The Co-op is taking on the foodservice sector. Today, it announced it was launching a new chain of micro stores that are solely focused on food to go, featuring new ‘On The Go’ signage.
It’s a game-changer, in truth. At around a quarter of the size of a typical Co-op, each store will “uniquely” be open from 7am to 7pm, boasting a varied selection of food and drinks to-go to cater to different parts of the day, but without Co-op’s typical grocery offer. In other words, they’re not convenience stores.
That’s not to say convenience retailers aren’t champions of food to go. They’re renowned pioneers, in fact. The channel is still the biggest player in the food-to-go market and has continued to grow in sales since it bore the brunt of the coronavirus crisis, which restricted movement for the public and halted footfall for retailers.
That seems like a lifetime ago, but since then, convenience retailers have shown innovation within the category like no other sector.
A feast of food-to-go
Last year, for example, BP designed a new “micro-market” concept for forecourt retailers, offering food and beverages in a self-serve format, while Northern Irish Spar wholesaler Henderson Group has turned its company-owned Spar store in Mallusk into a “food-to-go emporium” to offer new concepts under its Delish brand, from breakfast burritos to a pizza bar.
Independent retailers have also proven to be leading specialists within the category. Take Ashan Chaudry, owner of Triple A Foodhall in Nuneaton. The 3,300 sq ft store features a vast food-to-go offer, including handcrafted Neapolitan pizzas, Berlin-style doner sandwiches, fresh Greek gyros, roast dinners and baguettes.
The key difference, however, is these food-to-go propositions are still very much set within a typical convenience offer, including groceries, tobacco, vape, and services such as the Post Office or National Lottery. Co-op’s new venture is a major change of pace for a convenience food-to-go offer, with the concept positioned as a standalone foodservice operation.
In short, Co-op has made a smart move at the right time. Businesses within the grocery, media and tech industries announced they were increasing employee presence in the workplace last year, which has led to a more transient consumer culture.
And Lumina Intelligence predicts this growth of food to go will continue to grow in city centres and high streets as these policies are enforced and more companies follow suit.
Co-op means business
That means good news for the food-to-go market, but operators will be keeping a watchful eye on Co-op as it vies for the same space – because Co-op means business. It plans to open several hundred ‘On the Go’ stores in the next two to three years, and is catering its offer to evolving consumer preferences, largely thanks to its extensive product development.
From Blueberry Granola Pots and Teriyaki Chicken Salad Bowls to Three Cheese & Chilli Jam Toasties, it is capitalising on key trends driving food to go, including indulgence, healthier eating and quality.
It also plans to evolve the offer by turning the stores to ‘dark trading’ in the evening, with pizzas being cooked on-site and “delivered to your door in minutes” as it competes against restaurant operators on aggregator platforms, such as Deliveroo and Just Eat.
Co-op’s new chain of food to go stores will undoubtedly cause a stir in the market. And having the Co-op name above the doors – a brand that is trusted and well-known by local communities – that’s its unique selling point right there.
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