Tuesday, April 27, 2010

Burger King, McDonalds, Safeway, Walgreens who’s stealing the show?

Mimosas, McMuffns, Smoothies, Junior Bacon Cheeseburger, Onion rings and Egg rolls Mix and Match grab and go; the consumer is delighted with new offerings, price competition and new points of distribution. I must proclaim that channel blurring is dead from the minds eye of the consumer in the retail foodservice space.

Who is going to win this new race to be the lowest price in the marketplace? Chain restaurants were watching as customer began to buy fresh prepared food ready-to-eat and ready-to-heat from grocery stores in increasing numbers. Companies like Harris Teeter, HEB, Central Market, Whole Foods, Safeway and Fresh & Easy all offered low cost fresh prepared meal components with quality.

Customers are now coming back drawn by price, convenience and speed of service. The restaurant sectors players range from Jack In The Box, Boston Market, Qdoba Mexican Grill, Quiznos, Dairy Queen, Wendy’s, Arby’s and yes McDonalds and Burger King. The offers range from $1 for any size drinks, bundled offers from 3 for $3 including cheese burger and egg rolls. Boston Market offered Mix and Match for $ 2.99.

However, don’t expect the grocery stores and convenience stores to give in. They have seen the light, consumer want fresh prepared food. Recruiters from both grocery and C-store sectors are seeking trained foodservice managers and line employees from restaurants. They are now branding some private label fresh prepared products and will soon focus on price competition as well. No way are they giving in. Watch out for the Drug Store sector Walgreens is marching in; so, can Rite Aid be far behind?

The simple answer is the company that can hold the price advantage the longest is going to garner the largest share of market. Walgreens has a successful beverage kiosk and is now entering the fresh prepared food niche. This sector is on fire. We are now seeing new products introduced that are “better for you” with new positioning garnering attention of a new informed consumer. The consumer is watching and moving is your company?

Burger King does brunch with new mimosa, innovative and on target! Watch this video click on the link.


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 http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

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