Saturday, June 1, 2024

Insights into the Adapting Consumer Behaviors in the Food Industry

 


Steven Johnson, known as the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, is a thought leader in the food industry. He works at the intersection of competitive intelligence and successful business development. Johnson is the founder of Foodservice Solutions® and was the first to identify, quantify, and qualify the unique food sales opportunity platform now called the Grocerant niche. He also coined the term "Grocerant" and was first to be published in both Nation’s Restaurant News and Restaurant Business Magazines.

The Grocerant Guru's perspective is centered around the concept of "Grocerants", a term that combines "grocery" and "restaurants". This concept represents a niche filled with Ready-2-Eat and Heat-N-Eat fresh and fresh prepared food options, including full meals and meal components. This reflects a shift in the food industry towards more convenient, ready-to-eat options that blur the line between traditional grocery stores, restaurants, and new non-traditional fresh food retailers.


Based on these insights, the Grocerant Guru® believes in the importance of adapting to changing consumer behaviors and trends in the food industry. This includes recognizing the growing demand for convenience, quality, and variety in food options. The Grocerant Guru's perspective emphasizes the need for businesses in the food industry to innovate and evolve in order to stay competitive.

The "Grocerant" niche, has seen significant evolution since its inception in the 1990s. Here's a brief overview of its journey: 

Early 1990s: The concept of Grocerants started to make its presence known in the food industry market. Major retail chains such as Monoprix in France, IGA in the US, or Farm Boy in Canada began to increase ready-to-cook and ready-to-eat products. Some even included a dining area in their stores with table services. 

Late 2010s: The term "Grocerant" started to go mainstream. A grocerant can today essentially be any retail store that sells prepared meals, to either eat on site or take home. According to NPD Group, grocerants generated 2.4 billion new visits and over US$10 billion in sales in 2016. This was a massive shift, reflecting efforts to offer more convenience, similar to the drive-through phenomenon several decades ago, and well before the pandemic. 


Early 2020s: The data reveals that prepared foods have exploded in growth. According to one Market-force survey, more than 70% of consumers say that they've bought prepared food over a 90-day span. Grocery stores started to serve as the grab-and-go option for households, and many took advantage of their kitchens to compete with restaurants on delivery apps as well as other new entrants selling fresh prepared full meals, meal components’, and bundled beverages. 

Present Day: The term “grocerant” is not just a trendy phrase, but also now a legitimate reality in big cities, rural areas and everywhere in between. Today, grocery stores are not only serving as the grab-and-go option for households, but many are also taking advantage of their kitchens to compete with restaurants on delivery apps such as DoorDash and Caviar. 


Think about this, the Grocerant niche has evolved from a novel concept in the 1990s to a mainstream reality today, driven by changing consumer behaviors and the increasing demand for convenience and variety in food options. This evolution reflects the food industry's adaptability and innovation in response to these trends. It's an exciting space to watch as it continues to evolve and shape the future of the food industry. Is your retail food brand evolving?

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation, and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter




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