Only Wall Street
financial analysts could spin a prolonged daunting food sales market share
fight as good news. However this week
when Wendy’s struggling to maintain year over year same store gains system wide
presented a plan to sell units as a way to generate profits Wall Street
financial analysts praised company leadership.
All the while Wendy’s franchisees continue too capitulate market share
to other QSR’s, C-stores, and new non-traditional fresh food retailers. How
does selling stores boost profits at your restaurant? Restaurant industry big
data points to “big disrupters” on the way for QSR’s.
McDonalds on the
other hand put a different spin on things.
Leveraging Big Data and
positive same store sales CEO Don Thompson noted that they are “gaining market
share even as sales shrink” and that is winning. I have to agree. The industry undercurrents of change first identified
by Foodservice Solutions® and mirrored in the Big Data findings of McDonalds are all grocerant niche related.
Including in the
findings Thompson called “the informal eating out market” we called it the
non-traditional ready-2-eat and heat-N-eat fresh prepared food aka grocerant
niche. Thompson pointed to casual
dinning restaurants. We point to companies the ilk of Panera Bread once seating
only are now adding drive-thru's, lowering price points and bundling meal
options ala QSR’s and the grocerant niche.
QSR’s are
increasing trapped by self-imposed legacy brand protectionism practices and
footprint malaise. All of which is a contributing to store level cost pressure
that new non-traditional competitors simply are not burdened with. The current price
value service equilibrium for many legacy QSR’s and legacy food retailers is
simply unsustainable at the store level.
McDonald’s big data drew focus
on “heightened competitive activity” and “non-traditional competitors”
specifically and for the first time “ready-to-eat supermarket meals”, and
convenience stores. Regular readers of
this blog know Foodservice Solutions® was first leveraging big data to
identify, quantify, and qualify these new competitive undercurrents of the
evolving fast fresh food world.
While many legacy restaurant chains continue to mention, blame or justify
sales growth on continued “economic uncertainty”. The ready-2-eat and heat-N-eat fresh prepared
food niche continues to garner momentum, solid top line sales YOY growth,
customers, bottom line profits, and new unit growth. Legacy QSR’s are facing a
fight for share of stomach with new well- funded non-traditional competitors. Is your brand waiting to see what happens or
are you edifying your brand and footprint with consumer contemporized
relevance?
Outside eyes can deliver top line sales and
bottom line profits. Invite Foodservice Solutions® to provide brand and product positioning
assistance or a grocerant program assessment. 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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