4 Billion Reasons 12 Examples Why the Restaurant Business Model must Evolve

Success does leave clues and Foodservice Solutions® Grocerant Guru® has the leading the Grocerant niche since 1991 and has left many clues that the retail food industry has been picking up.  However one sector in particular has garnered a lion’s share of the migrating restaurant customers.  Our Grocerant Guru® said, that sector is the “convenience store sector.” 

Industry icon Bonnie Riggs, restaurant industry analyst for The NPD Group’s foodservice division agrees as she recently stated “C-stores are here to stay as a competitor to quick-service restaurants.”  Riggs elaborated explaining that; all across the country, convenience stores are ramping up foodservice offerings, providing hungry customers with spicy chorizo and smoked Gouda on ciabatta, baked tilapia, Arabica coffee and other fresh offerings in interiors that increasingly offer seating.

Here is the proof  as Riggs explained that “NPD found those offerings have been bringing in customers, with consumers visiting c-stores for prepared foods and snacks close to 4.9 billion times in the year ending May 2016—that’s a 15% bump over 2010.” While restaurant sales remain flat and customer counts in decline that’s a huge bump.  When you add in the increase in grocerant niche fresh prepared food from grocery stores, and drug stores; well regular readers of this blog know those numbers grow and are now cause for concern for all of the restaurant sector.

Convenience stores aren’t just making inroads into prepared food sales.  C-stores are also getting into traditional QSR dayparts, and achieving double-digit increases in lunch and dinner traffic. Foodservice Solutions® team refers to that as Restaurant Foodservice Daypart Dementia.

One thing has become perfectly clear that is financial engineering does not trump customer demand for grocerant niche Mix and Match bundling. The proof comes in the form of another big wave of restaurant bankruptcy in 2016.  All of which includes 10 company bankruptcies, 17 chains, and 3 Food Management Partner Companies so far this year according to Nation’s Restaurant News, Senior Financial Editor Jonathan Maze. Think about it; 10 companies, and 17 chains the current restaurant business model is in at minimum in decline. Here is Mazes last public list: 

 Quaker Steak & Lube

Buffets LLC

Fox&Hound/Champps/Bailey’s

Johnny Carino’s

Zio’s Italian Kitchen

Cosi

Logan’s Roadhouse

Garden Fresh Restaurants

Don Pablo’s

Black-Eyed Pea

Financial engineering is an easy out.  This simple truth is the power of grocerant niche Mix and Match bundling has driven customers to adopt new and difference set of choices on where, when, and how they assemble a meal.  The foodservice platform has expanded choice for the consumer while many chain restaurants remain bound by legacy business models that quite simply disappoint the consumer.

Consumers are dynamic not static and restaurant brands must be as well according to Foodservice Solutions® Grocerant Guru® Steven Johnson.  Understanding the complexities of mix and match meal component bundling is something that the team at Foodservice Solutions® excels at. 

Invite Foodservice Solutions® to complete a grocerant program assessment, Grocerant ScoreCard.  For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869