As the world gets busier the demand for food on-the-go is set to grow and thrive. This presentation covers everything you need to know about this increasingly important sector; providing key market insight to demonstrate how operators can maximize grab and go opportunities by staying ahead of the trends, right though to packaging material options and waste management issues.
2. www.planglow-usa.com
Content
1. The evolution of grab and go
2. The sandwich: A key component
3. Sandwich mega trends
4. 2016 hottest food trends
5. The role of packaging
6. Environmental challenges
7. Getting it right
4. www.planglow-usa.com
What is Grab & Go?
• Pre-packaged, ready-to-
eat prepared food
• Self service from a chilled
or heated merchandiser
• With little or no customer
prep required
• Once regarded as second
class meal offering
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History of Grab & Go
Secret of Success:
• See the food before buying it
• Strict fresh food policy
• No food could be left overnight
• Glass-fronted compartments and shiny fittings were
considered sanitary
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Today’s Grab & Go
Key drivers remain the same:
• Freshness of food
• Speed of service
• Value
• Customization
• Visual appeal
• Clear/ windowed packaging has replaced the Automats
glass doors
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Today’s Grab & Go
Key drivers remain the same:
• Importance of curating well designed grab and
go sections
• “Build baskets”
• Drive consumer interest
• Increase check-out revenue
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Today’s Grab & Go
Decision making influencers:
• Diversity of flavors
• Ethnic selections
• Healthy alternatives
• Snacking options
• Portable packaging
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Today’s Grab & Go
Drivers of market growth:
• Longer working hours
• Shorter lunches
• Dramatic changes in lifestyle, patterns and demographics
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Sandwiches: A Key Grab &Go
Component
What percentage of Americans eats a sandwich each day?
Nearly three fourths of restaurants serve sandwiches
50%
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A truly GREAT sandwich starts
by having…
42% Truly Great Bread
38% Truly Great
Meats/ Poultry/
Proteins
6% Truly Great
Cheese
8% Truly Great
Sauces/ Flavors
7% Truly Great
Toppings
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Away From Home Sandwiches:
Attribute Importance
38% Truly Great
Meats/ Poultry/
Proteins
6% Truly Great Cheese
7% Truly Great
Toppings
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1. DELIVERY - AMAZONING AND URBERIZING THE
RESTAURANT INDUSTRY
A recent survey found that 36% of consumers worried
about "chemicals" in their food ... in another survey,
40% of consumers report it’s “very important” that
foods use all-natural ingredients, free of GMOs and
artificial flavors or colors.
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2. HEALTHIFICATION OF FAST AND FAST CASUAL
FOOD
Whose healthiest?*
43% C&U
48% Hospitals
50% Senior Living
(% of healthy items on their menus)
Shift away from diet foods in favor of
wellness and nutrition
A recent survey found that 36% of
consumers worried about "chemicals" in their
food ... in another survey, 40% of consumers
report it’s “very important” that foods use
all-natural ingredients, free of GMOs and
artificial flavors or colors.
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3. IS PASTAAN ENDANGERED SPECIES?
As well as reducing carbohydrate intake, consumers are also
switching to more nutritious carbs such as Quinoa and Chick peas.
Vegetable spiralizers sales explode!
In the US pasta sales are
down 6% as customers focus
on protein and shed carbs
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4. VEGETABLES ARE STEPPING UP TO THE PLATE
• Rise in flexitarians
(17% of adults who follow a partially vegetarian diet esp. 18–24)
• Not just for Vegans and Vegetarians
• Provides opportunity to add seasonality to a menu
• In 2014, 2% of consumers avoided all animal products
• 3% avoided meat, poultry, and seafood*
• Meatless/vegetarian dishes rank eighth, and vegan is 11th
among the hot center-of-the-plate trends (NRA 2014)
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5. GROWTH OF SNACKING
• The average number of in-between-meal snacks grew from 1.9
per person per day in 2010 to 2.8 in 2014.
• Half (51%) of adults ate three or more snacks per day, up from
21% in 2010.*
• In 2014, 28% of adults reported eating four or five mini-meals a
day; 21% say that they eat on the run and “grab food when
they can.”*
• Yogurt, fruit, and bars are the snacks most likely to be used as
meal alternatives.**
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REDEFINING SNACKING
• Not just chips and candy
• Shift from carb to protein and sweet to savory
• 3 meals a day culture decline (particularly Millennials & Gen Y)
• Growth leader within C&U are fruit (46%), yogurt (26%)
and salty snacks (16%)
Snacking increased 47%
between 2010-2014!
51% of C&U and 37% of
hospital operators expect
growth in the dips, salsas
and hummus market
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6. FEELING FRESH
• Nearly nine in 10 adults (87%) feel that fresh foods are healthier
• 80% believe that they are tastier
• 78% of consumers are making a strong effort to eat more fresh versus
processed foods.*
• Over the past 10 years, consumption of fresh foods grew 20% to more
than 100 billion “eatings” per year.
• The NPD Group (2014a) projects fresh eatings will exceed 120 billion
per year by 2018.
• Fresh prepared foods are projected to outpace retail and foodservice
food/beverage sales through 2017 with sales up 6%–7%.**
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7. BREAKFAST BOOM
• Increased prioritization of breakfast
• Speed of service
• The a.m. daypart is chock full of opportunity.
• In 2014, breakfast was eaten at home 5.1 times per week.*
• Half of breakfasts are eaten alone.**
• Importance of portability
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2016 Hottest Food Trends
2016 BUZZWORDS Falafel appearing as vegetables in serious restaurants. Kombucha
going mainstream. Burnt vegetables. "Shack" in restaurant names. Everything bagel
seasoning mix. Root-to-stalk cooking. Why poke isn't hokey. Globalized ramen.
Adding seaweed to popcorn. More automation and kiosks in fastfood, fast-casual
restaurants ... speeding service, saving labor. 3-D food printers. General Tso
flavorings. Alcoholic beverages in quick-service restaurants. Chains replacing artificial
additives with natural artificial additives. Paella. Fast feeders complicating their lives
by adding build-your-own options. Values, not value ... consumers scrutinizing
restaurants' policies on health-wellness, sustainability, additives, GMO, animal welfare,
employee wages. Nashville Hot Chicken. Fallout in frozen yogurt chains ... juice bars
may be next. Food halls galore -- maybe too many. War on food waste. What happened
to bone broth? Philippine cuisine.
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The Role Of Packaging
• Does it present your products in the best possible way?
• Does it perform?
• Does it tell your story?
• Is it sustainable/ does it support your eco credentials?
• Is it space efficient?
• Is it versatile to work with different types of product?
• Does it support/ complement your brand?
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The Role of Packaging
• Protecting the food
• Maintain product quality:
– Heat retention
– Retain freshness
– No leaks or seeps
• Convenience
• Communicating the brand
• Environmental impact increasingly important factor
60% of consumers say they
are willing to pay more for
products made with
sustainable materials
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Packaging Statistics
• How much packaging do you think is used each year?
3.2 million tons* (This is up 700% in 30 years*)
• How much is actually recycled?
Less than 1%*
• How much food waste do you think is generated each year?
More than 133 billion pounds of annual food waste**
• How much food waste does the average commercial kitchen produce
per week?
Over 4000+ pounds!
• 25-40% of food that is grown, processed and transported in the US
will never be consumed****
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Environmental Challenges
• Increased governmental regulations on waste disposal
• Diverting waste to landfill targets
• Increased waste to landfill costs
• Higher waste haulage charges
• Availability of local composting facilities
46% of operators
say that waste is
their biggest issue
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Packaging: The Environmental
Challenges
• What are your environmental objectives?
• Which waste options will work for your organisation?
• Are there any legislative requirements you must adhere to?
• Understanding the local waste management infrastructure
• Reusable versus disposables?
• Onsite equipment v’s offsite?
• Importance of staff training and education
• Requires clear and consistent messaging through signage and
posters
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Customer Insight: California State
University Chico
“By switching to
compostables more than
2,800 pounds of packaging is
potentially diverted from
landfill per year”
“It also resulted in a 17%
increase in sales”
Corinne Knapp, Retail
Manager for Associated
Students Dining Services
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Getting it right
• Look for inspiration in the marketplace and commercial
peers – Pret a Manger (student favorite)
• Seek out best practice at other concepts
• Listen to your customers
• Don’t ignore the sales figures – core favorites should
always be on the menu
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5 insights from Pret a Manger’s CEO Clive Schlee:
1. Don’t change essential parts of your model
2. US customers insist on customization
3. US customers like variety
4. Don’t underestimate
seasonal influence
5. Bigger is often better
Characterized by pre-packaged, ready-to-eat prepared food offered for sale from either a self-service heated or chilled merchandiser with little or no customer preparation required, grab-n-go meal offerings are now key elements of many successful foodservice programs. While they were once regarded as second class meal offerings, almost every segment of the foodservice industry has taken notice of this growing trend.
History of Grab-N-Go
Consumers helping themselves to ready-to-eat meal solutions can be traced back to the early 20th century. Horn & Hardart opened the first “Automat” (from the Greek automatos, meaning “self-acting”) restaurant, in Philadelphia in 1902. Customers assembled their own meals by inserting nickels into slots and grabbing their choices from compartments embedded in the cafeteria walls with glass-fronted doors. Customers found this advantageous for many reasons—they could see the food before buying it, they thought the glass-fronted compartments and shiny fittings were sanitary, and the automats had a strict fresh-food policy: no food could be left overnight. See this article for background information: http://www.smithsonianmag.com/history/meet-me-at-the-automat-47804151/?no-ist
Customers found this advantageous for many reasons—they could see the food before buying it, they thought the glass-fronted compartments and shiny fittings were sanitary, and the automats had a strict fresh-food policy: no food could be left overnight. See this article for background information: http://www.smithsonianmag.com/history/meet-me-at-the-automat-47804151/?no-ist
In the 1970s Horn & Hardart replaced its dying restaurants with Burger King franchises
Though the last Automat closed in 1991, new players have emerged, most notably Pret a Manger, the London-based chain that launched in 1986 and now includes over 300 stores worldwide. Now, as then, primary purchase drivers of food-on-the-go include the freshness of food, speed of service, value, customization and visual appeal.
Today clear packaging has replaced the small glass doors of the Automat. Operators offering GNG items say that adding a transparent window to GNG items can increase sales as much as 20 percent.
Well-designed grab-n-go sections (also known as “curating”) allow consumers to “build baskets”—construct meals out of small portions or add a bottle of wine or piece of whole fruit. This bite-sized autonomy gives customers an opportunity to build a hearty meal with a variety of flavors, textures, and degrees of healthy choices. It’s a mix-and-match style that makes for exciting meals on the go. Operators generally support basket-building because it drives consumer interest and ultimately higher check-out averages.
Retail Dominance
Despite its genesis in restaurants, GNG programs have flourished in the Beyond Restaurants segment, dominated by supermarkets and c-stores. There is healthy competition in the market and portable packaging, diversity of flavors, ethnic selections, and healthy alternatives all play a role in the fight for market share.
Positive Market Outlook
The world is getting busier—people are working longer hours, fighting through long commutes, raising families and participating in extra-curricular activities. Food-on-the-go has become routine, but customers still crave a positive experience around their meals. Curated offerings and diverse flavor profiles allow busy shoppers to develop a meal that is both quick and satisfying. Because of this, Technomic expects the foodservice grab-n-go market to continue to grow and thrive, especially as best-in-class examples keep increasing the variety and quality of their on-the-go offerings. In fact, it might be more appropriate to call the segment grab-n-GROW.
Source: Technomic
Answer: 50%
New York state taxes burritos as sandwiches. But Massachusetts feels differently: In 2006, a judge there settled a turf war between Panera Bread and Qdoba Mexican Grill by ruling that a burrito is not a sandwich. In the end, it came down to the difference between two slices of bread versus one tortilla.
For the record, The Atlantic says a burger is a sandwich. But a hot dog? No.
Demonstrates that Quality and Freshness are key as well as providing made to order giving the consumer the opportunity to make their own choices (customization)
Stats provided by Data Essentials Sandwich Report 2014
Consumers’ sandwich choices vary widely. Turkey and ham are the two most commonly consumed sandwiches. Subs are a leading away-from-home choice whereas grilled cheese and PBJ are predominantly consumed at home. Shows that consumers are more adventurous outside of home.
Stats provided by Data Essentials Sandwich Report 2014
Food Service Handbook 2015
Food Service Handbook 2015
Pomegranate, avocado, and chocolate–peanut butter were the fastest-growing smoothie flavors in restaurants in 2013 (Datassential 2014a).
BBQ and Upscale breads are among the new sandwich megatrends popular with consumers
BBQ and Upscale breads are among the new sandwich megatrends popular with consumers
Naan and bao create Asian-inspired sandwiches while waffles are being used for a handheld chicken & waffles dish.
Piadina is a thin Italian flatbread
Challah, plural: challot /xɒloʊt/ or challos /xɒləs/, is a special Jewish braided bread eaten on Sabbath and Jewish holidays
Arepa is a type of food made of ground maize dough or cooked flour prominent in the cuisine of Colombia and Venezuela.
A paratha is a flatbread that originated in the north of the Indian Subcontinent. It is still quite prevalent in the north of India, where wheat is grown and is the traditional staple of the area.
Glazed Donuts (popular carrier for breakfast sandwiches)
Baum and Whiteman LLC.
Tech-driven delivery is 2015- 2016's Big Disrupter of food retailing and food service ... aimed at the ultimate consumer convenience.
http://www.baumwhiteman.com/2016Trends.pdf
Smartphoners, latching onto the ease of locating a restaurant, ordering, paying, and getting loyalty points ... without ever speaking to a human being ... are driving this revolution.
Google, uberEats, Amazon Prime Now, Postmates, Grub Hub, Yelp. – delivery middlemen
Baum and Whiteman LLC.
Chipotle Mexican Grill is purging genetically modified ingredients.
Panera Bread listed more than 150 artificial colors, flavors, sweeteners and preservatives that it will send into exile by the end of 2016.
McDonald's is ridding its chickens of antibiotics used by humans.
*Food Service Handbook 2015
*Food Service Handbook 2015
Baum and Whiteman LLC.
Baum and Whiteman LLC.
Three-quarters (76%) of U.S. households prepare meat alternatives (defined as protein sources other than meat, poultry, or seafood) for dinner (FMI 2015). Four in 10 meal preparers (44%) serve meat alternatives one to three times per week; 7% do so four or more times weekly. Meat or poultry is eaten an average of 3.7 nights per week (FMI 2015). an LLC.
Consumers are experimenting with alternative eating styles. In 2014, one-third of adults tried a specialty regimen; 8% tried gluten-free; 7%, lactose-free, 6%, raw/living foods; 5%, dairy-free; and 5%, a juice cleanse (FMI 2014a).
*(MSI 2014b)
Baum and Whiteman LLC.
*Wyatt 2014, **NPD 2014b: http://www.ift.org/food-technology/past-issues/2015/april/features/the-top-ten-food-trends.aspx?page=viewall
Baum & Whiteman
Baum & Whiteman
Dayparts provide unique opportunities for snacks. Over two-thirds (68%) of consumers snack in the afternoon, up 17% versus 2010; 62% snack in the evening, +18%; 46% snack in the late evening, +22%; 37% snack in the morning, +15%; and 18% snack in the early morning, +11% (Wyatt 2014).
The shift to fresh and refrigerated foods is unstoppable.
Source: http://www.ift.org/food-technology/past-issues/2015/april/features/the-top-ten-food-trends.aspx?page=viewall
*(Technomic 2014a; MSI 2014a).
** (AT Kearney 2013).
Food Management Jan 2015
http://www.ift.org/food-technology/past-issues/2015/april/features/the-top-ten-food-trends.aspx?page=viewall
*(FMI 2014a).
**(Hartman 2013c)
This has been installed at the University of Illinois at Chicago providing 24/ 7 high end salads for $8 a jar: http://www.farmersfridge.com/#!our-kiosk/c16tz
While consumers will wait longer for made to order options convenience is key therefore delis should provide plenty of grab and go options that can be eaten anytime, anywhere. Ideally, these should include dishes and snacks traditionally associated with specific meal times but be made available around the clock. Breakfast style offerings - especially those with a street food twist - served any time of day are leading this trend.
Food Management Jan 2015
Baum and Whiteman LLC.
Poke ... pronounced poke ay and poh key ... is a Hawaiian mainstay that's migrating to the mainland. Basically a bowl of chopped or cubed raw fish (traditionally ahi tuna over seaweedseasoned rice ... the fish tossed in a capriciously composed marinade
Big in LA
Use this slide to ask the audience questions about their own grab and go operations and what they are trying to achieve.
Use this slide to ask the audience questions about their own grab and go operations and what they are trying to achieve.
*Stats from Green Restaurant Association 2015
**Foodservice Director Nov 15
*** National Conference of State Legislatures
****U.S Environmental Protection agency
Foodservice director 2012
Onsite composting is a big financial commitment but can be worth considering for large operators with space or those with a lack of composting facilities nearby
Operators can take an economic approach to determine the right course of action, which includes all factors – life cycle analysis
Steve to talk through the Chico State Case Study and other customer insight
PET – Performs well, strong, total product visibility however doesn’t break down in landfill, made from oil (finite resource) and cannot be recycled with food contaminate, thermo-stability and transparency. Customers choose PET because it is inexpensive, lightweight, resealable, shatter-resistant and recyclable.
rPET – Recycled plastic – same as above but slightly better because it contains recycled content and doesn’t use as much oil
PLA (mainly derived from cornstarch) used to make cutlery, lids, containers, laminates, film, cup liner – can withstand heat, high clarity however argument against as it takes away farming for food crops and can be GM. Industrially compostable (ASTM)
Bagasse – sturdy, great thermal properties, compostable, made from waste material, breathable. No product visibilty, cannot be branded, basic looking
Cellulose – sourced from plantations, home and industrially compostable, non GM, sustainable
Card/ paper – can be recycled (if not food contaminated), premium image, great for customising, product visibility, product performance has improved vastly, longer to construct, more expensive but can increase sales and profits
Food-management.com Jan/ Feb 16
5 insights from Pret: http://www.pret.co.uk/en-gb/five-insights-for-business-success-in-the-us
