Consumers — Millennials in particular — are buying the prepared meal solutions offered by retailers more frequently, and this is cutting into fast-food restaurant visits.
That’s according to Technomic’s updated Retailer Meal Solutions (RMS) trend report.
Fully 84% of U.S. consumers researched by Technomic now report that they buy retailer meal solutions at least once per month — up from 79% in 2012.
The growth is being driven by consumers 18 to 34, who are increasingly reliant on foodservice in general.
The retailer foodservice purchases are often made at the expense of QSR visits. Half (49%) of all respondents, and 60% of Millennials, report that they’re visiting fast-food restaurants less often as a result of their increased RMS purchases.
Nor is the retail competition coming just from supermarkets.
Nearly half of consumers 18-34 purchase meal solutions from convenience stores at last once per week. And while only 19% of consumers overall have ever bought a meal solution from a drug store, 43% of those who have report that they buy foodservice from a drug store at least once a week.
Retailers are gaining ground against fast-food restaurants by offering restaurant-quality food and broadening their selections to include the adventurous and ethnic flavors that are especially appealing to Millennials, reports Technomic.