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Tesco may be fighting for its competitive life because of lackluster sales and an accounting scandal, but that doesn't mean it isn't innovating.

The Guardian reports that "at the Tesco Extra in Osterley, west London, Paul Goodale (a former restaurant director at Harrods, no less) has just launched Fred's Food Construction, a very on-trend diner selling New York deli-style subs and US 'French dip' sandwiches. If it goes well, you can expect to see Fred's, in which Tesco has made a 'small investment,' rolled out in-store nationally."

The story goes on to note that Tesco "has been more energetic than most" in building a presence in the restaurant business: "It part-owns coffee chain Harris + Hoole, and last year bought Giraffe, which now has four in-store restaurants at Tesco sites, with more to come. Apparently, its introduction of places to eat, drink and hang out after the Friday night shop is all part of a bid to make Tesco stores 'warmer and less clinical.' In an attempt to squeeze a few more quid out of its captive audience, of course."
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