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Foodservice in Retail: Incl Impact of COVID-19 - US - December 2020

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition 
COVID-19: Market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Impact of COVID-19 on foodservice in retail
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
Figure 2: Prepared food purchase motivations, September 2020
Pandemic-related safety concerns weigh heavily
Figure 3: Barriers to prepared food purchases, September 2020
Increased usage among young purchasers points to growth potential
Figure 4: Year-over-year change in prepared food purchases, by age, September 2020
Beyond rotisserie chicken: younger purchasers look for variety
Figure 5: Prepared and made-to-order items purchased, by age, September 2020
eCommerce could be key to winning with frequent users
Figure 6: Attitudes toward foodservice in retail, by usage frequency, September 2020
THE MARKET – KEY TAKEAWAYS
Foodservice in retail suffers as pandemic flips food spending trends
Pandemic concerns continue to impact shopping behavior
MARKET OVERVIEW 
Foodservice in retail suffers as pandemic flips food spending trends
In-home food
Figure 7: Total US retail sales and forecast of in-home food, at current prices, 2015-25
Dining out
Figure 8: Total US retail sales and forecast of dining out, at current prices, 2015-25
MARKET FACTORS 
Overarching concern about virus exposure and lifestyle impact
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
Figure 10: Coronavirus lifestyle changes – online shopping, April-October 2020
Comfort with in-store shopping, dining out slips as cases rise
Figure 11: Comfort level with restaurant/bar patronage – very or somewhat comfortable, July-November 2020
Declining cooking enthusiasm an opportunity for retail foodservice
Figure 12: Enthusiasm for cooking, 2018-20
Figure 13: Reasons for cooking, 2018-20
MARKET OPPORTUNITIES
Beyond convenience
Focus on food
Create and experience
Integrate foodservice with home cooking
eCommerce an increasingly essential piece of foodservice in retail
COMPETITIVE STRATEGIES
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 
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 
Most purchase prepared foods at least occasionally
Figure 14: Prepared food purchase frequency, September 2020
Young adults and men especially drawn to prepared foods in retail
Figure 15: Prepared food purchase frequency, by gender and age, September 2020
Hispanic consumers more likely to be heavy users
Figure 16: Prepared food purchase frequency, by race and Hispanic origin, September 2020
Increased usage among young purchasers points to growth potential
Figure 17: Year-over-year change in prepared food purchases, by age, September 2020
PREPARED FOOD PURCHASE MOTIVATIONS AND BARRIERS
Convenience drives purchase, but experience has potential to differentiate
Figure 18: Prepared food purchase motivations, September 2020
Younger shoppers more attuned to foodservice experience
Figure 19: Prepared food purchase motivations, by age, September 2020
Pandemic-related safety concerns weigh heavily
Home cooking more direct competition than restaurants
Figure 20: Barriers to prepared food purchases, September 2020
PREPARED FOOD PURCHASE LOCATIONS
Supermarkets remain top choice for foodservice, could gain post-pandemic
Figure 21: Prepared food purchase locations, September 2020
Younger shoppers purchase foodservice across wider array of channels
Figure 22: Prepared food purchase locations, by age, September 2020
PREPARED AND MADE-TO-ORDER ITEMS PURCHASED
Rotisserie chicken remains a prepared-food staple
Figure 23: Prepared and made-to-order items purchased, September 2020
Beyond rotisserie chicken: younger purchasers look for variety
Figure 24: Prepared and made-to-order items purchased, by age, September 2020
Lunch options key to frequent usage
Figure 25: Prepared and made-to-order items purchased, by prepared food usage frequency, September 2020
PREPARED FOOD COMPETITIVE ATTRIBUTE ASSOCIATIONS – CORRESPONDENCE ANALYSIS
Prepared foods occupy space between packaged foods and restaurants
Figure 26: Correspondence analysis – principal map – retail and foodservice blurring, September 2020
Figure 27: Retail and foodservice blurring, September 2020
Methodology
INTEREST IN RETAIL FOODSERVICE CONCEPTS
Getting the food and price right is key to driving foodservice sales growth
Figure 28: Prepared food concept interest, by age, September 2020
ATTITUDES TOWARD FOODSERVICE IN RETAIL
Beyond convenience: healthy and natural present opportunities
Customizability also had appeal
Figure 29: Attitudes toward foodservice in retail, September 2020
eCommerce could be key to winning with frequent users
Figure 30: Attitudes toward foodservice in retail, September 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

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