From Our Print Edition

A new report from FMI says you can profit from building a reputation for lunchtime foodservice along the perimeter.

Food retailers have long been accustomed to answering the question ‘What’s for dinner tonight?’ — with perimeter foodservice being a popular answer. Lunch, however, also holds strong foodservice potential if you commit to it.

That’s a key takeaway from The Power of Foodservice at Retail 2018, a report produced by the Arlington, Va.-based Food Marketing Institute (fmi.org). It is based on a national survey of 1,500 United States consumers.

BUILDING A REPUTATION

“Keys to success for lunch programs are proximity, and attracting consumers to the store more frequently,” the report states. As with dinner meals, it adds, building a reputation for lunch offerings requires speed, price, variety and healthy options.

Urban shoppers in particular show interest in frequently eating foodservice for lunch, with 19% doing so every week, versus 16% for all shoppers. Some 9% of urban shoppers consume lunch foodservice every few days, and 3% do so just about every day. Urban consumers tend to have convenient access to stores with lunch foodservice options.

Other groups likely to buy foodservice for lunch every few days include: those with above-average trip frequency but average per-person spending; shoppers embracing technology; households with kids living at home; and people in households with high incomes.

Shoppers frequently embracing foodservice solutions for lunch also tend to do so for dinner, according to the report. In fact, those “who buy fresh prepared for lunch are a high-interest target to convert for dinner solutions.”

However, retailers haven’t necessarily managed to capitalize on these shopping occasions by lifting sales in other parts of the store. They have an opportunity to better connect these consumers to other store departments, the report says.

Retailers also have an opportunity to raise the profile of their foodservice options in general. Consumers favoring restaurants over retail foodservice are often not aware of retail options, or feel retail isn’t a viable alternative, according to the findings.

“When shoppers are in a rush to get dinner on the table, 52% prepare a meal that takes little time or effort, 33% buy from a restaurant and just 14% purchase foodservice items.”

Moreover, when shoppers aren’t in the mood for cooking, 69% opt for restaurants, while only 31% choose retail foodservice. In light of these findings, retailers were urged to make foodservice more top of mind “by elevating shopper awareness, prompting trial and cross-merchandising.”

DO YOUR OFFERINGS FIT NEEDS?

Whether for lunch or dinner, shoppers are interested in a diverse range of solutions. Fully 66% express interest in prepackaged ready-to-eat items, 65% in made-to-order food stations, 59% in prepackaged items for heat and eat, and 58% in self-serve buffet of hot and cold items.

Meanwhile, shoppers who visit a store multiple times a week to buy foodservice show the strongest interest in diverse solutions at their primary store, regardless of whether they are seeking lunch or dinner choices.