Friday, May 21, 2010

Retail foodservice transitions from a state flux to a clear path for continued growth.

Single serve fresh prepared food drove dramatic growth in the QSR industry. With the expansion of fresh prepared single serve meals into the Drug Store sector the successful expansion has just begun. . Duane Reade customers like the new fresh prepared food program, we have documented here that they would for two years.

In an exclusive interview with CSnews Duane Reade New York City’s largest drugstore chain told CSnews about their fresh food strategy. Here is part of what they said that is important too readers of this blog on the Grocerant niche.

“Customer feedback to our select fresh food program has been superb. We're not surprised at the positive reaction though, because we based our program on direct customer feedback from the start. Our sandwiches and yogurt parfaits have been among the most popular of our fresh food items, as we have found many New Yorkers have adopted them as a quick, quality meal on the go. Other areas of recent expansion include baked goods, produce and easily microwavable, single-serve entrees.’

It is important to note that Walgreens has agreed to acquire Duane Reade. In the comments announcing that acquisition that specifically discussed the advanced fresh food program at Duane Reade. Walgreens has it’s own private label fresh prepared food program called W; which we have discussed here before.

Clearly the success of the urban fresh food program will be rolled into then out in additional cities by Walgreens. The grocerant niche with a focus on fresh prepared ready-to-heat and ready-to-eat food is moving forward in new channels faster than many people can image.

This is part of the natural evolution of the fresh prepared food industry. It will create challenges for many other sectors including the QSR industry. For consulting, positioning or new product ideation within this sector contact Foodservice Solutions of Tacoma, WA. When success does leave clues, we pick them up first.

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


  1. Walgreens acquisition of D-R likely was to gain the latter's insights and platforms for food sales. The question is whether non-food retailers can truly become destinations for shoppers, or will still be relying on someone picking up something to eat while waiting for their Rx.

  2. If they focus on single portions, with legacy flavors, they will become a destination in both the urban and suburban formats.