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FMI Explores Grocery Foodservice In Annual Report

FMI foodservice report

Food Marketing Institute (FMI) released its annual assessment of the state of the foodservice at retail Sept. 4, demonstrating the opportunities for retailers to leverage a $13 billion category. Growing annually at 8.2 percent, foodservice is presented as a primary strategy for food retailers to differentiate and appeal to convenience-seeking consumers.

FMI’s 2019 Power of Foodservice at Retail finds that 63 percent of consumers continue to incorporate time-saving solutions in the form of semi- and fully-prepared items for dinner, but opportunities exist for grocers to garner greater visibility as the primary dinner solution. Survey participants offered feedback for their stores to focus on faster service, more cuisine variety, healthier dishes as well as healthier alternatives to current options, competitive prices, more information, freshness, knowledgeable and available staff, and various operational improvements such as cleanliness and in-stock performance. 

FMI VP of Fresh Foods Rick Stein noted that consumers continue to look for convenient ways to get all—or part—of their meals away from home, and supermarkets play a pivotal role in this decision making.

“The study notes that grocers with a positive reputation in retail foodservice can serve as strong motivation for 64 percent of shoppers who say they will actually go out of their way to find these stores,” Stein said. “Competitive differentiation strategies abound for our grocery members who place an emphasis on variety and reduce obstacles through fast and convenient shopping experiences. These experiences may also be enabled by technology, as we’re witness to similar motivations in the restaurant industry.” 


Need for variety 

Eighty-eight percent of shoppers want to see more new items and flavors in retail foodservice. In fact, the most frequently mentioned word in the open-ended suggestions of the survey was “more,” in combination with words such as variety, food, options and items. 

The highest share, at 31 percent, want to see flavor and item rotation on a monthly basis, but 28 percent want even greater levels of innovation and recommend a weekly or even daily rotation. 


Need for speed

The importance of speed is once more underscored by the grab-and-go, ready-to-eat format being the most popular method, which is of interest to 68 percent of shoppers. 

Grab-and-go, heat-and-eat is the second most popular style, at 63 percent. 


Need for technology 

While 57 percent of shoppers have grocery store apps downloaded, 42 percent actively use one or more. 

App usage is highly related to checking weekly specials (78 percent), online ordering of groceries (53 percent), getting recipes and meal ideas and researching the deli-prepared foods menu, but foodservice orders lag (38 percent).

The FMI 2019 Power of Foodservice at Retail analysis will be presented at the Total Meal Solutions Summit on Tuesday, Sept. 10.

About the author

Treva Bennett

Senior Content Creator

After 32 years in the newspaper industry, she is enjoying her new career exploring the world of groceries at The Shelby Report.

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