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Running a successful business means keeping an eye on your competition. Unfortunately, today&#8217;s franchisees have more than just similar business concepts to worry about. While quick-service restaurants are busy keeping tabs on one another, grocery and convenience stores may be carving out their own slice of the market share. A new report from QSR stated that with <a href="http://www.qsrmagazine.com/competition/other-side-aisle?utm_source=1851franchise.com&utm_medium=article&utm_campaign=supermarkets-could-be-a-super-pain-in-the-neck-for-franchises-1318" target="_blank" rel="nofollow" target="_blank">more stores offering prepared meals</a>, consumers may be skipping a trip to their local burger joint. &#8220;Almost every grocery store I walk into now, some of the first things I encounter are their quick-meal solutions, their home-meal replacements,&#8221; Justin Massa, cofounder and CEO of Chicago-based market research firm Food Genius, told QSR. &#8220;Those products are aggressively priced compared with the restaurants around them and are designed to get you in the door in hopes that you&#8217;ll buy something else.&#8221; Some companies are going well beyond prepared meals, implementing actual restaurants inside their stores as a way to attract customers and create a one-stop shop location. &#8220;[Grocery store chain] Mariano&#8217;s takes that notion of foodservice in a grocery store to its logical conclusion,&#8221; Massa continued. &#8220;They actually have branded restaurants inside of their stores. So there is a sushi counter that has its own name and checkout. There is a wine bar, there is an oyster and lobster bar, and on top of that, their deli-prepared fresh section is bigger than anything you could possibly imagine. They have pushed the envelope so far that you can go to the meat counter, buy a steak, walk across the aisle, and have them cook it for you to order.&#8221; Meanwhile, convenience stores have been shown to be quite popular with Generation Y. Citing data from NPD Group, USA Today reported in February that C-stores are <a href="http://www.usatoday.com/story/money/2015/02/04/millennials-convenience-stores-fast-food-restaurants/22872685/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=supermarkets-could-be-a-super-pain-in-the-neck-for-franchises-1318" target="_blank" rel="nofollow" target="_blank">nearly twice as important</a> to Millennials as fast-casual restaurants. "Millennials are cheap &#8212; they're no different from anyone else," Harry Balzer, chief food industry analyst at NPD Group, was quoted as saying. "What we mostly do in our lives is get food as fuel &#8212; we don't usually go out for exciting eating adventures." In short, it may be time for franchises to start taking a page out of the grocery/convenience store playbook. If some shoppers, especially young people, are favoring trips to their local stores over a visit to a quick-service or fast-casual franchise, there&#8217;s certainly room for savvy eateries to listen, learn and, hopefully, innovate.

1851 Franchise

More consumers visiting grocery, convenience stores for quick-meal solutions.

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