We know that consumers are not eating any less, yet for the eight consecutive quarters this past spring restaurants as a sector recorded a decline in traffic according to NPD. The first place to look is the convenience store sector. Sales in that sector are up. The stock price of most convenience stores chains are up 30% or more this year alone. It’s all about fresh ready-to-eat and ready-to-heat prepared food driving both the top and bottom line.
Non traditional food outlets are attracting new consumers. The c-store sector is but one of many non traditional food outlets within the new and expanding grocerant ready-to-eat and ready-to-heat food niche. Product, Packaging, Placement, Portability and Price are the 5 P’s of successful grocerant fresh prepared food retailing. Wawa is a company that understands the 5P’s and currently is the 3rd largest food retailer in the tri-state Delaware valley. Watch out Florida food retailers Wawa is coming your way.
Small footprint retailers the likes of Trader Joe’s, Fresh & Easy, Walgreens and Rite Aid are garnering attention from both your and old consumers equally. Even traditional grocery stores are finding success and margin expansion within the deli / fresh food department. Branded and private label fresh food offerings are empowering consumer choice in all retail outlets.
Competing with non traditional food retailers is new for restaurants. Understanding the competitors presents even more difficulties for most restaurateurs. If you’re a national restaurant chain waiting for the recession to end and things to go back to the way they were, sorry you are out of luck. Retail foodservice customers are dynamic not static. They move forward, not backward. Repositioning for success is where the customers have gone is key to your future success.
Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson