Supermarkets Adding Bars So Gourmet Consumers Will Entertain Thoughts of Shopping
Supermarket really want to take back customers who became more partial to taking their refreshment outside the home over the past couple of decades, and, if that means serving up drinks, that's fine.
Recently, some major supermarket operators have announced they are launching foodservice initiatives that include alcohol service. The recession has encouraged supermarkets to take on more prepared food to win consumers who are cutting back on restaurant meals and take out.
Some supermarkets are taking it a step further, though.
Just last month, Wegmans unveiled The Pub, a full-scale bar and grill that is has opened in its new Collegeville, Pa., store.
Now, on the opposite side of the state, Giant Eagle has opened its third market district format supermarket in metropolitan Pittsburgh, a store concept it launched in 2006 with two stores but waited until now to expand. The 150,000 square foot store makes space for a full array of groceries but it's focus and point of differentiation is prepared food, in this case for take out or eat in. Departments include a Smoke and Fire Slow-Roasting Rotisserie preparing ribs, chicken and other savories, an Asian food station that offers Tandoori oven meat, a satay grill and wok preparations, and the pairing of a Rosti Bar that features the potato-based national dish of Switzerland and a Crêpe Bar where fillings from meat to fruits are wrapped to order. The entree line up is complemented by a Sweet Shop and Italian gelato counter.
Yet, to enhance the range of eating choice, the new Market District store feature an in-store restaurant and dining space that provides Wi-Fi access, tableware and a selection of 250 microbrewed, craft and specialty beers.
Supermarket bar service isn't limited to the keystone state. In the company's third quarter conference call, John Mackey, president and CEO of Whole Foods (WFMI) market described how its newest Chicago location -- a 75,000 square foot Windy City behemoth replacing a popular store in the Lincoln Part neighborhood -- was planning to attractive customers.
He noted:
The store features a strong local flavor throughout five Chicago-themed venues, a sit-down bar that operates as a coffee bar in the a.m. and a beer/wine bar in the p.m. with a small stage for live music, [and] 400 seats, including outdoor seating so customers can enjoy their meals overlooking the Chicago River.Although Whole Foods is talking about getting back to it health-food roots and opening smaller stores, it clearly sees an opportunity, in specific settings, to further push into the hospitality arena. A few years ago, so-called retailtainment was a big theme, to the extent that Toys"R"Us put a Ferris wheel in its flagship location in New York City's Times Square. As recession set in and value became the byword, many retailers decided that lower prices to bring consumers into the store were more important than entertainments designed to keep them there.
Yet, a few food retailers clearly see an opportunity to position themselves as food showcases. Wegmans is making the most determined move in that direction as all its stores include Market Café's that feature Asian food bars and a lot of the same operations that Giant Eagle has more lately added. Giant Eagle is being more selective, continuing to operate conventional supermarkets, and Whole Foods will have to make more hard choices as it is scaling back the size of its stores, limiting the potential space for foodservice operations.
Yet, food retailers have bet that in-house chefs, sommeliers and bartenders pouring microbrews can entice food enthusiasts who can enjoy them not only as a competitive alternative to typical restaurants but as a support system for their own eating adventures.
Wegmans will shortly open a second Pub operation in another new Pennsylvania store. Company spokesperson Jo Natale noted that the company plans to encourage shoppers who stop in for a bite and a sup to use The Pub as a source of inspiration and information for home cooking, and to look at the rest of the store as a pantry that will provides them with the larder they need to support a lifestyle centered on grand meal experiences. Not every food retailer could pull it off, but, for those that can, making efforts to draw those consumers who put a priority on superior food experiences can win customers who are willing to spend $100 or more on a bottle of wine, and Wegmans carries just such vintages.