With the growth in eating out, understand how shoppers rate eating out ranges and other foodservice initiatives in-store
 

The growth in eating out

IGD's Learning from the Restaurateurs report shows that the number of shoppers who eat out on a weekly basis or more often doubled from 13% in 2003 to 30% in 2007.

Shoppers indicated that they were eating out to satisfy four key requirements;

• the atmosphere surrounding the eating out experience
• the convenience of eating out and cutting out tasks that they do not enjoy
• the ability to taste new food and new ingredients
• the opportunity to go out for a special occasion

Rotisserie chicken - typical convenience food

The foodservice sector has recognised the need for convenient, healthy and tasty offers. Traditional fast food restaurants are now competing against outlets such as Prêt A Manger and the Indian equivalent, Tiffinbites which provide healthy and tasty options.

In a blurring of the boundaries a new concept has been introduced which offers an eating out experience at home with shoppers going to an assembly kitchen where they assemble each dish from raw, pre-chopped ingredients and have the option of eating their own food in the restaurant or taking the food home. This has been very successful in America and has been introduced in the UK by a company called Dinners Made.
 

Changing lifestyles driving an eating out culture

A number of changes within consumer lifestyles are contributing to the growth of eating out of home.

• More women are taking an active role in the labour market. The convenience of eating out appeals, particularly to single working women with busy social lives.
• The number of single person households has increased to three in ten (29%) in 2006 compared to 18% in 1971, rising at a faster rate than the population as a whole. They often prefer the convenience and overall atmosphere of eating out to eating in.
• Shoppers value their time and are increasingly willing to pay more for the convenience of eating high quality meals in restaurants.

Rating foodservice initiatives in store

38% of shoppers believe that supermarket’s pre-packaged and ready to cook ranges taste worse than eating out

The influence of foodservice on retailing is significant. One in five consumers has changed the foods they eat or tried new things at home as a result of foods they have tasted while travelling or when eating out at restaurants. However, consumer reaction has been generally mixed towards developments within retail to provide more of a foodservice offer. This offer includes eating out ranges and in store restaurants and cafés.

• Approaching 4 in 10 shoppers (38%) believe that supermarket’s pre-packaged and ready to cook ranges taste worse than eating out, particularly those in higher social classes. Those who conduct their main shop at Tesco (42%) and Morrisons (44%) are also more likely than those who do their main shop at Asda (32%) to rate them worse than eating out. Only 8% of all shoppers believe that supermarkets’ pre-packaged and ready to cook ranges taste better.

Eating Out Ranges compared to Eating Out

Source: IGD Consumer Unit, 2007

While some shoppers are supportive of ready to cook ranges, valuing their high quality taste, freshness and convenience, others believed that they did not offer good value for money as the portion sizes were often seen as too small for the amount charged. Therefore although shoppers are willing to pay a bit more for convenience, they need to be assured that they are getting value for money.

Identifying foodservice opportunities for suppliers and retailers

Our research is increasingly showing that for meal solutions, it is no longer enough for a product to be convenient. Shoppers are becoming more demanding, discerning and adventurous about the food they eat. They increasingly want to put the glamour, theatre, variety and taste of the restaurant into their shopping basket, making the dining out trend an opportunity for retailers as well as for restaurateurs.

Almost four in five (78%) shoppers want supermarkets to do more to provide them with the luxury and quality they associate with eating out when they are home. The most popular suggestions included the introduction of food sampling (33%), a wider variety of fresh meals (22%), recipe cards (21%), more foods from around the world (18%), cheaper premium eating out ranges (17%) and better portion sizes to suit lifestyles (16%).

78% of  shoppers want supermarkets to do more to provide them with the luxury and quality they associate with eating out when they are home.

The success of foodservice has been about providing an experience for the customer, as much as it is about the food. Food retailers can learn from the restaurateurs by understanding how to incorporate the experiential factors into the shopping process, and by trying to achieve the positive feelings shoppers have about food within the retail environment.
 

More information:

Learning from the Restaurateurs Is foodservice the strategy for re-engaging shoppers with food? Does it represent an opportunity for growth in the food and grocery industry? IGD's Learning from the Restaurateurs report will look specifically at the impact of foodservice on retail and where the boundaries are blurred.

Shopper Trends - 5 Years On The definitive guide to shopper attitudes, this report provides five years of annual tracking data and will help you understand drivers of product and store choice and the impact of emerging trends such as food price inflation, indulgence, ethics and health and wellbeing on purchasing habits.

--------------------------------------------------------------------------------


Michael Freedman has over 18 years agency and clientside experience in managing and conducting qualitative and quantitative research projects covering emerging trends affecting the food and grocery industry such as ethics and health. Michael has been involved in quantitative and qualitative research exploring shoppers’ attitudes to place of origin, local food and food miles and exploring how these issues are affecting shopping purchase decisions and Pan-European research identifying insights into evolving shopper attitudes and behaviours towards ethical consumerism.