In today’s dynamic food landscape, technology is reshaping
the pathways of fresh food distribution. Mobile marketing and virtual retailing
are challenging the traditional dominance of brick-and-mortar foodservice
retailers as consumer expectations evolve around convenience, accessibility,
and personalization according to Steven Johnson Grocerant Guru® Tacoma, WA based Foodservice Solutions®. This
shift is most evident in where and how restaurant meals are purchased and
consumed. Let’s explore these trends through the lens of historical foodservice
practices, backed by data, to understand the winners and missteps within this
evolving market.
Where Consumers Buy and Consume
Restaurant Meals
Historically, dining out revolved around seated meals at
traditional restaurants, with few options beyond carryout. In the late 20th
century, the fast-food industry pioneered takeout and drive-thru services,
accounting for nearly 70% of their total sales by the 1990s. Today, this trend
has diversified exponentially. According to a 2024 foodservice study:
·
50% of restaurant
meals are consumed at home thanks to the rapid
adoption of food delivery services and mobile order-ahead apps.
·
23% are eaten
in-store, indicating a shrinking but stable
segment of dine-in customers.
·
27% are consumed in
vehicles, reflecting the convenience of
drive-thru, curbside pickup, and the rise of the “grab-and-go” culture.
This spatial consumption fragmentation highlights the
growing demand for flexibility, accelerated by innovations in digital ordering
and meal logistics.
The Rise of Convenience Stores in Meal
Market Share
Convenience stores (c-stores) have emerged as formidable
competitors in the meal market, driven by their ability to innovate with fresh
food offerings and mix-and-match meal bundling. Historically relegated to
snacks, coffee, and impulse purchases, c-stores began to transform in the early
2000s, aiming to capture share from fast-food and casual dining sectors. Today,
their success is undeniable:
·
Breakfast: With made-to-order breakfast sandwiches, grab-and-go
burritos, and premium coffee, c-stores now account for nearly 20% of all
morning meal occasions.
·
Lunch: Modular lunch combinations like fresh sandwiches, soups,
and salads have helped them capture 12% of the midday meal market.
·
Dinner: Ready-2-Eat and Heat-N-Eat items have propelled them to
secure 8% of dinner occasions, appealing to time-starved consumers.
·
Snacks: C-stores hold a dominant 30% share in snack sales,
benefiting from smaller packaging and impulse-friendly positioning.
These numbers underscore how c-stores’ emphasis on
convenience, flexible bundling, and high-quality meal components resonates with
today’s consumers.
Grocery Service Deli Missteps in the
Grocerant Niche
While convenience stores thrive, the service deli
departments within traditional grocery stores have consistently struggled to
establish a meaningful presence in the grocerant niche, which caters to
Ready-2-Eat and Heat-N-Eat fresh meals. Missteps include:
1.
Failure to Meet
Real-Time Consumer Needs: Unlike c-stores’
agile product rotations, service delis often rely on preset menus and slower
innovation cycles, making their offerings feel static.
2.
Packaging Problems: Poor packaging for freshness, reheat-ability, and
portability undermines the consumer experience compared to the advanced formats
offered by competitors.
3.
Underwhelming Value
Propositions: Price points in service delis often
align more with full-service restaurant meals than fast-casual or c-stores,
lacking the perceived value needed for repeat purchases.
4.
Misaligned Marketing: Unlike c-stores that capitalize on digital tools for
hyper-local promotions and meal customization, service delis rarely engage
customers through robust mobile or loyalty platforms, further eroding market
share.
Technological Drivers Reshaping Fresh
Food Distribution
Technology sits at the heart of this evolution. Mobile
marketing has enabled restaurants and virtual retailers to build
personalized relationships with customers. For example:
·
Food Delivery Apps: Apps like DoorDash and Uber Eats now control 25% of
the off-premise restaurant meal market, transforming consumer expectations
for meal accessibility.
·
Virtual Brands: “Ghost kitchens” leverage existing kitchen space to
produce multi-concept offerings, creating entirely digital-first dining
options.
In parallel, c-stores lead in frictionless payment
technologies and targeted digital promotions. From pre-order kiosks to
exclusive app-based meal deals, their investment in mobile marketing keeps them
competitive against fast-food rivals.
A Vision of the Future
As technology accelerates, the lines between mobile
marketing, virtual retail, and brick-and-mortar foodservice will continue to
blur. Retailers and restaurants seeking success must prioritize these
strategies:
1.
Consumer-First
Approaches: The ability to deliver high-quality,
convenient, and value-oriented meals remains paramount.
2.
Data-Driven
Customization: Personalizing meal experiences via
mobile apps and leveraging analytics to anticipate consumer needs.
3.
Agility in
Distribution: Restaurants and retailers alike must
adapt to new points of meal consumption, ensuring they align with consumer
habits.
C-stores’ current dominance in mix-and-match meal bundling
and snacking illustrates how a laser focus on convenience and consumer
touchpoints can reap significant rewards, while the grocery service deli’s
struggles demonstrate the cost of misunderstanding consumer expectations in an
age of disruption. The grocerant niche’s ongoing evolution offers valuable
lessons for the future of fresh food distribution.
Invite Foodservice
Solutions® to complete a Grocerant ScoreCard, or for product positioning or
placement 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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