Thursday, March 14, 2013

Restaurant Food Share of Stomach Trumps in Shrinking Food Retail Business.

Photo by Tony French / Alamy

The Food Network and Food Reality Shows garner more viewers watching there 65 inch HDTV’s today than ever before.  One after another new Food programing continues to prove successful for CNN, NBC and Cable channels all. What is even clearer is that consumers do not want to cook!  They love to watch Food cooking on TV, learning about food on TV; but most people do not know how to cook beyond the basics.  In fact research shows most do not want to cook and do not want to clean a kitchen.

Tesco a global force in food retail has research, refined, revised its expansion plans to include restaurants. If a food retailer today wants to be successful 10 years from now they will have to sell food differently.  When Tesco bought up-market fast food restaurant Giraffe, it signaled they want to maintain and grow share of stomach over share of retail grocery.

Consumers today assemble meals they do not cook from scratch.  They are migrating to convenience stores the ilk of Wawa, Sheets, Rutter’s and 7 Eleven to same both time and money. Tesco has stores around the world and it is not just in the U.S. that this is happening but everywhere and Tesco knows it.

With consumers buying fewer and fewer food ingredients the need for large format grocery stores of the 70’s, 80’s and 90’s has pasted. Whole Foods only builds 30,000 Sq. stores today and most of the space is allotted to ready-2-eat fresh prepared food. Earlier this week we talked about General Mills testing direct meal delivery leveraging their brand Betty Crocker. How are you selling food today? How will you be selling it 10 years from now?

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