Within the foodservice sector, success does leave clues. Duane Reade, Pinkie’s Liquor stores, Coles, Wegmans, Sheetz, Wawa, Central Market, and Green Zebra Grocery all have found success within the grocerant niche garnering customers from full-service restaurants, casual dining restaurants, and fast food outlets according to Foodservice Solutions® Grocerant Guru®.
Consumer Reports estimates that prepared meals purchased from grocery stores are now a nearly $29 billion-a-year business. We ask; are you taking advantage of food retail customer migration? Ikea the furniture store is they report sales of fresh prepared food at over $ 2 Billion a year back in 2013. Are you ready to sell Ready-2-Eat and Heat-N-Eat fresh food? Is Ikea selling more food than your restaurant chain?
In recent work our friends at NPD found “In the 10-month period ended December 2015, that more than 40 percent of the population purchased prepared foods from a grocery store, compared to 77 percent from a quick-service restaurant.” Times they are a changing.
More stunning than that, the study found “In a four-week period, consumers made an average of five visits to a grocery store for prepared foods”. Many in the restaurant industry dismiss the growth at grocery stores as not a serious threat; thinking the food is not ‘restaurant quality’. That thinking is simply outdated, when the customer’s moves the retailer must move with them according to our Grocerant Guru®.
While Foodservice Solutions® team identified, quantified, and qualified that restaurant customer migration was linked directly to “The 65 Inch HDTV Sysdrome” Bonnie Riggs team at NPD, QSR Plus Retail Market Monitor data found “grocery prepared-food buyers are above-average quick-service restaurant users. In addition, the heaviest grocery buyers account for nearly 30 percent of grocery visits (about seven per month) for ready-to-eat meals.” So, still wondering where your customers are going?
Echoing Foodservice Solutions® warning and call to arms, NPD food research icon Bonnie Riggs stated “The greatest weakness for quick-service restaurants in competing with grocery stores is dinner... Dinner is most important, followed by lunch, for visits to grocery stores.”
Riggs continued “I don’t think QSR operators realize the magnitude of their vulnerability, especially at dinner, the daypart they have the greatest challenges,” Convenience may be driving consumers to grab more prepared meals to go, but the reason they are increasingly getting those meals from a grocery stores is all about quality, variety, freshness and healthy options.
Grocery stores the ilk of Winn Dixie have successfully repositioned within the grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food. Others the ilk of Kroger are experimenting with fresh food and have not been as successful. In Kroger’s case they have time, money, and a large store count to help carry them until they get it right according to our Grocerant Guru®.
Chain restaurants need to be aware that Duane Reade, Pinkie’s Liquor stores, Coles, Wegmans, Sheetz, Wawa, Central Market, and Green Zebra Grocery all have in the minds-eye of the consumer restaurant quality fresh food. Does your brand complement the consumer? Does your brand have a component to edify the consumers “65 Inch HDTV Syndrome?
Visit: www.FoodserviceSolutions.us if you are interested in learning how Foodservice Solutions® Five P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization or request a Grocerant Program Assessment or Grocerant Scorecard for more Email: Steve@FoodserviceSolutions.us