Competition for Food Consumers Driving Change

 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® and his team, have been closely observing the battle for the consumer's stomach among restaurants, grocery stores, and convenience stores. The recent Numerator's Consumer Confidence report provides some interesting insights into this ongoing competition. 

The report reveals a slight dip in consumer confidence in April, with the score dropping to 56.9 [3]. This reflects a growing concern among consumers about job availability and financial stability. Despite these concerns, the food sector continues to be a battleground for consumer dollars. 

Interestingly, consumers are increasingly turning to cost-saving measures. A significant 43.7% are using coupons and discount codes, while 42.9% are opting to cook meals at home. This trend is a clear indication of the growing importance of grocery stores in the food sector. 

In fact, recent trends suggest that grocery stores are gaining an edge over restaurants in the food spending market share [4]. This shift has been driven by the pandemic, which has seen consumers increasingly turn to grocery stores for their food needs. 

Convenience stores are also making their mark. They're becoming popular alternatives to traditional fast-food restaurants, with consumers seeking quick, on-the-go meals. In 2023, convenience stores were primarily visited for food on the go, with 77% of consumers eating the meal they purchased in their car. 

However, the competition is far from over. Restaurants continue to gain market share, with their share nearly 56% in December. Despite higher prices compared to grocery stores, consumers have not significantly shifted their food dollars back to grocery stores and supermarkets. 

Think about this, while consumers are feeling less confident about the economy, the battle for the share of stomach continues. Currently, it appears that grocery stores and convenience stores are gaining ground, but restaurants are not far behind. As the Grocerant Guru®, I'll be keeping a close eye on these trends and how they evolve in the future. Stay tuned for more insights! 

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869