Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on foodservice in retail
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on foodservice in retail, month 2020
- Opportunities and challenges
- Convenience drives purchase, but experience has potential to differentiate
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- Figure 2: Prepared food purchase motivations, September 2020
- Pandemic-related safety concerns weigh heavily
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- Figure 3: Barriers to prepared food purchases, September 2020
- Increased usage among young purchasers points to growth potential
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- Figure 4: Year-over-year change in prepared food purchases, by age, September 2020
- Beyond rotisserie chicken: younger purchasers look for variety
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- Figure 5: Prepared and made-to-order items purchased, by age, September 2020
- eCommerce could be key to winning with frequent users
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- Figure 6: Attitudes toward foodservice in retail, by usage frequency, September 2020
The Market – Key Takeaways
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- Foodservice in retail suffers as pandemic flips food spending trends
- Pandemic concerns continue to impact shopping behavior
Market Overview
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- Foodservice in retail suffers as pandemic flips food spending trends
- In-home food
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- Figure 7: Total US retail sales and forecast of in-home food, at current prices, 2015-25
- Dining out
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- Figure 8: Total US retail sales and forecast of dining out, at current prices, 2015-25
Market Factors
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- Overarching concern about virus exposure and lifestyle impact
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- Figure 9: Coronavirus exposure and lifestyle disruption concerns – any worried, March-November 2020
- Desire to limit time in-store alters food and drink shopping habits
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- Figure 10: Coronavirus lifestyle changes – online shopping, April-October 2020
- Comfort with in-store shopping, dining out slips as cases rise
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- Figure 11: Comfort level with restaurant/bar patronage – very or somewhat comfortable, July-November 2020
- Declining cooking enthusiasm an opportunity for retail foodservice
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- Figure 12: Enthusiasm for cooking, 2018-20
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- Figure 13: Reasons for cooking, 2018-20
Market Opportunities
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- Beyond convenience
- Focus on food
- Create and experience
- Integrate foodservice with home cooking
- eCommerce an increasingly essential piece of foodservice in retail
Competitive Strategies
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- Blurring of grocery retail and foodservice, often with a focus on local
- Making it easy to mix food service and home meal prep
- Moving to prepackaged grab-and-go items
- Positioning retail foodservice for a post-pandemic world
The Consumer – Key Takeaways
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- Most purchase prepared foods at least occasionally
- Convenience drives purchase, but experience has potential to differentiate
- Supermarkets remain top choice for foodservice
- Beyond rotisserie chicken: younger purchasers look for variety
- Getting the food and price right is key to driving foodservice sales growth
- eCommerce could be key to winning with frequent users
Prepared Food Purchase Frequency
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- Most purchase prepared foods at least occasionally
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- Figure 14: Prepared food purchase frequency, September 2020
- Young adults and men especially drawn to prepared foods in retail
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- Figure 15: Prepared food purchase frequency, by gender and age, September 2020
- Hispanic consumers more likely to be heavy users
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- Figure 16: Prepared food purchase frequency, by race and Hispanic origin, September 2020
- Increased usage among young purchasers points to growth potential
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- Figure 17: Year-over-year change in prepared food purchases, by age, September 2020
Prepared Food Purchase Motivations and Barriers
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- Convenience drives purchase, but experience has potential to differentiate
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- Figure 18: Prepared food purchase motivations, September 2020
- Younger shoppers more attuned to foodservice experience
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- Figure 19: Prepared food purchase motivations, by age, September 2020
- Pandemic-related safety concerns weigh heavily
- Home cooking more direct competition than restaurants
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- Figure 20: Barriers to prepared food purchases, September 2020
Prepared Food Purchase Locations
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- Supermarkets remain top choice for foodservice, could gain post-pandemic
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- Figure 21: Prepared food purchase locations, September 2020
- Younger shoppers purchase foodservice across wider array of channels
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- Figure 22: Prepared food purchase locations, by age, September 2020
Prepared and Made-to-order Items Purchased
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- Rotisserie chicken remains a prepared-food staple
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- Figure 23: Prepared and made-to-order items purchased, September 2020
- Beyond rotisserie chicken: younger purchasers look for variety
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- Figure 24: Prepared and made-to-order items purchased, by age, September 2020
- Lunch options key to frequent usage
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- Figure 25: Prepared and made-to-order items purchased, by prepared food usage frequency, September 2020
Prepared Food Competitive Attribute Associations – Correspondence Analysis
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- Prepared foods occupy space between packaged foods and restaurants
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- Figure 26: Correspondence analysis – principal map – retail and foodservice blurring, September 2020
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- Figure 27: Retail and foodservice blurring, September 2020
- Methodology
Interest in Retail Foodservice Concepts
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- Getting the food and price right is key to driving foodservice sales growth
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- Figure 28: Prepared food concept interest, by age, September 2020
Attitudes toward Foodservice in Retail
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- Beyond convenience: healthy and natural present opportunities
- Customizability also had appeal
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- Figure 29: Attitudes toward foodservice in retail, September 2020
- eCommerce could be key to winning with frequent users
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- Figure 30: Attitudes toward foodservice in retail, September 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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