Five years from now at the intersection of the consumer,
fresh prepared food and technology they will have found that consumer eating behavior is
evolving and is now beyond the control of traditional food marketers. Evolving
culture and lifestyle, demographics along with the new uncertain economy are
all putting pressure on the American food consumer: Demands of work, economic
shrinkage, demands of raising a family, commuting, social interaction, kid's
after-school activities, all contribute to a food marketplace where convenience
vies with price over legacy brands. That one in 10 shoppers choose higher-end
cuts of meat in order to recreate a restaurant dining experience (FMI, 2013).
Packaging Advances Extended Acceptance
Five years from now restaurant chain leaders will understand that packaging
advances help create new points of non-traditional food distribution have
empowered consumer choice, and American embraced these choices even as legacy
marketers cringe. Who's after restaurant food dollars… simply put… everyone.
Why should you care if Walgreens is selling fresh prepared ready-2-eat and
made-2-order sandwiches? Why should you care if Whole Foods, Trader Joe's,
Safeway and Wegmans are selling ready-2-eat and or heat-N-eat fresh pizza? Why
should you care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00?
You should care because they are selling it, and you are not! The fastest
growing sector of retail food service for the past four years has been the
Convenience store sector. The C-store sectors growth in large part has been
driven by fresh prepared food. Non-traditional
avenues of distribution are growing, gobbling market share while establishing new patterns
of consumption, price points and customer loyalty.
The Shopper is in Control Spurring New Retail Food
Formats
Trader Joe's and Whole Foods have created ready-2-eat and heat-N-eat fresh
prepared food items with qualitative differentiation as an entity with identity
that has help propel them into ready-2-eat fresh prepared food leadership. In
fact recent research shows that both Trader Joe's and Whole Foods are each
known for high quality (restaurant quality) ready-2-eat and heat-N-eat foods
with distinctive offerings. More important each is leading with innovative
products and package size that create value and have positioned each chain as a
food shopping destination for meal components customized and
personalized for immediate consumption or mix and matched for a meal time at
home. In short they are stealing your customers.
Walgreens
fresh prepared food i s restaurant quality and priced less than Panera Bread
or Corner Bakery CAFE. BothPanera
Bread and Corner Bakery CAFE thrive in urban
locations. Walgreens is now growing price, quality and speed of service
advantages over legacy retailers. Legacy restaurant chains must reconsider the
speed at which they evolve and adapt or non-traditional outlets will capture
profits margins as well.
Traditional views of meals and mealtime can pretty much be discarded.
Legacy retailers waiting for the "next big thing" to copy simply
might be out of luck this time. Legacy food retailers may not like to be first
movers very much but it may prove that waiting too long will not work this
time.
Product, Packaging, Placement, Portability and Price are
Foodservice Solutions® 5 P's
The retail food world is evolving at an ever increasing pace filled with
innovation in food, portion size, points of distribution, and quality fresh
prepared meal solutions. The price, value, service equilibrium is resetting in
retail foodservice. In order to edify the brand and reinforce consumer
relevance restaurateurs must leverage Foodservice Solutions® 5P's
of food marketing.
Many legacy food retailers continue to practice brand protectionism, stifle
the brand while diminishing consumer relevance. The consumer is dynamic not
static. Brands must be dynamic, evolving with the consumer. Four more years of
watching other retail sectors thrive should be long enough. Success in the
restaurant world is no longer simply about what happens within your 4 walls.
Steven Johnson is Grocerant Guru at Tacoma, WA based
Foodservice Solutions, with extensive experience as a multi-unit operator,
consultant and brand/product positioning. Since 1991 Foodservice Solutions® of
Tacoma, WA has been the global leader in the Grocerant niche for more on Steven
Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or
twitter.com/grocerant
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