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Wednesday, January 27, 2010

Blurring the Line Between Channels


This post by The Grocerant's Steve Johnson is worth reading through.

Steve "gets it." The very title of his blog says it all: grocers and restaurants no longer are separate channels of distribution. Consumers are just as likely to pick up sushi in a Kroger, eat a snack or a meal at 7-Eleven, or look for some California Pizza Kitchen pizza at Costco. Meal occasions are blurred, too, with snacking taking over as a separate meal and not just something to get you from lunch until dinner.

And given that the usage of the stove in American kitchens has stayed flat or declined for the past two decades, who's cooking all the new food now that we're eating out less? It's the microwave. Consumers want convience, and when they say they want "value," that doesn't always mean "cheap."

Restaurants have been slow to "get it." Massachusetts-based Uno Restaurant Holdings Corp. (owner of the Uno Chicago Grill restaurant and pizzeria chain) filed for Chapter 11 protection January 20, 2010. They won't be the last casual dining chain to seek help or simply die outright.

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