According to the report, which analyzes how retailers are currently satisfying consumers' needs for ready-to-eat foods, retail [image-nocss] ready-to-eat meal and snack purchases increased 2% for the year ending August 2008. The quick-service restaurant (QSR) segment, with which retail stores directly compete in providing convenience meal solutions, served only 1% more meals and snacks. The full-service restaurant segment realized a downturn.
"Consumers' increasing use of foodservice for ready-made meals has long been recognized by grocery retailers as an opportunity," said Bonnie Riggs, NPD restaurant industry analyst and author of the Retail Meal Solutions report. "For some time, retail stores have offered prepared foods in the deli department, but have now expanded foodservice offerings to include a variety of cold and hot ready-to-consume meals and snacks."
The report dispels the popularly held belief that supper is the prime daypart for retail meal and snack solutions. NPD finds supper accounts for only 17% of retail meal solutions consumed, but is steadily growing, whereas it's a weakening daypart for QSR. PM Snack represents the largest share, 35%, of ready-to-eat food consumed, followed by lunch with 27% share and then morning meal, which represents a 21% share.
"Retail outlets are more dependent on morning meals and PM Snack purchases than QSR," said Riggs. "These are the on-the-go needs that are being met by retailers-consumers making those purchases on the way to work, to eat at work, or in their car. Purchases that otherwise would have been made at a QSR."
Consumer motivation in purchasing prepared meals and snacks from retail stores include convenience, availability of healthier options, variety and affordability, according to the report. Riggs points out that these are attributes consumers report lacking at QSRs.
"As always, it's a matter of learning and understanding consumers' needs when it comes to meal and snack solutions," she said. "With this learning and understanding, there is opportunity here for retailers, foodservice manufacturers and restaurant operators."
The NPD Group, Chicago, is a provider of consumer and retail information for a variety of industries: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless.
Meanwhile, in light of this shift in consumer dining, CSP Information Group is launching Fare, a new magazine to cater to the nontraditional foodservice retailer. Fare focuses on the on-the-go, prepared foods market with a multi-channel readership that includes c-stores, college and university campuses, club/mass stores, airports, entertainment venues, supermarkets and the military. (Click here for details.)
For more information about Fare, contact Abbie Westra, executive editor, at awestra@cspnet.com.
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