The competition between “take home” food components (bought in grocery and specialist retailers) and “dining out” or picking up a take-away meal remains intense despite the effects of recession on household spending.  The consumer is trading off a number of factors on a daily basis.

The value gap between take home food and casual dining meals continues to provide opportunity for foodservice specialists in the Australian domestic food market regardless of economic conditions. 

We have identified ten factors which affect the share of stomach – as identified in the chart on the right, influencing the behavior of the consumer (external factors that are givens) and other supply chain and category factors.

Things that are "givens" or "settings"

• Demographics of household structure ethnic mix and age
• Time pressure driven by career needs is affecting shopping, meal-preparation and dining preferences
• More prepared and “on-the-go” food is sought and provided
• Demand for convenience through either better access to stores, the product form and the preparation method
• Pressure on household incomes affecting not only spending habits and preferences, but also affecting the exposure to consumers "trading down" their choices.

Things you can influence:

• Increasing institutional scale and sophistication
• Different buying criteria of retailers, product specifiers and end-users
• The extent to which technology has been embraced to aid supply chain management
• Increased retailer use of private label and its influence on scope for innovation
• Learnings across channels and categories that influence buying and marketing