Grocery Stores Selling Beer!

Grocery Stores Selling Beer!
By Dwayne Reno

Grocery Store Chains Will Soon Be Cashing In On Suds.
This is a topic I have wanted to touch on some weeks now. But decided to hold off until the government’s positioning was clearer. It will soon be legal for grocery store chains to sell alcohol in Ontario. This will apply to independent grocery retailers as well. Although they will be under strict guidelines and limited to roughly 279 six packs or 70 cases of beer per day.

The first 60 grocery stores from across Ontario will be selected and authorized by end of year. When the process is complete a total or 450 retailers will be selling beer to their customers.
For more details click here for the government’s press release from September 23, 2015.

What Does This Mean For Foodservice Operators?
Foodservice operators operating with a bar or not, this move will soon put you in direct competition with grocery stores, independent grocery retailers to be more specific. independent retailers have been on a direct path of competition with foodservice operators from the day they started selling prepared foods. The prepared foods being sold at grocery stores now include sushi, Italian, BBQ and desserts all under one roof.

Most recently Longo Brothers Fruit Markets Inc., one of the city’s largest independent food retailers has been fighting to remain open on statutory holidays, with their argument being that it met the definition of a business that sells “prepared foods”. For full article click here.

The Markets Have Changed
It’s no mystery that the markets are getting much more competitive. As large American and Canadian grocery retailers continue to take profits from independent grocers, leaving them with no choice but to take profit from other markets. Just like how a school yard bully takes the nerdy kids lunch money, independent grocers will continue to grow their margins by taking customers from foodservice operators.

What Foodservice Operators Can Do...
Well, for one if you are like most foodservice operators with a large or independent grocer in your restaurant neighborhood (restaurant row), you need to focus on what makes you different.

• Your goods, your service and what is so different about it.
• Also focus on how you are communicating with your customers. Do customers know that you sell a house-made soda, BBQ sauce or signature cocktails? Is this communication working? If not change it.
• Are your food costs trickling down to your customers? If so get help reducing your food costs.

Your customers want to know why they should spend money at your restaurant. So give them the goods!

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