Tuesday, 8 April 2014

Tesco's vision includes restaurants

Tesco is continuing to expand and serve customers by investing in restaurant ventures, often with the idea of locating them near or within its stores. This is part of its vision to be (1) wanted/needed around the world, (2) a growing business, (3) innovative, (4) local/global winners and (5) inspire loyalty from customers, colleagues and communities.

By expanding its restaurant investments, Tesco is adding retail services that customers need and want, with innovative retail formats, and intriguing international touches. The latest restaurant venture is Fred's Food Construction, a casual restaurant featuring 'authentic American candy, soda and snacks' plus healthy salads and deli-style 'submarine' sandwiches.

Previously, Tesco has purchased Giraffe, casual family restaurants with burgers, brunch and a kids' meal deal. Now some Tesco Extra stores include Giraffe restaurants, to attract family shoppers to Tesco as a destination and provide other experiences beyond shopping, in line with the long-term vision.

The retailer also invested in Harris & Hoole, a coffee house with the image of a family-owned, artisanal restaurant that's expanding rapidly. It doesn't publicise Tesco's stake in the company because 'We don't believe our customers are interested in who is providing the financial backing for our business', according to a spokesperson.

After Tesco's costly and ill-fated expansion into Fresh & Easy grocery markets in the US, these restaurant ventures are intended to tap into revenue opportunities in markets where Tesco is strong.