S ome things are just better together - peanut butter and jelly, milk and cookies, cake and ice cream, spaghetti and meatballs, you get the idea. But food isn’t alone when it comes to matchmaking. There’s a new “dream team” consisting of dining and shopping that has come together, creating a foodservice sensation so incredible that a new word in the English language had to be invented to describe it. Welcome to the grocerant!
to satisfy their appetites with all of the culinary as well as atmospheric advantages that an independent full-service restaurant offers without ever having to set foot outside. Meanwhile, operators benefit by attracting more customers with the added bonus of keeping them in the store for a longer period of time with the expectation of more money being spent. That expectation isn’t an unfounded one, by the way – A study by the NPD Group found that grocerants generated 2.4 billion visits and over $10 billion in revenue in 2016 while visits have increased by over 30 percent since 2008. The consumer has also seen an economic benefit. Another study by the NPD
What exactly is (or isn’t) a grocerant? Those new to the concept may simply see grocerants as a
Group found that a grocerant meal had an average cost of $4.22 compared to $7.96 at a fast casual restaurant, a difference of over 50 percent. What’s Next? Grocerants are still a relatively new phenomenon, so the
As consumer preferences and tastes change, so must the market in order for establishments to adapt and continue to thrive.
grocery store where customers can also grab a quick bite to eat either before
or after their list is complete. And in a way, they’re right because in-store dining isn’t exactly new. For years and in some cases even decades, malls have had food courts and large grocery chains had small fast food franchises contained within them. While this is somewhat related to the concept, true grocerants take the in-store dining idea to a new level by providing full-service restaurant options. Everything from juice or wine bars to meals made to order to a full restaurant atmosphere can be found within a supermarket setting. Some supermarkets will even specially prepare items purchased in the grocery such as meats or fish, where they can then be consumed right there within the dining area. Why Now? When you think about it, grocerants were an inevitability. Consider the age we live in right now – we’re a tech-savvy society that is increasingly interconnected by way of the internet and social media. As a result, we’ve become more exposed to new ideas but we’ve also become increasingly competitive from a technological as well as generational standpoint. Forty years ago, our parents or grandparents went to the supermarket, picked out their items, paid and then went home to prepare family meals. Fast forward to today with everything from websites, apps, home delivery options and farmers markets having entered the fray. Then consider the fact that younger generations, millennials in particular, are far more health-conscious than their Gen-X and Baby Boomer counterparts. A recent survey from Technomics revealed that 52 percent of respondents said they see prepared foods, similar to those found in grocerants, as healthier alternatives to fast food. Put simply, it was time for a change. The traditional grocery store was at a crossroads – evolve with the times or risk becoming obsolete. A Winning Combination With the what, where, when and why having been answered, that leaves us with who. More specifically – who benefits? The answer is fairly straightforward – everyone benefits. Consumers get a “best of both worlds” environment where they can do their shopping in a traditional supermarket setting with the added benefit of a full-service restaurant experience conveniently located inside. They can take a break from shopping or take advantage of the opportunity
territory remains somewhat uncharted in terms of the direction they’ll ultimately take. But there is one thing we can be certain about – evolution will take its course at some point. Stagnation and complacency are a toxic combination in any industry, with foodservice being no exception. As consumer preferences and tastes change, so must the market in order for establishments to adapt and continue to thrive. And we’re already seeing that evolution taking place with operators introducing anything from live entertainment to “build your own bowl” concepts. A decade from now, who knows? Maybe grocerants will blur the line between retail and foodservice or even eliminate it completely to become the new norm. As the old saying goes – anything is possible.
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