Instore - July 2018 - 23

feature

meet retail
A

t a trade show dedicated to restaurants, you might not expect to hear
much about another corner of the
food industry that starts with an "R" and an
"E" - retail.
But times have changed, and as one educational program at the 2018 National Restaurant
Association Show made abundantly clear, hot
prepared foods and other segments of instore
grocery are very much on the minds of the
restaurant world - and vice versa.

PHOTOS: ANDY NELSON - SOSLAND PUBLISHING COMPANY

"In the past there was a divide between the
grocery store and foodservice," Amanda
Topper, associate director of foodservice
research at market research firm Mintel, said
in the NRA '18 session she led, "The Power of
Foodservice at Retail." "Now we're seeing that
line becoming more blurred."

Forty percent of consumers have bought a
fresh prepared meal at a grocery store, Topper
said, citing Mintel data. Twenty-four percent
say they'd like to see more meal options at
retail, and 28 percent want more grab 'n go
items. Sandwich stations and sit-down restaurants are among the retail foodservice options
those surveyed would like to see more of.
Those most likely to eat prepared foods from
a grocery store? Millennial urban males with
higher incomes, according to Mintel.
Millennials in general have the most interest
in blending their restaurant and grocery
experiences, Topper said, and samples and
specials are the top drivers retailers can use
to pull them in. Samples are a natural for

"The prepared foods
section should be
purposeful and
separate from the rest
of the store. It shouldn't
feel like an afterthought."
Amanda Topper, Mintel

While millennials and Americans in general
are more open to the idea of getting a
prepared meal from their grocery store, they
don't necessarily want the deli prepared
section of the store to look like a grocery
store, Topper said. Forty-one percent of those
polled by Mintel said they're more likely to
shop at a store that offers an "experience." The
prepared foods section, Topper said, "should
be purposeful and separate from the rest of
the store. It shouldn't feel like an afterthought."

Here in Chicago, Topper told attendees, you
can go to grocery retailer Mariano's and hit the
oyster bar. Or check out the selection of hot
prepared bowls at Whole Foods. Or, if you live
in the Northeast, you can take a pit stop at a pub
midway through your weekly shopping trip at
Wegmans. Down the coast, try out the "organic
fast food" options at Walmart in Orlando.
Much of the retail foodservice surge, Topper
says, can be traced to an old reliable source:
consumers' pocketbooks. "Consumers are
interested in dining out, but they're a little
more price-conscious." That, she says, represents a big opportunity for grocery stores, and
a way for them to reverse the market share in
their industry. By 2022, according to Mintel
forecasts, non-supermarket multi-outlet
retailers will account for 52.1 percent of all
grocery sales, and supermarkets 47.9 percent.
"It's becoming more important for retailers to
stand out from the competition," Topper says.

supermarkets, she said. For specials, they can
try going the daily special route, "taking a page
from restaurants."

Also crucial, she said, is to think about exactly
what kind of retail foodservice shopper you're
targeting. Is it the weekly shopper taking a
break from the aisles or the "pop in" customer
who wants to get her dinner and go? Those
questions could have a big impact on how you
lay out your department.
Blount Fine Foods was one of many instore
grocery suppliers showcasing their products
at NRA '18.

Increasingly, retailers are understanding
that - and all of the benefits that come with
bringing the restaurant into the grocery store,

instore * JULY 2018 * 23

Table of Contents for the Digital Edition of Instore - July 2018