Foodservice in Retail – US – December 2019
£ 3,695 (Excl.Tax)
Report Summary
“The retail prepared foods business is growing quickly year over year, with more people purchasing them and making more frequent purchases. This is largely thanks to prepared foods’ ability to deliver affordable convenience and a satisfying variety of options to time-strapped consumers. Grocers are investing in convenience with more tech-enabled ordering, pickup and delivery options for prepared foods. They should continue to invest more in limited service food and beverage restaurants, which are ideal for off-premise business, instead of higher-risk sit down restaurants and bars.”
–Jill Failla, Foodservice Analyst
This report looks at the following areas:
- Consumers don’t like eating at retailers
- Rotisserie chicken is falling from favor
- Packaged foods pose a threat
Table of Contents
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Overview
- What you need to know
- Definition
- What you need to know
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Executive Summary
- What consumers want and why
- The issues
- Consumers don’t like eating at retailers
- Figure 1: Prepared food attitudes – NET agreement, October 2019
- Rotisserie chicken is falling from favor
- Figure 1: Prepared food and beverage item purchases, October 2019
- Packaged foods pose a threat
- Figure 3: Prepared food attitudes – NET any agree, by prepared food user groups, October 2019
- The opportunities
- Prepared foods purchases are growing
- Figure 3: Prepared food purchase frequency – NET prepared food user groups and any purchase, October 2018-2019
- Off-premise business represents a huge opportunity
- Figure 1: Prepared food attitudes – NET agreement, October 2019
- Young consumers want to see more beverage concepts at retailers
- Figure 2: Prepared food concept interest, by generation, October 2019
- What consumers want and why
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The Market – What You Need to Know
- Convenience stores bring their A game
- Move over meal kits, new retail threats emerge
- Quickly growing demographics indicate positive prepared foods future
- Convenience stores bring their A game
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Market Perspective
- C-stores jump on health and wellness trends
- Next-level convenience in retail
- C-stores jump on health and wellness trends
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Market Factors
- Away-from-home sales outpace at-home sales
- Figure 1: Share food expenditures for in-home food vs dining out, 2013-18
- Asian and Hispanic populations are quickly growing
- Figure 9: Population by race and Hispanic origin, 2014-24
- Urbanization persists
- Away-from-home sales outpace at-home sales
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Key Trends – What You Need to Know
- LSRs thrive, FSRs strive
- Love for the local
- Grocerants adopt restaurant tech
- LSRs thrive, FSRs strive
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What’s Working?
- Prepared foods cater to convenience
- Local goes a long way
- Beverage concepts proliferate
- What’s next?
- What’s next?
- Special diet
- Prepared foods cater to convenience
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What’s Struggling?
- Grocery store full-service restaurants and bars
- Freshness perceptions at traditional grocers
- Grocery store full-service restaurants and bars
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What’s Next?
- Next-level restaurant and retail blurring
- Hyperlocal ingredients
- Next-level restaurant and retail blurring
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The Consumer – What You Need to Know
- Prepared foods business is booming
- Convenience is top motivator for prepared foods purchases
- Packaged foods represent growing threat
- Prepared foods business is booming
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Prepared Food Purchase Frequency
- Prepared food purchases and purchase frequency are up from 2018
- Figure 17: Prepared food purchase frequency – NET prepared food user groups and any purchase, October 2018-2019
- City dwellers propel prepared food sales
- Figure 9: Prepared food user groups, by location, October 2019
- Men drive prepared food business
- Figure 6: Prepared food user groups, by gender, October 2019
- Millennials in particular drive prepared food growth
- Figure 7: Prepared food user groups, by generation, October 2019
- Asian and Hispanic consumers are heaviest users of prepared foods
- Figure 8: Prepared food user groups, by race and Hispanic origin, October 2019
- Prepared food purchases and purchase frequency are up from 2018
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Prepared Food Purchase Location
- Supermarkets are losing share of prepared food purchases year over year
- Figure 10: Prepared food purchase location, October 2018-2019
- Younger consumers are sourcing prepared foods from a wider variety of locations
- Figure 11: Prepared food purchase location, by generation, October 2019
- Supermarkets are losing share of prepared food purchases year over year
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Year-Over-Year Change in Prepared Food Purchases
- Consumers confirm that they’re buying prepared foods more frequently year over year
- Figure 5: Year-over-year change in prepared food purchases, October 2018-2019
- Younger Millennials are most likely to report buying prepared foods more often year over year
- Figure 13: Year-over-year change in prepared food purchases, by generation, October 2019
- Convenience drives prepared food purchases
- Figure 6: Prepared food purchase motivators, October 2019
- The more money consumers earn, the more likely they are to enjoy dining at grocery stores
- Figure 15: Prepared food purchase motivators, by income, October 2019
- Cost and health are top barriers to prepared food purchases
- Figure 7: Prepared food purchase barriers, October 2019
- Consumers confirm that they’re buying prepared foods more frequently year over year
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Prepared Food and Beverage Item Purchases
- Most prepared food consumers purchase rotisserie chicken, freshly baked goods
- Figure 18: Prepared food and beverage item purchases – NET any chicken, any beverage, October 2019
- Gen Z is more engaged with fried than rotisserie chicken
- Figure 19: Prepared food and beverage item purchases, by generation, October 2019
- Lower- and middle-income consumers are equally engaged with fried and rotisserie chicken
- Figure 20: Prepared food and beverage item purchases – NET any beverage, by income, October 2019
- Prepared beverages and sandwiches are top-of-mind for convenience
- Figure 16: Prepared food and beverage item purchases – NET any chicken, any beverage, by prepared food purchase location, October 2019
- Most prepared food consumers purchase rotisserie chicken, freshly baked goods
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Prepared Food Competitive Associations
- Grocery stores need to improve prepared food consistency and family friendliness to compete more with restaurants
- Figure 20: Correspondence Analysis – Symmetrical map – Retail and foodservice blurring, October 2019
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- Figure 21: Prepared food competitive associations, October 2019
- Grocery stores need to improve prepared food consistency and family friendliness to compete more with restaurants
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Prepared Food Concept Interest
- Consumers prefer prepared beverage stations to restaurants at grocery stores
- Figure 22: Prepared food concept interest – NET any rank, October 2019
- Young consumers drive demand for prepared beverage concepts
- Figure 23: Prepared food concept interest – NET any rank, by generation, October 2019
- Lower-income consumers drive demand for prepared beverage and restaurant concepts at grocery stores
- Figure 24: Prepared food concept interest – NET any rank, by income, October 2019
- Consumers prefer prepared beverage stations to restaurants at grocery stores
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Prepared Food Attitudes
- Free wi-fi can encourage prepared food consumers to dine inside grocery stores
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- Figure 25: Prepared food attitudes – NET agreement, October 2019
- CPG is greater threat to prepared foods among core male customer base
- Figure 27: Prepared food attitudes – NET any agree, by gender, October 2019
- Young consumers drive demand for prepared food online ordering and delivery
- Figure 26: Prepared food attitudes – NET any agree, by generation, October 2019
- Hispanic prepared food consumers drive growth of off-premise prepared food business
- Figure 28: Prepared food attitudes – NET any agree, by race and Hispanic origin, October 2019
- Heavy Users of prepared food want more convenient off-premise options
- Figure 25: Prepared food attitudes – NET any agree, by prepared food user groups, October 2019
- Free wi-fi can encourage prepared food consumers to dine inside grocery stores
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- Data sources
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Appendix – The Consumer
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- Figure 36: Households with own children under age 18, by age of householder, 2018
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- Figure 28: Prepared food attitudes, by stores visited for prepared foods, October 2019
- Correspondence Analysis Methodology
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