Canadian retailers are set to compete with a wider array of restaurants in regards to prepared food offerings, a new study reveals.
The 2019 Canadian Retailer Meal Solutions Consumer Trend Report by Technomic explores shifts in retailer meal solutions, including patronage, increased competition for restaurants, extending consumer visits and shows that retailer meal solutions are transforming the foodservice landscape.
With increasingly upscale offerings and even in-store restaurants offered by some, lines continue to blur between retailers and restaurants as competition heats up for both limited-service and full-service operators.
Bret Yonke, manager of consumer insights at Technomic, said: “For retailers, on-demand offerings such as the ability to order prepared foods online for pickup or delivery will be key to keeping pace with the restaurant industry as consumers increasingly expect these offerings from foodservice in general.
“Retailers will also need to strike a balance between offering affordable grab-and-go options and increasing efforts to become hangout destinations with pricier, higher-quality fare.”
The report shows that 75% of consumers purchase prepared foods from retailers at least once a month and that 58% of their prepared food purchases are ready-to-eat vs. ready-to-heat items.
However, carry-out is the most popular format for prepared food orders, with consumers saying about 81% of their supermarket RMS purchases are for that category.
Technomic compiled 900 consumer responses, as well as menu and industry data from the Ignite database to process the findings.