Driven by the 65 Inch HDTV Syndrome Foodservice Solutions® Grocerant Guru™ Steven Johnson found, that “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.)
Trends in the Food Industry Point to an Increase in
Non-Traditional Meal Occasions
At the intersection of the consumer, fresh prepared food and technology we
fine 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.
Recent advances in food packaging and new points of non-traditional food
distribution have empowered consumer choice, and Americans are embracing 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 is restaurant quality, priced less, than Panera Bread, or
Corner Bakery Cafe. Both Panera 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 Visit: www.FoodserviceSolutions.us or contact: Steve@FoodserviceSolutions.us
No comments:
Post a Comment