Tuesday, May 22, 2012

Real Mex, Real Mess no Real Opportunity. Here is what they need now.

Real Mex has gone from sales turn-over, too turn-around, and too turned-down. Real Mex a multi-branded restaurant company with food manufacturing and distribution facilities in Southern California is in an outstanding position to capitalize on current retail food directional shifts. What they desperately need now are outside eyes.

It’s time that Real Mex evaluates their current manufacturing and distribution assets, leverage proprietary restaurant brand integration while identifying and developing both internal and external growth opportunities. Ok it sounds simple enough, but Real Mex is in the middle of the grocerant niche and that is what we do every day. Simply put no CEO would leave if they understood the value of the opportunity at hand.
While many restaurant chains are expanding the footprint of the brand into non-traditional channels Real Mex is contracting. Restaurant chains do two things they either grow or they die. The status quo is not something any restaurant chain can attempt to maintain in the world today.  Consumers are dynamic not static.  Restaurant Chains must be the same.

Below are actions we feel Real Mex should undertake in order to develop contemporary consumer relevance:

  1. Focus on manufacturing of RMF-branded products at retail with restaurant brand integration;
  2. Revitalize Legacy Restaurant Brand Relevance with today’s consumer focus; 
  3. Leverage manufacturing expertise  in custom-developed products for additional foodservice clients;
  4. Extend consumer relevant restaurant brands around the country including non-traditional outlets;
  5. Leverage manufacturing/distribution opportunities in markets served for private label products into RMF brands.

Hedge funds typically have a plan of action when they invest.  Restaurant brands and consumers have a bond, when that bond is not met the consumer moves on no matter what the plan the hedge fund has.  The fastest growing sector of retail foodservice today is the grocerant niche.  Real Mex is positioned to exploit that niche as well if not better than any company in the US.  The question is will they?  Outside eye can provide insights for success.

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® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook/Steven Johnson

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