Press releases lately have confirmed the obvious, people are reevaluating what value means to them. Sit down quick casual with table service concepts (Ruby Tuesday, Applebee’s and Chili’s) are being abandoned by consumers in favor of upscale counter service concepts (Panera and Chipotle) and retail food chains. Conventional thinking surmises that removing the wait staff is a cost saving for consumers. That thinking is misguided, if the server or the concept provided value then consumers would continue to honor their purchase decisions. Clearly the chains that are losing traffic are doing so because the extra cost of their offerings are not being met with a corresponding perception of value.
Business Wire story examines the dynamics of where customers are
“Retail food chains, eager to recapture share-of-stomach, have been actively developing retailer meal solutions with strong consumer appeal, allowing retailers to reposition themselves as competitors to restaurants,” says Darren Tristano, Executive Vice President of Technomic. “Consumers are facing increasingly difficult economic choices, like balancing the higher cost of gasoline with the decision to dine out. The economic downturn may alter consumers’ food sourcing habits. To stay in the game, retailers and restaurant operators will have to continue to adapt their value equations to meet the market’s changing needs.”
If you are not providing value to your guest, you are spiraling into oblivion.
