Retail Conquering The Food Business
In the business sector, there is nothing more exciting than the food sector especially since the rise in trend for fast moving consumer goods (FMCG) along with food and beverages. These trends were also noted by entrepreneurs like Leonardo Gonzalez Dellan which helped him decide to enter the food business. The trends are not only seen in the local market but these also dominated the international scene. Many years ago, there are limitations to the food business such as the location and it is only caged inside the principle of service and hospitality.
Now, the retail FMCG has ballooned to become a very profitable sector until it has reached to this point where it is now worth around $100 billion. The market worth of the retail FMCG is five times more than that of the restaurant sector. The wide gap in these two sectors created a chance for businesses to innovate as well as to develop one-of-a-kind business models that can be used on both sectors as a means to eliminate the gap.
The limitations surrounding the restaurant business is still present up to this day because it is focused on its local environment and the scale it covers is too limited with a number of service formats that are also limited in their own ways. Retail, on the other hand, focuses on products that can be transported anywhere in the world and with a higher scale and profit. This dominated markers wherein the restaurant sector failed to.
When these two are combined, there is a high expectation that the top businesses will come out as a result. There are also a number of trends that entrepreneurs should take note of in the next few years. One of which is the glocal which will play a major role in the food business in the future. Glocal refers to the production of global cuisine while utilizing local ingredients.
According to Leonardo Gonzalez Dellan, the preferences of the consumers are no longer the same. Their tastes have evolved and the quality of the food they want to eat as well as the presentation has become defining factors.