Chain Restaurant
menu prices continue to rise up 3.0% in March, 2019 all the while wholesale
food prices were only up 0.6% in March, 2019 according to the Bureau of Labor Statistics. So, who is after restaurant customers companies
that have positioned themselves by evolving business models better than most
legacy chain restaurants according to Steven Johnson, Grocerant Guru® at Tacoma, WA
based Foodservice Solutions®?
Why
should legacy chain restaurants care? Simple they are losing customer relevance
according to Johnson. While food
consumers are a highly fragmented group there are universal commonalities
creating channel disruptions. Consumers want what they want when they want it! Increasingly
they want Grocerant niche Ready-2-Eat and Heat-N-Eat fresh food.
Today
it is all about the consumer buying what the type of food they want, where they
buy it and how they buy it is in flux. You can buy food from large format food
retailers the ilk of Safeway Lifestyle stores, Kroger, Walmart, Ikea, or
Smaller Format retailers like Trader Joe, McDonald’s, Burger King, Dollar
Stores, Walgreens, and even fast casual restaurants.
Regular
readers of this blog know that 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 and most cost less per meal than at
most chain restaurants. That helps drive relevance.
Food
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. I ask are you evolving your business model?
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 simple fact is convenience stores, grocery stores service
deli’s, and dollar stores are not start-ups? They are not raising prices on
fresh prepared food they are introducing more new meal component options with
full flavor and at very competitive price points. Business models evolve. I your brand edifying your menu, footprint,
and messaging with today’s relevance?
Foodservice Solutions® specializes in
outsourced business development. We can help you identify, quantify and qualify
additional food retail segment opportunities or a new menu product segment and
brand and menu integration strategy. Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche
visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant
Battle for Share of Stomach
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