Wednesday, December 7, 2016

Fast Food Discontinuity Drives Millennial Discovery

One thing everyone in the retail foodservice business can agree on is that America’s fast food sector likes doing what they have always done and it appears that they want to keep doing the same way.  Foodservice Solutions® Grocerant Guru® Steven Johnson says “That is no longer the recipe for consumer interactive participation or a key driver to sustain top line sales and bottom line profits.

Foodservice restaurant industry research icon analyst at The NPD Group Bonnie Riggs in a new report titled “Losing Our Appetites for Restaurants,” found: Total foodservice visits declined by 1 percent in the third quarter compared to same quarter last year, and quick-service restaurant traffic, which represents 80 percent of total industry visits, dropped for the first time in five years.”

Riggs findings included “The fact is the cost of the average restaurant meal has risen 21 percent over the last decade, and with lower grocery prices, the price gap between eating at home and dining out is widening. Eighty-two percent of all meals are now consumed in-home.”  
What we know here at Foodservice Solutions® is that there are more people in the United States today than there were five years ago. Additionally there is no evidence that today’s consumers are eating less.  The fact is consumers today are simply not eating at restaurants as often they are eating somewhere else.

Today Millennials are in search of food discovery.   Millennials consumers are now driving the growth of Omni-Channel food retail according to Foodservice Solutions® Grocerant Guru®. The success of Ready-2-Eat and Heat-N-Eat fresh prepared food has been documented, talked about and written about for one reason of late. It is driving top line sales and bottom line profits within existing points of distribution and retailers. Yes, consumers are eating somewhere else. Why?

That is easy legacy chain restaurants do not appear to want to try anything more than very small incremental change.  With only very small change no qualitative findings can be established.  Foodservice Solutions®   proprietary foodservice innovation template consisting of Build, Measure, Learn and Repeat recommends several bold steps to help to validate the results. 

Eating somewhere else think companies with leading operational efficiencies the ilk of Everytable in Los Angles offer grocerant niche grab-and-go items supplied by a central kitchen model by eliminating the need for a wait-staff and kitchen space creating a platform for fresh food fast with low pricing perfect for Mom’s seeking ‘better for you’ meal components that make each meal a happy meal.  Think Amazon Go.
Where else can you find evolving business models? Think Munchery, Wegmans, Sheetz, Sprouts Farmers Market, Whole Foods, Green Zebra Grocery, Wawa and QuickChek’s with “Made Fresh for You” food products have created a platform where QuickChek is no longer just a C-store selling food they are a food destination.  All of these companies broke the business model mold and moved with customers.  Maybe it’s time you do as well.
Foodservice discontinuity continues to expand is it time you invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard or for brand, or product placement assistance our Grocerant Guru® has been Looking A Customer Ahead have you?

Since 1991  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: or 253-759-7869 

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