Supermarket Perimeter - October 2021 - 25

" These efforts assisted in us being able to quickly adapt and recapture
sales that we had lost from some sub-department closures, " Van
Beek said.
Recovering from the pandemic is an ongoing process, he added.
Gelson's takes an aggressive stance: they want its customers to feel like
they need to come back to the store to check out the latest offerings,
and renew their love of old favorites, from the Gelson's Kitchen.
One of the ways the company does that is by constantly refreshing its
menu. Van Beek points to the retailer's popular seasonal menu, which
rotates every quarter and takes advantage of all of the produce grown
locally in Southern California.
The biggest trends in instore dining and grab-and-go dining options
include freshness, quality and international offerings, Van Beek said.
Report: grocery foodservice set for strong growth
Retailers would be wise to look at beefing up their instore dining
options to enhance their perimeter bottom lines, according to the latest
Power of Foodservice at Retail report from the Arlington, Va.-based FMI
- the Food Industry Association.
FMI's sixth annual analysis of retail foodservice provides a
comprehensive review of shoppers' perceptions and behaviors
regarding prepared foods in grocery and underscores the implications
for the industry to capture and expand its pre-pandemic share of the
total food dollar.
" Grocery foodservice is at a competitive inflection point when
we look at the state of the U.S. food dollar and the fact that 59% of
Americans expect to cook as many meals at home as they do now, "
said Rick Stein, FMI's vice president of fresh food. " The analysis suggests
grocers are positioned to be the ultimate mealtime solution in that 39%
of consumers view retail foodservice as a substitute for a both a homecooked
meal and a restaurant meal. "
3 themes
Three significant themes emerged out of the
survey, which was prepared by 210 Analytics and
made possible by Hussmann Corporation and
Produce Marketing Association.
Visibility at Retail: More than one-third of
consumers, up slightly from 2019, do not recognize
their local grocer as a foodservice option due to
a lack of menu choices. The report underscores
opportunities for increased visibility through
marketing and merchandising strategies - all
while acknowledging the growing time constraints
and cooking fatigue among shoppers to prepare
a convenient and nutritious meal. To further
promote engagement, shoppers emphasized their
desire for retailers to highlight nutrition facts and
meal ingredients.
Hybrid Meals Support Shoppers: The analysis
notes that shoppers are looking for comprehensive
meal solutions, not just prepared items. In fact,
55% of those surveyed note a desire for hybrid
meal options - or those that are a mix of semi-andfully-prepared
items. It is noteworthy that 64% of
consumers who typically prepare hybrid meals say
they plan their dinners a few days at a time.
Convenience Enabled by Technology: Technology
supports shoppers' strong desire for convenience
with more than half of consumers expressing
a desire to order deli-prepared items with a
smartphone. The survey also points out significant
disparities among generations in how they want to
engage in retail foodservice ordering. For example,
20% of Gen Z customers prefer ordering from a
person versus using their own phone (49%) or a
kiosk (31%), compared with 89% of Boomers who
prefer ordering from a person.
" Grocers confidently acknowledge the power in
convenience-driven retail foodservice, as these
programs continue to serve as differentiation
strategies for their businesses, " Stein said. " As
evidenced in this analysis, with the right formula
that caters to the customer with supportive
technology, food retailers can increase their
significance as a destination for health, well-being
and meal solutions. "
supermarketperimeter.com
OCTOBER 2021 - 25
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Supermarket Perimeter - October 2021

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