Wednesday, March 31, 2010

The retail foodservice price + value + service equilibrium may have just reset!

The price, value, service equilibrium is resetting in Grocery stores, Restaurants and Convenience stores. The wildly successful Subway $5.00 foot-long stated it. The QSR value focused $1.00 menu propelled it and now the $10.00 Pizza may have signaled the bottom.

Enter the grocerant niche with ready-to-eat and ready-to-heat fresh prepared food. Consumers looking for new products, packaging and time saving options. They are attracted by the fresh prepared focus, and price points. Which provide a strong margin for increased profitability for the retailer.

All sectors have noticed a discontinuity in consumer food shopping behavior and all are fighting for share of stomach. Contributing to this displacement is a focus by on short term market metrics particularly price and away from the consumer. Which in turn has caused a loss is consumer traffic in some as important as price might be other attributes are much more important. The consumer is turning to the grocerant sectors ready-to-eat / ready-to-heat prepared food options in any sector that offers it.

Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit or on Facebook at Steven Johnson

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