Wednesday, August 8, 2012

Restaurateurs feel the competitive actions from C-stores and grocery store delis.

The economy may be the reason that restaurant industry chain executives site most often when reporting sluggish results. However deep within the four walls of C-level suites restaurant chain executives are pondering the success Grocery stores delis and Convenience stores are finding within the fresh prepared ready-2-eat and heat-N-eat food niche.  Restaurant industry market share capitulation is not on their agenda particularly when it is restaurateur’s market share that is getting eaten by these non-traditional competitors.

7 Eleven is opening 2 stores a day the rest of this year.  Most of those units do not offer gasoline.  The focus for success evolving at 7 Eleven is fresh prepared food.  Consumers are responding and sales and profits are up. Wawa has opened new units in Florida and will reach 100 units within five years.  Wawa is recognized for fresh prepared food specifically COFFEE and HOGGIES. Wawa and 7 Eleven are both garnering retail fresh food market share.

Don Thompson CEO of McDonalds in a call with industry analysts said that they saw an increase in competitive activity throughout the “informal-eating-out” marketplace. Thompson noted that McDonalds will strengthen its value proposition while increasing it marketing messaging spend to increase incremental visits.
Jack Hartung CEO of Chipotle Mexican Grill noted in a similar analyst call said that a significant percentage of the Chipotle’s increases during this last period came from takeout.  Panera Bread has begun opening new units with drive-thru’s a clear sign consumers desire for quality food fast is driving change within the industry.

Foodservice Solutions® 5 P’s of Food Marketing: Product, Packaging, Placement, Portability, and Price when integrated into a brands menu and messaging provide a platform for retail food success in 2012. Howard Schultz CEO of Starbucks noted that there was a “macro fracture” in consumer confidence.  However Starbucks brand excels at integrating the 5 P’s of food marketing and Schultz believes that they will do fine.

Safeway, Kroger, Whole Foods all reported top line growth in ready-2-eat fresh prepared food sales.  Whole Foods is rapidly becoming known as Whole Fresh Food instead of Whole Pay Check.  Consumers lacking the skill-set, time, or desire to prepare a cook from scratch meal at home have opted for ready-2-eat fresh prepared meal components. Those components can come from any food retailer but are of late coming from Grocery Stores, Club Stores, C-stores, and Urban Chain Drug Stores.

Foodservice Solutions® has discovered some universal commonalities from those commonalities they developed: The 5’P’s of Food Marketing.  Is your restaurant, grocery store or convenience store ready to garner new consumers?  Are you prepared to reposition your menu for the consumers of today?

Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Johnson, or

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