Restaurants and C-stores Fight over Hand Held Food

Hand held food for immediate consumption once the mainstay driving growth at Quick Service Restaurants (QSR’s), is now the driving force fueling growth at convenience stores in every state of the United States according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

Johnson continued “The top three drivers of customer migration from restaurants to other new non-traditional fresh food locations are Price, Speed of Service, and ability to Mix & Match food items according to Foodservice Solutions® latest grocerant ScoreCard.

According to National Retail Federation (NRF), nearly nine in 10 Americans say they try to pay less. Of more than 3,000 U.S. adults polled by NRF, 89% reported that they shop at various discount-focused retail chains. Fifty-eight percent of these consumers said they shop at dollar stores, 50% shop at discount grocers such as Aldi or Lidl.  

Why Restaurant Menu Price Hikes Drive Migration

Shopping for value also has become ingrained in consumers’ store trips, NRF’s study revealed. Among those surveyed, 43% visit a discount grocer each week, 66% go to a dollar store at least twice monthly

Seventy-one percent of value shoppers named groceries as the item they’re most likely to buy at discount retailers.  Eighty-One percent of all restaurant visit occur at Fast Food Outlets according to the NPD Group.

Now think about this “Looking for the best price is a habit that cuts across almost every demographic,” explained Mark Mathews, vice president for research development and industry analysis at Washington-based NRF. “Regardless of income or generation, virtually everyone wants a bargain, whether it’s for everyday necessities or big-ticket splurges. Even those who can afford to shop elsewhere love finding a ‘steal,’ and it’s a habit that’s here to stay.”

Taking a closer look at the discount retail consumer, NRF found that 53% of women and 47% of men surveyed described themselves as a value shopper. Forty-six percent said they have children.

Income doesn’t seem to be a factor, as all levels showed a high percentage of value shoppers, according to the study. Of respondents who shop at various discount retailers, 90% earn more than $100,000 annually, 88% make $50,000 to $100,000 and 89% have income of less than $50,000.

Young adults exhibit a high affinity for value shopping, with 93% of Millennials (ages 24 to 37) and Generation Z (ages 18 to 23) reporting that they shop at discount retail stores.

Among Millennials, who represent nearly one in three (29%) of all value shoppers, 68% said they’re shopping more than they used to at discount grocers, and 70% said they’re doing so at dollar stores, according to the survey. Sixty-two percent reported they’re going to off-price stores more often.

Of Gen Z consumers, 52% shop at discount grocers (with 44% doing so weekly), 58% shop at dollar stores (with 73% doing so twice a month or more) and 64% shop at off-price retailers (with 48% doing so twice monthly or more).

Region played somewhat of a factor with value shoppers, NRF’s research found. Thirty-eight percent of value shoppers live in the South, 23% in the West, 21% in the Midwest and 18% in the Northeast. So, if raising your pricing is not working for you today it does not look like it will next year either.  Success does leave clues Price, Speed of Service, and Mix & Match meal component bunding are to you should consider.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant