The grocerant niche continues to drive the evolving
landscape of foodservice, the once-clear lines between grocery stores,
convenience stores, and restaurants have blurred. The new battleground for the
age-old question, "What's for dinner?" is no longer confined to the
grocery aisle but has expanded to the drive-thru lanes and delivery apps.
Leading the charge are brands like Chili's, Panera Bread, McDonald's, and Wawa,
which are collectively reshaping consumer behavior and posing an increasing
threat to the foundation of the legacy grocery business.
The Rise of Convenience-Driven Dining
The modern consumer's lifestyle is defined by speed,
convenience, and the desire for minimal cleanup after meals according to Steven
Johnson grocerant guru® at Tacoma, WA based Foodservice Solutions®. The
fast-paced nature of today’s world leaves little time for meal planning,
grocery shopping, and home cooking. Enter Chili's, Panera Bread, McDonald's,
and Wawa—brands that have become the go-to solutions for dinner. These
companies have capitalized on the growing demand for ready-to-eat meals that
can be picked up or delivered with minimal effort.
·
Chili's has leveraged its "Chili's
To Go" platform, enabling customers to order online and pick up their
meals without ever leaving their cars. Their streamlined curbside pickup
service has become a key component of their business model, contributing to an
18% increase in off-premise sales in 2023.
·
Panera Bread has embraced delivery and rapid pickup options, appealing
to health-conscious diners with their diverse menu of fresh salads, soups, and
sandwiches. With over 50% of their sales now coming from off-premise channels, Panera is no longer just a café but a serious
contender in the dinner market.
·
McDonald's has perfected the art of the drive-thru, with innovations
like digital menu boards and app-based ordering that have slashed service
times. Their drive-thru sales account for
nearly 70% of their total revenue, making them a dominant force in the
quick-service industry.
·
Wawa, traditionally known as a convenience store, has
transformed into a foodservice powerhouse with its made-to-order hoagies,
freshly brewed coffee, and warm meals. Wawa’s
ability to deliver customized, fresh food quickly has made it a favorite among
consumers looking for a fast and satisfying dinner solution.
The Shift Away from Legacy Grocery
Stores
What do all these brands have in common? They offer
consumers an alternative to the traditional grocery shopping and cooking
experience. The convenience of ready-to-eat meals, combined with the ease of
delivery and drive-thru options, has made them a preferred choice for
time-starved families and individuals.
According to the Food
Marketing Institute (FMI), the share of food dollars spent on restaurants
has increased from 46.1% in 2010 to 54.4% in 2022. This shift reflects a
broader trend of consumers opting for meal solutions that require less time,
effort, and cleanup. Legacy grocery stores, once the dominant player in the
dinner market, are now facing stiff competition from these fast-casual and
quick-service brands.
Delivery: The Game-Changer
The explosion of third-party delivery services like
DoorDash, Uber Eats, and Grubhub has further accelerated this trend. Consumers
can now have a hot meal from their favorite restaurant delivered to their door
in under 30 minutes—often faster than it takes to drive to the grocery store,
shop for ingredients, and cook at home.
Chili's, Panera Bread, McDonald's, and Wawa have all
invested heavily in delivery infrastructure. For instance, Chili's partnership
with DoorDash has allowed them to expand their reach beyond their physical
locations, contributing to a 20% increase in delivery sales in 2023. Panera
Bread’s loyalty program, integrated with their app-based delivery service, has
grown to over 50 million members, driving repeat business and customer
retention.
No Cleanup Required
One of the most compelling advantages these brands offer
over grocery stores is the promise of no cleanup. After a long day, the last
thing most consumers want to do is cook a meal from scratch and clean up the
kitchen afterward. With the convenience of picking up a meal from McDonald's or
having Panera delivered, consumers can enjoy a delicious dinner without
dirtying a single dish. This no-fuss approach is particularly appealing to
younger consumers, including Millennials and Gen Z, who prioritize experiences
and convenience over traditional cooking.
The Threat to Legacy Grocers
The impact of these trends on legacy grocery stores cannot
be overstated. As more consumers turn to restaurant-prepared meals for dinner,
grocery stores are losing their grip on the evening meal occasion. While some
grocery chains have tried to adapt by offering more prepared foods and meal
kits, they struggle to compete with the convenience and speed offered by
drive-thru and delivery options.
In 2023, grocery store sales growth slowed to just 1.2%,
while sales in the foodservice sector grew by 7.6%, according to the U.S. Census Bureau. This divergence
underscores the growing threat that brands like Chili's, Panera Bread,
McDonald's, and Wawa pose to the traditional grocery business.
Think About This: The Future of Dinner
The future of dinner is increasingly being shaped by the
convenience and speed offered by restaurants with robust drive-thru and
delivery options. As Chili's, Panera Bread, McDonald's, and Wawa continue to
expand their off-premise capabilities, legacy grocery stores must innovate or
risk becoming obsolete in the dinner market.
Consumers have spoken, and their preference is clear: they
want meals that are fast, convenient, and require no cleanup. The question for
the grocery industry is whether it can evolve quickly enough to meet this
demand, or if it will continue to cede ground to the likes of Chili's, Panera
Bread, McDonald's, and Wawa.
The dinner table is set, and the competition is fierce.
Will legacy grocers find a way to reclaim their place, or is this the new
normal where fast food and quick-service restaurants reign supreme? Only time
will tell, but one thing is certain: the battle for "What's for
dinner?" is just beginning.
Invite Foodservice
Solutions® to complete a Grocerant ScoreCard, or for daypart and product
positioning growth assistance, or call our Grocerant Guru®. Since 1991 Foodservice Solutions® of Tacoma, WA has been the
global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869
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