Tuesday, October 26, 2010

Convenience stores vs. restaurants vs. grocery stores; is a price war brewing?

Convenience store sector sales and profits continue to rise thanks in large part to the vast expansion of ready-to-eat and ready-to-heat fresh prepared food. Companies like Sheetz, Wawa and now 7-Eleven are rolling out expanded fresh prepared food options. While the c-store sector experienced 7 % growth overall the food portion was well into double digits sector wide.

Without doubt the quality of fresh prepared food at most conveniences stores is legions ahead of where it was 5 years ago. Consumers understand that and are responding positively. The conundrum for the restaurateur is how do you market “value” without coming off as cheap or being a direct competitor of an c-stores? Grocery stores are now bundling ready-to-eat and ready-to-heat prepared family meals in a value package recapturing consumers.

The retail food industry is about share of stomach; each sector grocery, convenience store and restaurant all are revisiting food product offerings, meal bundling and product positioning. All are now focused on ready-to-eat and ready to heat prepared food. Many are adopting Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price.

The ready-to-eat ready-to-heat retail food price + value + service equilibrium continues resetting. Which sector, company or product do you see stepping up and standing out?

Understanding, creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part in an area Foodservice Solutions® has out preformed. Outside eyes can bring new light and assist in your pace of concept growth, redevelopment and deployment of new products. Grocerant specialist can work with you to identify distinctive differentiated food consumables call Foodservice Solutions® today.

1 comment:

  1. I read your post and I must say that your post is really interesting and thanks for sharing this with us keep it up!!!

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