QSRs are doing better than other restaurant categories, according to the report. And one driver behind the growth is the narrowing margin between the cost of eating at home or dining out… with grocery prices on the rise, of late.
Implications: More than almost any other category, the pace of the overall restaurant recovery will probably match the employment recovery. Until then, you can bet the restaurant will be extremely competitive. But were you captivated by the idea that you might be competing… with grocery stores?
And why not. Supermarkets have been picking a fight with the restaurant category for years… with frozen foods, heat-to-complete, grab-and-go, and now an ever more sophisticated line-up of deli foods.
If grocery prices continue to rise, does that mean restaurants should look at this period as an opportunity to reclaim share? And what should grocery stores do to defend against that assault?