Once again the American Egg Board (AEB) examined how and where we are eating the incredible edible egg. The AEB looked at new competition and how it's affecting where America eats breakfast.
When John Howeth, AEB senior vice president, foodservice and egg products stated "Breakfast all day is a definite opportunity for supermarket foodservice operations," Foodservice Solutions® Grocerant Guru® jumped up and declared they are talking about our work once again. Regular readers of this blog know that Foodservice Solutions® has been the leader in the Grocerant niche since 1991.
Howeth went on to say "Millennials are driving the trend for all-day-breakfast we’re seeing at QSRs, so it's only logical they'd look for breakfast items when they're at the grocery. Breakfast foods—especially egg-based ones—fit into any daypart."
The AEB study found consumers are often turning to the c-store and grocery stores for Ready-2-Eat and Heat-N-Eat fresh prepared breakfast needs. This has hurt Cereal manufactures and QSR restaurants.
Wawa, Sheets, and Rutter’s Farm Stores are sector leaders
Conveniences operators are capitalizing on breakfast's popularity to transform people stopping for gas on the way to work into breakfast patrons. And it seems to be working. Mintel's 2015 report, Convenience Store Foodservice, reveals 32 percent purchased a made-to-order breakfast sandwich at a convenience store in the last three months.
Grab-and-go is still a required part of the c-store equation, so premade sandwiches are a must to capture customer attention. But made-to-order has become important in building relationships with new customers, especially millennials. Connections are made with patrons when the store employees customize their breakfast sandwiches. C-store managers are now required to have foodservice experience, according to the AEB report.
Grocery stores have one bright spot Ready-2-Eat and Heat-N-Eat fresh food
Grocery stores began introducing prepared meals in the 1970s, but it was three decades before the concept got real traction. Today, the grocerant niche defined buy Foodservice Solutions® Grocerant Guru® refers to any retailer selling Ready-2-Eat and Heat-N-Eat fresh prepared food including companies the ilk of Walgreens, Pinkies Liquor Stores, HelloFresh and AmazonFresh. Grocery stores have upped their focus of late and are doing a very good job of selling wide array of prepared meals, either for eating on site or taking home, and that is there one bright spot of growth for the sector.
Here is an interesting note according to NPD, while QSR dinner sales have declined, eating dinner at grocery stores rose to 1.8 billion visits annually in 2014. Yes, I would say that the grocery sector is beginning to understand the opportunity.
He AEB report went on to say “freshly prepared food items are often the highest-margin products in a supermarket. Innovation is evident in both foodservice offerings and operations, attracting customers with heightened expectations. Upscale deli items, trend-responsive prepared foods, soup and salad bars, and dining areas are common at grocerants, but breakfast food offerings are not as well represented as foods aimed at other dayparts, and thus have room to grow, according to the study.” Will this become a disruptive force within the AM Day-Part?
Are you trapped doing what you have always done and doing it the same way? Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit: www.FoodserviceSolutions.us for more information