Consumers are saving by dining out less and substituting prepared meals
This morning’s NPR Morning Edition did a nice 4-minute piece entitled “Consumers Spurn Dining Out for Prepared Foods.” It’s a perfect illustration of a Substituting strategy in action: when consumers cut back spending, they look for substitutes and create new opportunities for businesses.
The report begins:
Groceries are one of the few bright spots in the economy, as consumers looking to save money skip restaurant meals to eat in. Generic brands and pantry staples are selling well.
The featured business is Whole Foods. I would have guessed that Whole Foods would be suffering the same consumer belt tightening that has hit Starbucks, but a company rep says they are maintaining flat sales, helped by dramatically expanding their prepared meal offerings.
Supermarkets and convenience stores are following suit. Giant Foods are renovating stores to add floor space for prepared foods and adding in-store chefs. All of this is work for someone!
Topics: Substituting
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