![]() The largest food retailers such as Kroger and Walmart are increasing their selections of natural and organic foods. As market share grows for the limited assortment stores, the stores found with the large, traditional layout will struggle to compete. In these smaller store, shoppers are able to choose between a select number of high quality products rather than shelves filled with different brand names. Traditional supermarkets are being challenged continually in today’s food retail environment. Over the past five years and especially today, this exists in smaller format stores such as Trader Joes’s, Aldi’s (Midwest), Bfresh (Boston) and Green Zebra Grocery (Portland). ![]() Consumers want a unique shopping experience where private labels and exclusive brands are found. The most rapid growth in the Food Retail industry has been in the limited assortment/smaller format stores. This has taken market share away from full-service restaurant chains. Over the past five years, the quick-service restaurants that exclude a sit-down table service but offer high quality food and atmosphere, have experienced particularly strong growth. Full table-service restaurants are to remain the largest revenue driver, but the quick-service segment is projected to have a much larger sales growth rate. in 2017, industry sales are projected to extend to an estimated $799 billion. As a result, consumers are more willing to eat out instead of preparing meals at home. The Restaurant industry has also benefited greatly from an increase in consumer disposable income. Consumers are eating healthier diets each day and are willing and able to pay extra money for high quality, all natural and organic foods. Furthermore, a rising demand for all-natural and organic products has aided the industry. This has enabled consumers to purchase more premium goods from grocers. In the United States, the Food Retail industry over the past five years have benefited from a strengthening domestic economy and rising disposable income level. Key drivers for growth and activity in the Restaurant and Food Retail industry include an increase in consumer spending, healthy eating awareness, urban population and the price of agriculture. The food retail industry contains any business that sells food to consumers for preparation and consumption. The Restaurant and Food Retail industry includes chain and franchised restaurants which encompasses all fast food, eateries and full-service locals, in addition to all retail supermarkets and grocery stores.
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