Millennials, Money, and Meals the convergence of the new 3 M’s has created a platform; the grocerant platform that is proving unresistable for a whole new generation according to Foodservice Solutions® Grocerant Guru® Steven Johnson.
Simply put it cost less to buy a restaurant quality prepared meal at a grocery store, C-store, drug store or a liquor store than it does to buy it at a restaurant. Millennials know that it also saves them time, money and they believe that the food is ‘as good as or better than restaurant food’ according to Foodservice Solutions® team.
McDonald's CEO Steve Easterbrook when speaking with analysts on a recent call "There is a widening gap between food away from home and food at home, where the commodity decreases are being passed through by the grocers," "So the food at home, there's value to be had for families there, whereas eating out, there is a price-inflation environment." Regular readers of this blog know that 79% of all restaurant meals are sold at fast food restaurants. So this is a very big thing price doe’s matter to Millennials.
When McDonald's USA President Mike Andres also brought grocerant sector prepared food it just might mean that a restaurant slowdown is on the way. Andres stated "If I’m not mistaken, it's the biggest gap we’ve seen [between food at home and food away from home] in the last 10 years," he said. "This is clearly impacting the whole eating out industry"
NPD Group confirms the notion that restaurants’ competition for millennials’ dollars stretches beyond other restaurants to grocery stores. “Supermarkets are raising the bar on their foodservice offerings and by doing so are attracting the attention of the coveted Millennials,” according to David Portalatin, VP of industry analysis at NPD Group.
Portalatin continued “Restaurant-quality and fresh food, chef-driven menus, in-store experiences have given rise to the Grocerant and inspiration to Millennials to visit and spend,” ….Millennials’ interest in the benefits and experience supermarket foodservice offers will continue to be strong over the next several years,” says. “Give the Millennials what they want—fresh, healthier fare and a decent price—and they will come.”
In-store dining and takeout of prepared foods from grocers alone reached $10 billion in consumer spending in 2015. C-stores, liquor stores, drug stores and dollar stores are all selling Ready-2-Eat and Heat-N-Eat fresh prepared food. Are you? Why not? The restaurant model must evolve. Restaurant brand protectionism may have worked in 1970, 1990, 2005 but it is fading fast in 2016.
Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® or for a Grocerant Scorecard visit http://www.linkedin.com/in/grocerant, www.FoodserviceSolutions.us Email: Steve@FoodserviceSoltuions.us