Why is the performance of your categories not the same across different types of establishments?

Claire Brunaud
Jun 23
5 min read

A category can perform very well overall while masking significant differences depending on the type of establishment. This is actually quite common.

A product range might be very successful with commercial restaurants, but much less so with institutional catering. A product might perform well in independent establishments, but remain marginal with chains. A product might be very relevant for snacks, but less suitable for hotels, caterers, or bakeries.

And yet, when the analysis remains too general, these discrepancies often go unnoticed.

We look at the category as a whole. We track volumes. We compare the changes to the previous year. We identify the benchmarks that are progressing or declining. But we don't always understand why performance varies so much from one market segment to another.

For a Category Manager, this is a real issue.

Because his role is not just to analyze sales. He must also understand usage patterns, identify development opportunities, and adapt product ranges to the realities on the ground.

Without detailed market segmentation, this interpretation remains difficult.

A category does not meet the same need everywhere.

Not all categories are consumed in the same way across establishments.

The same product can have very different roles depending on the context of use.

In a commercial restaurant, it can be included on a menu, featured in a recipe, or used as a differentiating product. In a catering establishment, it can meet constraints related to cost, volume, consistency, or convenience. In a snack bar, it often needs to be quick to prepare, easy to incorporate, and compatible with a high turnover rate.

The product is the same, but the use is not.

This is precisely what explains why a category can perform very differently depending on the type of establishment.

Performance does not depend solely on product quality or price. It also depends on its suitability to the real needs of end customers: frequency of use, operational constraints, menu type, level of processing, seasonality, storage capacity, preparation time, and consumer expectations.

Without analysis by end-user typology, these differences remain difficult to measure.

The risk of an assortment that is too broadly conceived

When an assortment is built solely from a global vision, it can lack precision.

A product reference might be pushed to a segment that doesn't really use it. A category might be underutilized in a type of establishment where it has strong potential. An innovation might be deemed disappointing simply because it wasn't rolled out to the right end customers.

'This is where segmentation becomes essential.

Because not all establishments have the same constraints, expectations, or purchasing behaviors, an effective product assortment must take these differences into account.

For a Category Manager, the challenge is to answer very concrete questions:

What types of establishments buy this category the most?
Which segments are progressing, stagnating, or declining?
Are certain references superior in performance with specific profiles?
Are there any geographical areas where the category is underrepresented?
Do the product ranges offered truly correspond to the needs of end customers?

These questions allow us to move from a supply-driven logic to a usage-driven logic.

And that's often where the best levers for growth are found.

Understanding the performance gaps in your categories to take better action

A difference in performance between types of establishments is not a problem in itself, it is information.

It can reveal untapped potential, poor product-market fit, a need for commercial adaptation, or an opportunity for innovation.

For example, if a category grows strongly in some establishments but remains weak in others, it's important to understand why. Is it a matter of SEO? Product knowledge? Format? Price? Seasonality? Operational constraints? Lack of activation by warehouses?

Conversely, if a category is heavily reliant on a single type of establishment, its performance can be fragile. Changes in demand within that segment can directly impact sales volumes.

The data then allows for a better assessment of risks and opportunities.

It's not just about observing that one segment buys more than another. It helps to understand what explains this difference, and above all, what can be done next.

Should we strengthen the presence of a particular product in certain warehouses? Adapt the sales pitch according to the type of establishment? Develop a more specific offer? Review the promotional plan? Prioritize certain high-potential segments?

Without fine segmentation, these decisions often remain intuitive.

When analyzed by end-customer typology, they become much more actionable.

Geography also matters

Differences in performance are not solely determined by the type of establishment.

They can also vary depending on the geographical area.

The same product category can be very dynamic in one region but less so in another. Certain uses may be more locally rooted. Certain warehouses may be better able to activate a product range. Certain areas may concentrate more customers belonging to a key segment.

For a Category Manager, this geographical dimension is important.

It helps to avoid overly general conclusions.

A category that appears average at the national level may actually be very successful in certain areas. Conversely, good overall performance may mask underutilized territories.

Combining the typology of establishments with geography therefore allows for a much more refined analysis.

We are no longer content with simply knowing which products are selling; we understand where they are being sold, to whom, and in what context.

From data to categorical insight

The value of a categorical analysis does not lie solely in the quantity of data available.

It lies in the ability to transform this data into insights.

To say that a category is progressing by 8% is a statement of fact.

To say that this progress is driven mainly by certain types of establishments, in certain areas, with a few specific references, is already a lesson in itself.

Stating that these segments have potential for range expansion, targeted promotion or dedicated innovation becomes a possible course of action.

It is this progression that interests the Category Manager.

Moving from numbers to explanation.

Then from explanation to decision.

Precise segmentation allows us to take this path. It provides a more accurate understanding of purchasing behavior and helps to build action plans tailored to market realities.

KaryonFood: analyzing categories by actual usage

In the foodservice industry, sell-out data allows us to go beyond a simple volume analysis.

They provide access to a more detailed reading of warehouse outputs: by reference, by depot, by period, but also by type of end user.

With KaryonFood, Category Managers can centralize and analyze this data to better understand the performance of their categories according to the types of establishments.

The objective is simple: identify the segments that drive growth, spot those that remain under-exploited, understand the differences in behavior and adapt the assortments accordingly.

This vision also allows for better alignment between marketing and sales teams.

Marketing can refine its category recommendations. Key account managers can advocate for more precise assortment plans with distributors. Regional managers can prioritize which warehouses and end customers to focus on.

Data then becomes a common medium for building more relevant assortments.

What are the key takeaways?

Not all categories perform in the same way depending on the type of establishment, and that's normal.

Practices vary. Operational constraints change. Expectations are not the same. Geographic areas also influence purchasing behavior.

For a Category Manager, the challenge is therefore not just to monitor the overall performance of a category. It is to understand what lies behind that performance.

Which segments are buying? Which establishments are progressing? Where is the category under-exploited? Which assortments are best suited to different uses?

With sell-out data and fine market segmentation, these questions become much easier to address.

KaryonFood makes it possible to transform warehouse exit data into actionable categorical insights.

Because a good assortment is not built solely from what is sold, but also from what different types of establishments actually use.