Wednesday, August 24, 2016


Appetite grows for grocery-restaurant hybrids



Shoppers won't just find the usual rotisserie chicken at the Publix within The Marketplace at Dr. Phillips. They can pick up a roll from the sushi bar, a doughnut ice-cream sandwich from the in-store cafe or a buffalo chicken flatbread pizza from the deli.
And that Publix in west Orlando is not the only local supermarket offering meals on the go — or in the store's own dining area.
Groceries are seeing more customers coming in for a quick meal — and these so called "grocerants" (grocery-restaurant hybrids) are adding restaurant-style options.
"(Grocers are) trying to make the grocery store a little less utilitarian and a little more on the experience side," said Darren Seifer, an analyst with The NPD Group, a business research company.


In-store dining and take-out of prepared foods from grocers has grown almost 30 percent since 2008, according to a recent NPD study. Last year, NPD said, shoppers made 2.4 billion visits to grocery stores and other food purveyors, resulting in $10 billion in consumer spending.
Younger adults, particularly millennials, are behind this change, said Darren Seifer, an analyst with NPD. These consumers between the ages of 19-35 want a variety of budget-friendly dining options but they don't want to sacrifice fresh, healthy foods.
"They've kind of been conditioned to think they can get fresh in a hurry," Seifer said, citing the rise of fast-casual restaurants as an example.
Supermarkets want to ensure they are in on "the game of saving consumers time" while making their stores more appealing, Seifer said.
Men make up about 40 percent of grocery shoppers, and many view heading to the mart as a chore, he said. Markets are trying to soften that image.


Many Whole Foods shoppers grab sides of even sliced vegetables to cut out the meal prep work, said Vicky Santamaria, a marketing field associate for the Texas-based chain.
"Time is precious," Santamaria said.
Whole Foods has provided prepared items for a while, but the offerings have expanded locally through the years, particularly in the more affluent Dr. Phillips area. The Whole Foods there boasts several "bars" for customers to pick up soups, salads and hot foods.
Tourists in particular use the Dr. Phllips' market for a meal in the in-store café or their own hotel rooms, she said.
"We can arrange the store to whatever community we're in," Santamaria said.
Consumers want to feel a connection to the places where they shop, said Laura Strange, a spokeswoman for the National Grocers Association, an organization that represents independent retail and wholesale grocers.
Grocerants make their stores community hot spots by offering everything from free wireless connections to cooking classes.
"If consumers are feeling this sense of community, (stores) will see people returning and see loyalty for that store," Strange said.
Shoppers at Lucky's Market can sip on a pint of craft beer or a glass of wine while picking up groceries or perusing the prepared-foods section for coconut chicken tenders, meatloaf, bacon jalapeno mac and cheese poppers and more.
Lucky's recently opened in east Orlando. The store with the tag line "organic food for the 99 percent" wants to provide a relaxed, stress-free atmosphere for shoppers.
The Colorado-based chain even offers a bistro area for diners, said store director Bob Knaus. It just "nails it" when he sees a family eating together while playing one of the store's board games.
"The cafe is somewhere people can come sit down relax and take a break," Knaus said.

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