It all started with the $ 5.00 food long and the
Subway restaurant chain has be the individual retail food winner. Subway is growing units and top line sales
like no other food retailer in the United Sates and testing a café format.
Ready-2-Eat and Heat-N-Eat fresh and prepared food is driving top line growth
and bottom line profits in food retail today.
The Dollar menu has pushed the QSR sector along and
now with inflation on the horizon; a global food price war in the food sector
and grocery sector particularly has broken out.
It is painfully clear whomever is the last to raise prices in the QSR
sector will be the clear winner, garnering market share.
In the grocery sector; Wegmans is freezing prices
on “basic” items, Tesco’s ala Fresh & Easy parent has targeted its largest
European rival in a price war. Tesco has
found its footing in the US and is now expanding again with a focus on Price
and Product differentiation. Don’t count on large price increases in grocery
any time soon, at least in urban centers. Kroger and Safeway must try and keep
competitive.
The only over all sector of food retail that has
gained both top line revenue and more units during the past two years is
the C-store sector. Both the Grocery
store and Restaurant sector have lost units. Companies that utilize
Foodservice Solutions® 5 P’s of food marketing: Product,
Packaging, Placement, Portability and Price; will understand success can be
found within the grocerant niche.
Since 1991 retail food consultancy 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 twitter.com/grocerant
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