Perhaps you’re not aware, but in some minds, there is a restaurant/grocery store war going on. In 2014, the National Restaurant Association reports that 47% of the American food dollar is spent at restaurants. It’s encroaching on the grocery store share, which in 1995 had 75% of the food dollar, compared to today’s 53%.
But are there really food fights between the two? Quite the opposite. Restaurants and grocery stores have found a way to peacefully coexist—and thrive—on grocery store turf.
I’m not talking about the likes of Subway restaurants located in Walmart stores. I’m talking about the vast increase in restaurant fare on grocery store shelves. It’s been going on for years, but more restaurant chains are seeing the light, and it’s green for go and green for profits.
Beginning in 2015, you will see McDonald’s McCafé ground, whole-bean and single-cup coffee (for the Keurig machine) on store shelves. Obviously McDonald’s isn’t in the ground coffee manufacturing and distribution business. Thus it has cottoned up to Kraft, which is willing to lend its expertise in those two areas. The two companies are ecstatic with their new partnership. Foodservice accounts for 77% of coffee sales, a lot of that enjoyed by McDonald’s, but the chain would like to have a piece of the 23% market share of coffee sold at retail. (These percentages come from Packaged Facts.) And so it plans to offer 12-ounce bags of McCafé ground premium roast, breakfast blend, French vanilla and many more—stuff it doesn’t even sell in its restaurants.
I mentioned Walmart earlier. It is partnering with Cinnabon in an exclusive arrangement to bring in a Cinnabon Baking Kit with a suggested retail price of $5.98 beginning this coming Holiday season. The kits allow home baking of eight cinnamon rolls and other popular items like cupcakes and monkey bread.
Actually Cinnabon and Walmart were already buddies. Consider that some of the stores already stock Air Wick Cinnabon Classic Cinnamon Roll fragrance and Cinnabon Classic Cinnamon Roll K-Cup packs for Keurig brewers, among other items, according to an Aug. 22 article in QSR online.
Another restaurant/grocery store partnership has been forged in Texas between Whataburger and H-E-B. The burger chain is selling its signature sauces (Peppercorn Ranch, Creamy Pepper Sauce, Jalapeño Ranch, and Honey Mustard) in H-E-B and its Central Market stores, according to an Aug. 20 article in QSR.
Look for more restaurant and grocery store marriages to take place as food manufacturers jump in the middle to make it happen. It’s the proverbial win-win-win situation.
Tell me what you’ve seen out there.
Jody