dean&david launches own shop-in-shop concept

The first unit will open inside a Rewe store in Passau at the end of November.

The shop-in-shop concept has already been successfully tested at Interspar in Vienna.
Foto: dean&david smartfood GmbH

With its own shop-in-shop concept, dean&david intends to conquer the retail market in German-speaking countries in the future. Following a successful test run with Interspar in Salzburg, Austria, the first unit is to be launched in Germany at the end of November. The fresh food provider also intends to establish itself more strongly in the retail environment with other formats.

This is what the first dean&david shop-in-shop in Germany will look like.
This is what the first dean&david shop-in-shop in Germany will look like.
© dean&david smartfood GmbH
One of the cooperation partners for the German market is the Rewe Group. In addition to the first location, which is scheduled to open in Passau on November 29, further shop-in-shops are already being planned in Rewe stores in Munich and Nuremberg. Talks are underway to open additional locations in other food retail chains.

Culinary alternative to Eat Happy

Since the concept was first introduced to the market in 2007, dean&david has made a name for itself as a gastronomic provider of fresh, healthy trend products such as bowls, wraps, salads, juices, smoothies, etc.  With this product range, the company intends to compete in the future with the established shop-in-shop player Eat Happy, which is already widely established in supermarkets (over 1,000 stores and coolers), and offer supermarket customers an attractive culinary alternative to sushi.

Laurenz Hoffmann, CEO and shareholder of dean&david Smartfood GmbH, which is in charge of all d&d sales channels outside the restaurant business, is responsible for the shop-in-shop roll out. He was previously responsible for international fresh food purchasing at Aldi Süd and Kaufland. His business partner Elisabeth Fasbender is responsible for the d&d product range as well as marketing for the shop-in-shop concept.

© dean&david smartfood GmbH

Building on existing d&d infrastructures

"dean&david has a network of excellent franchisees in many German cities. This is our strength compared to other providers," says Hoffmann. Operational responsibility for the shop-in-shops will be assumed by the respective local franchisees, who will also bring experienced staff to the new locations. "The new units can build on existing infrastructures," says Hoffmann. Deliveries will also be organized from existing central kitchens.

Basically, the retail assortment corresponds to the proven F&B items of the restaurants. Some recipes have been adapted to ensure a best-before date of two days. For the same reason, the wraps are also offered without an open cut surface.

Fresh preparation in the supermarket

© dean&david smartfood GmbH
In order to increase the gastronomic experience factor during shopping, almost all products - from bowls to salads to desserts - are prepared in front of the customers and placed within easy reach in the three-level displays of the shop-in-shop units. Sandwiches are freshly grilled and packaged on site. "As in the dean&david stores, we use only sustainable materials for packaging and eliminate plastic for both beverages and to-go cutlery," Hoffmann said. Freshly prepared meals are available in reusable boxes. All products are paid for at the supermarket checkout.

On-top sales to supermarket convenience

The question arises whether the fresh wraps, salads & co. don't cannibalize with the products that supermarkets also offer in private label. "Definitely not," says Hoffmann, based on initial experience at Austria's Interspar: "Sales come on-top of Interspar convenience sales." Why is that? "We appeal to a different target group," says the Smartfood CEO. Nutritionally and environmentally conscious as well as sporty, the dean&david target group is less price-sensitive, but has a higher demand for quality, which the concept can serve very well with its products that are just as high-quality as they are higher-priced compared to the retailers' own brands.

Growth in all sales channels

© dean&david smartfood GmbH
dean&david is also driving sales of its range of up to 80 products in other sales channels. Via Quick Commerce, for example, suppliers such as Flink, Gorillas, Knuspr and Getir deliver soups, smoothies, bowls and more directly to customers' homes. Lufthansa passengers have been able to order d&d dishes on board since March 2021. In addition, d&d smart food equips first foodji as well as Zugvogel vending machines of Deutsche Bahn in Munich (2x), Berlin and Hanover with their products. Further locations are to follow. In addition, dean&david already has its own coolers in selected Billa stores in Austria.

The still young sales lines are to be continuously expanded. Demand is high, Hoffmann emphasizes. While the dean&david subsidiary still generated around 70 percent of its sales in 2021 from production for the d&d restaurants (including desserts, juices, shots), this share will only be 15-20 percent in 2023.