Friday, August 8, 2014

Fresh Food Disruption Changing the Price, Value, Service Equilibrium

Once again the retail food marketplace is resetting driven simultaneously by advances in technology and demographics. Regular readers of this blog know that 50% of U.S adults over the age of 18 are single according to the U.S. Census Bureau.  In addition they know that ‘foodprint malaise’ has plagued legacy grocery stores, chain restaurants. 

At the intersection of saving consumers time and money are a flood of new avenues of fresh food distribution specifically technology start-ups They threaten the lifeblood of many existing legacy grocery store chains and restaurant chains. It’s at that intersection operational efficiencies have merged with demographic changes to satisfy the undercurrents of a new and developing consumer need-set.

Consumption behaviors are driven not only by the 50% of adults over 18 and single but by the fact that 27% of U.S household now consist of just one person according to  the U.S. Census Bureau, that is an all-time high.  That is up from only 10% in 1970.

The NPD Group reports that now “over 50 percent of eating and beverage occasions happen when consumers are alone” NPD found that by day-part 60% of the time breakfast was eaten alone and 55% of the time lunch was consumed alone. These consumers don’t want to sit at a four-top, a two-top nor do they wait for a waiter.  They want Ready-2-Eat and Heat-N-Eat fresh prepared food fast. That is just one attribute driving the growth and success within the C-store sector.

Every retail food sectors have noticed a discontinuity in consumer food shopping behavior and all are fighting for share of stomach.  Contributing to this displacement today is technology and demographics. Where once the family dinner was the bastion of American; today fully 32% of dinner occasions are eaten alone.

The price, value, service equilibrium is resetting in Grocery stores, Restaurants and Convenience stores.  Consumer migration will continue as consumers are attracted by the fresh prepared meal components with new portion size, and price points.  Which provide a strong margin for increased profitability for the any retailer willing to adapt? Meal components are the number one driver of fresh food customer migration.

Are you trapped doing what you have always done and doing the same way.  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? Email us at: or visit: for more information. 

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