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Posted: Tuesday 28 February, 2012 at 2:08 PM

Competition for customers – Restaurants vs Supermarkets

By: Jenise Ferlance, SKNVibes.com

    BASSETERRE, St. Kitts - EVER since the twin island Federation was slapped with the recession some three years ago, restaurants have hit a rough patch in sales especially with individuals trying their very best to save money in every way they can.

     

    As if the battle with the global economic crisis was not enough to deal with, restaurants have now found themselves battling for customers with some of the major supermarkets in the Basseterre area, which have recently started selling hot foods and lunches to shoppers.

     

    Restaurants are not only competing among themselves now; they are competing with supermarkets as well.

     

    Early last year (2011), Best Buy Supermarket introduced its Hot Food Department where customers can purchase foods such as pies, chicken, sandwiches and hot lunches. C&C Trading did the same late last year.

     

    Most recently seen is the newly established King's Pavilion Supermarket which is also offering a relatively 'cheap' lunch and other hot foods.

     

    Valu Mart and RAMS have been operating a deli inside their stores for years.

     

    SKNVibes spoke with a number of restaurant managers who have voiced their opinions over the growing number of supermarkets which are adopting this new venture.

     

    One restaurant manager explained that this venture is an unfair one as the supermarkets have several advantages over the restaurants.

     

    The individual said that the restaurants do not have to purchase the food supplies needed as they are readily available in the stores, explaining that the restaurants have to purchase their wholesale products from these same supermarkets that are now becoming their competition.

     

    The manager also said that another advantage the supermarkets have over the restaurants is the fact all they have to do is 'set up' an area in their store and sell the food thus eliminating many expenses that the restaurants have to pay.

     

    This, the restaurateur said, gives the supermarkets the advantage of selling their foods at lower prices which would encourage customers to patronize their store because persons are trying to spend less especially during these tough economic times.

     

    The manager said that the restaurant has been seeing a drop in sales and customer flow recently but this fallout is not directly linked to the supermarkets' new venture because the current economic state also has a part to play.

     

    Another restaurant manager was of the same view but noted that it would have the same effect on supermarkets if restaurants started selling groceries.

     

    Speaking with another restaurant manager, the person said that their restaurant is already seeing the effects of the supermarkets' undertaking but at the same time one cannot stop businesses from expanding because they have to stay on top of the game.

     

    The individual said that the supermarkets may be doing this as a means of cutting cost.

     

    "Instead of throwing away foods, it is more economical to cook and sell it. I would do the same thing if I were in that situation," the person said.

     

    The C&C Supermarket installed a small Hot Food section in its George Street store last December with daily menus, specials for children as well as weekend specials.

     

    According to Managing Director of C&C Super Foods, Scott Caines, the endeavor was made because they saw the opportunity to provide something extra to persons in the area.

     

    "We saw that we could provide a service for business workers and other persons in close proximity and that is why we decided to do this," Caines said.

     

    In 2010, the Best Buy Supermarket opened its Hot Food Department with the aim of giving its valued customers the opportunity of having a 'one stop' shopping experience - purchasing all their needs, including hot food, at one place.

     

    Since the recession began to affect the Federation, restaurants have been losing customers as more and more persons have lapsed on the luxury of eating out.

     

    Most restaurants have since then been depending heavily on the "lunch crew", those patrons who do not have the time to prepare a meal at home but journey to the eateries to consume a serving of food before returning to their daily post.
     

     

    Supermarkets, now having created this battlefield with the restaurants are now pulling away the persons whom these eating places rely on a great deal to keep their establishment afloat.

     

    But, can one blame the supermarkets for taking on this new venture?

     

    It may now be up to the restaurants to come up with new tasty delights, a different combination, or a more nutritious offering all at a reasonable price. It will take thinking outside the box, but that is what staying ahead is all about.

     

     

     

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