SAN JOSE, Calif. -- In-store bakeries have a lot of work to do to compete better with the commercial baked goods aisle a few steps away, as well as the specialty baker down the block, according to a new study of consumers' shopping habits.
The study was conducted by the Gallup Organization, Princeton, N.J., and commissioned by the International Dairy-Deli-Bakery Association, Madison, Wis.
A summary of the study's findings was presented at IDDA's annual exposition here by Rosita Thomas, Gallup research consultant. Thomas said that significant percentages of baked goods consumers, even those who shop the supermarket in-store bakery, are turning to other sources for important product categories such as bread, decorated cakes, bagels and sweet goods.
"You do have a little bit of competition from your supermarket aisles," said Thomas. "Forty-seven percent said they buy most products from the aisles. About a third said they buy most products from the in-store bakery, and 10% said they buy most from specialty bakeries." The survey was a blend of focus groups conducted in Richmond, Va., and Minneapolis, and 1,002 telephone interviews taken in April 1995. The study is the latest segment of a continuing project to gauge consumers' shopping habits in the fresh bakery and deli departments.
Gallup asked consumers where they did their baked goods shopping, what products they purchased and why, as well as their general perceptions about service and quality.
"What percentage of the market do you capture? It turns out you have some work to do," Thomas said. She went on to break down responses by product category.
"Crusty bread is doing pretty good," she said, "but you have got to make headway on bagels, variety breads, white bread and buns and rolls. On some items, the major competition is on the aisle. For others, especially sweet goods, the competition is specialty bakeries."
The study showed that, on average, consumers are eating variety breads 3.3 times a week, compared with 3.2 in 1990. This year, 60% of respondents said they consume variety breads once or more a week, compared with 62% in 1990.
White bread consumption was reported up dramatically, with 61%. eating it 3.4 times a week in 1995, compared with 48% in 1990.
"There is a big increase in bagels," Thomas added. "Consumers are eating bagels an average 1.7 times a week. Thirty-four percent are eating them once or more a week, up from 20% in 1990. Bagels are really hot and moving."
The picture for croissant consumption, however, "is not so pretty." The percentage of respondents saying they eat croissants once a week or more has dropped dramatically, from 22% in 1990 to 7% now. "Maybe that is partly due to concerns about high fat," Thomas suggested.
She advised that such concerns about fat and other factors related to health could help add to bread sales.
"Specifically, on bread-eating habits, the average is 3.8 servings a day. The U.S. Department of Agriculture recommends 6 to 11 servings daily. I think that if you can post that Food Guide Pyramid, and offer advice on how they can eat bread with other low-fat items such as jams, you will up that figure," said Thomas.
Buns and rolls saw a slight consumption decline since 1990, according to the study.
Asked where they bought bakery products, 86% of the consumers said they purchased goods from supermarket aisles, while 78% said in-store bakeries, 42% bought products at specialty bakeries, 39% at doughnut shops, 32% at convenience stores and 26% at food warehouses. Interestingly, 64% said they still do some home baking, Thomas noted.
While quality was named as the most popular reason for shopping at specialty bake shops, convenience was picked as the No. 1 reason for buying from the supermarket.
"We want to make sure that when bakery shoppers think of in-store departments, they think about quality. Special occasions come up a lot for specialty bakeries. You also want them to think of you for special occasions," Thomas said.
"In early stages [of the focus groups], I asked them to write down what they think of when they think of bakery products. Over and over, the word 'smells' came out. This is a kind of longing for the past. They want home-baked product," she explained, "especially baby boomers. They also want to feel special, they want a treat, they want an experience."
She said that the visual cues offered in the in-store bakery are also important, and offered an excerpt from a taped focus group session in which one male consumer said, "The smell of fresh bread is just out of this world, and it gets you in the mood to buy products. And then everything visible behind the plastic, the colors on the sprinkle doughnuts, the eclairs, just the colors, it's real eye-catching."
Another said, "The smell of the fresh baked food sends me right back to memories of when I was a kid, and my mother and grandmother were baking. You smell that, and you just know it was baked minutes ago, out of the oven freshness."
Thomas said the cue from this is clear. "Smell really indicates freshness. In another session, we found if something smelled good it was a big driver of purchasing. If you can, announce when something comes out of the oven."
