Customers Want Something From Your Foodservice TONIGHT
While the grocery industry benefited greatly from the COVID-19 pandemic, one area the industry has not embraced is the online ordering of foodservice and prepared foods. Customers’ desire a quick, efficient transaction and grocery stores have not taken advantage of the move to online.
That is not the case in the restaurant industry, the main competitor for foodservice and prepared foods. The pandemic completely changed the restaurant industry. Because in-person dining was closed, restaurants had to adapt. They changed their menus and added online ordering to their websites. Restaurants also took advantage of third-party delivery companies like DoorDash, Grubhub, Uber Eats and Postmates to name a few. As an example, a recent survey found that online restaurant delivery orders increased 124 percent between March 2020 and March 2021. The opposite was true within the grocery industry where prepared food declined 23 percent in 2020.
The grocery industry must adapt to changing consumer behavior, which has shown a transformation to the convenience of online ordering. This is especially true among younger generations. No longer are a large percentage of customers willing to park a car and go into a grocery store to purchase prepared foods. They want to order through their smartphone or computer. As an example, 89 percent of Baby Boomers prefer to order prepared foods in person but only 20 percent of Generation Z customers want to engage a person at the deli counter.
Grocery stores must offer online ordering foodservice and prepared foods to remain relevant. That means implementing an online ordering system that is specifically designed for foodservice and prepared foods. The platform cannot be the same system that customers order groceries. Customer expectations are different. People want the food within minutes of the order being placed because they intend to consume it immediately.
The benefits of online ordering to a grocery store are numerous. A grocery store gets access to a new customer base and receives inexpensive marketing. Think about the targeted offers that can be generated. It is an easy way to increase the sales of hot and prepared meals and stay ahead of the local competition. Online ordering also increases the reach of potential customers through things like Google searches, where people often seek out new food options with “restaurants near me.”
Considering such a program? Here are some tips:
Educate customers – Customers are not aware that online ordering of prepared foods is an option as well as the variety of food options available. That means grocery stores must educate consumers and let them know that online ordering of foodservice and prepared foods are an option when considering off-premise dining. Grocery stores must integrate online ordering of prepared foods into promotional material or offer discounts on a customers’ first order.
Create package meals – A family of four with two working parents or sometimes one has limited time and wants to quickly order and get dinner. Grocery stores need to create easy ways for families to order a full meal. Just like at a restaurant, packaged deals must be offered. The packaged meal is available with a single click on the website, making it speedy and efficient for a family to have enough food. It might contain a main dish and one or two side items. Drinks could even be included.
Prepared food orders are faster – Speed is vital with prepared food online ordering. A customer who places an online grocery order understands the order will prepared and ready later that day or the following day. That is not the case with foodservice and prepared foods. Customers want the food quickly!
Frictionless ordering – Consumers have gotten used to the quality of online ordering at Chipotle, Chick-fil-A, Starbucks and other national brands. These organizations have invested huge resources into online ordering. Grocery stores must implement an online ordering system for food service and prepared foods that is seamless and easy to use. Customers are not going to reorder if problems occur during the ordering process. A grocery store needs to think like a restaurant and take the time to implement a quality platform.
Are you interested in learning more about online ordering of prepared foods? Need help determining if this is right for you? Contact your Bakery, Deli, Prepared Foods Division Sales Manager for more information.
Note: This article was written by Michael Pursell, an AWG consultant assisting Dan Koch and the Division Bakery Deli Teams identifying foodservice and prepared foods solutions for members and its customers.
For Tara/Sharlyn
Digital Assets:
- News article title clips highlighting other companies expanding into foodservice ordering (Albertsons, Kroger, Wegmans, etc.)
- Growth in Prepared Foods in first ½ of 2021
- Logos of Delivery Companies (Ubereats, Doordash, Grubhub and Postmates)
- Website with Meals – Gelsons
