Foodservice Solutions® Five P’s of Food Marketing have be the cornerstone for many retail food operators trying too build top line sales and bottom line profits with customer relevance according to Steven Johnson, Grocerant Guru® at the Tacoma, WA based foodservice consultancy.
Regular readers of this blog know that the undercurrent of a food price war began several years ago when grocery stores began lowering food prices taking advantage of the continuing incremental menu price increases at chain restaurants as we have documented using Blackbox Intelligence snapshot data.
The food war has expand in 2018 pitting chain restaurant against chain restaurant with Subway resurrecting the $5 footlong and McDonald’s $1, $2, $3, Dollar Menu January offerings. Taco Bell had little choice but to counter with an innovative new menu item Nacho Fries for a limited time starting January 25. The price: $1 now that is flavor and price.
The team at Taco Bell knows that price works as they chain told CNBC that its $1 menu items produced more than $500 million in sales last year and its $5 boxes generated an additional $1 billion. Taco Bell will also offer the Nacho Fries in its popular $5 box, joining a Doritos Locos taco, Cheesy Gordita Crunch, and medium drink.
While wall street may be rejoicing in new tax cuts in 2018 one thing that the team at Foodservice Solutions® understands is that main street consumers will do there reveling in 2018 with food that cost less than it did last year. Meal component deflation will be drive customer adoption and continued customer migration from food channel to food channel as well as from brand to brand in 2018.
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.