Focusing on freshness, quality, convenience and service can help maintain food-to-go sales in a declining economy

The food and grocery industry is more resilient than most in difficult economic times, but within this sector, food-to-go is at the more vulnerable end, partly because it is an obvious area for consumers to cut back on when saving money becomes paramount.

Our new research, Food to Go, looks at the impact of the recession for shoppers purchasing food and drink to eat on-the-go and highlights some critical priorities.
 

Cash poor, time rich consumers are preparing  more food at home

Cutting back

Our research reveals that of the 73% of consumers who purchase food and drink-to-go in the current climate, nearly half (47%) of these have economised on what food or drink-to-go they purchase, due to the credit crunch.

However, cutting back on food-to-go is not evenly spread. It is focused among those in lower social groups, those aged 25-44 and those with children.

These cash poor, time rich consumers are employing a range of techniques as a way of saving money on purchasing food-to-go. These include preparing more food at home, either to eat there or to eat on-the-go.
 

I have started to use some leftover pasta that I have prepared the night before and put it in a container to take to work.     Barnet, mixed, children 6-15, C2D

Some of these consumers have also changed their food-to-go shopping behaviour. This includes sticking to a set budget as well as buying more multi-packs of products to include in their lunch or snacks on-the-go.
 

I am buying multi-packs and taking it into work. It is cheaper that way.     Barnet, mixed, children 6-15, C2D

Food-to-go still a welcome treat for others

However, for others, food-to-go is seen as something separate to the weekly shopping trip. For many, particularly workers in higher social groups, it represents a treat.

Many respondents in our focus group felt that since they spend relatively little on food-to-go, they could absorb the costs by economising in other areas.
 

I don’t think about the prices as much (for food-to-go). I just buy what I want. I am only buying a sandwich after all.     Leeds, female, children 0-5, BC1

The fresher the better

	Key drivers for food-to-go store choice • Quality & freshness • Convenience • Service • Choice/availability • Other store factors

Encouragingly though, price is still not the top factor for food-to-go shoppers.

More than half (56%) of those purchasing food or drink to consume on-the-go decide where to purchase based on the freshness or quality of the food and drink available. This compares to around three in ten (31%) who mention price as a key driver

Freshness is particularly important among sandwiches buyers and the ability to see the food being prepared is important for these shoppers.
 

I like the fact that their (take-away sandwich chain) bread is fresh every day. You see the sandwiches made right in front of you and everything is fresh.     Leeds, female, children 0-5, BC1

No time to wait

The ability to get in and out of the outlet as quickly as possible at a time and location that suits the consumer is another key consideration of where to shop for food-to-go. Forty-six per cent of food-to-go consumers state that service, particularly quick service, is an important driver of store choice.

It plays a more significant role for food-to-go than for the main supermarket shop when shoppers generally have more time.
 

What shall I choose today?

A good choice and availability of food-to go products is also ranked highly (41% mentioned this as important) when choosing where to purchase products to eat and drink on-the-go.

Many respondents in our focus groups were happy with the existing variety of food-to-go products to choose from. However, others wanted more choice and more reliable availability including hot food at supermarkets.
 

Meeting the different needs of food-to-go shoppers

For those shoppers economising:
With rising unemployment and more part-time working, the drift will continue from cash rich/time poor towards cash poor/time rich consumers.

Consumers have high expectations for freshness

It is therefore critical for food-to-go operators to counter this with a combination of compelling and innovative products with competitive pricing (particularly for females who may be tempted to make their own food-to-go at home). Beating home prepared lunches for quality and value should be the benchmark, and this means an equal emphasis on marketing and supply chain.

For those still purchasing:
Many food-to-go consumers have high expectations for freshness. This is a time for raising those standards even higher, rather than reducing them for the sake of economising. Products made freshly in store, but with very fast service, is one winning combination.

More imaginative meal deals, involving a good choice of products, can encourage more cross selling.

The food-to-go sector will lose some of its operators in the recession but the more adaptable, shopper focused players will continue to grow and be very strongly placed for the upturn.

More information:

	Food to Go
	How do retail food-to-go offers compare in quality and value perception to those that are well established in the foodservice sector? Does it represent an opportunity for growth or has the tide turned? Find out with this in-depth guide to food-to-go.

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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. Michael has recently been involved in research exploring the requirements of older shoppers, understanding attitudes to place of origin, local food and food miles, and exploring how these issues are affecting shopping purchase decisions.

He is also involved in pan-European research projects, and identifying insights into evolving shopper attitudes and behaviours towards ethical consumerism. Michael is the author of IGD's new Food to Go report.