Convenience stores’ food-to-go grew by eight per cent in the last quarter as shoppers looked for ‘inexpensive’, ‘quick and easy’ options, states a report released today (14).
According to Wholesale experts TWC and food-to-go and out-of-home tracking programme MealTrak’s 12-week report, overall food-to-go grew by four percent Y-O-Y with multiples, convenience stores and discounters outperforming the overall growth.
Commenting on the results, Tom Fender, Development Director at TWC, said, “Spend on out of home consumption reached almost £5 billion in the 12 weeks ending 8 August 2022, representing growth of +12 per cent vs the same period in 2021. Value growth is significantly outstripping growth in terms of the number of occasions as inflation takes hold.”
Tom Fender, Development Director at TWC
“We are seeing treating as a mission falling back in importance, with a focus on value very evident through increases in ‘inexpensive’, ‘quick and easy’ and ‘filling’. In line with this, we are seeing strong performance in categories associated with ‘meal deals’ such as crisps, nuts, popcorn, sandwiches and drinks.”
“The challenge for food to go and eating out of home specialists will be how to ensure they retain their share of the market. During Covid, we saw many retailers reduce their food to go ranges, but maybe now is the time to consider expansion once more as food to go is generally more resilient through tough economic times due to its lower price point than more formal dining occasions, acting as something of an ‘affordable treat’
Sandwich shops (-11 per cent), coffee shops/cafes (-7 per cent), fast food & takeaway (-12 per cent), high street (-17 per cent) and transportation (-39 per cent) are all in decline.
Forecourts are rebounding well – with a +29 percent increase in occasions in the latest 12 weeks compared to 2021.
Latest MealTrak Results – 12 w/e 8 August 2022 (wave 104) by TWC and Mealtrak
The mission ‘to treat’ (which was so strong during the pandemic) is now clearly giving way to the need ‘to cut costs’ and for ‘speed’ (employees going back to work) and for ‘something that will be filling’, says the report.
“We are still seeing an increase in products associated with lunchtime ‘meal deals’ (crisps, nuts, popcorn, sandwiches and drinks),” the report states, adding that almost 50percent of occasions are for ‘sharing’.
