Monday, June 30, 2014

Profit’s Drive Convergence of Grocery and Restaurants Concepts

Americans have deemed Ready-2-Eat and Heat-N-Eat fresh prepared food “better for you” according to Foodservice Solutions® Grocerant Guru™ Steven Johnson.  Leading grocers continue to separate from a pack legacy grocers with unique fresh prepared Ready-2-Eat and Heat-N-Eat food.
Why?  It quite simple according to the Grocerant Guru™ it is the next step in the evolution of food retailing you might say it is the “future” of fresh food retailing.  In new research by BCG/SMG/Barkley on Millennials found:

Simply put  this with the fact that more adults are eating “take out” at home,  or as Foodservice Solutions® previous reporting found Eating-In while Eating-Out and there is definitely an opportunity.  Millennials are driving change in the retail marketplace. 
Packaged Facts, a division of, points to prepared foods as an important part of “The Future of Food Retailing in the U.S.,” finding that “Sales of prepared and ready-to-eat foods were expected to grow 7.5 percent in 2012, according to the research group.
Two keys to prepared-food growth in supermarkets, according to Packaged Facts:
1.       Such selections draw traffic and ring up sales.
2.       Higher gross margins (just under 45 percent compared with center store’s 21 percent) prove their value.

Companies the ilk of Whole Foods, Hy-Vee, Wegmans, Central Market Fresh & Easy to name but a few are entering the Grocerant niche while garnering a cult like following. 
I fact Whole Foods is exploring layouts that are more food court than retail space for its flagship store. As highlighted by NewHope360 and CultureMap Austin, the renderings further cafe-ize the shopping experience with stations and bar seating (Pictured above).

As regular readers of this blog know we have often discussed that Hy-Vee will open Market Grille restaurants in 75 remodeled locations over the next three years.  Each of the sit-down-style restaurants will feature a full bar, extensive wine lists and a menu with everything from breakfast to steak dinners.

In addition, Hy-Vee is creating more casual experiences titled Market Cafes. These cafes will still have a bar and table service and aim to offer a unique experience. The convergence is the space where retailers are closing the gap as grocery retailers are beginning to approach their prepared foods section as a restaurant and restaurants are developing a foodservice strategy. Are you ready for some Outside Eyes?

Visit:  If you are interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email  or visit Johnson, or

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