Supermarkets New Competition for Quick Serves

The biggest challenge for many supermarket food operators isn’t coming from their own stores’ center aisles or the prepared food departments at competing markets, but rather from nearby restaurants, according to a new report from Chicago-based foodservice market research firm Datassential.

 

The in-depth study, Supermarket Prepared Foods: Evolution Toward a True Foodservice Model, surveyed over 2,000 regular supermarket shoppers and 76 operators to provide a comprehensive analysis of how supermarkets can grow their prepared food departments.

 

Among the study’s findings:

·         Forty percent of operators say that nearby restaurants limit the growth of their prepared foods department.

·         A majority of shoppers consider supermarket prepared foods to be “excellent” or “good.”

·         One-third of supermarket customers do not shop the prepared foods department.

·         Even regular prepared foods shoppers say they often don’t know what’s available.

·         Supermarkets could grow their deli and bakery business by emulating restaurant marketing tactics.

·         Shoppers want high quality and a greater variety of healthy, interesting offerings.

 

“Prepared food departments should almost consider themselves to be separate restaurants,” says Brian Darr, managing director at Datassential. “They are really competing with quick serve restaurants and fast casuals in areas like quality and value. Unlike restaurants, supermarket shoppers don’t have a menu that lets them know what’s available.”

 

On the operator side, 86 percent want to create a more premium perception with customers, and 83 percent of operators want to improve consumers’ overall perception of food quality so that it’s on par with restaurants.

 

In addition to the market challenges, the report also analyzes visitation and traffic, menu offerings, purchasing habits, pricing and promotions, packaging and branding, venue and equipment, and supplier relationships.

 

“We asked ourselves questions like, ‘How do you motivate snack purchases?’ and ‘What’s the one breakfast item every supermarket should offer?’,” Darr says. “We really wanted to provide data and intelligence that operators and suppliers could immediately act on.”

 

“With over half of their shoppers not buying prepared foods on regular basis, supermarkets have a significant, opportunity to leverage innovative in-store tactics against the fast-growing, high-margin products in the bakery or deli,” Darr says. “Supermarkets have some clear actions to take, some as simple as making it easier for shoppers to see what items are available or on special.”

Back

What Clients Say About Patrice & Associates

  • Thanks Again!

    Bartol starts on Wednesday! Thanks for again turning over all the rocks for us. - FH Client  Thanks Again!
  • Amy is genuine, honest and has a passion for what she does.

    Amy contacted me in a time where I was unhappy where I was but wasn’t doing anything to change it. She was very informative and if she didn’t have the information at hand, she got it. She revamped an old resume making it more about achievements than responsibilities. She coached me on interview tactics before multiple interviews and was there to talk about them afterwards. Every conversation we had felt more like a friendship than business. She is genuine, honest and has a passion for what she does. She also helped boost my confidence through the entire interview progress. Whatever she is doing, she must be doing it right because I got the job! Thanks Amy for a life changing experience.
    Sincerely,
    Shawn Ware
    Amy is genuine, honest and has a passion for what she does.
  • I really appreciate Tim for all his handwork and consistency.

    He saw a lot of potential in me which allowed me to apply for a higher position than I had first intended. Although the process wasn't easy he was still very honest and trustworthy. I am very grateful to have received his guidance. I really appreciate Tim for all his handwork and consistency.
  • I want to thank Tim...

    ...for all the time he spent helping me acquire my new career. He has helped by assisting me with redesigning my resume and keeping in contact with me throughout the entire process.  His actions showed that he really cared and wanted the best for me. Thanks again, Dominic Almanza I want to thank Tim
  • I would 100% recommend Ross

    I cannot begin to thank Ross and Karen enough! without the two of them I wouldn't have even known about the position! The interview process was quick, easy and simple. After only a short week I was in a position I knew I was going to love forever and it was all thanks to them! Ross has been so good about following up with me even after being hired, asking how my experience has been, what hours I'm working etc. and to top it all off Ross even sent me a gift card thanking me for working with him. I would 100% recommend Ross to anyone looking for a career in the industry!
    Cheers,
    Bayley Ferreira
    I would 100% recommend Ross