Retailers Continue to Expand Prepared Food Offerings

A new study finds that supermarkets and convenience stores are gaining ground on restaurants.

February 09, 2011

CHICAGO - Consumers say they are sourcing prepared meals from a wider range of retail foodservice operations than they were two years ago, many times at the expense of restaurants, according to a new Technomic survey. Traditional supermarkets, convenience stores and mass merchandisers have been able to grow their share of the food-away-from-home market as they expand their foodservice platforms and build upon consumer desire for convenience, quality and variety of offerings in retail locations.

"Retailers benefit from the fact that consumers are already visiting them for other purchases," said Darren Tristano, executive vice president at Technomic, in a press release. "If retailers can offer a foodservice option that rivals that of restaurants in terms of quality, freshness and variety, they can build on the advantage they inherently enjoy when it comes to convenience."

Technomic??s new "Retailer Meal Solutions (RMS) Consumer Trend Report" found that health is an important factor in the RMS purchasing decision, and seems to be of greater importance for RMS occasions than for restaurant meals. About two in five consumers say that they usually consider nutrition when purchasing prepared foods, compared to only about a quarter who say they consider nutrition when ordering food at restaurants.

Kid appeal stands out as the primary concept attribute that consumers think RMS programs are lacking. The attribute related to RMS?? appeal to children ranked among the bottom three for each type of retailer as compared to both limited- and full-service restaurants.

Forty percent of consumers who visit mass merchandisers and convenience stores for RMS purchases do so at least once a week from those locations.

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