
Nando's: Made a successful transition
Restaurant to Retail: How to make the transition
We asked Ben Johnson, Marketing Director of The Grocery Company which makes retail ranges for Nando’s, Wagamama and Cranks how eateries can make that transition from restaurant to retail...
Which brands have made a successful transition from restaurants to supermarket shelves?
Nando's, Pizza Express, Harry Ramsdens, Wagamama and Cranks.
Why have these brands been so successful?
Brands that have successfully made the transition tend to be those that offer casual dining such as Nando's and Wagamama, which offer simple, quick, good food in their restaurants.
Selected menu choices can then be recreated on a larger scale by the restaurant chefs in collaboration with the grocery partner to meet supermarket volume requirements.
Consumers are looking to find quick, simple & easy solutions that add value. That's why restaurants at either the cheaper end of the market or the expensive end do not make this transition into retail as easily.
Having a retail side to a restaurant brand can really enhance the overall brand experience and bring in new consumers. At Nando's for example, research indicates that 70% of Nando's sauces consumers do not actually eat at Nando's restaurants so are in fact new to the brand.
It is also a prerequisite that a brand is popular amongst a large target audience with brand values that transfer easily across from a restaurant to retail environment.
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How does moving into a retail brand affect the restaurant's image?
Moving from restaurant to retail adds to the brand presence and allows a brand to interact with its customers on a much more regular basis, keeping the brand top of mind.
A consumer may visit a favourite restaurant on average six times a year but if they have the option to purchase its food in a supermarket they are much more likely to increase the frequency of their consumption of the brand's products.
However the image of the brand can only be enhanced as long as the product lives up to consumer expectations and mirrors the restaurant experience in terms of product quality, appearance and taste. If the quality of the restaurant brand can't be matched, don't attempt to launch into the fast moving consumer goods (FMCG) arena.
How does a restaurant promote its products in both markets?
Restaurants can provide 24/7 on street advertising and experiential marketing which money just can't buy. So, as long as the customer goes away with a good experience of the restaurant food and ambience they are going to have a higher propensity to buy it at a supermarket. Brands can utilise restaurant databases to access 'fans' and market the launch of the new product range directly to them.
Brands can also market the retail products separately at food shows, via retailer magazines, through PR and on shelf promotions.
Are any there any pitfalls businesses should be aware of when attempting to enter their products into retail?
Business owners need to be aware that you cannot bottle a restaurant experience as it involves a multifaceted sensory experience. However, you can deliver a product experience which underpins a brand's values. Nando's Hot Peri-Peri Marinade is the best selling marinade in the UK!
Designers need to take the essence of a restaurant brand and shape it so that it can work well in a retail environment. For example, a complex restaurant image or dish is unlikely to translate well into a retail product both in terms of the packaging design and product ingredients. Brand owners need to stick to simplicity and clarity particularly on product choices and labeling.
Above all, never compromise on quality. The grocery brand must reflect the restaurant experience and the dishes on offer on the menu. If you can't invest in creating an authentic brand experience then just don't attempt it!
Is it just the big name brands that can out reach in this way?
In the main, it tends to be the big name brands that have the ability to make the transition into the retail environment. This is because success is delivered via consumer awareness and scale is obviously fundamental to this.
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