Grocerants Capture Restaurant Dollars

Increasingly, supermarkets have upped their fresh prepared food to restaurant quality.

April 07, 2017

CHICAGO – From wood-fired pizza to glasses of wine, grocery stores are giving restaurants a run for the consumer dining-out dollar,USA Today reports. Grocerants brought in $10 billion in sales last year, and registered a nearly 30% increase since 2008, according to The NPD Group.

"The market has become very blurred," said Bonnie Riggs, NPD restaurant analyst. "The competition was just the restaurant down the street, but it's also now places that offered prepared meals that compete directly with restaurants."

More than 40% of Americans buy prepared foods at a grocery store, a trend that's been driven by millennial shoppers. "Retailers started looking at what restaurant operators were doing," Riggs said.

From Wegmans with its Burger Bar to The Kitchen at Lucky's Markets with its "sip-and-stroll" programs, grocers are making food shopping less of a chore and more of a destination. It's a strategy that's been paying off. The Food Marketing Institute found that nearly 62% of its members pointed to in-store dining as giving them a competitive bump.

Advertisement
Advertisement
Advertisement