2024
9
US Foodservice in Retail Market Report 2024
2024-12-04T16:03:28+00:00
REP2FDF93B7_5AED_4DB3_9B29_CFC2D102275C
3695
177886
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"},{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"}]
Report
en_GB
Foodservice in retail continues to gain momentum, with usage frequency up over a year ago. Cost-conscious consumers are looking for convenient, freshly-prepared food at a savings versus restaurants, and grocery…
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  6. US Foodservice in Retail Market Report 2024

US Foodservice in Retail Market Report 2024

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Foodservice in retail continues to gain momentum, with usage frequency up over a year ago. Cost-conscious consumers are looking for convenient, freshly-prepared food at a savings versus restaurants, and grocery retailers are meeting their needs by enhancing the quality and variety of their offerings.

While rotisserie chicken remains a staple of retail foodservice, the category’s most frequent users are looking for greater variety and turning to retail foodservice for occasions beyond family dinners. Breakfast, lunch on the go, and even snacking represent opportunities for retailers to make prepared foods a more essential part of consumers’ everyday lives.

In addition to expanding the menu, retailers can make foodservice a more compelling solution by integrating them more tightly with the rest of the store, catering to the category’s most frequent users, who often pair prepared foods with items they cook themselves. Grocers also have an opportunity to optimize the pace of retail foodservice, not only by speeding up the process when convenience is at a premium but also slowing it down for shoppers who want to linger and enjoy the experience.

This report looks at the following areas:

  • A profile of category users with emphasis on the most frequent purchasers
  • Motivations for purchasing prepared foods at retail
  • Types of prepared foods and drinks purchased
  • Prepared food consumption occasions
  • Interest in prepared food innovations
  • Attitudes toward prepared foods at retail, touching on quality perceptions, health, value and variety

Foodservice in retail continues to gain momentum as cost-conscious consumers look for convenient, freshly-prepared food at a savings versus restaurants.

John Owen, Associate Director – Food and Retail

Market Definitions

This Report explores consumer attitudes/behaviors surrounding foodservice concepts in retail, specifically grocery retailing. “Foodservice concepts in retail” refers to any restaurants located in a store, including grocery-owned restaurants as well as partnerships with existing brands such as a Subway located in a Walmart, or any meals sold on-site that are created by store employees (ie not shipped in from a manufacturer). Hot soups, prepared sushi, rotisserie chicken, hot and cold food bars and on-site alcohol bars are all examples of foodservice concepts in retail.

Foodservice in retail also refers to prepared packaged foods (eg packaged employee-made sandwiches) as well as MTO foods available at a station located in the store, where customers can have a meal made to order (eg a burger station). Throughout this Report the phrase “prepared food” refers to both prepared packaged and MTO food.

This Report segments prepared food purchasers into three user groups to help illuminate the behaviors and attitudes of different types of prepared food customers throughout:

Heavy Users purchase prepared foods at least once a week.

Moderate Users purchase a few times a month to once a month.

Light Users purchase once every two to three months to a few times a year.

Collapse All
  1. Executive Summary

    • What you need to know
    • Market predictions
    • What consumers want & why
    • Opportunities
  2. Market Dynamics

    • Market context
    • Market drivers
    • Consumers remain uneasy about their finances, motivating many to look for ways to save on food
    • Graph 1: personal financial status, 2021-24
    • Inflation easing faster on food at home than on foodservice
    • Graph 2: percentage of total food spending, at home vs away from home 2020-24
    • Inflation easing faster on food at home than on foodservice
  3. Consumer Insights

    • Consumer fast facts
    • Prepared food purchase frequency
    • Nearly all purchase at least occasionally as frequency continues to rise
    • Graph 3: prepared food at retail purchase frequency, 2024
    • Life stage and circumstances drive frequent usage
    • Young adults most likely to report an increase
    • Graph 4: year over year change in prepared food at retail purchase frequency, by age, 2024
    • Motivations for purchasing prepared foods at retail
    • Taste, quality and value drive purchase and differentiation
    • Graph 5: motivation for purchasing prepared foods at retail, 2024
    • Younger shoppers more likely to look beyond convenience
    • Graph 6: motivations for purchasing prepared foods at retail, by age, 2024
    • Heavy users appreciate convenience of prepared foods, but it's the product that keeps them coming back
    • Graph 7: motivations for purchasing prepared foods at retail, by usage frequency, 2024
    • Prepared food purchase locations
    • Mass merchants narrow the gap with traditional supermarkets in an increasingly competitive market
    • Graph 8: prepared food at retail purchase locations, 2024
    • Younger shoppers purchase in more channels but are less likely to turn to supermarkets
    • Graph 9: prepared food at retail purchase locations, by age, 2024
    • Heavy purchasers' more varied use of prepared foods leads them to more retailers
    • Graph 10: prepared food at retail purchase locations, by purchase frequency, 2024
    • Prepared food consumption occasions
    • Drive growth by targeting non-dinner occasions
    • Graph 11: prepared food at retail consumption occasions, 2024
    • Frequent purchasers look beyond dinner
    • Graph 12: prepared food at retail consumption occasions, by purchase frequency, 2024
    • Types of prepared foods and drinks purchased
    • Chicken, whether rotisserie or fried, remains front and center in retail foodservice
    • Graph 13: types of prepared foods and drinks purchased at retail, 2024
    • The category's most frequent users look beyond rotisserie chicken
    • Graph 14: types of prepared foods and drinks purchased at retail, by purchase frequency, 2024
    • Interest in retail foodservice concepts
    • Cater to frequent purchasers by combining customization and convenience
    • Graph 15: interest in retail foodservice concepts, by usage frequency, 2024
    • Attitudes toward prepared foods at retail
    • Shoppers respond to improvements in retail foodservice quality
    • Graph 16: attitudes toward foodservice in retail – any agree, 2024
    • For heavy users, speed things up or slow them down
    • Graph 17: attitudes toward foodservice in retail – any agree, by purchase frequency, 2024
    • Feed heavy users' interest in cuisine exploration and creativity
    • Graph 18: attitudes toward foodservice in retail – any agree, by purchase frequency, 2024
    • Position prepared foods as a value versus takeout
    • Graph 19: attitudes toward foodservice in retail – any agree, by personal financial status, 2024
  4. Innovation and Marketing strategies

    • Retail foodservice goes on the offensive
    • Walmart bolsters foodservice as it upgrades stores
    • AI-driven robots make and serve drinks at Walmart
    • H-E-B leverages c-store format to extend foodservice reach
    • Seattle-based grocer makes restaurant a showcase for the rest of the store
  5. Appendix

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Abbreviations and term

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