Business and Operations
Your pizza in the grocery aisle?
By Laura Aiken
brands are answering a downturn in restaurant traffic by getting their goods
into the grocery store, south of the border at least as reported recently by
the Wall Street Journal .
Seems like a natural solution, a win-win
where grocery stores gain well known names with sellable products and big
chains pick up some new revenue in a slow time.
Some of the chains were doing this before
the recession, but an economic climate such as this is ripe to ramp up this
division of the business. It’s a good answer for large U.S. chains like
California Pizza Kitchen, who are shipping microwavable Flatbread Melts
sandwiches to grocery stores. But it sure might increase the competition for independent
pizzerias. The competition is steep enough for independents and steeper still
for the whole industry against the frozen pizza market and skewed cheese
pricing. Are franchisees going to benefit from the additional sales garnered
inside a grocery store? Perhaps in the expansion of the brand name, but not if
it’s going to mean a customer chooses their franchise name of pizza in the
grocery isle rather than ordering fresh from them. Would this be the case?
Pizza has been the subject of its own
documentary. It’s a traditional, passionate food as diverse in its nuances as
any dish can be. Take n’ bake or made to order, pizza is far superior fresh
than frozen. It will be interesting to see how much this trend is picked up in
Canada. What if the choices of frozen pizza in the grocery store started
carrying the brand names of large retail chains? Let me know what you think!