TORNOTO, Ontario – An increasing number of Canadians believe that prepared foods and ready-to-eat meals sold at food retailers are better, and fresher, than products sold at fast-food outlets, according to a recent survey by Technomic.

“This is a huge new area of opportunity for food retailers,” Kelly Weikel, Technomic director of consumer insights, told Canadian Grocer. According to the research group, the findings suggest that grocery and convenience stores should be able to take a bigger bite out of restaurant revenues in the highly competitive and fast-growing home meal replacement (HMR) sector. In its report, Technomic said that it expects HMR will “grow and steal” restaurant share, that traditional grocers will maintain their dominance in the field, that in-store prepared-food opportunities will increase, and that demand for convenient, healthy food options will grow.

The online survey of 1,000 Canadians was conducted this spring as part of Technomic’s latest Canadian Retailer Meal Solutions Consumer Trend Report, which estimates that Canadian retail foodservice sales grew by 3.6% in 2014.

Notable findings from the survey include:

• 39% said supermarkets offered “better overall value” for HMR purchases, compared to only 15% for fast food outlets.
• 53% felt that supermarkets offered a greater selection of better-for-you meal options, compared to only 12% for fast-food outlets.
• 75% of those surveyed purchased at least one HMR a month, and 52% of Millennials bought three or more a month.
• Where fast-food outlets won was “craveability,” with 38% of those surveyed saying that restaurants have craveable items, compared to 21% for supermarkets.