Focus on Food Convenience

“Convenience” and “fresh” now go hand in hand.

Consumers are more strapped for time than ever before, making convenience the buzzword of the decade. In recent years, technology has developed apps for businesses like restaurants, meal delivery services, convenience stores, and supermarkets to create more opportunities to bring in consumers.

Many of us working from home don’t want to leave the house to pick up food. We order meals, and have them delivered by a restaurant or a delivery service. When a trip to a restaurant must be made, many use restaurant apps to place meal orders that they can pick-up on the way home from work. The idea is simple, orders can be placed conveniently on their own, and food will be ready upon arrival, reducing wait time.

Not every consumer wants to feel like they’re constantly “eating out”, creating a niche for meal kit companies. In an attempt to keep up, supermarkets have also gotten into the meal kit business. Consumers can order online or pick up their meal kits in store. Amazon also has started selling fresh meal kits online. Clean labels, healthy promises, fresh herbs and global spices are the key factors contributing to the value of these kits.

Added limited time offers and loyalty programs bring forth those even the skeptical, creating a new market.

Convenience stores are giving QSR establishments a run for their money with kiosks for quick customized ordering and pre-made ready to go snacks and meals. New stores are evolving offering clean label foods and organic beverages. Some convenience stores offer locally made comfort foods and make and deliver their own pizzas.

Palate post

Focus on Convenience

• “Technology was supposed to make our lives easier. It’s just made things faster. Convenience and price will trump all.” Bonnie Riggs, NPD
• “Casey’s (Convenient stores) is constantly a standout among concepts increasing store-level foodservice sales.” Alan Liddle, NRN Data and Event Content Director, NRN 2/2018
• “I want to be your neighborhood convenient store. We have a lot of different things that you’d find at, say, at 7-Eleven, but it’s all better-for-you type ingredients in the sense of no artificial colors, preservatives or dyes. We curated around 300-350 products I have tried and tested and also read up on.” Rachel Krupa founder of The Goods Mart
• “Profitability can be a problem with meal kit companies, but the concept will survive because it’s an unarguably a great offering for busy consumers who want to learn to cook.” Rob Wilson, E-Commerce Co.
• “Providing the ability to order food from a restaurant is not only nice to have, it’s a must-have.” Warren Solochek, NPD Sr. Vice President Industry Relations
• “Full-Service operators can drive their business forward any way they can get food and beverage into the home.” Bonnie Riggs, NPD

Continued…

THE PROS: What they are saying

• 53% of all delivery orders were placed by digital ordering. NPD, Restaurant Hospitality 2/2018
• The meal kit delivery market in the USA is valued at $1.5 billion. Culinology 2018
• Reasons, why meal kit customers discontinue use, are it’s too expensive 57%, did not taste good 33%, learned to make a recipe on their own 20%, started a restrictive diet 19%, excessive packaging waste 16%, and dissatisfied with customer service 8%. LEK Millennial Retail and Travel Survey 2016, Culinology 2018
• Wawa and Sheets convenient stores have been innovating for years with self-ordering kiosks and specialty foods. Casey’s General Stores is now making pizza from scratch with delivery right out of their locations. NRN Online 1/2018
• 7-Eleven has added more restaurant-quality foods at select locations. Foods include locally made chicken parmesan, macaroni and cheese, chipotle chicken bowls and breakfast meals. NRN Online1/2018
• Total convenience store brands grew unit counts 2.4% in the latest year and sales grew at twice that rate 4.8% NRN 6/2018
• 50% of dinners purchased at restaurants were consumed at home. This will continue to grow in 2018. Restaurant Hospitality February 2018

FACTS: Here’s what you need to know

The workforce continues to evolve with more women working, an on-demand workforce and others working from home. Restaurants must compete to get their meals, especially dinner, into the home. What does convenience mean to your brand? For QSR it means a mobile app and delivery services. For full-service restaurants not as concerned for speed, it is providing an outstanding experience in the time the guest is in their establishment. Cooking is a necessity. However, with so many other missions on consumer’s plates today, convenience and value is a must.

IN CONCLUSION

“Convenience” and “fresh” now go hand in hand.

Consumers are more strapped for time than ever before, making convenience the buzzword of the decade. In recent years, technology has developed apps for businesses like restaurants, meal delivery services, convenience stores, and supermarkets to create more opportunities to bring in consumers.

Many of us working from home don’t want to leave the house to pick up food. We order meals, and have them delivered by a restaurant or a delivery service. When a trip to a restaurant must be made, many use restaurant apps to place meal orders that they can pick-up on the way home from work. The idea is simple, orders can be placed conveniently on their own, and food will be ready upon arrival, reducing wait time.

Not every consumer wants to feel like they’re constantly “eating out”, creating a niche for meal kit companies. In an attempt to keep up, supermarkets have also gotten into the meal kit business. Consumers can order online or pick up their meal kits in store. Amazon also has started selling fresh meal kits online. Clean labels, healthy promises, fresh herbs and global spices are the key factors contributing to the value of these kits.

Added limited time offers and loyalty programs bring forth those even the skeptical, creating a new market.

Convenience stores are giving QSR establishments a run for their money with kiosks for quick customized ordering and pre-made ready to go snacks and meals. New stores are evolving offering clean label foods and organic beverages. Some convenience stores offer locally made comfort foods and make and deliver their own pizzas.

Palate post

Focus on Convenience

• “Technology was supposed to make our lives easier. It’s just made things faster. Convenience and price will trump all.” Bonnie Riggs, NPD
• “Casey’s (Convenient stores) is constantly a standout among concepts increasing store-level foodservice sales.” Alan Liddle, NRN Data and Event Content Director, NRN 2/2018
• “I want to be your neighborhood convenience store. We have a lot of different things that you’d find at, say, at 7-Eleven, but it’s all better-for-you type ingredients in the sense of no artificial colors, preservatives or dyes. We curated around 300-350 products I have tried
  and tested and also read up on.” Rachel Krupa founder of The Goods Mart
• “Profitability can be a problem with meal kit companies, but the concept will survive because it’s an unarguably a great offering for busy consumers who want to learn to cook.” Rob Wilson, E-Commerce Co.
• “Providing the ability to order food from a restaurant is not only nice to have, it’s a must-have.” Warren Solochek, NPD Sr. Vice President Industry Relations
• “Full-Service operators can drive their business forward any way they can get food and beverage into the home.” Bonnie Riggs, NPD

Continued…

THE PROS: What they are saying

• 53% of all delivery orders were placed by digital ordering. NPD, Restaurant Hospitality 2/2018
• The meal kit delivery market in the USA is valued at $1.5 billion. Culinology 2018
• Reasons, why meal kit customers discontinue use, are it’s too expensive 57%, did not taste good 33%, learned to make a recipe on their own 20%, started a restrictive diet 19%, excessive packaging waste 16%, and dissatisfied with customer service 8%. LEK Millennial Retail and Travel Survey 2016, Culinology 2018
• Wawa and Sheets convenient stores have been innovating for years with self-ordering kiosks and specialty foods. Casey’s General Stores is now making pizza from scratch with delivery right out of their locations. NRN Online 1/2018
• 7-Eleven has added more restaurant-quality foods at select locations. Foods include locally made chicken parmesan, macaroni and cheese, chipotle chicken bowls and breakfast meals. NRN Online1/2018
• Total convenience store brands grew unit counts 2.4% in the latest year and sales grew at twice that rate 4.8% NRN 6/2018
• 50% of dinners purchased at restaurants were consumed at home. This will continue to grow in 2018. Restaurant Hospitality February 2018

FACTS: Here’s what you need to know

• The workforce continues to evolve with more women working, an on-demand workforce and others working from home. Restaurants must compete to get their meals, especially dinner, into the home. What does convenience mean to your brand? For QSR it means a mobile app and delivery services. For full service restaurants not as concerned for speed, it is providing an outstanding experience in the time the guest is in their establishment. Cooking is a necessarity. However, with so many other missions on consumer’s plates today, convience and value is a must.

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