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Writer's pictureInsightTrendsWorld

Insight of the Day: The restaurantification of retail

Findings:

  • Growing Omnichannel Trend: Restaurant brands are increasingly diversifying into retail, offering their products in supermarkets to reach consumers beyond dine-in.

  • Prominent Brands: Leading restaurant chains like The Real Greek, Iberica, Chopstix, Coco di Mama, Ottolenghi, Nando’s, and Pizza Express are prominent in this shift.

  • Retail Partnerships: Retailers like Tesco, Sainsbury’s, and Iceland are driving this trend by offering branded restaurant products or co-branded dining experiences within store spaces.

Key Takeaway: Restaurant brands are capitalizing on retail as a new revenue stream and brand awareness driver, blending dining and retail experiences to attract a wider audience.

Trend Summary

  • Consumer Trend: Increased demand for restaurant-branded grocery products as consumers seek favorite dine-in flavors at home.

  • Big Social Trend: Convenience and hybrid retail experiences drive demand for restaurant-quality products in supermarkets.

  • Sub-Trend: Co-branded dining in retail spaces adds value for consumers and draws foot traffic to supermarkets.

Consumer Motivation: Convenience, quality, and brand familiarity drive consumers to seek out restaurant products in retail spaces.

Drivers of the Trend: The pandemic accelerated home-based dining needs, and supermarkets recognized the value of retail-restaurant collaborations to draw shoppers with added convenience.

Consumer Profile

  • Product: Ready-made or DIY restaurant meals, sauces, and staples like pizzas and ready-to-eat meals.

  • Demographic: Primarily urban consumers seeking high-quality convenience and the ability to recreate restaurant experiences at home.

Implications for Brands

  • Brands: Retail expansion allows restaurants to reach new revenue streams, but quality control and brand consistency must be maintained.

  • For Society: These collaborations ease access to premium food and convenience, catering to consumers’ busy lifestyles.

  • For Consumers: Restaurant-quality meals become more accessible in daily grocery routines, blending convenience with a premium experience.

Future Implications

Expect an increase in omnichannel brand strategies, with more restaurants entering retail and brands using grocery channels as an expansion path.

Strategic Recommendations for 2025:

  1. Expand Product Range: Diversify offerings to include sauces, frozen meals, and snackable items to attract diverse consumer needs.

  2. Quality Assurance: Prioritize shelf-life and flavor authenticity to ensure brand consistency in retail formats.

  3. Test and Refine: Pilot products to fine-tune demand before large-scale rollouts, as seen with Itsu’s focus on quality control for chilled sushi.

  4. Collaborative Experiences: Establish more in-store dining experiences with partner retailers, blending grocery shopping with dining out.

Final Sentence:

"Brands entering retail should focus on maintaining quality, expanding product offerings, and exploring unique retail-dining experiences to maximize consumer engagement in 2025."

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