Traditional grocery stores’ business models have been under attack from the likes of online competitors, convenience stores, farmers markets, CSAs, dollar stores, etc.
But they won’t get any sympathy from the restaurant industry, who is also under a similar assault, and they’re more vulnerable to economic conditions.
Well, now they can add grocery stores to their list of competitors.
A new study shows the “grocerant” trend is growing with consumers, especially millennials.
An NPD Group report this summer titled “A Generational Study: The evolution of eating” finds fresh, restaurant-quality food, chef-driven menus and in-store experiences have popularized the “grocerant” trend and captured some of millennials’ foodservice budget.
In-store dining and take-out of prepared foods from retail has grown 30% since 2008 and accounted for 2.4 billion foodservice visits and $10 billion of consumer spending in 2015, according to NPD’s market research.
The study didn’t conclude this, but I think retail is in an even better position to capture millennials’ food dollar because this group’s priorities will likely evolve from fun, single, carefree days of dining to those of spouses, mortgages and responsibilities as they age, like previous generations.
If they’re already comfortable and happy with retail chains that have provided restaurant-quality and full-service food experiences, what better place to shop for better value fresh food to cook and prepare at home?