Monday, January 18, 2010

Restaurant consumer discontinuity continues!

Growing quickly is the number of new locations that sell grocerant style ready-to-eat and ready-to-heat fresh prepared, portable food. Recently Walgreens announced that they were going to rollout fresh prepared food. In one single move 7,000 competitive points of distribution entered the market place.

All sectors of the restaurant industry have seen declining sales including the Quick Service sector. Many foodservice pundits thought that the consumer would simply trade down and that niche would excel.. Here again Foodservice Solutions was on target and the multitudes were again wrong. We have said it before and will say it again. Copy Cat menu ideation and bandwagon marketing are a result of compliancy and mediocrity of C-level executives. How many places do you need to buy a $1.00 double burger?

Winston Churchill once stated: “However beautiful the strategy, you should occasionally look at the results.

With Walgreens entering the fresh prepared food area, creating up too 7,000 new points of distribution Convenience stores and Grocery stores will both take sales hits as well. If Walgreens focus on small portions for seniors and coffee products lookout, weak players in each niche will fall away.

Currently the new winners appear to be Casey’s General stores, Quick Trip and 7 Eleven in the C-store sector and Publix’s, Safeway and Kroger in the grocery sector. The restaurant sector has new leaders as well Buffalo Wild Wings, Panera Bread and Chipotle Mexican Grill. Positioning your concept for success is an art and takes understanding, not a chance. Winners will differentiate themselves and show the way. This breakout trend began in 2005 and continues. It will be a slow and painful process for some, the rest will be having the time of there lives!

Foodservice Solutions is the global leader in the grocerant niche. You can follow Steve Johnson on Twitter, Facebook or linkedin as well. To read more on restaurant consumer discontinuity read Steven Johnson article via the following link:

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