Saturday, October 12, 2013

Meal Components Not Price Threaten QSR’s.

Quick Service Restaurants sales and customers counts in the United States will soon resemble those in Asia if legacy Quick Service Restaurants (QSR) don’t refocus from price and packaged meal deals to Ready-2-Eat and Heat-N-Eat fresh prepared meal components.

Here is but one example from The Yomiuri Shimbun “The sales volume and customer base of McDonald’s Co. (Japan) keep declining despite the introduction of a new president, as the chain loses ground to convenience stores that have been strengthening their sales of coffee and fast food….

McDonald’s said Tuesday that sales volume in September, excluding effects from newly opened stores and other factors, was down 3.4 percent from the figure in the same month last year. While sales declined for the third consecutive month, the number of customers also dropped by 6.5 percent, a decline for the fifth consecutive month.”  McDonalds is the QSR global leader with a high brand value and even higher marketing budget. 

This is not a battle of lost customers due to additional QSR market share competition this is a battle for share of stomach.  This battle has been brewing for a long time and now the undercurrents of success are taking root and major convenience stores in Japan are winning.

Success does leave clues and bundling fresh prepared food meal components is one clue that has been the overwhelming success within the convenience store sector.  The consumer continues to be time starved, wanting fresh food fast yet desiring bundled meal solutions. The Ready-2-Eat and Heat-N-Eat fresh food grocerant niche is evolving with consumers.  QSR’s must evolve with them as well.

Success does leave clues outside eyes can deliver inside sales. What are you bundling with you core products? Who are your customers?  Where and how can you sell your customers more? For more Visit  or or 
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.

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