Friday, April 10, 2020

Chain Restaurants Need to Evolve with more than Delivery for Staying Power

At the intersection of necessity and strategic planning is the grocerant niche, where legacy retailers can find a business model with sustainable consumer touchpoints, and opportunity according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®
Branded craveable menu items are the stable of chain restaurants. In order to build a sustainable path forward many chain restaurants need to evolve their business model beyond delivery in order to expand their brand and increase ‘SHARE OF STOMACH’ in order to drive top line sales and bottom line profits according to Johnson.
With many restaurants closed, and many others only open offering meals for delivery consumers are increasingly turn to their local convenience stores, and grocery store service deli’s for meals, new menus ideations, and for the ability for mix & match menu component bundling.  
Much like restaurants convenience stores are known for traditionally selling immediate consumption items of which 83 percent of all products sold at a store are consumed within an hour.   Recently, 31% of C-stores are emphasizing Ready-2-Heat meals.  While 28% are showcasing multi-pack/bulk items.
Here are 5 reasons Eating-Out while Eating-In will continue to gain momentum around the world in 2020:
1.       Grocery Store Service Deli meals and meal components are in the minds-eye of the consumer deemed ‘restaurant quality.
2.       Kroger sales alone are up 30% as consumers were forced to migrate back to a ‘comfort’ brand for staples and service deli meals and meal components.
3.       Technology:  5G is coming around the world in 2020 with new phones, tables, and computers offering 10 times the speed of service, elevating the non-store shopping experience.  Will your brand be watching, waiting, or a leading player in 2020?
4.       Food for everywhere: in 2019 consumers use all food avenues of distribution with 39% at drive-thru’s, 34% food delivery, 29% takeout. Note: in 2016 58% of restaurant occasions were off-premise.
5.       80% of household shoppers in an IRI survey said they purchased deli prepared foods regularly.
Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization?  Email us at: or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

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