Five years from now chain restaurant leaders will be
attending the National
Restaurant Show in Chicago networking, learning and laughing aloud about
the money they wasted sending employees to Fast Casual Summits. Laughing aloud
about how a multi-billion dollar restaurant industry missed the Consumer
Marketing Migration that took place from 1999 to 2013.
Food Marketing Migration
Where are restaurant customers migrating? In a new study
released by the NPD Group found that in the three years between 2006 and 2012
that the grocery/supermarket sector increased sales of prepared meals by 46
Million. That’s 46 Million fresh ready-2-eat meal occasions that could have
been would have been restaurant meals.
Chain Drug stores have taken notice and continue testing
fresh prepared food at locations from coast to coast. Five years from now when
restaurant chain leaders return to Chicago for the NRA Restaurant Show they
will be focused on Non-traditional fresh food competitive growth while looking
for new non-traditional points for their fresh food offerings.
Restaurants Coddling Brand Protectionism
Five years from now chain restaurant leaders will wonder how Mintel, NPD
and Technomic reported on but missed the Consumer Marketing Migration.
Five years from now chain restaurant leaders will laugh at the fact that the
undercurrents of the evolving face of retail food competition has been all
around yet while they practiced brand protectionism, drug
stores, C-stores and grocery stores simply catered to the evolving consumer
preferences garnering share of stomach and did so within in the ready-2-eat and
heat-N-eat fresh prepared
food grocerant niche .
Five years from now chain restaurant leaders will wonder why when in 2013
Technomic reported that revenue from prepared foods at supermarkets had
increased more than six percent annually during the past five years. Why they
continued to host, speak and pontificate on Fast Casual when the consumer had
migrated. More important T echnomic reported that the prepared food number grows to
13 percent for mass merchandisers and superstores during the same
period. All the while the margins on prepared food were expanding creating a
fast growing new revenue center for fresh prepared food in this non-traditional
fresh prepared food retail sector.
Looking Outside Current Boundaries
Five years from now all food retailers will evaluate how they do business
not how they did business. Five years from now chain restaurant leaders will be
laughing how they missed the universal commonalties the drug store, grocery and
c-store food marketers did not. Five years from now they will understand that
successful competition comes from outside well established operating
boundaries.
Five years from now no one will wonder about the findings in a Harris Poll
of 2,496 adults surveyed online between February 13 and 18, 2013 by Harris
Interactive found that Americans continue to be reducing how often that they eat
out at restaurants : Fast food restaurant chain (26% less, 14% more),Local
casual dining restaurant (20% less, 14% more),Casual dining restaurant chain
(24% less, 11% more),Local fine dining restaurant (21% less, 7% more),Fine
dining restaurant chain (23% less, 4% more).
Channel Blurring
Five years from now all food marketers will understand that channel
blurring exist only in the minds-eye of legacy food marketers not in the
minds-eye of consumers.
Five years from now Food retailers will understand the 65 Inch HDTV
Syndrome Foodservice Solutions® Grocerant Guru Steven Johnson found: The
line between restaurants and food retailers is growing ever thinner. The fight
for America's food dollars continues to intensify as consumers find fresh
prepared ready-2-eat food options at a wide and growing array of outlets across
almost every channel: convenience stores, chain drug stores, restaurants,
grocery stores, club stores, vending and even more non-food retailers like
dollar stores. While manufacturers, retailers and restaurants worry about
choice overload, consumers have embraced their new choices and show no signs of
returning to the old ways. This fight is taking place in what is called the
grocerant niche.
The restaurant industry is not an industry known for trying to be first as
in fastest to market with an ideation, food or technology advance. In the
United States the larger the chain in almost all cases the more slowly they are
to adopt something than a smaller chain or independent restaurants will. Chain
restaurants goal is simple feed one meal at a time in the restaurant while
protecting and edifying the brand.
Historically chain restaurant leaders have denied the
credibility of start-up competitors as non-relevant. The pizza sector is a
great example; evolving from family dinning independents to national chain of
"Red Roof" Italian, then to delivery only outlets and now
take-N-bake is garnering market share in the pizza sector. (Note: Home
Made Pizza Company and Papa
Murphy's are further examples of take and bake pizza
operators.)
Interested in learning how Foodservice
Solutions 5P’s of Food Marketing can edify your retail food brand while
creating a platform for consumer convenient meal participation, differentiation
and individualization contact us via Email us at: grocerant@q.com
or visit Facebook.com/Steven Johnson,
Linkedin.com/in/grocerant or twitter.com/grocerant
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