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Eating Out by Eating In?

Millennials Drive Change in Retail Foods

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Millenials order takeout food twice as often as Baby Boomers

Acosta Sales and Marketing
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Millenials drive purchases of home prepared meals

Acosta Sales and Marketing
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Acosta Sales an Marketing takes a look at the impact Millenials have on consumer retail foods.

Acosta Sales an Marketing

Many legacy restaurant chain Boomer CEO’s are in a quagmire of stewardship. Unwilling to dramatically redesign; concept footprint, menu items, or points of distribution they are saddled with “canned” concepts once suited for the golden age of the restaurant industry.

Foodservice Solutions® Grocerant Guru™ stated “Brand protectionism is fast fading away and giving ground to brand evolution. That evolution is required for long term brand survival. Consumers are dynamic not static and brands must be as well.”

Consumers are not thinking like many boomer CEO’s who continue to hold on to psychological mindset of yesterday’s brand position in a world of contemporized consumers.  When thinking “What’s for Dinner” recent research by Foodservice Solutions® found 86 percent of consumers at 1PM have no idea at all and 65 percent of consumers at 5PM still do not know “What’s for Dinner”.  Thus the rise of the Grocerant Niche companies selling fresh prepared food for Eating In or Eating Out in direct competition for legacy restaurants while challenging legacy grocery stores models.

Want to know what a Grocerant is?

Want to know what a Grocerant is or where to find Grocerant Niche Ready-2-Eat fresh prepared food? In reality a grocerant is where a consumer can find fresh prepared food aimed at the time-starved consumer with Ready-2-Eat or Heat-N-Eat fresh prepared meals or meal components that can be bundled into a meal and or packaged for Take-Out, Take-Away, or To-Go.

Today, grocerant meals and meal components are found in liquor stores, drug-stores (Walgreens), fast food restaurants, fast casual restaurants, full-service restaurants, and restaurants inside grocery stores, in legacy “deli” departments, furniture stores (Ikea), club stores (Costco) and clothing stores from Tommy Bahama, Macy’s, and Nordstrom’s.  

Eating Out by Eating In?

Take-Out and Take-Away Options Threaten legacy business models…  menu items have been around so long that consumer simply take them for granted. Millennials are on a quest for personal discovery… looking past the once obvious choice. The result is an opportunity for a new business, that is new business models selling fresh prepared Ready-2-Eat and Heat-N-Eat fresh prepared food. 

With the increased presents of the 65 inch HDTV in home today Foodservice Solutions®  research find “The 65 Inch HDTV Syndrome” was edified recently in the 9th edition of “The Why Behind the Buy” published by Acosta Sales and Marketing found: 

“Contrary to some reports, eating at home is not passé. Rather it has evolved to meet the needs of busier lifestyles, more sophisticated palates and consumers who have become accustomed to immediate gratification. Indications of how the boundaries of eating in and eating out have blurred can be seen in the rise of the grocerant - grocery store as restaurant - where ready-to-eat meals have been a major area of growth; the popularity of quick-serve restaurants, food delivery and take-away; and the growing array of meal solution product offerings from CPG companies. In other words, shoppers are increasing eating out by eating in.”

Millennials  Drive Change

The influence of Millennials can no longer be denied.  Millennials which represent 22% of the U.S. population today are fast approaching their “prime” spending years. Millennials grew up with fast internet access everywhere, mobile technology, and are now engaging and demanding a food focused seamlessly integrated life style.  In a recent study titled The Why? Behind The Buy found “65% of Millennials say losing this phone or computer would have a greater negative impact on their daily routine than losing their car.”  Are you willing to give up your car? Soon Millennials will out spend Generation X and the Boomer Generation.

That same study found that young shoppers are adapting to new food trends including buying Ready-2-Eat and Heat-N-Eat fresh prepared food.  That is something all food retailers need to pay particular attention too. In fact that study found that in the past 30 days:

  • Bought Home Prepared Foods  -  GenY / Mellennials 78%  Gen X only 68%, and Boomers 60%
  • Ordered Food From A Restaurant for Pick-Up / Carry-Out in the past 30 days - Gen Y / Millennials 78%, Gen X 72, and Boomers 58%
  • Ordered Food From A Restaurant for Delivery in the past 30 days - Gen Y / Millennials 67%, Gen X 57, and Boomers 36%

As you can see for each of the above, Millenial Shoppers outpace Boomers anywhere from 30% to a whopping 100%!

Read further about Food Retailers See a “Seismic Shift” to Online Shopping.

 

Want to know more about Grocerants?

Take-Out and Take-Away Options Threaten Restaurant Growth
The Omni-Channel Consumer means they want food wherever and whenever. Retail and foodservice operators find it hard to draw the lines of competition. Today Whole Foods is competing with Walgreens and Starbucks is competing with McDonalds McCafe.

Consumers Want Quick and Easy Meals for Dinner
Consumers Want Quick and Easy Meals for Dinner and prepared foods with portability are driving retail food success. QSR's are nipping away at supermarket share of stomach... are you ready as a retailer?

Channel Migration Blurs the Lines of Grocery and Restaurant
Food Trends - blurring the lines of whee we buy and eat. We went from channels to channel blurring to omnichannel and now migration marketing. Consumers find fresh prepared ready-2-eat food options at a wide and growing array of outlets across almost every channel: convenience stores, chain drug stores, restaurants, grocery stores, club stores,...

 

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