Why Grocery Delis Are Rising and How Fast-Casual Can Fight Back

 

Once again Foodservice Solutions® Grocerant Guru® weights in on the battle for share of stomach.  I've been keeping a keen eye on the red-hot competition between fast-casual restaurants and grocery store delis. Here's the intel: grocery delis are making serious strides, and fast-casual needs to adapt or risk getting squeezed.

Grocery Delis: Convenience, Choice, and Customization

The rise of the "grocerant" trend – where grocery stores offer restaurant-quality prepared meals – has been a game-changer. Today's grocery delis aren't just about sliced meats anymore. They're offering a one-stop shop for convenience and variety. Think rotisserie chicken, pre-made salads with trendy ingredients, healthy grain bowls, and gourmet sandwiches, all at competitive prices.

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The Customization Edge: Winning with Wellness

Here's a big advantage for grocery delis: customization. Many stores boast build-your-own salad bars, hot food bars with rotating seasonal options, and pre-packaged healthy meals that cater to specific diets. This allows customers to tailor their meals to their preferences, something that can be cost-prohibitive for fast-casual restaurants to replicate.

Price Advantage: Leveraging Existing Infrastructure

Grocery stores have another secret weapon: their existing infrastructure. They don't face the same overhead costs as standalone restaurants, like prime location rent or dedicated waitstaff. This translates to keeping food costs down, offering better value for money-conscious customers.

The Pandemic Effect: Takeout Takes Over

The pandemic accelerated the demand for convenient meals without the hassle of dining out. Grocery delis were quick to adapt, expanding their takeout and delivery options. This further eroded the traditional territory of fast-casual restaurants.

Fast-Casual's Fight Back: Innovation is Key

Fast-casual restaurants can't afford to sit on their laurels. Here's how they can stay relevant:

·         Double Down on Takeout and Delivery: Consumers crave convenience, so prioritize efficient takeout and delivery options.

·         Menu Magic: Offer unique, high-quality menu items that can't be easily replicated at the grocery store. Think signature dishes with fresh, seasonal ingredients or innovative flavor combinations.

·         Loyalty is King: Create loyalty programs that reward repeat customers with discounts, exclusive menu items, or early access to new offerings.

The Future of Food: Room for Everyone

Grocery store delis are definitely giving fast-casual a run for its money. But fear not, fast-casual warriors! By playing to your strengths, focusing on innovation, and adapting to evolving consumer preferences, you can carve out your niche in the ever-changing food landscape.

Remember, the Grocerant Guru® is always here to guide you through the exciting world of food retail!

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869