The consumer is dynamic not static. According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® when the consumer moves food retailers must move with them or risk losing market share.
The ‘playing field’ is different that it was in 1960, 1980, 2,000. According to Bureau of Labor Statistics US Households had 2.52 people in 2019, 128.58 us households in 2019 with 34.51 million 2 person and 36.48 with one person. Now stop here and think. The fast is 70.99% of all US household is comprised of one or two people. Are you selling mix & match meal components for one or two people?
Is it any wonder that within the restaurant sector that QSR’s and Fast Casual transaction represented 83.4% of all restaurant industry transaction in 2019? Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepare food continue to drive growth. Is your brand evolving with consumers?
Recently, Pentallect estimated that the nontraditional food channels currently account for $210 billion in consumer expenditures, and projects 7% annual growth for these channels over the next five years, versus 3.5% for foodservice and 1% for traditional retail, which encompasses supermarkets, supercenters, mass/drug, and dollar stores. The nontraditional channels are projected account for 30% of food industry growth over the next five years.
Battle for Share of Stomach
Bob Goldin, a Pentallect partner and co-author of the study, noted that “nontraditional channels represent a ‘sweet spot’ in the food and beverage industry. Their growth is based upon strong consumer appeal and generally favorable business models. Without question, they demand increased attention from suppliers.”
Pentallect President Rob Veidenheimer observed that “each of the channels has unique consumer appeal and continues to evolve at a very rapid rate. We have studied these channels closely over the past several years and see them as significant share gainers for the foreseeable future.”
Legacy grocery stores continue to have close stores with new smaller footprint food retailers stepping up to replace them. The restaurant sector customer migration to the fast food and fresh food fast concepts has been disruptive. What’s next? Well our Grocerant Guru® has been tracking this sector longer than anyone else, has the pulse of the consumer. This is a global trend is your brand evolving the touchpoints and attributes driving consumer today?
For international corporate presentations, regional chain presentations, local educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869