Tuesday, January 12, 2016

Will Restoration Hardware become the next Ikea?

Ikea, the global furniture retailer that does in excess of $2 Billion a year in sales of grocerant niche Ready-2-Eat and Heat-N-Eat food alone from within their in store café’/ restaurant has been big news within the grocerant niche for years.  Foodservice Solutions® Grocerant Guru’s word must be spreading.

Just three months after it opened a restaurant for the first time in its new freestanding design gallery in Chicago, San Francisco, based home furnishings retailer Restoration Hardware is looking to add the concept to other Restoration Hardware locations. Will fresh food sales add an incremental $2 Billion a year for them?

Our Grocerant Guru® believes that following the success of its first restaurant that opened in October, 2015 in Chicago stated; “there is no reason that they can’t.  If Restoration Hardware follows Foodservice Solutions® Five P’s of food marketing pillars of success. Those pillars have become the pillars of success for new foodservice companies entering the grocerant niche.” 

Restoration Hardware's has joined the Costco, Ikea, Sam’s Club, Target and others selling ready to eat food. The new eatery, called the Three Arts Club Café and helmed by chef Brendan Sodikoff, is on pace to do $5 million in annual sales without serving a formal dinner or liquor, Restoration Hardware CEO Gary Friedman said in an investor call Dec. 10, 2015. 

Friedman went on to say “We didn’t advertise the restaurant. The restaurant closes at 7 to 7:30 at night because we have a curfew agreement with the neighborhood … and just as a standalone we have a $5 million restaurant.” Our Grocerant Guru® thinks $5 Million a year is a solid platform to drive success. 

Restoration Hardware has created a food platform for incremental success. While 2016 has just began interest in the grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food has also just began to attract new retailer players with the desire to drive top line sales and bottom line profits.  

Are you ready for incremental sales and profits?  www.FoodserviceSolutions.us can help.  Call our Grocerant Guru® at: 253-759-7869 for more or visit us at www.GrocerantGuru.com, Linkedin.com/in/grocerant or twitter.com/grocerant

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