Monday, December 14, 2009

Food price value equilibrium continues it’s resetting in Restaurants, Grocery stores and C-stores?

What is the price of breakfast? McDonalds is putting the US on notice that it does not plan any capitulation of breakfast marketshare! There is no greater gift than customers that love your food, and will pay for it-but at what price? Here is my formula for establishing customer focused price:

Price + Quality + Service + Portability = Value

Incremental Value = Constantly Changing Menu (Seasonally / Sustainability with creditability).

Now look at what has happened at different companies recently. While Subway started the focus on the $5 foot-long we can see just where it has gone.

1. T.G. I. Fridays announced it will offer Jack Daniel's® Burgers and Jack Daniel's® Chicken Sandwiches for $5 and will offer $5 off all Jack Daniel's® Grill entrees for a limited time at approximately 600 US based participating restaurants.

2. Steve Davis, Arby’s CMO said $5 has become a magic number for fast food.

3. Shane’s Rib Shack has a family meal (feeds 4) for $20. Part of Petrus Brands

4. Popeye’s now as value meals from $1.99 & $2.99

5. McDonalds has three mini meals for under $3.00

6. McDonalds had introduced 5 $ 1.00 breakfast items.

The economy continues in a quagmire so price can be a determining factor. Brand marketers must be aware of the new product and price points that non-traditional competitive channels will introduce. Including attractive packaging, new product bundling options which in turn will contribute to establishing new long term price value models going forward. Grocery stores, Convenience Stores, Restaurants Mobile trucks, Kiosks food outlets are zeroing in on the grocerant prepared food ready-to-eat and ready-to-heat food niche and it is booming. Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. View my complete profile at: or leave a comment or question below.

1 comment:

  1. I visited McD's this morning. It's become the new 'food line' for people who don't have money to buy basic stuff.... And at $1 per item +++ TAX, it's reasonable.