This blog post by my good friend Jimmy Matorin says it all: grab ‘n go from stores like Walgreens and CVS will grow at 10% over the next decade, which restaurants will slog along with an anemic 4% growth rate.
It’s not like the restaurants haven’t been warned.
We’ve been telling them for years: you’re not in competition with other restaurants in your niche; you’re not even in competition just with other restaurants.
YOU’RE IN COMPETITION WITH EVERYONE WHO SELLS FOOD.
Millennials especially are rewriting the rules for eating. For example, they like smaller, handheld portions because they can eat and text or update their Facebook at the same time. There are now apps that allow you to pre-order your food before you even arrive at the restaurant. And of course, the frozens and fresh-prepared spaces at grocery stores continue to offer consumers choices about where to eat.
But do they listen? The sclerotic leadership in many restaurants means that they tinker with their menus or fantasize about home delivery instead of facing the reality of their situation. Home delivery? Ask Domino’s what they think about that now that a jury awarded a $32MM settlement for a fatal delivery truck crash.