PORT WASHINGTON, N.Y. -- The foodservice operations at retail outlets such as convenience stores, supermarkets, discount stores and warehouse (price) clubs have posted stronger foodservice traffic growth than any other segment of the restaurant industry over the past two years, according to consumer and retail information company The NPD Group. This amounts to approximately eight billion meals and snacks that were bought at retail for the year ending May 2007.
NPD revealed that c-stores are the most frequented channel for purchasing prepared foods and [image-nocss] beverages at retail, capturing a 54% share of all foodservice traffic at retail outlets, followed by supermarkets (32% share), discount stores such as Wal-Mart and Target (11% share) and warehouse clubs (3% share).
Discount stores and warehouse clubs, however, are showing the strongest rate of foodservice growth, a combined 11%, versus 3% and 6%, respectively, for c-stores and supermarkets.
While total restaurant traffic grew by 3% over the past two years, foodservice purchases at retail stores outperformed the total industry with 5% growth in the number of meals bought for immediate consumption, said the firm.
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Consumers told NPD that they visit supermarkets for a number of reasons; a convenient location, they "always go there" and because they "like going there"; they visit c-stores primarily for expediency.
"For years, supermarkets and convenience stores were outlets for 'packaged foods'," said Harry Balzer, vice president of The NPD Group. He added, "But the growth of the restaurant industry during the past 25 yearsand especially the growth of takeout mealshas shown everybody in the food market that consumers now want 'packaged meals'."
The NPD Group, Port Washington, N.Y., is a provider of consumer and retail information for a variety of industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless.
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