Trader Joe's and Whole Foods have created ready-2-eat andheat-N-eat fresh prepared food items with qualitative differentiation as anentity with identity that has help propel them into ready-2-eat fresh preparedfood leadership. In fact recent research shows that both Trader Joe's and WholeFoods are each known for high quality (restaurant quality) ready-2-eat andheat-N-eat foods with distinctive offerings. More important each is leadingwith innovative products and package size that create value and have positionedeach chain as a food shopping destination for meal components customizedand personalized for immediate consumption or mix and matched for a meal timeat home. In short they are stealing your customers.
Walgreensfresh prepared food is restaurant quality and priced less than Panera Bread orCorner Bakery CAFE. Both PaneraBread and Corner Bakery CAFE thrive in urbanlocations. Walgreens is now growing price, quality and speed of serviceadvantages over legacy retailers. Legacy restaurant chains must reconsider thespeed at which they evolve and adapt or non-traditional outlets will captureprofits margins as well.
Traditional views of meals and mealtime can pretty muchbe discarded. Legacy retailers waiting for the "next big thing" tocopy simply might be out of luck this time. Legacy food retailers may not liketo be first movers very much but it may prove that waiting too long will notwork this time.
Product,Packaging, Placement, Portability and Price are Foodservice Solutions® 5 P’s
The retail food world is evolving at an ever increasingpace filled with innovation in food, portion size, points of distribution, andquality fresh prepared meal solutions. The price, value, service equilibrium is resettingin retail foodservice. In order to edify the brand and reinforce consumerrelevance restaurateurs must leverage Foodservice Solutions® 5P'sof food marketing.
Many legacy food retailers continue to practice brandprotectionism, stifle the brand while diminishing consumer relevance. Theconsumer is dynamic not static. Brands must be dynamic, evolving with theconsumer. Four more years of watching other retail sectors thrive should belong enough. Success in the restaurant world is no longer simply about whathappens within your 4 walls.
Steven Johnson is Grocerant Guru at Tacoma,WA based Foodservice Solutions, with extensive experience as a multi-unitoperator, consultant and brand/product positioning. Since 1991Foodservice Solutions® of Tacoma, WA has been the global leader in theGrocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant or twitter.com/grocerant
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