Grocery’s Quiet Lunch Takeover | Fast Five Shorts
This Omni Talk Retail Fast Five segment, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, Quorso, and Veloq, looks at why grocery stores are increasingly winning lunchtime trips from quick-service restaurants.
Chris Walton and guest host Jenn Hahn discuss how ready-to-eat meals, pricing pressure, and changing consumer routines are driving this shift and why lunch may be grocery’s most underrated growth opportunity.
⏩ Tune in for the full episode here.
#Grocery #Foodservice #RetailTrends #LunchRush #RetailStrategy #OmniTalk #RetailFastFive
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Transcript
Don't bring a recruiter on if you don't want to talk talent and AI, Chris.
Speaker A:That's what happens.
Speaker A:But all right, moving on to a happier headline, hopefully, than talking about a bunch of layoffs.
Speaker A:Headline number four.
Speaker A:Traditional grocers are benefiting from an increased share of short midday store visits as consumers increasingly view supermarkets as convenient lunch destinations, claiming market share from quick serve restaurants.
Speaker A:So this is fun.
Speaker A: rted by Grocery Dive, between: Speaker A:Traditional grocers saw their relative share of convenient lunch destinations.
Speaker A:Destination visits.
Speaker A:There we go.
Speaker A:Grow from 15.9% to 16.6% year over year, representing the largest increase among grocery formats.
Speaker A:Placer noted these metrics underscore the strong demand for on the go meal options and single serve shelf stable products that both grocery stores and CPG companies can provide.
Speaker A:Chris, how should grocers react to this change in customer behavior?
Speaker A:They're going to grocery stores for lunch.
Speaker B:Oh man.
Speaker B:I mean, I've been, I've been on this trend for a while.
Speaker B:I think.
Speaker B:I wrote about this for Placer a couple of months ago actually.
Speaker B:And I, you know, I think what I would say, Jen, is like any good merchant.
Speaker B:I would react very quickly and go all in on it.
Speaker B:I would overtly merchandise to it.
Speaker B:You know, that's what I would tell you, Jen, is I'd overtly merchandise to it.
Speaker B:And by that I mean I would have, I would actually have a hook every single day of the week.
Speaker B:And I would also, and here's where I want to get your take on it too.
Speaker B:I would also craft my operational model and my investments around those hooks too, because you probably got to staff this differently in store and you also have to invest in new tech that smooths out the operations.
Speaker B:And so things that come to mind for me are like ESLs, because if you use ESLs, you can actually do intraday pricing on your food service bar, which I think is something that is an untapped opportunity when you think about it, especially given this proclivity in behavior.
Speaker B:And I even think of things like Piccadilly Salad Bar.
Speaker B:I sat next to them all week long last week at FMI Midwinter or even digimarks Barcodes that you can use on the salad bar to then help you control your waste and improve your revenue.
Speaker B:So, so those are the things I would say.
Speaker B:So I'm all in on this.
Speaker B:Go for it.
Speaker B:And, you know, my thing for you is, again, like, how would you as a grocer operationally approach this newfound data stream?
Speaker A:Yeah, I mean, I'm thinking of it from the people perspective, because that's my lens.
Speaker A:Right.
Speaker A:But, yeah, I don't even have to think about how I would advise them to or how I would if I were them, because I've already seen them leaning in, like you said, on it, for a few months.
Speaker A:But we have seen such an increase in clients looking for category leaders when it comes to this Ready to Eat category.
Speaker B:Interesting.
Speaker A:They're built, building or expanding in their central kitchens that they own.
Speaker A:They're building or expanding in their commissary, whatever you call it.
Speaker A:Right.
Speaker A:But they're looking for people that understand this category, that understand the opportunity and the margins and sort of the experience you can create with this category.
Speaker A:And even when it's not a merchant that they're looking for that would own this category.
Speaker A:If we're, if we're hiring food safety leaders, if we're hiring manufacturing distribution leaders, this topic is coming up in our, Our conversations.
Speaker A:Like, we want someone that understands this category.
Speaker A:We want someone that understands opportunity and will work with our.
Speaker A:They're calling it all different categories.
Speaker A:Right.
Speaker A:But our Ready to Eat category, we'll call it.
Speaker A:It's.
Speaker A:There's just such a big opportunity here.
Speaker A:So operationally, I would say lean in, get the right talent, focus on it, make sure your stores are ready for it.
Speaker A:I think the way you lay out your store and can people sit?
Speaker A:Can they not?
Speaker A:Right.
Speaker A:There's the Whole Foods and then there's the stores that you can't go in and actually grab lunch and have an enjoyable experience.
Speaker A:That's a longer term.
Speaker A:But overall, Chris, I really agree with you.
Speaker A:You and I agree a lot today.
Speaker A:We'll see what happens if we get.
Speaker B:To a disagreement as we go forward every month.
Speaker A:Yeah, yeah, this is crazy.
Speaker A:But honestly, I just think as much as E Comm and digital and all the things that we just talked about in the Walmart headline are very important, this is really your opportunity to use your brick and mortar, your, you know, people walking into the store and create an experience.
Speaker A:And that younger generation we know loves an experience.
Speaker A:Like, what's their Instagram picture going to when they stop for your salad bar or your, your Ready to eat options hashtag girl lunch.
Speaker A:I don't know.
Speaker A:That's a thing.
Speaker A:Maybe it's not.
Speaker A:I'm not really a cool millennial.
Speaker A:I'm, like, working on it.
Speaker A:They're probably on TikTok, not Instagram, but anyway, that's, that's my take.
Speaker B:Yeah.
Speaker B:And so what.
Speaker B:And I read between the lines and what you say there and, like, this is why I think it's, you're a great addition to the show.
Speaker B:Every month is like, you are a leading indicator for where people are going competitively for all you executives listening out there.
Speaker B:So, like, if you are in the grocery business and you are not doing what Jen is saying, you are going to be behind in terms of capitalizing on this trend.
