New Competition From the Take-Out Counter

They say a little competition never hurt anyone, but the competition from supermarkets for breakfast and lunch crowds is cause for concern for some restaurateurs. It turns out that in addition to competing with each other, fast casual places throughout the country now have to compete with fresh breakfast and lunch available as a take-out option at many local supermarkets.

Are Supermarkets Really a Threat?

While these options will never replace the experience of sitting down for a fine dining experience while meeting a client, they are creating problems for restaurants that rely on the “grab a quick lunch and head back to the office” crowd.

In the NPD Group Restaurant Analyst Bonnie Riggs is warning in a recent report that restaurateurs will need to “take notice” of this new form of competition if they are to continue to survive and thrive. A big part of the problem, she explains, has been the recent recession.

Restaurants and the Recession

Many consumers became more price conscious and realized that eating lunch from the take-out counter at their desks was a cheaper option than hitting up a real restaurant.  And the threat isn’t just from major supermarkets, says industry commentator Peter Romeo.

According to Romeo, even the small corner grocery has started getting in on the act, offering fresh, ready-to-eat food for workers to take back to the office.  He also says that the stigma that once surrounded those who brought lunch in from the take -ut counter has started to dissipate as the quality of the food has gotten better and better.

How Restaurants can Fight Back Against Supermarket Take-Out Meals

While the new competition can make life difficult for some restaurants, restaurateurs are finding ways to compete effectively. The problem doesn’t really have an effect on higher end white tablecloth restaurants or fast food establishments.  “Fast casual,” however, has come under a bit of stress.

Fast casual restaurants are competing effectively against this new phenomenon by stressing what it is they do best – they offer customers more than just food. They offer an experience, a chance to get out and forget the office for a few minutes during their lunch break. This is invaluable to many workers–something that no supermarket has yet to find a way to compete with.

New Competition from the Takeout Counter

They say a little competition never hurt anyone, but the competition from supermarkets for the breakfast and lunch crowds that ordinarily might have dropped by a restaurant is cause for concern for some restaurateurs.

It turns out that in addition to competing with each other, fast casual places throughout the country now have to compete with fresh breakfast and lunch available as a takeout option at many local supermarkets. While these options will never replace the experience of sitting down for a fine dining experience while meeting a client, they are creating problems for restaurants that rely on the “grab a quick lunch and head back to the office” crowd.

Surviving the New “Takeout” Competition

In the NPD Group Restaurant Analyst Bonnie Riggs is warning in a recent report that restaurateurs will need to “take notice” of this new form of competition if they are to continue to survive and thrive. A big part of the problem she explains has been the recent recession when many consumers became more price conscious and realized that eating lunch from the takeout counter at their desks was a cheaper option than hitting up a real restaurant.

And the threat isn’t just from major supermarkets says industry commentator Peter Romeo. According to Romeo, even the small corner grocery has started getting in on the act, offering fresh food ready to eat for workers to take back to the office.  He also says that the stigma that once surrounded those who brought lunch in from the takeout counter has started to dissipate, as the quality of the food has gotten better and better.

While the new competition can make life difficult for some restaurants, restaurateurs are finding ways to compete effectively. The problem doesn’t really have an effect on the higher end white tablecloth restaurants where clients are entertained and fast food joints have prices comparable to those at the supermarket.

Atmosphere Could Trump the Convenience

However, fast casual restaurants are competing effectively against this new phenomenon by stressing what it is they do best – they offer customers more than just food. They offer an experience, a chance to get out of the office and forget their problems for a few minutes during their lunch break. This is invaluable to many workers and something that no supermarket has yet to find a way to compete with.

Is Pasta the New Burger and Fries?

With the advent of several new “fast casual” restaurants serving pasta as a mainstay of their menus, some analysts think the time may have come for pasta to become a mainstay of American restaurant menus in the fast food world.

Always Available at Slow Food Places

Pasta has always been a staple of the slow food restaurants where diners would sit down to a white cloth dinner table and enjoy heaping mounds of pasta covered in various types of sauces. Even restaurants that didn’t focus on pasta on their menus often offered the Italian food as part of their optional menu. What is new is that this is being done in the fast food market.

Not Quite Kept Under Heating Lamps

Of course, the new pasta places aren’t exactly warming up piles of pasta and keeping them under heating lamps, ala hamburgers and fries. One new place is offering pasta meals custom made to order, using only the freshest of ingredients and all of them organic at that. However, just because the pasta is custom made to order doesn’t mean it’s a sit down restaurant in disguise. This is still a fast casual style restaurant and that’s what’ so exciting about the new pasta places springing up all over the country.

So Should We Add Pasta to the Menu?

If you’re running a fast food place and wondering after reading this blog post whether or not it’s time to start adding pasta to the menu, the answer is probably not. Let’s face it, pasta isn’t exactly what most people think of when they walk into the local greasy spoon. There is a certain kind of fair expected in these places and pasta really doesn’t fit into a place offering fries, milkshakes and monster size burgers.

On the other hand, if you’re looking for a new restaurant concept, pasta may be just the thing you need for your new restaurant and serving it in a more casual, fast food atmosphere may be the way to go.