FMI annual convention
e a decline in shopper preference for buying prepared foods at the supermarket,"meal solutions is a classic case of what the industry needs to do to revitalize the shopping experience," Michael Sansolo, group vice president of education and industry relations for the Food Marketing Institute, said here last week.
In comments during the Speaks 96 session at FMI's annual convention, Sansolo cited statistics from FMI's Consumer Trends '96 survey that showed only 12% of respondents said they buy prepared foods most often in supermarkets -- down from 17% in the 1995 survey. "Consumers tell us that supermarket food service falls short in a number of areas, with some saying they believe the food has been sitting around too long and others saying they don't know what ingredients are in the food and they don't think it's a good value. "Then we have the real killers, who tell us they don't believe supermarket food service tastes good; they think the quality is inconsistent, and they don't trust the food preparers. "It's hard to win them over if that's what they believe. Yet these are consumer perceptions, and we must win them over. The answer may be better merchandising as much as improved operations." According to Sansolo, more than 63% of supermarkets currently sell prepared foods -- a number expected to climb to nearly 77% by the end of this year. "We all know that for most consumers, the shopping experience has become as joyful as shoveling snow or raking leaves -- the kind of chore that breeds cynicism," Sansolo said. "With meal solutions, we can replace the cynicism with appreciation for the value of a convenient meal that is nutritious and at the same time creates excitement over new and exotic offerings from our chef's kitchen." Sansolo said the industry must look at itself and restaurant competition the way the consumer does -- "as members of the meal industry, all competing to sell the food that eventually winds up in the consumer's stomach." He said supermarkets have a 34% share of the "meal industry," compared with 33% for restaurants. However, while the supermarket share has remained virtually steady for 30 years, the restaurant share has risen from 17% in 1965 "because customers have changed," Sansolo said. "With the growth of two-income households and fast-food restaurants, eating out is very much a part of the daily routine. Consumers no longer devote hours to meal preparation, and it is against this background that supermarket shopping has become such drudgery, and it is against a world of wider choices that we must compete." Joining Sansolo on the podium was Jenai Wall, president of Foodland Super Markets, Honolulu, who said the best way for supermarkets to compete with fast-food restaurants is to "sell food service as a healthful, yet tasty, meal choice. "Don't let the food sit around. Tell consumers what's in it. And make sure the meals are fresh, tasty and offer a good value," Wall said. She also suggested making food service as convenient as possible, "beginning with a separate checkout, a separate entrance or putting the department near the front end. And maybe we should consider ways to offer meals on a drive-through basis," she said. The Speaks 96 presentation also included a video segment featuring Hugh Walker, divisional director for the food group at Marks & Spencer, London, which offers a wide range of ready-to-eat products. Walker said his company works closely with suppliers to develop products and packaging. "Unlike some other organizations, which buy from suppliers, we develop products together with our suppliers," he explained. "Having the right supply base to be able to make the products consistently, safely and to a high quality standard is of paramount importance." According to Sansolo, supermarkets ought to make nutrition more convenient in promoting meal solutions. "FMI surveys have found that consumers make decisions about their dinner by weighing concerns about both convenience and quality. "When their desire for convenience prevails, they usually opt for a fast-food restaurant. When they want quality, they tend to prefer a home-cooked meal. "Supermarket food service, when done right, can satisfy both demands with meals that are more convenient than home cooking and higher in quality and nutrition than fast food." He cited findings in FMI's Consumer Trends study, which indicated that 97% of respondents said they are trying to eat a more healthful diet, while 73% said their diets could be at least somewhat healthier.
Shopper's Primary Source of Takeout Food [chart]
Fast-Food Restaurant 48%
Restaurant 25%
Supermarket 12%
Deli/Pizza Parlor/Bagel Shop/Coffee Shop 4%
Gourmet/Specialty Store 3%
Convenience Store 1%
Other/Don't Know 7%
Source: Food Marketing Institute, Trends in the United States: Consumer Attitudes & the Supermarket, 1996
Evaluation Of Diet
Percentage of shoppers who say they could be somewhat or a lot healthier
1992 66%
1993 67%
1994 66%
1995 70%
1996 73%
Source: Food Marketing Institute, Trends in the United States: Consumer Attitudes & the Supermarket, 1996
