growth opportunities in prepared for: convenience … · 2017-06-13 · 8.6%. 7.9%. 7.8%. 7.5%....
TRANSCRIPT
© 2017 Technomic Inc.
GROWTH OPPORTUNITIES INCONVENIENCE RETAILING
Prepared for:
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❶ Retail foodservice evolution
❷ Who is the retail consumer?
❸ Exploring preferences
❹ Retailers vs. restaurants
❺ Key takeaways
Agenda
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© 2017 Technomic Inc.
RETAIL FOODSERVICE EVOLUTION
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Several factors have fueled the growth of the supermarket + restaurant hybrid
Economy
Lifestyles
Demographics
Foodies
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Market Bistro by Price Chopper
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Foodservice segment performance 2016
8.6%7.9%
7.8%
7.5%
5.3%
5.2%
4.8%
4.8%
3.9%3.9%
3.5%
Supermarket foodservice
Senior living
Catering
Fast casual
Lodging
Fine dining
Hospitals
Recreation
C-store foodservice
Fast food
Full service restaurants© 2017 Technomic Inc.
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QUALITY
AMBIANCE
HEALTH
STORE REVAMPS
SUPERMARKET
TRENDSFLAVOROf the 36% of consumers
who are buying prepared foods more often, 65% say it’s because of convenience
7Source: RMS Insights State of the Industry, 2016
CONVENIENCE65%
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© 2017 Technomic Inc. 8Source: Q2 2016 C-Store MarketBrief
C-STORE
TRENDSAmong hot-food consumers, 62% purchase breakfast and 76% buy snacks at least once a month
MADE-TO-ORDER
HIGH-IMPACTLTOS
TECHNOLOGY
BREAKFAST62%
COFFEE
SNACKS76%
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Tier descriptions: c-store foodservice
BASIC o Traditional hot/cold beverageso Limited roller grill, grab-and-go, condimentso Limited merchandising/signage
PREMIUM o Some specialty beverageso Broader roller grill, grab-and-go, condiment offeringso Prominent FS merchandising
SUPER-PREMIUM o Made-to-order, on site preparationo Fresh, quality ingredientso FS a focal point of store design
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Wawa
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C-store foodservice evolution
88% 9% 3%
Basic Premium Super-premium
-2 +2 -YEAR OVER YEAR CHANGE
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WHO IS THE RETAIL CONSUMER?
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HEAVY USERS Living withspouse/partner
Millennials
Middle-income$50K-99K
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THE NEXT HEAVY USERS?
Minorities
Gen Z
Higher-income$100K-150K
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ETHNICITY
Asian—85%Black/African American—77%Hispanic—73% Caucasian—65%
GENERATION
Millennial—85%Gen X—76%Gen Z—67%Boomers—60%Matures—47%
Male—73%Female—67%
Once a week or more
70% overall
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Frequent c-store foodservice customer skews…
Base: 2,000 consumers aged 16+
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Retail FS attribute importance
92%Store is clean 91%
Taste/flavor of the food
90%Food
quality
88%Convenient
location/ access
88% Good valuethrough low
prices
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Rutter’s Farm Stores
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Swiss Farms
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RETAILERS VS. RESTAURANTS
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56%Overall agree
67% of millennials agree
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“Convenience stores are just as capable as restaurants in offering fresh foods and beverages”
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Speed of visit
C-store
53%LSR
52%
Beverage quality
C-store
50%LSR
50%
Coffee quality
C-store
46%LSR
44%
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C-stores ON PAR with LSRs on convenience, beverages
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LSRs win big on food
Food taste/flavor
LSR — 62%C-store — 43%
Food visual appeal
LSR — 55%C-store — 41%
Food quality
LSR — 59%C-store — 40%
Craveable items
LSR — 47%C-store — 34%
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KEY TAKEAWAYS
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Conclusions
Know your target audience1Leverage your strengths2Play up the experiential factor3Strategize across mealparts4
Questions?
312-876-0004 | [email protected] | technomic.com
AIMEE HARVEYManaging Editor, Retail [email protected]