Editor's Letter: Expensive, Healthy, Light and Sustainable
Everywhere you turn in the food business these days, the buzz is about rising costs and tightening margins, and in some cases -- especially for traditional restaurants and fast-casual concepts -- slowing customer traffic and sales. On the brighter side, plenty of talk and development are also centered on healthy and light menu options and concepts, as well as energy conservation and sustainability.
These issues have been hot topics at a number of industry events over the past several months, from the Food Marketing Institute and National Restaurant Association shows to the Dairy Deli Bake 2008. Because these business concerns are so top of mind, On-the-Go Foodservice designed the articles in this issue to help operators understand how others are coping with the challenges and meeting consumer demand for better-for-you food and beverage options.
This focus begins with the cover story, "Savvy Self-Starters." Donna Hood Crecca delves into how operators -- such as Publix with its GreenWise Market and Nice N Easy Grocery Shoppes with its Easy Street Eatery -- execute their proprietary foodservice programs without the help of nationally known franchise brands. Although proprietary programs can be more risky and difficult to execute, their costs can be lower and all the profits (and losses) land in the retailer's pocket. Operators also have more direct control over the operation, which can be a big advantage.
Control is important for an operation in which there are so many variables. Rising commodities prices, for example, are hitting pizza retailers especially hard; long a value-menu item, the cost of preparing pizza has gone up sharply in the current economy. Renee Covino interviewed many industry experts and operators to see how they are coping and what the future holds for one of America's favorite pies. "I think we can all safely say this is not a short-term blip," said Dennis Horn, director of prepared foods for Sam's Club. "We're going to have to look at these [price] pressures long term."
Turning to lighter fare, few categories are growing as rapidly as smoothies and sushi. According to Mintel Group, the Chicago-based research firm, smoothies are expected to growth by more than 60 percent over the next five years, and retailers that were ahead of the curve with programs already in place are riding the wave. But it's not too late for operators to get into the category now, since the growth curve is expected to be high and long. Turn to "Smooth & Cool" on Page 46 to learn what is working for many convenience retailers and fast feeders.
While questions about sushi's health quotient still linger, due to issues around mercury levels and the consumption of raw fish, few can argue that it is light fare. The once-exotic food is so popular that it is finding success in the mainstream at retail locations such as supermarkets, mass and club stores and even convenience stores. According to Dani Johnson of Marvelous Market, an upscale bakery and convenience store, sushi works if the demographics are right. "The hardest sell is to convince the customer of its freshness."
While the challenges of selling sushi are many, that is not stopping retailers such as Target, Costco, Kroger's, Ralphs, 7-Eleven and, most recently, Alimentation Couche-Tard (ACT) from selling it. In addition to offering a wide variety of prepared meals, ACT recently launch Couche-Tard Menu stores in Montreal, which are focusing on fresh and healthy meal solutions for people on the go, and sushi is just one of many offerings.
As you can see, all the pages in this issue are written with your concerns as food operators in mind. These are challenging times for you and for consumers whose confidence in the economy and the future is deeply shaken. And while they are cutting back and eating at restaurants less often, they are finding solid meal solutions at your retail locations to take home and feed their families.
Retail foodservice remains the bright spot in an otherwise slowing restaurant industry, according to a forecast by foodservice and research consultancy Technomic Inc. While consumers see it as trading down, because retail foodservice tends to be faster and cheaper, we know it doesn't have to mean a reduction in quality for the customer.
Take advantage of this opportunity and make today's economically strapped consumers your customers for life.
Thank You For the Letters
We were happy to be inundated with e-mails from many of you congratulating us on our work and the focus of our brand after we published our first issue and launched our web site in March. It was wonderful hearing from old friends and receiving such nice notes from people we have yet to meet in person, but are honored to serve.
Be sure to sign up for our weekly e-mail newsletter on our web site so you can stay on top of on-the-go foodservice news and trends in between print issues.
And keep the e-mails coming. Your story ideas and feedback are invaluable to us.
Maureen Azzato
mazzato@onthegofoodservice.com
973.998.4138
Maureen Azzato is Publisher & Editorial Director of On-the-Go-Foodservice and Chief Content & Marketing Officer of parent company ALM Business Media Inc.