Wednesday, May 20, 2009
The Hartman Group asked this question ”The conundrum for food retailers is how do you market “value” without coming off as cheap?” In the restaurant industry if the price drops to low, the customers feel that they have been taken advantage of. When it comes to Convenience stores consumer expect a fare price and fast service. However when it comes to grocery stores consumers expect price, quality and value. However it is my belief that the point of differentiation in all three is service. Restaurants provide warm, efficient and friendly inviting service. Convenience stores provide a quick in and out and quick service. While grocery stores are locked in to labor metrics of the 1980’s and service is an abstract idea. They simply think if you put it on the shelf that is service! Including and specifically ready to eat and ready to heat as well. Until the service metric is updated any outstanding growth and profitability will be limited a very few.