Thursday, July 22, 2010

Fresh prepared mix & match food continues to propel growth in retail foodservice!

The grocerant niche simply shows no sign of slowing down its rate of growth! Now estimated in size at ONE TRILLION dollars in sales by Food Marketing Institute (FMI). This niche which has been chronicled by Foodservice Solutions since 1991 has now hit full stride.

While many restaurant chains find themselves in a quagmire of there own making with stifled growth. Convenience stores and many grocery stores are posting strong year over year retail fresh prepared food sales. In fact the prepared fresh food niche has been so successful that Walgreens, Amazon and Sears are all expanding there reach into food retailing.

A recent article on the sector Sheetz one of the sector leaders based in Pennsylvania with 374 locations said “it had foodservice sales of $359.5 million from 363 stores for its latest completed fiscal year ended in September 2009. That reflected a year-over-year sales increase of 7.73 percent from a 3.95-percent gain in average sales per unit, to $1.01 million, and a 3.71-percent rise in number of locations.”

Wawa it is reported is expanding into the Florida market in 2001 and 7 Eleven currently is testing up to 60 SKU’s of fresh prepared food in five US markets. In addition 7 Eleven has rolled out fresh pizza at over 1,000 of it’s US based stores.

While many in food retail have struggled over the past several years with positioning, pricing and product problems most in the grocerant niche have not. Those within the grocerant niche continue to see top line sales growth and bottom line profits. Are your foodservice sales up 7,73 %, if not it’s time to ask why.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven Johnson BING: Steven Johnson Grocerants or Google: Steven Johnson Grocerants

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