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FOODSERVICE – FOOD ON THE GO WHERE ARE WE HEADING ON THE GO? With the shift in where consumers physically are, where to next for convenience foods? By IRI Lead Consultant Justin Nel. Seventy-five per cent of normally city-based workers are reluctant to go back to their workplace full-time, with CBD occupancy rates across the country remaining at all-time lows. In January this year, the CBD occupancy rate in Melbourne was 31 per cent, with Sydney at 45 per cent, Brisbane at 63 per cent, Adelaide at 69 per cent and Perth at 66 per cent. It’s not clear when or if we’ll ever return to pre-pandemic occupancy rates. Many Australians have taken this opportunity to make a sea change and move away from the city as 2020, in many ways, proved that we can still deliver while working remotely. This surge away from cities has seen dwelling values in regional Australia growing nearly five times faster than capital cities. As expected, these widespread changes have had significant impacts on the convenience channel, and specifically, on-the-go food, a category that still hasn’t completely recovered to pre-Covid performance. Total on-the-go food in the national petrol and convenience channel is worth $513 million and is in value decline of 0.4 per cent versus a year ago. While not yet back in growth, the category has made strong improvements considering that it was in value decline of 6.1 per cent for Q2 of 2020, when lockdowns began in Australia. Segments within the on-the- go food category that have been most impacted are biscuits (-8 per cent), food service (-7.9 per cent), and fresh cakes (-7.2 per cent). However, still in growth and proving very popular is on-the-go cheese (up 15.5 per cent for the MAT ending 7/2/21). With the shift in where consumers physically are, albeit just at home or in more rural areas, the CBD stores are for now less critical and we should be focusing on regional stores to ensure the right assortment of products, because a key change to working from home more frequently is the increase in the amount of free time, with a loss of appeal thereby for convenient on-the-go foods. This is clear in the substantial growth of take-home foods in the P&C channel (up 29 per cent for the MAT ending 7/2/21). Interesting to note that take-home foods were not the only big winners, with the general grocery category up 9.9 per cent and household up 9.4 per cent for 2020 on the previous year, demonstrating a behavioural shift in what consumers need and buy from convenience stores. So where to next for convenience foods? There has already been a push from government for a return to offices, where safe to do so, in an effort to support the CBD economies, including restaurants, bars and, of course, convenience stores. Seventy-two per cent of city workers say they would like to return to the office just two days a week. This reshuffled work week could have positive impacts on the convenience economy as we reconnect with colleagues and friends, and spend more on meals at the office, because we’re saving money when eating at home. About Justin Nel Justin Nel is a lead consultant for IRI and brings with him extensive experience in the food and beverage industry. His focus is aligning clients’ business objectives with relevant insights and information, using IRI services to deliver unique strategic views of consumer trends and products that will deliver growth. About IRI IRI is the leading provider of big data, predictive analytics and forward-looking insights for the FMCG industry. For more information, visit iriworldwide.com. 28 CONVENIENCE WORLD MAR/APR, 2021