Baking and spice shops are losing their competitive edge, but that’s not necessarily a bad thing.
Bakeries are facing stiff competition from food processors and food service companies, who are expanding their offerings and competing for customers, says Dan Bierut, co-founder and chief executive officer of B&S Restaurants, a Portland, Oregon, company that sells food and beverages in grocery stores, restaurants and cafeterias.
The industry has long been characterized by a “magnitude of innovation,” says Bieruts, who has worked in the industry for nearly 20 years.
The big players, however, are facing a tough battle.
A large swath of the industry is not paying much attention to the competition and its growing importance, he says.
The biggest losers include specialty grocery stores that have been trying to compete with food service restaurants and fast-food chains like McDonalds and Burger King.
The big grocery chains, which are still big players in the market, are also facing competition from fast-casual restaurants that are expanding, BierUT says.
But the big grocery retailers are also losing market share, says Biersut, who is based in Chicago.
As a result, the big specialty grocers have lost ground.
In a recent survey, B&s surveyed 1,000 customers about their shopping habits, with a few key findings:For example, shoppers were more likely to order items on the same day if they bought at the same grocery store.
They also were more willing to pay more for items they didn’t need than if they ordered at a local store.
The survey also found that grocery stores were losing customers who were ordering items online, a trend that Bieruut says is being replicated in the specialty groceries.