Supermarkets competing with restaurants to sell take-home dinners

By Jeremiah McWilliams

The Atlanta Journal-Constitution

As more time-strapped consumers eat dinner at home, supermarkets have become an increasingly important source of prepared foods and take-out meals, according to research firm The NPD Group. Visits to restaurants for dinner have not grown this decade, with demand particularly weak over the past three years. Meanwhile, there is stronger demand for prepared foods from retail outlets. NPD’s DeliTrack shows that nearly two-thirds of prepared foods purchased at retail are from traditional supermarkets.

According to a recent NPD survey, consumers choose supermarkets for prepared foods over fast-food restaurants because of convenience as well as good prices, variety, and healthier choices. Meanwhile, consumers who opted for fast food gave a variety of reasons, including that they or their kids like the restaurant, it satisfies a craving, or they want a treat or a specific menu item.

NPD said there is "huge opportunity" in take-out meals and prepared foods for both supermarkets and restaurants.

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