Foodservice Solutions® recent Grocerant
ScoreCards reveal a profound shift in consumer behavior at the crossroads
of technology, retail food sales, and consumer preferences. This intersection
continues to drive the growth of the grocerant niche, reshaping food
distribution channels and dining habits,
according to Steven Johnson, Grocerant
Guru® at Tacoma, WA-based Foodservice
Solutions®.
The latest ScoreCard findings highlight a key trend: 83.2%
of meals served at home now include at least one Ready-2-Eat or Heat-N-Eat
fresh food component. Johnson calls this an extension of "The 65-Inch
HDTV Syndrome," a concept he identified in 2012.
What Is the 65-Inch HDTV Syndrome?
In simple terms, it’s the impact of larger, high-definition
TVs and immersive entertainment options on consumer behavior. The proliferation
of binge-watching and on-demand streaming services has drastically changed how
and where people consume meals. According to Nielsen, the average U.S.
household has 2.3 TVs, with 75% of homes owning at least one TV 55
inches or larger. Moreover, binge-watching has become a dominant behavior,
with 60% of adults regularly engaging in marathon viewing sessions.
This shift means more people are prioritizing convenience
over the time and effort required to cook from scratch or dine out. Instead of
leaving the comfort of their homes, consumers are increasingly turning to
grocerants and convenience stores for high-quality, ready-made meal solutions.
The Grocerant Niche and Its Impact
The grocerant niche has emerged as a powerful disruptor by
blurring the lines between restaurants, grocery stores, convenience stores, and
even drugstores. These outlets cater to time-starved consumers with fresh,
portable, and convenient meal options that are perceived as “better for you.”
Key consumer drivers include:
1.
Convenient Meal
Participation: Enabling easy customization for
individuals or families.
2.
Differentiation: Offering variety and novelty that appeal to diverse
tastes.
3.
Individualization/Customization: Allowing families to select meal components tailored to
specific preferences.
The result? Grocerants are reshaping the competitive
landscape of retail food sales, particularly at the intersection of the FIVE
P’s of Food Marketing: Product, Packaging, Placement, Portability, and
Price.
Disruption of Frozen Foods
The 65-Inch HDTV Syndrome has also affected frozen foods.
According to a study by Packaged Facts, the $44 billion U.S. retail market for
frozen foods has seen stagnant sales, with growth largely driven by inflation
rather than consumer demand. 57% of consumers cite a preference for fresh
foods as the top reason they avoid frozen options, while others prefer
home-cooked meals or healthier alternatives.
Ready-2-Eat and Heat-N-Eat fresh foods, available in
non-traditional outlets, present a growing threat to both frozen food sales and
traditional restaurants.
Implications for Restaurants
Restaurateurs must take heed: the grocerant niche is
fundamentally altering the price, value, and service equilibrium in
foodservice. To stay competitive, restaurants must address the evolving demands
of convenience-driven consumers.
Actionable Insights for Restaurateurs:
1.
Enhance Packaging: Invest in packaging that maintains freshness and supports
portability for home dining.
2.
Leverage Technology: Offer seamless online ordering and delivery options to
capture binge-watchers who prefer to stay home.
3.
Expand Menu
Customization: Introduce mix-and-match meal
components to mimic the flexibility consumers find in grocerants.
Addressing the 65-Inch HDTV Syndrome
The 65-Inch HDTV Syndrome is not just a trend—it’s a
fundamental shift in how Americans interact with food. By understanding and
adapting to this change, grocerants, convenience stores, and innovative
restaurants can thrive in a rapidly evolving marketplace.
Want to learn more about how to navigate these disruptive
forces? The Grocerant Guru® is here to guide your journey to incremental
success.
For
international corporate presentations, regional chain presentations,
educational forums, or keynotes contact: Steven
Johnson 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. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869
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