Being More Convenient Than Supermarkets

Posted by Tim on July 18, 2013

 

This threat to restaurants keeps coming back.

A new study by the NPD Group, as reported in FastCasual.com and Supermarket News, predicts that within the next decade the market for prepared food and ready-to eat meals will increase more than 10 percent, compared to a 4% increase for commercial foodservice.

Supermarkets, convenience stories and even drug stores will be taking a bigger chuck of the traditional restaurant business.

Clearly these are restaurant customers who are interested in convenience. The key to not losing business share is to be more convenient. Online ordering can be a valuable ingredient in your marketing toolbox to reach these customers.

Some of the benefits of online ordering over ready-to-eat meals at retail outlets:

Selection--Ready-to-eat meals rely on a limited selection to appeal to all customers. Online ordering allows your customers to tailor their meal  from your menu.

Freshness--Ready to eat meals are typically prepared days in advance. Even hot food in the supermarket deli has been on display for hours, and picked over. Restaurant meals are fresh and cooked to order.

Time--A meal that has been ordered online is ready to go. Customers only need to park, walk into the restaurant and walk out of with their purchase. A ready-to-eat meal means negotiating a crowded supermarket parking lot, finding out what selection is and is not available, standing in the check-out line and then getting out of the parking lot.

Online ordering is the boost you need in the ever-competitive food service industry. 

 

Rise Against the Supermarkets

Posted by Tim on April 6, 2012

 

Astute restaurant owners know that other restaurants are not their only competition.  There are many other businesses attracting the would-be takeout customer from your place.  Among them is the local supermarket and convenience store.

Online a
nd mobile ordering can help you compete for more of those customers.


Jon Luther, chairm
an of Dunkin' Brands, in the keynote speech at COEX 2012 in Las Vegas last month, described supermarkets and C-stores as “the new elephant in the room" for restaurants, according to Restaurant Retailer News.


Shoppers are already at the store, and providing foodservice gives them an opportunity to integrate their meal purchases with other purchases.  Add to that an accessible location, plus lots of parking, and the choice is easy.  Because of this, many supermarkets are now including casual dining areas in their layout.

So, how do you compete against that level of convenience from savvy supermarkets?

Well - it’s an interesting challenge, and quite frankly, can be hard, but it’s not impossible.

First, think about what you have on your side.  Most customers carry a perception restaurants can provide a higher quality meal (and hopefully better value) than a supermarket
selling pre-packaged meals (a.k.a. “Home Meal Replacements”).  This is especially true if your restaurant offers unique menu items.


Second, you have to battle convenience with convenience.  This is where your mobile ordering site becomes important.  Customers need to be reminded that ordering from your restaurant is easy and accessible.

We know that convenience is the top reason people order online.  So, spread the news about your convenient mobile ordering site and remind customers your food is high quality.  Stress the fact that your online site offers access to your full menu (compared to a very limited supermarket menu).

"You (supermarkets and c-stores) win people with service and convenience...", said Luther.

Restaurants just have to do it better.
 

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