Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://specialtyfoodmagazine.epubxp.com/i/480793
P repared, ready-to-eat foods are a bigger draw at retail than ever. Driven by convenience, price point, and ramped-up offerings, consumers are increasingly turning to these counters for meal solutions. Retailers have taken note, offering upscale menus and creating in-store dining experi- ences that are turning them into a destination for breakfast, lunch, and dinner. And they are poised to take a bite out of restaurant profits along the way. Specialty food retailers are offering premium experiences at their prepared foods counters, tapping into popular menu trends and high-quality ingredients and offering dedicated in-store dining areas. BY FIONA ROBINSON Rise of the Grocerant The Rise of Ready-to-Eat According to "Growth and Composition of the Retail Prepared Food Market," a study by Chicago market researcher NPD Group, restaurant growth is being eclipsed by retail prepared foods to go, which have grown 5 percent from 2008 to 2013 as restaurant sales declined for two years and are now flat. Retail prepared foods eaten at home (versus eaten at work or other locations away from home) climbed 12 percent from 2008 to 2013, and NPD forecasts another 10 percent increase by 2022—double the growth that restaurants will see. "Consumers tell us they use [retail prepared foods] because there is more variety, they feel they have healthier options. They feel it's reasonably priced and is a lot less expen- sive than going to a restaurant," says Bonnie Riggs, an NPD restaurant industry analyst. A changing consumer profile is helping to drive some of this prepared foods growth. According to Steven Johnson, a grocerant guru at restaurant and hospitality consultancy Foodservice Solutions, 50 percent of Americans over the age of 18 are single. This group is buying prepared foods, rather than dining out or cooking large meals for themselves, says Johnson. Many retailers are capitalizing on this movement by updating prepared food menus with trendy ingredients and f lavors, and offering more options for special-interest diets like PHOTOS: ROCHE BROS. Roche Bros. Diner 34 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com