Wednesday, January 29, 2014

Legacy Food Retailers Adapt or Fade Away 2014 will be a Year of Change

Online Food shopping is here and positioned for increased growth.  Legacy chain restaurants and legacy chain grocery stores will be forced to adapt by selling in new channels of distribution or face continued market share capitulation to new non-traditional fresh food retailers according to Foodservice Solutions® Grocerant Guru.  “The Ready-2-Eat and Heat-N-Eat fresh prepared food aka grocerant niche food is driving change in retail foodservice today.”

Hudson Riehle National Restaurant Association Senior Vice President of Research projects that in 2014 the restaurant industry will only grow 1.2%: Restaurant industry sales increase in real (inflation-adjusted) terms.  In addition Riehle found that 56% of adults would order food delivered from a table service restaurant if it were offered.  Does anyone think that Red Lobster should look outside the box?

With Multiple surveys finding that 11% of consumers are already buying groceries online. One study by Brick Meets Click found more than 10% of the 22,000 shoppers recently interviewed had made a grocery purchase online in the last 30 days. Amazon’s reported goal of 2.5% of grocery sales may seem like it’s not much however there are dozens of new start-up competitors in this space. 

Kantar Research noted that 11% of shoppers had purchased grocery items online in the past 90 days. Of that, 56% purchased those groceries from Amazon and that was prior to the launch of Amazon Prime.  Now in Seattle, Amazon “Spotlight” is testing and delivering fresh prepared meals from local restaurants.  When was the last time you asked Who is selling food to my customer?  Every wonder why they are selling your customers food and you are not? 

Is your retail food outlet a disrupter or are you being disrupted? Capitulating market share and blaming the loss on the weather, economy, or footprint malaise is neither a solution or a plan.  Outside eye’s may be required for inside results.

Visit:  if you are 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 participationdifferentiation and individualization  or learn more at Johnson, or

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