Once
again, Foodservice Solutions®, Grocerant Guru® Steven Johnson
stated “The restaurant industry is not an industry known for trying to be first
as in fastest to market with an ideation, food or technology advance. In the
United States the larger the chain in almost all cases the more slowly they are
to adopt something than a smaller chain or independent restaurants will.
Chain restaurant’s goal is simple feed one meal at a time in the restaurant
while protecting and edifying the brand.”
Thus,
the line between restaurants and food retailers is growing ever thinner. The
fight for America’s food dollars continues to intensify as consumers find fresh
prepared Ready-2-Eat food options at a wide and growing array of outlets across
almost every retail channel including the ilk of convenience stores, chain drug
stores, restaurants, grocery stores, club stores, vending and even more
non-food retailers like dollar stores.
Food
manufacturers, retailers, and restaurants worry about choice overload,
consumers have embraced their new choices and show no signs of returning to the
old ways. This fight is taking place in what is called the grocerant niche. In
short there is an intense battle for an increase in Share of Stomach according
to Johnson.
Do You Want a Larger
Share of Stomach
Consumers are Dynamic Your Brand Must Be as Well
Historically
chain restaurant leaders have denied the credibility of start-up competitors as
non-relevant. The pizza sector is a great example; evolving from family dinning
independents to national chain of “Red Roof” Italian, then to delivery only outlets
and now take-N-bake is garnering market share in the pizza sector. Today,
furniture store IKEA has a $2 Billion
US dollar grocerant niche Ready-2-Eat and Heat-N-Eat business that
is driving growth of the legacy furniture retailer.
At
the intersection of the consumer, fresh prepared food and technology we fine
that consumer eating behavior is evolving and is now beyond the control of
traditional food marketers. Millennials
& Gen Z consumers are driving change in eating habits and demand
more ‘clean food’ according to Johnson.
Evolving
culture and lifestyle, demographics along with the new uncertain economy are
all putting pressure on the American food consumer: Demands of work, economic
shrinkage, demands of raising a family, commuting, social interaction, kid’s
after-school activities, all contribute to a food marketplace where convenience
vies with price over legacy brands.
Recent
advances in food packaging and new points of non-traditional food distribution
have empowered consumer choice, and Americans are embracing these choices even
as legacy marketer’s cringe. Who’s after restaurant food dollars simply put
everyone.
Why
should you care if Walgreens
is selling fresh prepared Ready-2-Eat and Made-2-Order sandwiches? Why should
you care if Whole Foods, Trader Joe’s,
Safeway and Wegmans
are selling Ready-2-Eat and or Heat-N-Eat fresh pizza? Why should you
care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00?
The
retail food world is evolving at an increasing pace filled with innovation in
food, portion size, points of distribution, and quality fresh prepared meal
solutions. The price, value, service equilibrium
is resetting in retail foodservice. In order to edify the brand and
reinforce consumer relevance restaurateurs leverage Foodservice Solutions® 5P’s
of food marketing: Product, Packaging, Placement, Portability and
Price.
Many
legacy food retailers continue to practice brand
protectionism, stifle the brand while diminishing consumer
relevance. The consumer is dynamic not static. Brands must be
dynamic, evolving with the consumer. Four years of watching other retail
sectors thrive should be long enough. Success in the restaurant world is no
longer simply about what happens within your 4 walls.
Steven Johnson is the Grocerant Guru
at Tacoma, WA based Foodservice
Solutions®, with extensive experience as
a multi-unit restaurant operator, Food Brand Strategic Advisor, brand / product
positioning expert and at public speaking. Facebook.com/Steven Johnson,
Linkedin.com/in/grocerant ortwitter.com/grocerant Steve@FoodserviceSolutions.us
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