Saturday, July 11, 2009

Does one go from Deli to Grocerant or Grocery Store to Grocerant? When the consumer cooks at home more often than not it is a component bundled meal. Delis have been packaging up ready to eat and ready to heat meals around the country many for over 50 years. Grocery stores on the other hand focused on raw ingredients, struggling with cost of distribution, and fluctuating commodity cost. The consumer does not pay specific attention to either of those cost. What the consumer pays attention to is the end price. The value that the consumer is willing to pay is higher on a prepared meal than raw ingredient. Recent studies show that the margins are substantially higher on prepped and prepared food. No matter what business your in today, you will be getting into the grocerant business soon enough. The metrics of how it works is difficult for long established companies to overcome. Department “rice blowing” will have to end the big picture will be on the end result a happy customer not which department managers wins.

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