Monday, August 3, 2015

McDonald's, Wendy’s, Subway Battling the Grocery Sector for Customers

The undercurrents of fast food customer discontent have evolved to the point that Wendy’s, Subway, and McDonalds are battling not only Starbucks, Burger King and Chipotle for customers but they are now battling Kroger, Sheetz, and Wawa directly for customers according to Foodservice Solutions® Grocerant Guru™ Steven Johnson.

While regular readers of the blog know that the every expanding grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food is driving success in every sector of retail today. According to Jonathan Maze at Nation's Restaurant NewsThe grocery-store chain Kroger is ramping up its prepared-food offerings and luring fast-food customers”.  Maze understands share of stomach. 

Today the question appears to be who is winning the in the battle for share of stomach fast food restaurants, convenience stores or grocery store deli’s?  Maze reported in his article that "One out of four opted for Kroger instead of a restaurant," ….. "And the restaurant they'd have eaten at otherwise was McDonald's, and it's not particularly close." No there as everyone eats at McDonalds but no one admits to it according to Foodservice Solutions® Grocerant Guru™.

Foodservice Solutions® Grocerant Guru™ stated that “the one grocerant niche key consumer driver  that benefits both convenience stores and grocery stores is the ability to utilize mix and match product bundling to save consumer time, while increasing brand value for customers.”

According to our Grocerant Guru™ Whole Foods was deriving 35% of sales from prepared foods while allocation only 12% of its footprint for prepared foods garnering 44% of overall store profits;  prior to this new wave of claims on ‘over-charging’ customers” that have been in the news.”

Kroger’s Fred Meyer brand has started offering more prepared foods including expanding salad offerings, soups, Mac-N-Cheese and expanding both hot and cold sandwich options Maze reported That Kroger’s “strategy seems to be working — Kroger has posted 45 quarters of consecutive same-store-sales growth. Meanwhile, McDonald's sales were down 0.7% globally in the second quarter.”

Sheetz Made-To-Order food, including pizza, wings, sub sandwiches, pretzel melts, hot dogs, salad wraps, continue to garner consumer’s attention.  President and CEO Joe Sheetz has been open about the emphasis the company places on food. "When we're new to the area, gasoline gets their attention," he told "Once you get their loyalty, we get them to eat. We are really a restaurant advertising a bunch of other stuff."

Our own Grocerant Guru™ has said “the battle for share stomach is evolving beyond traditional boundaries today companies the ilk of Ikea, Bass Sporting Goods, Costco, Nordstrom are all offering Ready-2-Eat and Heat-N-Eat fresh prepared food with Ikea selling over $ 2 billion a year and Costco is selling $1.5 billion Hot Dogs, Coke, and Pizza.  How do your sales compare?  Looking for a lift? Think Grocerant Guru™.

Since 1991 we have assisted companies grow, expand, and excel within the grocerant niche.  Are you ready for Outside Eye’s for inside profits?  Have we completed a Grocerant ScoreCard for your company?  Are you ready for a Grocerant program assessment? Call: 253-759-7869 today.

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