The customer is dynamic not static and it is the
customer who decides what to eat and when to eat it. Once again it still does not look as if work
from home is going to go away any time soon.
With many companies wanting all workers back at least a couple days a
week and workers not wanting to get stuck in traffic, lose “Their Time” they
are hesitant at best to return according to Steven Johnson Grocerant Guru® at Tacoma, WA
based Foodservice Solutions®.
With the increase in remote and hybrid workers phenomenon
continuing it is likely to permanently impact retail food in-store traffic. We
all know the work-from-home (WFH) trend was
initially a safety-related response to the COVID-19 pandemic, it evolved over
time based on convenience and the preference of both employees and employers.
The
breakfast daypart was hit the hardest at C-stores and fast-food restaurants. Thus,
the widespread move toward a permanently remote or hybrid workforce is
affecting many different aspects of consumer behavior especially shopping trips
during the breakfast daypart, according to new research conducted by VideoMining.
The
current average number of WFH days in the United States is 3.1 per week;
approximately 22 percent of U.S. workers identify as working remotely; 53
percent of employed adults say they can effectively do their jobs remotely; and
all age groups, including younger generations, prefer the flexibility of
remote/hybrid work, according to various research reports.
Additionally,
remote workers trend younger, with millennials accounting for 43 percent, and
they skew towards men, households with children and higher-income households.
This
shift toward remote/hybrid work as an integral part of the corporate working
world is likely to make a broad societal impact, according to VideoMining.
Notably,
long-term adoption of WFH means that the loss of foot traffic by daily commuters is
more permanent, although the level of impact is highly dependent on store
location. The c-store channel will need to look for alternate growth
opportunities as it reconciles with the fact that shopping trips will continue
to be affected by WFH, the company said.
The
breakfast daypart (6 a.m. to 9 a.m.) typically accounts for an average of 19
percent of in-store sales at convenience stores; unsurprisingly, stores that
lost the most daily commuters also saw breakfast sales suffer the most.
Overall, c-store breakfast has been recovering, but WFH is a factor in a
slower-than-expected recovery.
The
after-work daypart of 4 p.m. to 7 p.m. has also been negatively impacted,
hurting sales of products like beer and snacks.
The
team at VideoMining pointed out,
WFH has led to other aspects of c-store shopper demographics shifting in some
stores, such as some stores now having a much higher percentage of blue-collar
workers. This in turn has shifted the overall demographics for the stores.
Not
all retail channels are feeling the same impact. Outside of the c-store
channel, WFH helps grocery stores by increasing the number of employees eating
lunch at home; prompting a sharp spike in snacking; and influencing more men
and younger shoppers to take the lead in grocery trips.
The
WFH trend may shift further, with no one knowing for sure how widespread it
will be once the pandemic is truly in the past. However, WFH is sure to be part
of the new normal and must be factored into all business plans alongside other
macro trends like inflation or a potential recession, according to VideoMining.
Because
WFH impacts each retail channel and product category differently, it is
important to closely monitor the impact that shifting store trips and in-store
behaviors have on each category, it added.
State
College-based VideoMining helps
retailers and consumer packaged goods companies optimize retail performance and
experience by decoding in-store behavior.
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 us on our social media sites by clicking one of the
following links: Facebook, LinkedIn, or Twitter
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