PORTLAND, Ore. -- Grocery stores say they have seen the popularity of their prepared foods grow as consumers try to save time, money and sometimes calories, reported the Associated Press. And the economic downturn has helped boost the trend as folks trade down from restaurants to dinner at home. So grocers are boosting the selections in response to people's growing appetite for prepared foods.
"When they are trying to return to more meals at home, they don't want to start from scratch like we would a generation or two ago," Tim Hammonds, president and CEO of the Food Marketing Institute ([image-nocss] FMI), told the news agency. "That's why the prepared foods are so popular."
They come in ready-to-eat form—rotisserie chicken, mashed potatoes or sandwiches. Or there are ready-to-heat styles such as stuffed salmon, lasagna or meatloaf that just need to hit the stove.
Grocery stores have taken note of the popularity of these offerings.
Last month, Stop & Shop and Giant-Landover supermarkets added more than 100 fresh prepared foods such as soups and bourbon chicken. Last week, Supervalu Inc. introduced a line of more than 150 items that aim to rival restaurant-quality food such as pork carnitas enchilada casserole and pineapple upside-down cake. Cincinnati-based Kroger Co., which has long offered prepared foods at its stores, recently expanded its options to include items such as lobster bisque, baked ziti and dinner packages that feed a family of four for $10.
But many grocers say they are seeing the biggest growth in simple comfort foods. Whole Foods Market Inc. said its best-sellers include macaroni and cheese and mashed potatoes in some stores. The company has recently added a "family-size savings" program that allows shoppers to get a discount when they buy two or more pounds of some prepared foods.
"They can basically pick up dinner in one stop," Whole Foods spokesperson Libba Letton told AP.
About 28% of shoppers do not know what they are having just two hours before the meal, according to FMI, making the meal a great opportunity for grocers.
"I would think almost everybody is going to have their stores outfitted with a full-blown foods offering because they have to, or folks will go down the street," Jack Horst, a grocery specialist and principal at retail consulting firm Kurt Salmon Associates, told AP. He said it is part of the trend of grocery stores expanding their offerings, trying to draw shoppers in with websites, recipes, cooking classes and other options beyond the traditional supermarket fare.
Hammonds said it is a change that isn't likely to end when the economy improves. "It accelerating basic trends--recognizing that food at home is healthier, there is better control of the calories, content of food, less expensive and in tune with family values," he said. "We are seeing the economic downturn speed up a transition that is tune with their lifestyles."
Grab-and-go meals sold in grocery stores, convenience markets and discount stores with grocery areas generate about $25 billion in sales annually, added The Arizona Republic, citing Chicago-based foodservice consulting firm Technomic Inc.
Technomic senior manager Wade Hanson said he expects sales of prepared meals to grow 7% to 8% through 2009. That amount is "nearly double what the rest of the foodservice industry can expect," he told the newspaper.
Although grocery-store prepared meals have around for years, their popularity is rising along with prices of sit-down restaurant meals, experts say. Technomic said in an August report that 35% of Americans have cut back on restaurant visits in the past year because of rising menu prices.
Also propelling the trend is the arrival of smaller, convenience-oriented stores such as Fresh & Easy Neighborhood Market. Fresh & Easy spokesperson Brendan Wonnacott said the stores' prepared meals are "immensely popular." Favorites include lasagna, a carne asada burrito and Sheppard's Pie, he told the paper.
"The trend was already established, but the arrival of Fresh & Easy likely accelerated it," Jennifer Halterman, an analyst with TNS Retail Forward, Columbus, Ohio, told the Republic.
Bashas', Fry's Food and Drug Stores and Safeway declined to share grab-and-go sales numbers or specifics about growth. All said the category is so competitive they keep such details close to their vests.
While grab-and-go meal price tags often are higher than those of individual ingredients to prepare meals from scratch, they still are cheaper than the typical restaurant menu items: Single servings cost about $3 while entrees that serve two or more cost around $10, said the report.
Also, for shoppers who only want ribs or fajitas once in awhile, there may be less waste with a grab-and-go meal than if a shopper buys special ingredients for the recipe. "These meals are often a better value than buying all of the ingredients needed to make the same meal" from scratch, Kendra Doyel, director of public relations for Fry's, told the paper. The grocery chain has expanded its prepared offerings to include sushi, enchiladas and traditional Mexican foods plus servings of fresh lasagna, beef stew, baked ziti and turkey roast made by parent company Kroger.
Safeway's focus appears to be on the basics: Hot rotisserie chicken and side dishes like macaroni and cheese, creamed spinach and mashed potatoes.
Bashas', meanwhile, sells what it calls "take-and-bake" items as well as hot meals out of its deli. This summer, Bashas' has run a promotion in which customers pick up a shopping bag to be filled with one entrée like fried chicken, pizza or meatloaf; bread or rolls; and two side dishes for $9.99. The promotion has been "the most successful launch we have seen in a long time," Scott Triplett, vice president and general manager of perishables for the Bashas' grocery chain, told the paper. Bashas' may soon expand it and add pricier low-fat meals to the lineup, he said. "It's bringing back the family dinner hour," Triplett said.
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