Supermarket Perimeter - February 2023 - 35

" Foodservice at retail has gained considerable momentum, "
according to FMI. " It's a star within the overall deli foodservice
department. "
The surge is largely driven by larger households, millennials
and urban dwellers, according to the report. Gen Z and millennial
shoppers in particular are more likely to make separate trips to stores
for foodservice.
Convenience also plays a huge role. Shoppers are seeking
convenient meal options and embracing strategies that differ by
meal occasions.
" Most favor a hybrid approach of mixing different types of
dinner meal prep styles - from scratch to prepared meals, "
according to FMI.
It's also hard to overstate the importance of health and wellbeing
considerations in the rise of retail foodservice. Consumers
are increasing their emphasis on healthier foodservice offerings and
looking for retailers to meet these needs - but only about a third are
very satisfied with the nutrition level of offerings.
Inflation's long shadow
Another of the report's key insights is that inflation is driving meal
strategies in a huge way for Americans.
Shoppers are preparing more dinners at home - and focusing
more on weekly meal planning and scratch cooking - at this time
of higher inflation, and weekly meal planning is well ahead of prepandemic.
During the pandemic, shoppers learned new cooking
skills that are now helping them save money.
It all adds up to big opportunities for retailers looking to bolster
their retail foodservice offerings, according to FMI. Among the
recommendations:
Place Emphasis on Value: At a time of high inflation, consumers
(53%) say grocery deli-prepared foods are a good value compared to
eating at a restaurant or ordering takeout. Retailers can pursue and
communicate value strategies - such as meal deals and bundles -
to drive additional sales and trial.
Put Retail Foodservice on the Radar: Foodservice at retail isn't a
meal option that comes to mind for many consumers. Asked why
they would buy restaurant vs. grocery deli-prepared foods, 43% said
that while the latter is a good option, they just don't think about
it. Retailers need to raise the profile of their foodservice offerings
in-store and through their communications channels.
Enhance the Role of Primary Stores: Most shoppers purchase their
deli-prepared foods from their primary store, but 12% go to a specific
store that is not their primary store. Retailers losing this business
should evaluate what strategies would improve their foodservice
reputations, including with signature items that attract consumers.
Emulate Restaurant Strategies: Retailers can boost loyalty and better
compete with restaurants by thinking more like restaurants. This
means creating more convenient, omnichannel shopping experiences
- from apps for ordering to drive-through and pickup strategies.
Boost Meal Creativity: Retailers can build on proven store
strategies that include meal bundling, theme days and total meal
solutions to meet the needs of a variety of shoppers. Retailers can
also explore unmet needs for specific items or cuisines.
supermarketperimeter.com
The pizza category turned in a
powerful performance in the 52
weeks, up 16.7% in dollar sales
and 20% in unit sales.
The frequency of retail foodservice
purchases is up 5.1%.
transaction, up 9.6% per buyer.
Purchase Size is $7.78 per
FEBRUARY 2023 - 35
ON THE RISE
From FMI, 52 weeks ending 8/27/22
Foodservice/prepared surged to
$31.3 billion
in 2022, up 28.5% from 2019.
Unit sales rose 2.4% in the latest 52 weeks
and 7.2% from calendar year 2019.
$859 M
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Supermarket Perimeter - February 2023

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