The
food sector is witnessing a significant shift as Millennials continue their
exploration for fresh food options in the grocerant niche. This journey of
discovery, trial, and migration is challenging the traditional paradigms of legacy
chain restaurants. Steven Johnson, the Grocerant Guru® at Tacoma, WA based
Foodservice Solutions®, has been at the forefront of this evolution.
A
recent GasBuddy survey revealed that "43 percent of millennials purchase
more food from c-stores today than three years ago". In our fast-paced
world, where a full-time job can consume almost all waking hours, Millennials
are seeking fresh food that is both quick and affordable. They are finding
these needs met at C-stores.
The
survey further found that:
Approximately
56 percent of Americans purchase meals at gas station c-stores at least once a
month, with younger consumers doing so more frequently.
A
quarter of those aged 30-44 purchase food five or more times per month.
20
percent of those aged 18-29 purchase food at c-stores three to four times per
month.
Three-quarters
(75 percent) of respondents believe c-store foodservice has improved in the
past five years.
Frank
Beard, a convenience store trends analyst at GasBuddy, stated that
"Convenience retailers with compelling foodservice programs are a growing
threat to quick-service restaurants". People are choosing convenience
stores over fast-food locations due to the convenience of an all-in-one stop
for fuel and food, and a preference for the taste of the food at c-stores. This
trend is further amplified by leading convenience brands like Wawa and QuikTrip
rapidly expanding across the country.
Legacy
restaurants have reasons to worry. Along with frequent visits to c-stores to
purchase meals comes increased dollar spend. The study found that one in four
Americans spend $6 to $10 per week on c-store foodservice, with nearly 20
percent of those aged 18-29 spending $10 to $15 per week.
The
most-preferred meals at both c-stores and quick-service restaurants include
sandwiches or wraps; fresh salad; pizza; burgers and fries; and fried chicken.
Beard continued, "Convenience brands are well-positioned to cater to
consumers' tastes because they aren't pigeon-holed into one type of
cuisine". The study found that younger Americans prefer more variety,
particularly with newer menu items like burritos and pizzas.
Speed
is a concern, as nearly one third of consumers are only willing to wait five
minutes for their meal. When asked what they dislike about fast food
establishments, consumers named unhealthy options as their top concern,
followed by food quality, restaurant cleanliness, and limited food and drink
options.
In
the light of recent trends, Foodservice Solutions® offers its 5P’s of Food
Marketing to enhance your retail food brand while creating a platform for
consumer convenient meal participation, differentiation, and individualization.
For more information, you can reach out to them via email.
Fast
forward to 2024, the landscape of the food industry continues to evolve.
Millennials and Gen Z are leading a movement towards healthy eating amidst the
current cost-of-living crisis by scaling back on non-essentials, including
streaming services. They prioritize spending on healthier food over streaming
services during the cost-of-living crisis. This shift in priorities is
reflected in the growing popularity of c-store foodservice, which has seen
significant innovation and expansion in recent years. As the landscape
continues to change, c-stores are increasingly seen as sites where customers
can find value for their meal dollars.
Think
about this, the shift of Millennials from restaurants to c-store foodservice is
a testament to the changing dynamics of the food sector. As the Grocerant Guru®
Steven Johnson suggests, the key to survival in the next generation of retail
is embracing both technological advancements and the demand for fresh,
accessible food.
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
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A Larger
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