Imitation
is the highest form of flattery and Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® told his team he
was quite humbled when he learned that a large group of retail foodservice
research groups and associations combined to use his studies as the foundation
of ‘The
Power of Foodservice 2018 – Part 2. The
focus, format, findings, and vernacular edified Johnson's work
dating back as far as 1996.
Regular
readers of this blog not only know that Johnson identified, quantified,
qualified the Grocerant niche; that he coined the word Grocerant back in the day, and
published articles in both Nation’s Restaurant
News and Foodservice
Director in 1996 in an article titled: Call them Grocerants.
This
new report will have surprises for regular readers of this blog. The report edifies Johnsons finding to the
point of unmistaken nuance. Let’s start by
how they are framing the new report: “By 4 p.m., 65 percent of shoppers don’t
know what they’re going to have for dinner, but they do know they want it to be
fresh, healthy and convenient—an intersection that places retail foodservice in
a prime growth position if it’s well executed.” Here are the top 10 findings
from the report. A link to the full study is available below.
1.
The number of home-prepared dinners is decreasing, and where retail foodservice
should benefit, it is not.
The
average number of home-prepared dinners dropped to 4.6 meals per week, showing
declines across demographics. However, with retail foodservice visits flat and
unit/eaches sales down, restaurants are the main beneficiary of these declines.
Whereas young Millennials are the least likely to cook, the presence of
children appears to be a turning point for Millennials to eat at home more
often. Older Millennials over index for retail foodservice and present a big
growth opportunity.
2. A
staggering 65 percent of Americans don’t know what’s for dinner at 4 p.m., and
retail foodservice is not top of mind.
Only
35 percent of Americans usually know what’s for dinner two hours before
mealtime, but only 15 percent frequently consider retail foodservice when
unsure. The less likely shoppers are to have set dinner plans, the lower their
per capita grocery spending. Standard featured days, a weekly meal plan, chef
specials and online planning/shopping tools may drive awareness and sales.
3.
Seven in 10 shoppers emphasize healthy, nutritious choices when ordering from
retail foodservice or restaurants.
Healthful
eating strategies differ by population group, but switching to better-for-you
alternatives is the most frequently employed tactic of health-focused shoppers
and foodservice regulars. While 68 percent of shoppers believe sufficient
information to make educated decisions is available in general, many would
appreciate additional tools in the deli/prepared foods department, led by
healthier ingredients (85 percent), clean label items (83 percent) and in-store
health and nutrition information/education (71 percent).
4.
More shoppers are taking action on calorie callouts at restaurants. They are
influencing retail foodservice selections equally.
While
awareness of calorie labeling in restaurants is relatively unchanged, more of
the shoppers who have taken notice are changing their selections—up 8
percentage points. Awareness of menu labeling at retail is lower than
restaurants, at 54 percent vs. 77 percent. However, among shoppers who notice,
an equal share adapts their selections. Most shoppers prefer to receive calorie
and other nutrition information by the item or spoon, at 67 percent. An
ounce-based system is the least popular.
5.
Shoppers want it all: the ultimate deli/prepared foods department has
grab-and-go and made-to-order.
Made-to-order
offerings guaranteeing freshness and customization is the only way to go,
according to 32 percent of shoppers, but 64 percent believe the ideal deli
department carries both grab-and-go and made-to order items. Retail foodservice
has a big opportunity to position either solution type as a meal ingredient in
addition to a meal replacement as 53 percent of shoppers combine
scratch-cooking with semi- and fully-prepared items.
6.
Shoppers’ top ways of learning about a grocery store’s retail foodservice
offering are in-store, but key targets shop less often.
In-store
signage and personal observation/experience are the prime ways in which
shoppers learn about a store’s foodservice offering. Both require in-store
presence and far exceed the reach of out-of-store vehicles such as websites,
apps or social media. This is the underlying reason for prime target consumers
who cook less, but also shop less, to bypass retail foodservice. These
consumers need other in- and out-of-store triggers to drive purchases, with
awareness and variety being two major drivers.
7.
Adding to its grocery adjacency advantage, retailers should emphasize the
quality, freshness and healthfulness of the food itself.
Shoppers
point to saving time over cooking, planning and cleaning, and having an
immediate meal on the table as the four chief advantages of retail foodservice
over home cooking. The ability to combine picking up tonight’s dinner with
grocery shopping is seen as the greatest advantage over restaurant/fast food,
followed by speedier ordering/pick up and offering better value for the money.
Foodservice regulars see many more advantages and, in particular, highlight the
superiority of the food itself.
8.
Technology usage in dinner planning and other food/grocery applications is
ramping up across demographics.
Shoppers
of all ages, income levels and regions are increasingly using mobile, online,
tablet and voice searches when deciding where and what to eat. More than half
use digital/mobile technology to find recipes, check sales promotions, research
dinner options, create grocery lists and order restaurant meals. Foodservice
regulars are above-average technology users.
9.
Retail foodservice price promotions are not greatly effective in generating
sales but can drive awareness and meal planning.
Only
21 percent of shoppers regularly check retail foodservice promotions and a
majority prefer favorable everyday low prices. IRI finds that only 14 percent
of total deli/prepared foods vs. 34 percent of the total perimeter dollars are
sold on merchandising. When promoted, retail foodservice sees a mere 4 percent
increase in dollars, with little incrementality.
10.
Shoppers have no strong preference for an in-store versus a central kitchen,
but brands can provide a premium edge.
In-store
production is not an automatic plus as the largest share of shoppers (44
percent) believe there is no difference in items prepared in a central kitchen
or made in-store. Remaining respondents are fairly equally divided between
in-store production being better (27 percent) versus a central kitchen being
better (22 percent). Opinions are split on brand preferences as well: 36
percent like having familiar brands for items such as meat, deli meat and salad
dressings in retail foodservice, but 43 percent are indifferent.
Success does
leave clues our clue for today is don’t settle for imitators. For international corporate presentations,
educational forums, or keynotes contact: Steve@FoodserviceSolutions.us the Grocerant Guru® at Tacoma, WA based
Foodservice Solutions®. His extensive
experience as a multi-unit restaurant operator, consultant, brand / product
positioning expert and public speaking will leave success clues for all. Visit:
www.FoodserviceSolutions.us for more
information
