OAKBROOK TERRACE, Ill. -- Beyond having a crystal ball, predicting consumer dining trends is no easy task. Who could have foreseen that Brussels sprouts, the vegetable children everywhere love to hate, would become this year’s menu darling? Or that quinoa, that hard-to-pronounce grain from South America, would find its way into restaurants, grocery stores and even convenience stores across the country? And if gluten-free items aren’t part of your operation, you’re missing out on a big opportunity.
While it’s inevitable consumers’ tastes in food change from year to year—keeping the savviest of foodservice professionals on their toes—there have been other dramatic shifts in the industry over the last five to 10 years that demand retailers’ attention, no matter what type of operation they’re part of.
Technology is here to stay. “Technology has permanently changed the way we experience food,” said Justin Massa, founder and CEO of Chicago-based research firm Food Genius. “We are at the startof a dramatic shift in how most people interact with any kind of product, and food is no different.” While these days it’s hard to imagine a world without smartphones, that was the case less than 10 years ago. Now consumers use them for everything, including getting directions, accessing emails and, yes, ordering food. “That’s a massive change in consumer behavior,” said Massa.
But it’s not just mobile technology that operators have to take into consideration. Digital menu boards and web-based ordering are part of our lives now, too. “There’s this explosion of new entrances to the food arena,” said Massa. For example, NCR recently debuted a mobile app that provides pump-only c-store customers with food offers inside the store. Ordering, upselling and payment are all handled through the customer’s smartphone.
If retailers don’t want to be left behind, then c-stores need to incorporate technology into their operations. However, all of this great technology does come with a caveat: Data security needs to be taken very seriously.
What’s in store. Ever since the downturn in the economy in 2009, consumers have shifted back to grocery stores. And while the economy has slowly but surely recovered, said Massa, consumers haven’t shifted their focus back to dining away from home.
But that doesn’t mean consumers are necessarily cooking more at home. Rather, they’re starting to turn to grocery stores, c-stores and other retail outlets for convenient food options that require little or no prep. According to a recent Technomic study, 37% of consumers say that they purchase ready-to-eat foods from a supermarket or retail store weekly or more often.
This shift can spell opportunity for retailers. In fact, 87% of retailers say they expect foodservice business conditions to improve over the next year, according to CSP’s 2014 State of Foodservice Study, and Massa agrees. “The lines between foodservice and convenience packaged goods are blurring,” he said.
Time is money. A more recent phenomenon—and one accentuated by technology—is the creation of an on-demand culture. “The majority of people don’t know what they are going to have for dinner at 4 p.m.,” said Massa, adding that he’s definitely in that group. This lack of planning has led to more and more dependency on convenience-driven, grab-and-go eating. Or, in other words, that old adage time is money still rings true. Retailers should focus on offering portable, quality food choices for consumers seeking on-the-go options.
This post is sponsored by Kraft Foodservice