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12 GROCERY & DEPARTMENT STORES GOURMET NEWS DECEMBER 2013 www.gourmetnews.com Grocery & Department Stores Supermarkets Compete with Nearby Restaurants for Customers Shopping for Prepared Foods The biggest challenge for the prepared food sections at many supermarkets is not coming from their own stores' center aisles, nor from the prepared food departments at competing markets. Rather, the biggest challenge may be coming from nearby restaurants. This is according to a new report from Chicago-based foodservice market research firm Datassential. Datassential surveyed more than 2,000 regular supermarket shoppers and 76 supermarket prepared foodservice operators to provide a comprehensive analysis of how supermarkets can grow their prepared food departments. According to the report, 40 percent of grocery store foodservice operators say that nearby restaurants are limiting the growth of their prepared foods department. Although a majority of shoppers consider supermarket prepared foods to be "excellent" or "good," one-third of supermarket customers do not ever shop the prepared foods department. Further complicating matters, even regular prepared foods shoppers say they often do not know what is available in the store. Dataessential's survey shows that supermarkets could grow their deli and bakery business by emulating restaurant marketing tactics. "Prepared food departments should almost consider themselves to be separate restaurants," said Brian Darr, Managing Director at Datassential. "They are really competing with quick serve restaurants and fast casuals in areas like quality and value. Unlike restaurants, supermarket shoppers don't have a menu that lets them know what's available." In addition to the market challenges, the report also analyzes visitation and traffic, menu offerings, purchasing habits, pricing and promotions, packaging and branding, venue and equipment and supplier relationships. "We asked ourselves questions like, 'How do you motivate snack purchases?' and 'What's the one breakfast item every supermarket should offer?'" Darr said. "We really wanted to provide data and intelligence that operators and suppliers could immediately act on." "With over half of their shoppers not buying prepared foods on regular basis, supermarkets have a significant, opportunity to leverage innovative in-store tactics against the fast-growing, high-margin products in the bakery or deli," Darr said. "Supermarkets have some clear actions to take, some as simple as making it easier for shoppers to see what items are available or on special." GN BRIEFS Whole Foods Market Celebrates 77 New Certified Cheese Professionals Seventy-seven Whole Foods cheesemongers recently put their dairy expertise on display at the second annual American Cheese Society Certified Cheese Professional™ exam. The exam tests cheesemongers' mastery of all things cheese, including cheese making, ripening, storage, handling, nutrition and more. Those who pass the exam are part of an elite group of highly qualified cheese experts. In total, Whole Foods Market now has 147 Certified Cheese Professionals, the largest number of certified cheese experts in the world. The exam was held July 31, in conjunction with the 30th Annual American Cheese Society conference in Madison, Wis. Certification is valid for three years and is renewable for additional three-year periods through a formal recertification process. To commemorate this accomplishment, Whole Foods Market teamed up with several cheesemakers to have its 2012 Certified Cheese Professionals make special cheeses, which will be available in its stores nationwide starting this fall.

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