Casual dining increase could rub off on packaged goods
ingredients has resulted in consumers increasingly opting for fast
casual dining, but continued growth will not necessarily occur at
the expense of packaged goods, says Mintel.
According to a new report by the market researcher, sales of leading fast casual chains have doubled in the past five years and will reach an estimated $11bn this year.
But although the category is eating into lunch sales at full-service restaurants, and will also have an impact on fast food chains, packaged goods may not face the same fate.
Indeed, food manufacturers could be set to benefit from the growing trend, by capturing a slice of the wondering consumers searching for healthier, more convenient lunch options.
"Sure, a new, fast growing competitor for the lunch day part may seem frightening. But growth in fast casual chains indicate that there is growing interest in premium, health-based food-service away from home," said Mintel analyst Bill Hulkower.
"Premium, health-based and away from home foods are three distinct, long-term trends. There is no reason why convenience stores and supermarkets cannot capitalize on these trends as well," he told FoodNavigator-USA.com.
Indeed, according to the new research, more than half of American consumers think fast casual dining is healthier than fast food restaurants, and almost half said they would be willing to spend more to eat healthier.
But according to Hulkower, "it's not just about health. If you're interested in healthy eating , you probably should avoid a 1300-calorie burrito with four grams of salt and 20+ grams of saturated fat. It's also about novelty- the fresher the concept, the faster it's growing."
And the trend, said Mintel, is rapidly shifting from low-carb to a variety of health-based trends such as trans fat-free, organic and local food.
"However, unlike fast casual chains, where the entire brand position is based on the premium and health trends, convenience stores and supermarkets will need to do some heavy marketing," said Hulkower.
This would involve convenience stores letting people know they have the product, giving it a name, and selling that name as fresh, premium, and healthy, he explained. And supermarkets would have to market the fact that customers can get in and out of the store quickly. He also indicated that a named line of lunch products may have potential for sale in supermarkets.
"Another method for riding this wave is to sell branded product. Why shouldn't a local supermarket carry Panera bread? It's not baked on site either way. Even as fast casual chains grow, consumers will become further trained to seek out premium, health-oriented food outside the home and convenience will be a huge factor. If a 7-11 is close to home or work, and has a high-end healthy, branded product, why go for the long lines at lunch at Panera?" said Hulkower.
Panera currently leads the fast casual dining sector in sales, with other rapidly growing chains including Zaxby's, Wingstop, Qboda Mexican Grill and Pei Wei.
