Summary
As consumer eating habits change, restaurants need to be prepared to change courses very quickly to survive. So called mini-burgers ( sliders ) seem to tell us that snack foods are more popular than ever. One stop shopping has elevated Walmart as the king of retail and I think grocery stores are looking at the opportunities they can attract by adding prepared foods. This would give them another profit center and help control waste. Drinks of all kinds are gaining popularity and the creativity is unbelievable.
Analysis
It seems like in the last two years, the landscape of consumer spending has changed dramatically. Chains are closing units as others are being bought out because they tried to predict future consumer spending.
The top incremental sales gainers for 2007 in the food category were:
1. Cinnamon Rolls at 14% - 61.4 million in sales
2. Breakfast Wrap Burrito at 13% - 55.4 million in sales
3. Grilled Chicken Sandwich at 10% - 122 million in sales
4. Breakfast Sandwiches at 7% - 230.4 million in sales
5. Bagels and Fruit at 6% - 135.9 million in sales
Breakfast was the hottest day part and that is why you see chains competing for their share of morning traffic.
For Beverages, these were the big gainers for 2007:
1. Hot Chocolate at 16% - 45.2 million in sales
2. Specialty Coffee 15% - 340.7 million in sales ( WOW )
3. Smoothies 12% - 46 million in sales
4. Iced Tea 8% - 359 million in sales ( WOW )
5. Frozen Slushy Soft Drinks - 7% 50.7 million
Hand held wraps seem to be more popular than ever, and they can be served at a good price point.
While we hear about closings, debt, and mergers; soon I will talk about all of the new concepts that pop up every day and who should worry.
