales from the restaurant filled with
Ready-2-Eat fresh prepared food each year.
Then of course there is Nordstrom’s who’s Coffee Kiosk at each store
average $1 Million a year each in sales!
Retail
in 2016 in interactive and participatory brands must be as well. So when Urban Outfitters announced that it
would be buying Philadelphia-based restaurant group Vetri Family, famous for its
pizza chain Pizzeria Vetri. Foodservice
Solutions® Grocerant Guru® applauded the deal.
Susan
Anderson analyst at FBR & Co stated "Retailers are struggling with how
to get traffic in stores… Consumers are increasingly shopping online, which
makes it harder and harder for retailers like Urban Outfitters to draw them
into a physical store.”
Forrester
analyst Sucharita Mulpuru-Kodali chimed in saying “the Vetri acquisition was a
good move… restaurants are a rapidly growing area of retail; retailers can run
really lucrative restaurants and retailers need to diversify so a sector like
this is smart,"
Foodservice
Solutions® team wants to remind you that McDonald’s sells more toys than any
other retailer in the world, and Starbucks outstanding growth is driven by an
Omni-channel retail and product focus.
Success
does leave clues and understanding the dynamic evolving retail environment is a
success clue never to be over looked.
The grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh
prepared food is driving change in every sector of retail today.
Success
does leave clues. Are you trapped doing what you
have always done and doing 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
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