Grocerant Boom Shakes Up Restaurant Landscape: Consumers Seek Convenience and Value

 

The way we eat is changing. While traditional restaurants still hold a place in our hearts (and stomachs), a new trend is emerging: the grocerant aka retailers that sell fresh prepared meals and meal components for takeout and delivery.

Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® continues to see wider consumers migration between retail food sectors as time-starved, price sensitive consumers seek cooking from scratch home meal replacement options.   

Grocerants most often are restaurants, convenience stores, and grocery stores that offer prepared restaurant-quality meals alongside traditional menus, meals, or CPG foods. This migration towards grocerants is having a significant impact on the restaurant industry, with some chains struggling to adapt.

Here's a closer look at how consumer preferences are driving this change:

·         Convenience is King: Consumers today are busier than ever, and they crave convenient meal solutions. Grocerants niche retailers offer pre-made meals that can be heated up at home, saving time and effort compared to traditional restaurant dining.

·         Value Matters: Grocerants niche retailers often provide a more affordable option compared to eating out. Shoppers can pick up a prepared meal for the same price, or even less, than the cost of a restaurant entrée which traditional commands a tip.

·         Variety is the Spice of Life: Grocerant niche retailers come from every sector of food retail, offer a wide selection of prepared meals, catering to different dietary needs and preferences. This allows consumers to find exactly what they're looking for without having to settle for a limited menu.

Traditional Chains Feeling the Heat

Battle for Share of Stomach

While grocerants niche retailers rise in popularity, some established restaurant chains are facing challenges. Here are a few examples:

·         Krystal: This classic burger joint has been around for decades, but it's struggling to keep up with the times. Their menu might not cater to the current health-conscious consumer, and their bankruptcy filing in 2020 highlights financial difficulties.

·         Pie Five Pizza: This create-your-own pizza concept seemed innovative at first, but it appears it hasn't captured the market share it was hoping for. Grocerant niche retailers often have similar build-your-own meal options, but within the grocery store setting and sell for much less.

·         Fuddruckers: Known for their high-quality ingredients, Fuddruckers has seen a significant decline in locations. While new ownership might bring a turnaround, the grocerant niche retail convenience factor poses a threat.

·         Steak n’ Shake: While their iconic menu items remain popular, Steak n’ Shake has seen a drop in restaurant numbers. Grocerant niche retailers might be luring away customers seeking a similar burger experience at a more convenient location.

While it's important to remember that the restaurant industry is constantly evolving. These are just a few examples of how grocerant niche retailers are impacting the landscape. As consumer preferences continue to shift, we can expect to see further changes in the way we dine.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter