Meal Assembly Watch

An interesting article from the Perishable Pundit with several comments about Meal Assembly Stores showing up in grocery stores.

The problem is that we don’t yet know if MACs are viable. As the article points out, they are booming – but almost all are franchises, and the small footprint of most of these stores allows them to open easily in many locations. In addition, it is an easy concept to understand, and most people looking to start a business would find this concept accessible.

But are these stores earning an adequate return on capital?

Do the families that own them earn an acceptable wage for their work? We really have no idea.

A few interesting comments on what a grocery store meal assembly store can offer versus a stand along store. The idea that grocery stores offer such a wide variety of side dishes, salads, desserts, breads, wines, etc, does offer a competitive advantage for the grocery store.

The Pundit thinks it is well worth an experiment but suspects that simply opening a Meal Assembly Center franchise in a store isn’t taking full advantage of a supermarket’s competitive edge.

For example, many Meal Assembly Centers often offer set menus every month and require advance ordering. You see in the release that Dream Dinners requires people to log in on a computer and order selections from a monthly menu from home. This is partly so the centers can buy and prep the food. Supermarkets offer the advantage of having all the food in the world right at the doorstep. They can support much wider menu options than free-standing stores.

Also, supermarkets have an incentive to keep people in the stores longer. One wonders if they could actually cook the food for consumers and blast freeze it while consumers do other shopping?

Certainly marketing and merchandising will be important. If a consumer signs up to make a particular entrée, selling that consumer appropriate beverages, side dishes, salads, bakery items, etc., could make the experience both superior for the consumer and profitable for the retailer.

You can read the full article here:

http://www.perishablepundit.com/dailypundit/2007/january/pundit070109-1.htm

Technorati : grocery store, meal prep

Other Articles of Interest:

• Meal-assembly centers and supermarkets could be natural partners
• Publix adds meal-preparation sector to Jacksonville, Fla., grocery store
• Starved for time and a home-cooked meal – Publix offers help
• Stepping Out To Make a Home-Cooked Meal
• Cena Boasts Way To Beat The Meal Assembly Odds
• The Lament of the Disenfranchised
• Meal Assembly vs. Grocery Store
• Single’s meal assembly?
• High Costs May Be Driving Restaurant Customers to Pre-Packaged Meals
• Competitive Research on the Meal Assembly Business’