What is Home Meal Replacement ? The exact definition seems to continue to change , but one thing that has not changed is consumer interest , companies like Sara Lee have released projections that show HMR accounting for as much as 80% of food industry growth by 2005. Findings by McKinsey & Co. support that premise from two perspectives. First, the fact that virtually all foods sales growth by the year 2005 will come from food service. Second, that by 2005 many Americans will never have cooked a meal from scratch. Assuming that these predictions are even close , the HMR segment could easily soar to nearly 170 billion a year in sales.
Since the early 90’s HMR has steadily captured the hearts ( and stomachs )of America, growing at an incredible pace from the days of simply picking up a box of fried chicken or a pizza - it has evolved into a full blown way of life - and there is no turning back. Today, consumers simply do not have the time or training to cook twenty one (21) meals a week at home - the days of waking up to breakfast and packing a lunch have been replaced with “dashboard cuisine” , and “desk dining” , leading many time crunched consumers to expect the same with dinner - and the solution - home meal replacement.
Today, without ever having prepared a meal from scratch , consumers can create a health five course meal at home in less than 10 minutes simply by following easy to read step by step heating instructions , and the great part is that it makes sense. It allows consumers to psychologically enjoy a “home cooked meal” with the family, plus it because it saves time - the added cost is deemed very “economical” . The idea that HMR was a “fad” has been long forgotten , since it is obvious that it is here to stay. Now the real question is , “How does the average independent retail food and commercial foodservice operator use this to their advantage verses trying to compete against it?”
If we look to the large grocery chains for HMR examples , we see that even though they offer a broad range of HMR type foods , they are only managing to capture an average of 19% of the HMR business , despite the fact they have an average of 10,000 consumers a week pass through their doors. In their effort to capture a larger percentage of the HMR market, these chains have began implementing new “ foodservice” methods to satisfy the key elements the consumers say entice them to buy HMR items, such as convenience, smell, taste, and eye appeal. On the other hand, as we look to foodservice industry , we see that the major players are looking to the retail industry for new ways to package and market their products to overcome the stigma of “greasy carry-out” food.
What is the solution to both industries HMR development issues ? Only time and the continued effort to satisfy the hunger of the today’s time pressed consumer will tell - but one thing is for certain , HMR has only just begun to scratch the surface , and it will undoubtedly continue to modify itself until even the most complex entree selections can be prepared, and eaten in only a matter of minutes.
A new HMR concept being developed by the Foodservice Consulting Group may just help expedite this process by combining the best of both worlds in a test unit the designers have dubbed a “Groceraunt”. This unit is being specially developed to incorporate the three elements that have been deemed to be most desired by today’s consumer - restaurant quality food , retail merchandising /packaging and doorstep delivery. When consumers visit these units, they will be able to choose between dining in , selecting “ready to eat” entrees from a buffet of complete “family” size meals , or simply shop the shelves or refrigerators to find the perfect “heat & eat” meal for their family. “ If you can combine the irresistible aroma of food being prepared with eye appeal and the fact that your customers are shopping because they are hungry, it’s a win-win” , states Henry Blaszek the founder of Foodservice Consulting Group. As far as the doorstep delivery aspect of the “Groceraunt” goes, the possibilities are limitless , “ We will have the ability to deliver the entire gamut - from ready to eat meals - to special dietary meals that can be purchased days in advance and heated at home , This is going to take HMR to a whole new level , say Mr. Blaszek ” The FSCG team also believes that this concept will overcome the a two of the obstacles currently being experienced by the grocers who are limited by the reduced shelf life of “heat & eat” items, because they will be producing new items fresh every day , as well as offering the items at a price point ranging from $1 per person to $20 per person or more.
While home meal replace concepts are far from challenging the huge grocers and foodservice operators as a everyday alternative, they are certainly progressing to the point that both industries are beginning to give it some very serious consideration. The fact is consumers are being forced into a position that they are now having to decide if there is more value in the time they spend shopping and cooking or working and quality time with the family. It is logical to assume that eventually shopping and cooking with place 3rd and 4th in that combination of choices . Currently the HMR market seems to cater to the families who have an average household income of $50k , but that is rapidly changing. It is very likely that by 2005 the average will be reduced to include all levels on income.
In the future ,as the variety of HMR items advance , items like Stove Top® Oven ClassicsTM , and the Oscar Mayer® Taco Bell® Lunchable® will be fondly remembered as the bricks in the foundation that built the HMR grocery empire, just as pizza, chicken, and Chinese food will be remembered as the foundation of the HMR foodservice empire. It will be exciting to witness the changes that occur in both the grocery and foodservice industry as advances in technology create a “new frontier”.
It is easy to believe that consumers will soon be able to simply order and pay for a complete family meal and a list groceries with one simple email from the mobile computer in their car on their way home from work as restaurants and supermarkets adapt to the needs of the consumer. However you look at it, you can be sure that HMR is here for the long haul and it would be wise to accept it , and better yet - perhaps we should remember the adage, “Institutions end, it's true. But they never go away. Even in memory, they get better with age.”
Chef2Chef News Desk