1. Department: Food

Grocery Stores Winning Restaurant Customers with Grocerant Niche Fresh Prepared Food

 

In the evolving landscape of foodservice, grocery stores
have emerged as formidable competitors to traditional restaurants and convenience
stores, carving out a distinct niche with fresh prepared foods. This trend,
known as the “grocerant” phenomenon, has revolutionized how consumers
approach meals, blending the convenience of restaurant-quality food with the
accessibility of grocery shopping. Steven Johnson the Grocerant Guru® at
Tacoma, WA based Foodservice
Solutions®,
observed how this shift has become a critical battleground for
consumer dollars, particularly as inflation and economic uncertainties reshape
spending habits.

The Rise of the Grocerant: A
Historical Perspective

The concept of the grocerant—grocery stores offering
restaurant-quality, freshly prepared meals—began gaining traction in the late 1990s.
As consumers became more time-strapped yet health-conscious, they sought meal
solutions that offered the convenience of takeout without sacrificing quality
or nutrition. At the time the foodservice industry called it a ‘home-meal
replacement’ trend.  Grocery stores
responded by expanding their fresh food offerings, initially with simple salad
bars and ready-to-eat deli items. However, as competition intensified, these
offerings evolved into sophisticated, chef-inspired meals that rivaled what one
might find in a fast-casual restaurant.

Fast forward to 2024, and the grocerant niche has become a
significant growth driver for grocery stores. According to the 2024 Supermarket
News Fresh Foods Survey, retailers have increasingly leaned into prepared foods
to capture the market share traditionally held by restaurants. This strategic
focus on fresh, convenient, and high-quality prepared foods has allowed grocery
stores to win over consumers who might otherwise turn to restaurants for quick
meal solutions.


Recent Findings: The 2024 Supermarket
News Fresh Foods Survey

The 2024 Supermarket News Fresh Foods Survey highlights the
ongoing momentum in the grocerant space, despite a broader slowdown in
perimeter sales. While nearly half (48%) of retailers reported increases in
perimeter category sales, this marks a decline from 60% in the previous year,
largely due to inflation and economic concerns. Yet, prepared foods continue to
be a bright spot, with 66% of retailers planning to increase their assortments
in the coming year, the highest of any fresh department.

Retailers recognize that consumers are looking for value
and convenience in their meal choices. This has led to innovations such as
third-party sushi vendors, expanded ready-to-eat meal assortments, and themed
salad bars, all of which have been cited as significant “wins” by
survey respondents. Notably, 38% of retailers plan to expand the space
dedicated to prepared foods, underscoring the importance of this category in
their overall strategy.

Competing with Restaurants: The
Grocerant Edge

The competitive landscape for prepared foods is intense,
with grocery stores increasingly pitted against fast-casual and quick-service
restaurants. According to the survey, 54% of retailers view fast-casual chains
like Panera Bread and Chipotle as their primary competitors, while 39% see
traditional fast-food giants like McDonald’s and Chick-fil-A as significant
rivals.

To compete, grocery stores are leveraging several
strategies. Price and convenience are the most frequently cited advantages,
with 64% of retailers emphasizing competitive pricing and 54% focusing on the
convenience of grab-and-go offerings. Additionally, loyalty programs,
limited-time offers, and promotions are being used to attract and retain
customers who might otherwise choose a restaurant over a grocery store.


The Future of Grocerants: A Winning
Formula

The grocerant niche is poised for continued growth, driven
by consumer demand for fresh, convenient meal solutions that offer both value
and quality. The 2024 survey indicates that while overall sales growth in fresh
departments may have slowed, the focus on prepared foods remains strong.
Retailers are not just maintaining their grocerant offerings but are actively
expanding them, with a significant portion of their fresh department investment
directed towards this category.

Moreover, the grocerant model aligns well with current
consumer trends, including the preference for healthier, cleaner ingredients
and the desire for meal options that cater to specific dietary needs. As
grocery stores continue to refine their offerings and enhance the customer
experience, they are likely to capture even more of the market traditionally
dominated by restaurants.


Think About This: Grocery Stores as
the New Go-To for Fresh Prepared Foods

Grocery stores have successfully tapped into the grocerant
niche, offering consumers a compelling alternative to traditional dining out.
By focusing on fresh prepared foods, they have not only retained existing
customers but also attracted those who might have otherwise frequented a
restaurant. As economic pressures continue to influence consumer behavior, the
grocerant model will be increasingly vital for grocery stores looking to
differentiate themselves and drive growth in a competitive market.

The grocerant phenomenon is more than just a trend—it’s a
fundamental shift in how consumers approach mealtime, and it’s one that grocery
stores are uniquely positioned to continue to leverage to garner back consumers
they have capitulated over the years. As the Grocerant Guru®, I see this as a
pivotal moment in the foodservice industry, where grocery stores are not just
competing with restaurants and C-stores—they’re winning back customers today.
There is no reason however for restaurants or convenience stores not to reevaluate
their current offerings and remain consumers go to choice for ‘What’s for
Dinner’.

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:
[email protected] or 253-759-7869


View Original Article
Do you like Grocerant Guru's articles? Follow on social!