Wednesday, June 26, 2024

Grocery Stores Battling for a Larger Share of Stomach within the Grocerant Niche

 


The grocerant niche, is a fusion of grocery store, restaurant, and convenience fresh prepared food meal and meal components has been evolving rapidly, driven by consumer demand for convenience, quality, and variety, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Today consumers' lifestyles continue to evolve and change, particularly post-pandemic, grocery stores are stepping up their game in the grab-and-go segment to capture a larger share of the "stomach market." Among the leaders in this movement are Cingari Family Markets and Saker ShopRites, both of which have implemented innovative strategies to meet the growing demand for ready-to-eat meals and meal components that can be bundled into the perfect family meal.


Cingari Family Markets: Elevating Grab-and-Go

Cingari Family Markets, operating under the ShopRite banner in Connecticut, has made significant strides in the grab-and-go sector. Spearheaded by Executive Chef David Cingari, a Culinary Institute of America graduate with extensive experience in New York's culinary scene, the company has developed a sophisticated grab-and-go program. This initiative not only complements the bakery and deli offerings but also includes a wide range of meals, entrées, and side dishes prepared in a central commissary.

The central commissary approach ensures consistency and quality, two crucial factors in the success of grab-and-go programs. "If customers like it, it had better be the same the next time. Then freshness is critical, and it’s got to be restaurant quality," says Cingari. This commitment to quality is evident in their upscale sandwich offerings, such as those featuring prosciutto instead of standard ham, and their diverse menu options catering to various dietary preferences, from vegan to gluten-free.

Cingari's grab-and-go program also addresses the trend of multiple purchasing, which has gained momentum since the COVID-19 pandemic. With families having less time to cook at home, there is an increased demand for multiple ready-to-eat items that cater to different family members' preferences. This approach not only satisfies diverse dietary needs but also offers convenience for today's time-strapped consumers.


Saker ShopRites: Convenience Meets Quality

Richard Saker, president and CEO of Saker ShopRites, highlights how the pandemic accelerated changes in consumer behavior, particularly regarding grab-and-go food. During the pandemic, consumers sought to minimize their time in stores, leading to a rise in the acceptance of pre-cut cold cuts and other ready-to-eat items. This shift was further fueled by the rising cost of dining out and the convenience of grab-and-go options as people returned to their workplaces.

Saker ShopRites has leveraged this shift by offering high-quality, convenient meal solutions. For instance, their clamshell-packaged eggplant parmesan entrées are designed to be easy to prepare and serve, catering to the need for quick, nutritious meals. These offerings are produced in the company's four commissaries, ensuring consistent quality and freshness.

Saker emphasizes the importance of involving culinary professionals in developing grab-and-go programs. Quality assurance is paramount, and Saker even welcomes inspectors to ensure that the standards are maintained. This focus on quality extends to the merchandising of grab-and-go items, which are strategically placed throughout the store to maximize visibility and convenience for shoppers.



Brooklyn Harvest Market: Flexibility and Innovation

Brooklyn Harvest Market, with stores in Brooklyn and Queens, has adapted to changing demographics and consumer preferences by incorporating flexibility into their grab-and-go offerings. Head of operations and merchandising Dan Wodzenski notes that the pandemic spurred a greater willingness among consumers to pick up fresh sliced and store-packaged cold cuts, leading the store to replace traditional service deli counters with grab-and-go sections.

The market has also tailored its offerings to the local community's evolving needs. With a growing Latin customer base, Brooklyn Harvest Market has introduced more Hispanic pastries, baked goods, and savory items like Spanish rice and enchiladas. This responsiveness to consumer trends and preferences is crucial for staying relevant in the competitive grocerant niche.

Industry Insights and Future Directions

The broader industry trends also support the growth of the grab-and-go segment. Bill Heiler, senior manager of customer marketing at Rich Products, notes that shopper demand for innovative grab-and-go items has surged, with a 50% increase in sales of convenient bakery products like parfait cups and cake slices over the past five years. Retailers are becoming more creative with merchandising, placing single-serve items in strategic locations to drive impulse purchases and increase sales.


For grocery stores looking to capitalize on the grab-and-go trend, the Grocerant Guru® offers three key recommendations:

1.       Focus on Quality and Consistency: Ensure that all grab-and-go items meet high standards of quality and consistency. This can be achieved through central commissary production and rigorous quality control processes.

2.       Cater to Diverse Dietary Preferences: Offer a wide range of options to cater to various dietary needs, including vegan, gluten-free, and high-protein diets. This inclusivity will attract a broader customer base.

3.       Enhance Convenience and Visibility: Strategically place grab-and-go items in multiple store locations, including near perishables and high-traffic areas, to increase visibility and accessibility for shoppers.

By implementing these strategies, grocery stores can not only meet the evolving demands of today's consumers but also secure a larger share of the stomach in the competitive grocerant niche.

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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