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Report finds retail ready-to-eat cutting into QSR
December 14, 2008
CHICAGO — Market research company the NPD Grouphas found that 6 percent ofthe roughly 62 billion commercial foodservice meals and snacks consumed in a year are purchased at retail stores,including food, drug, discount, department and price clubs, according to its new Retail Meal Solutions report. The company also found that convenience stores represent an additional 7 percent of meals and snacks. Retail foodservice represents spending close to $13 billion, according to NPD's recently released report.
According to the report, which analyzes how retailers are currently satisfying consumers' needs for ready-to-eat foods, retail ready-to-eat meal and snack purchases increased 2 percent for the year ending August 2008. The quick-service restaurant segment served only 1 percent more meals and snacks. The full-service restaurant segment realized a downturn.
The report dispels the popularly held belief that supper is the prime daypart for retail meal and snack solutions. NPD finds supper accounts for only 17 percent of retail meal solutions consumed but is steadily growing, whereas it's a weakening daypart for QSR. PM Snack represents the largest share at 35 percent of ready-to-eat food consumed, followed by lunch with a 27 percent share, and then morning meal, which represents a 21 percent share.
"Retail outlets are more dependent on morning meals and PM Snack purchases than QSR," said Bonnie Riggs, NPD restaurant industry analyst and author of theRetail Meal Solutionsreport. "These are the on-the-go needs that are being met by retailers — consumers making those purchases on the way to work, to eat at work or in their car, purchases that otherwise would have been made at a QSR."
Consumer motivation in purchasing prepared meals and snacks from retail stores — attributes consumers report lacking at QSRs — include:
- Convenience
- Availability of healthier options
- Variety
- Affordability
"As always, it's a matter of learning and understanding consumers' needs when it comes to meal and snack solutions," Riggs said. "With this learning and understanding, there is opportunity here for retailers, foodservice manufacturers and restaurant operators."
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