Restaurant Sales Slide Blamed on Great Grocerant Sector Fresh Food

Ready-2-Eat and Heat-N-Eat fresh prepared food continues to garner customers from legacy chain restaurants driven in large part by convenience, lower price point, and ramped-up offerings, consumers are increasingly turning to non-traditional outlets for meal solutions according to Foodservice Solutions® Grocerant Guru® Steven Johnson.  

Restaurants have for the most part turned a blind eye to the plethora of offerings that range from upscale menus items, mid-range family meals to individual portioned meals that can be customized. Increasingly c-stores and grocery stores are developing in-store dining experiences that are turning them into a destination for breakfast, lunch, and dinner. Clearly they are finding success and are taking a bite out of restaurant profits along the way.

THE RISE OF READY-TO-EAT

In a recent study by the NPD Group titled  “Growth and Composition of the Retail Prepared Food Market,” Found “restaurant growth is being eclipsed by retail prepared foods to go, which have grown 5 percent from 2008 to 2013 as restaurant sales declined for two years and are now flat. Retail prepared foods eaten at home (versus eaten at work or other locations away from home) climbed 12 percent from 2008 to 2013, and NPD forecasts another 10 percent increase by 2022—double the growth that restaurants will see.”

Nation’s restaurant news continues to report that most chain restaurant sales are flat with many trending down. We are talking companies the ilk of Bravo Brio, Denny’s, Applebee’s, Potbelly, Buffalo Wild Wings, BJ’s, and Chipotle.  Regular readers of this blog know this has been a reoccurring theme for several years.

Price Matters

This year the retail price of food at grocery stores has gone down close to 6.4% all the while prices continue to rise and are up about 3.3% year over year within the restaurant sector.  The consumer is evolving and adopting grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food that is deemed restaurant quality according to Foodservice Solutions® Grocerant Guru®.

According to the United States Census Bureau, 50 percent of Americans over the age of 18 are single. This group is buying prepared foods, rather than dining out or cooking large meals for themselves, says Johnson.

Johnson wonders out loud at time why are legacy restaurants not capitalizing on this movement by updating prepared food menus with trendy ingredients and flavors, and offering more options for special-interest diets like vegan, gluten-free, and paleo for Take-Out, Take-Away, and To-Go? It’s time that restaurant chains began leveraging their brand power, menu’s and marketing to drive top line sales and bottom line profits in the fastest growing sector of foodservice.

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard.  For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869