Restaurants are Clueless When it Comes to Continued Customer Count Declines

Industry icon Larry Miller founder of the ‘MillerPluse’ report the largest restaurant industry benchmarking tool wrote “Traffic remains an irritating industry issue, falling 0.2% in the first quarter of 2019, to -2.4%. That marks the twelfth consecutive quarter of negative traffic, not that we’re counting.”

Convenience stores, grocery service deli’s, and dollar stores are counting new fresh food customers?  Why because according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® they are focused on the customer of today and willing to evolve their business model where restaurants are simply doing what they have always done and doing it the same way?  How is that working for them? 

Twelve consecutive quarters of negative traffic, I would say not so good.  Ikea, and Costco continue to evolve expanding fresh food options and continue to drive top line sale and bottom-line profits garnering former restaurant customers while simultaneously becoming dinning destinations according to Johnson.

Think about this, the year over year food wholesale prices were up 0.06% so far in 2019 and year over year restaurant prices are up 3.0% the gap has been growing wider year after year.  McDonald’s is removing the ‘crafted sandwiches’ from the national menu.  Why according to Johnson PRICE resistance, cook times, and packaging cost.

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive sales in every sector or food retail including the restaurant sector.  The problem is there are to many legacy chain restaurants unwilling to evolve their business models.  Fast is they are capitulating customers to other non-traditional fresh food retailers willing to change. 

Are your customer counts growing? Does your restaurant look more like it did in 1980, 1990, or 2000? Is your brand filled with customer relevance looking more like today than last year? The restaurant industry is not brain surgery it is the food industry.  Quit driving customers away? Quit driving customers to others.

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us 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.

Battle for Share of Stomach