The opportunity--and threat--of retail foodservice has been percolating for some time, and the numbers support the speculation.
Technomic expects grocery foodservice to see some of the greatest growth this year, with 6.5% forecasted sales jump compared to 3.5% for limited-service restaurants.
C-stores are coming off a banner year: Foodservice sales were up 9.7% in 2014, according to preliminary numbers from the NACS State of the Industry Survey of 2014 Data.
How long until restaurants really feel the pinch?
Three Big Trends
Salvaging ‘Fresh’
There’s no doubt consumers are looking at their foodservice options with an increasingly critical eye, seeking out freshness, quality and, yes, nutrition whenever they can. Many retailers have grabbed onto the power of “fresh” in marketing, to the point of diluting its strength. The future of fresh lies in not telling but showing guests that foodservice items are enticing, craveable and worth the spend.
Keeping the Kids
The young-adult demographic has always been an important one for c-stores, and millennials already prefer food-forward c-stores to fast-casual restaurants, according to NPD Group. The near-term challenge for the segment will be maintaining millennials as they grow older and develop more disposable income and discerning tastes. This means bigger stores, more choices across the categories, a wider variety of fresh and healthy items and an expansion of morning and evening meal options.
The Power of Beverages
Strong margins for the retailer, customization for the consumer and bold differentiation against competitors: Dispensed beverages continue to validate its place as a crucial component of a c-store foodservice program. Hot, cold and frozen dispensed beverages are becoming a key weapon in the fast-food battle, and smart retailers know they can leverage drink sales to steal traffic from the restaurant across the street.
Retail Foodservice Table of Contents
THE C-STORE CONSUMER
CONVENIENCE BEST IN CLASS
DEFINING HEALTH AND QUALITY
THE GROCERY LANDSCAPE
GROCERY MENU TRENDS
DELI SALES BY REGION
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