Grocery + Restaurant = Grocerant
"Neither restaurants nor grocery stores are the future of food shopping. Instead, what could dominate is a hybrid of the two – grocerants." - Forbes
- Grocerants have already become the second most appealing of all foodservice segments in North America. According to a recent survey by Datassential, value and customer service are viewed as the key strengths of this emerging segment that make it so appealing. In fact, 18% of consumers in the U.S. are buying grocery prepared food more frequently this year.
- The grocerant trend is taking off in Europe as well, with several key retailers investing in the concept. Across the modern trade landscape in Europe, we see numerous retailers looking to lure millennials into their stores with grocerant offerings. Auchan Poland has rolled out Bistro snacking corners, and Ahold Delhaize has introduced instore foodservice bakeries. Their Deli Kitchen foodservice points are located within the actual selling area and offer both takeaway meals and a seating area for instore consumption.
- In addition to salads, dessert bakery items and breakfast bakery items are the top grocerant prepared foods that consumers want to purchase. More than anything, consumers are buying prepared food from groceries to replace a meal. But these same consumers view fresh bakery items as a key part of the meal. Carrying the right assortment of fresh bakery items – muffins and croissants for breakfast; cake slices, squares, and brownies for dessert – creates opportunities to capitalize on this growth.
- In-store advertising is critical to the success of grocerants, as most consumers learn about grocerant offerings once they're inside the store. Signage above serving stations and at the entrance to the store are the most preferred and popular ways of communicating grocerant offerings. In addition to offering the right products at the right prices, it's also important to optimize store placement and promotion. Don't assume consumers will find your grocerant offering – tell them you have fresh prepared meals and desserts that provide the quality and convenience they seek.
- Grocerants offering amenities most commonly found at LSR's should realize the strongest growth. According to a recent survey by Datassential, the grocerant amenities most appealing to consumers include: 1) beverage fountain in seating area, 2) large condiment / plastic silverware / napkin station, and 3) remote seating area. In-store execution will continue to be a major driver in trip conversion. Offering amenities that make it more appealing for shoppers to consume a meal in the grocery store should greatly enhance the likelihood of grocerant success.
CSM Bakery Solutions has a broad portfolio of fresh bakery items that are perfectly suited for the ideal grocerant assortment. From indulgent individual desserts, like cake slices and squares made with decadent Brill icing, to delicious breakfast items, like the new Hershey's®, Reese's®, and Cinnabon® muffins, CSM has the right product for you. And since we're a total solutions provider, we can also help you merchandise and promote your grocerant offerings in a way that will increase trip conversion and basket size.