<p>By: Steve Markenson, Vice President, Research & Insights, FMI</p><div class="mg-image–circular" style="float:right;margin:10px;"><img sf-custom-thumbnail="true" src="https://www.fmi.org/images/default-source/blog-images/rotisserie-chicken-w-sides.jpg?sfvrsn=c5eeced5_1" sf-size="100" width="600" alt="Rotisserie Chicken" sf-constrain-proportions="true" /></div><p>Every time I walk into our local grocery store, my attention is immediately drawn to the enticing display of rotisserie chickens, their savory aromas wafting through the aisles. Bright signs advertise tempting meal deals — pairing hot, ready-to-eat birds with deli sides and bakery-fresh bread for a good price. The store even goes a step further, offering quick, easy recipes that can be made to accompany these freshly cooked chickens. </p><p>As I travel the country visiting stores in other regions, I have seen similar merchandising approaches with fried chicken, sandwiches or subs made with freshly made breads and rolls filled with mouth-watering combinations of ingredients, and pizza baked freshly onsite. Not to be negative about chicken (the joke in my family is Dad always orders the chicken), but it is nice to see other approaches beyond chicken.</p><p>I suspect that many of these retailers have been reading FMI’s <em><a href="https://www.fmi.org/forms/store/ProductFormPublic/power-of-foodservice-at-retail-2024">Power of Foodservice at Retail</a></em> reports. For the past nine years, FMI has been publishing this report, offering an in-depth look at foodservice at retail from the shopper’s perspective. This year’s report is loaded with key insights and highlights an array of industry opportunities, along with sections exploring Hispanic and Gen Z shoppers. </p><h5>Significant Findings from This Year’s Report</h5><p><strong>Meal Planning and At-Home Prep Continues: </strong>Shoppers are preparing more dinners at home, growing slightly from last year, and reaching levels not seen since 2020. Weekly meal planning continues to be a critical element of shoppers’ routines, with at least two-thirds doing so to some degree for each meal occasion, often integrating a ‘hybrid’ approach to meal preparation.
</p><p><strong>Work Location Has Direct Impact on Retail Foodservice Purchase: </strong>The move to hybrid work patterns has altered consumer meal habits. Whether hybrid or transitioning back to in-office, consumers state they are purchasing more retail foodservice items. Lunch continues to be the daypart showing the biggest net advance, closely followed by dinner.
</p><h5>Key Industry Opportunities to Consider from This Year’s Report</h5><p><strong>Borrow from the Restaurant Playbook:</strong> Shoppers have become used to certain restaurant amenities that they want for their retail deli-prepared foods experiences as well. Topping the list are having a menu available online, enabling advance ordering through apps and offering pickup/delivery options. Retailers can embrace these kinds of strategies that boost shopper convenience.</p><p><strong>Signature Items Serve as a Path to Drive Trips: </strong>Many grocery stores have signature foodservice items, which range from the noted chickens to sandwiches to pizza. Yet, 46% of shoppers say their stores aren’t known for a specific foodservice item. This suggests there could be an opportunity for retailers to be more intentional in driving awareness of their or striving to create signature offerings.
</p><p><strong>Getting Beyond the Bird:</strong> Chicken will continue to be a dominant signature offer for some retailers, but tremendous opportunity exists to create tailored foodservice offers to consumers based on retailers’ core consumers and geographic locations. Consider featuring barbeque or Tex-Mex cuisine in the Southwest. Integrate seafood more intentionally in the coastal regions. When catering to younger consumers, consider diverse cuisines that might not be classic grocery foodservice offers, but have seen tremendous growth in quick-serve and fast casual restaurants.
</p><p>For more key insights and industry opportunities from the <em>Power of Foodservice at Retail</em>, download the report.</p><p><a href="https://www.fmi.org/forms/store/ProductFormPublic/power-of-foodservice-at-retail-2024" class="button">The Power of Foodservice at Retail 2024</a></p>
[#item_full_content]
