Sunday, May 6, 2012

Shifting food consumers are resetting the price + value + service equilibrium.



The price, value, service equilibrium is resetting in Grocery stores, Restaurants and Convenience stores.  The wildly successful Subway $5.00 foot-long stated it.  The QSR value focused $1.00 menu propelled it and now the $10.00 Pizza may have signaled the bottom.  While it took the $10.00 pizza to drive customers back into the pizza sector it is the $10.00 bundled meal price point that is garnering customers for restaurants.

Enter the grocerant niche with ready-2-eat and heat-N-eat fresh and prepared food. Consumers are looking for new products, packaging and time saving options, retail drug stores, grocery stores and convenience stores have provided a new set of choices.  Consumers are attracted to the grocerant niche by the fresh prepared focus, price points and bundled meal components.  Which provide a strong margin for increased profitability while building consumer frequency and loyalty for the retailer?

All retail food sectors have noticed a discontinuity in consumer food shopping behavior and all are fighting for share of stomach.   Contributing to this displacement is the focus by on short term market metrics particularly price and away from the consumer.  This in turn has caused a loss is consumer traffic at some chain restaurants.  There are attributes that are much more important to the consumers that all food retailers should be paying attention too.  Success does leave clues; we have picked them up and can assist you edifying your brand.  Are you ready to move with the consumer too success?

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 visit: twitter.com/grocerant, http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

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