Dive Brief:
- Just one-third of surveyed shoppers can name a deli-prepared food that their grocery store is known for, and one-quarter of consumers said supermarkets’ prepared foods section doesn’t offer enough options, according to FMI — The Food Industry Association’s latest Power of Foodservice report, which was published last week.
- Shoppers are looking for both more variety in traditional prepared food offerings as well as more global flavors, FMI found.
- Signature foods, consistent execution and an appetizing display can create differentiation and confidence in a grocer’s food reputation and help them become known for something distinctive, FMI’s report suggested.
Dive Insight:
Prepared foods are the largest deli category and are outpacing total deli growth in both dollars and units, FMI noted in its report, citing NIQ data. Grocers should turn their prepared foods offerings into competitive meal propositions by catering to the full meal experience and not just convenience, according to FMI.
The gaps consumers want filled in their grocer’s prepared food offerings come from both ends of the deli category spectrum, with shoppers craving more variety among staple offerings as well as more access to global cuisines, FMI’s survey revealed. As far as staple options go, consumers want more chicken variety, such as fried and spicy preparations, as well as Italian offerings like calzones and Italian sausage.
When it comes to global offerings, shoppers are getting more specific with their requests. For example, shoppers specified Korean dishes like barbecue and bibimbap, and Indian curries and samosas. To accommodate this diversified prepared foods category, FMI suggested that food retailers rely on formats like bowls and wraps as an approachable way to introduce global flavors.
Health and wellness-focused offerings are another area where shoppers are looking for more options, whether it be through vegetable-forward and high-protein meals or vegetarian, vegan and plant-based dishes, per the report.
Asian cuisine offers grocers the opportunity to simultaneously introduce global flavors with healthy dishes, as shoppers specified wanting more “healthy Asian cuisine” in FMI’s open-ended response survey section.
Making these high-demand options available creates an opportunity for grocers to establish a signature dish and turn food reputation into store preference, according to the report. Thirty-seven percent of shoppers who enter a grocery store for prepared foods go on to purchase additional items, and half of deli-prepared customers usually have a prepared food item “already in mind.”
“Signature foods do not have to be unusual,” FMI wrote in the report. “Familiar favorites can differentiate themselves when executed consistently and become strongly associated with the food retailer … Signature foods and distinctive experiences can therefore create value beyond the department by generating trips and broader shopping occasions.”
