Grocery stores have been losing customers to restaurants for the past forty years. Today there are 25.6 restaurants for every one traditional grocery store. Simply put the American consumer does not want to cook or clean up. However there is new twist and that is Meal Kit Companies that are growing fast and plain and simple they are pantry busters according to Foodservice Solutions® Grocerant Guru™.
So, what is a meal kit? There are many new meal kit companies the ilk of Blue Apron, Plated, Hello Fresh, PeachDish and Home Chef they deliver pre-measured ingredients, a recipe and cooking instructions to consumers who order online from a choice of usually three daily options. The buyer then cooks the meal themselves. Prices range from $10-$30 depending on the ingredients (organic or specialty items). Depending on the service, some nutritional information is available, but mostly it’s about convenience. Delivery is free if the consumer orders enough meals.
Meal Kits are fast becoming “Training Wheels for Millennials” according to our Grocerant Guru™ providing a platform to learn how to cook, what goes into meal planning, portion size, and most important timing a meal.
One leading Meal Kit company is Hello Fresh here is how they describe their service:
No more waiting in line at the grocery store, buying too much of one ingredient, or having the same, boring meal each night. We do it all for you: from creating the recipes and planning the meals, to grocery shopping and even delivering all of the pre-measured ingredients right to your door!”
Walmart and other legacy retail grocery stores have tried to imitate meal kit company offerings in a CPG format. In each case observed by Foodservice Solutions® team of experts they have failed. Clearly they have focused on cost not freshness, traditional flavor profiles rather than authentic regional offerings. In short Meal Kit companies have nothing to worry about from them today. Pantry busting will continue as long as legacy retailers continue to act as they always have.
www.FoodserviceSolutions.us specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy. Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit, Linkedin.com/in/grocerant or twitter.com/grocerant Contact Steve@FoodserviceSolutions.us