The grocerant niche is evolving faster
than legacy chains are willing to admit. The grocerant niche is developing new
avenues of distribution, top line fresh prepared food sales/growth and bottom
line profits for companies that never or haven’t in years sold fresh prepared
food the ilk of Walgreens, Rite Aid, Sears, Amazon and 7 Eleven.
When Dominos pizza started opening
“delivery only” locations around the country, Pizza Hut was the sector industry
leader with Red Roof Pizza Hut locations nationwide. Pizza Hut senior executives at the time
scoffed at the brash upstart and never took it seriously. After years of denial and market share
capitulation by once proud industry sector leader, Pizza Hut was sold to Yum
Brands.
Today the pizza industry is now 50%
grocery and 50% restaurant sales. O ’how
times have changed. Restaurant and
grocery chains are learning denial is not a step to success. Burger Chef, grocery store chain A & P,
are both all but gone. At one time each
was # 1 in units and sales within their niche
Technology and consumer meal preference
behavior are driving change. We all know how fast Tower Records collapsed to
online music downloading. The
foodservice industry is moving fast, with the grocerant niche garnering the
lion’s share of new business.
The WSJ reports that “Cable companies
have been losing TV subscribers at an ever faster rate in the last few months,
and satellite TV isn't picking up the slack. That could be a sign that Internet
TV services such as Netflix and Hulu are finally starting to entice people to
cancel cable, though company executives are pointing to the weak economy and
housing market for now.” This action has been called “cord-cutting”.
Where is your food brand going, where
are your customer going? Don’t let your
retail food customer cut the cord too your brand. Its time to understand why the Convenience
store industry, Drug Store industry, Dollar Store industry and legacy grocery
stores have all starting selling fresh prepared ready-to-eat and ready-to-heat
food. This convergence of food consumers
and new avenues of distribution will forever change food industry
retailing. Is your company ready for the
grocerant niche it or will your company go the way of Tower Records.
Foodservice
Solutions® specializes in outsourced business development. We can help you identify,
quantify and qualify additional food retail segment opportunities or a brand
leveraging integration strategy. Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche visit
Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or
twitter.com/grocerant
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