Welcome to the Grocerant

supermarketmenu

 

It's 4 PM. Dinner is just a few hours away. Do you know what you're having?
Studies show that 81% of Americans aren't sure.

A Hungry Man Salisbury Steak dinner? Mac and cheese from a box? Those days are gone. Today you can kick things off with a cup of Panera's broccoli cheddar soup or maybe some of Hooters' chicken wings. Are you in the mood for a burger? Choose from T.G.I. Fridays sliders, L.A.'s  famous Fatburger, or the cultish White Castle. And don't forget to save room for a slice of the Cheesecake Factory's Oreo Dream Extreme.

Eating out while staying in.
Restaurant brands are gaining traction in the supermarket. Ready-to-eat or heat-and-eat meals that bear the name of your favorite casual or quick-serve outlet are blurring the line between eating in and dining out. The industry's name for this hybrid is grocerant, where grocery shopping and restaurants collide.

Restaurant, supermarket, and consumer trends have all pushed us toward grocerants.

Restaurants were hit hard during the recent economic downturn.
Customers weren't coming to them so they developed products that they could bring to the customers. Franchisees worried that the grocerants would cut into their dining-in sales, but the restaurants learned that if they developed licensed supermarket products that were a good fit without seeming identical to menu items, it could actually help the brand.

Supermarkets have also embraced the grocerant model.
They've been scrambling for years to keep up with the ever-expanding category of prepared foods. Shoppers are looking to bring the restaurant experience home. Grocers have tried to replicate that experience by installing pizza ovens, rotisseries, and stir-fry stations, but it's quicker and easier to relinquish the space to licensed grocerant products. For all the effort it takes to create a store brand from scratch, they know that consumers are more likely to purchase a brand they already like over one they don’t know.

Consumers are cash-strapped and time-crunched. 
The supermarket might be a necessary downgrade from dining out, but restaurant-branded grocerants help soften the blow. They know that a frozen or pre-made version of the freshly-served restaurant counterpart is an inferior product, but for the savings and convenience it's a compromise they can live with.

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