As 2024 comes to a close, the
dynamic interplay between convenience stores (C-stores), restaurants, and
service delis continues to reshape the food industry landscape. If success does
leave clues and it does according to Steven Johnson Grocerant Guru®
at Tacoma, WA based Foodservice Solutions® let’s look at who is winning and
some that may not be.
Changing consumer preferences,
economic pressures, and innovation in Ready-2-Eat and Heat-N-Eat fresh foods
have played pivotal roles in the migration of customers. Below, we analyze this
migration, highlighting five brands driving growth and five struggling too
retain market share, along with strategic recommendations for both.
Brands Winning
Consumers and Driving Sales
1. 7-Eleven:
o Investments in technology like
mobile ordering and delivery integration.
o Expanded fresh food options,
including healthier choices and hot meal kits.
o Leveraging loyalty programs to
boost repeat purchases.
o Seamlessly blending convenience
with value pricing.
2. Wawa:
o Strong emphasis on fresh food and
premium coffee.
o Continual menu innovation with
custom meal-building options.
o Enhanced in-store dining areas
for social connectivity.
o Superior customer service
tailored for local demographics.
3. Chipotle Mexican Grill:
o Continued dominance in
customizable menu offerings.
o Expanding digital presence with
strong app performance.
o Focusing on fresh and sustainable
ingredient sourcing.
o Adding drive-thru formats
(Chipotlanes) to maximize convenience.
4. Kroger’s Service Delis:
o Investing in upscale deli
selections such as charcuterie kits.
o Introducing international
Ready-2-Eat options.
o Cross-promotions with grocery
essentials.
o Streamlined digital ordering via
its app.
5. Amazon Go:
o Enhancing consumer experience
with frictionless checkout technology.
o Offering fresh and locally
sourced prepared meals.
o Introducing competitive pricing
strategies for premium grab-and-go options.
o Expansion into urban markets,
targeting busy professionals.
Brands Losing
Market Share
1. Subway:
o Continued struggles to modernize
menu offerings.
o High franchise turnover resulting
in inconsistent quality.
o Ineffective marketing to younger
demographics.
o Lack of investment in digital and
delivery capabilities.
2. Denny’s:
o Stagnant brand perception tied to
outdated dining models.
o Slow to adapt to takeaway and
delivery trends.
o Declining interest in traditional
‘family restaurant’ concepts.
o Price increases that fail to
deliver perceived value.
3. Panera Bread:
o Losing traction due to shrinking
differentiation in competitive soup/salad/sandwich market.
o Technology missteps in digital
ordering causing friction.
o Menu fatigue among core
customers.
o Inefficiencies in off-premises
operations.
4. McDonald’s:
o Rising menu prices alienating
value-focused consumers.
o Customer complaints about order
accuracy and speed.
o Over-reliance on limited-time
offerings (LTOs).
o Struggles with consistency in
delivery and app functionality.
5. Safeway Service Delis:
o Limited innovation in prepared
food offerings.
o Lackluster merchandising of deli
sections.
o Inconsistent quality in freshly
prepared items.
o Missed opportunities in
holiday-themed Ready-2-Eat promotions.
Strategic
Recommendations
For Winning Brands:
1. Maintain Momentum: Continue investing in
technology, including app updates, loyalty program personalization, and
AI-driven inventory management to stay ahead.
2. Deepen Consumer Connections: Enhance community engagement
with local partnerships and exclusive, location-specific menu offerings.
3. Leverage Data Insights: Use purchase behavior data to
refine product bundling and create irresistible meal deals tailored to
different customer segments.
4. Expand Green Initiatives: Strengthen sustainable packaging
and food sourcing efforts to cater to environmentally conscious consumers.
For Losing Brands:
1. Focus on Core Competencies: Revamp flagship items to
highlight quality and authenticity while removing underperforming menu options.
2. Invest in Operational Excellence: Address order accuracy, speed of
service, and digital platform optimization to improve the customer journey.
3. Embrace Convenience: Offer mix-and-match bundling for
meals or snacks, aligning with consumer preferences for simplicity.
4. Reimagine the Brand: Launch marketing campaigns
emphasizing fresh starts with visual redesigns, new slogans, and emotionally
resonant advertising.
Think
About This:
The continued migration between
convenience stores, restaurants, and service delis underscores a demand for
time-saving, high-quality, and affordable food solutions. Brands poised to win
in 2025 will combine innovation, value, and convenience, while those struggling
need bold pivots to reclaim consumer trust and relevance.
Success does
leave clues. One clue that time and time again continues to resurface is “the
consumer is dynamic not static”. Regular
readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice
Solutions®. Our Grocerant Guru® can help your
company edify your brand with relevance.
Call 253-759-7869 for more information.
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