Americans are not only dining out more, but the “on-demand” culture has spread to the food industry. Food delivery – whether restaurant take-out, subscription meal kits or grocery stores getting in on the action – has become big business. And people want their delivered food fresh and locally grown to boot.
Two recent events underscore these changes: Amazon.com’s purchase of struggling high-end grocer Whole Foods Market and an initial public offering by subscription meal seller Blue Apron Holdings.
With so much going on in the food industry, Joe Agnese, analyst at CFRA in New York, says this is an “exciting time” for companies and investors alike. As food companies adapt to America’s dining habits, successful companies, analysts say, will be those that respond to this new demand with mobile apps for placing and paying for orders, and home delivery of prepared meals.
“That’s very attractive for a business looking to get people to visit their site or come into their store,” Agnese said. “People consume food and have to repurchase it every week.” By offering a competitive selection and value, companies are likely to get those consumers to come back regularly.
