Growth headroom in Grocery.
· 2 min read
Reading some data from the USDA
For every 1 square-foot (SF) of restaurant space there is 0.47 SF of grocery retail space. For ever 6.3 Food Away From Home establishments there is one Food-At-Home establishment
| Segment | $Bn Sales | Establishments | Annual $mn / Estab. | Avg SF | $ / SF |
|---|---|---|---|---|---|
| Food Away From Home | $1,500 | 483,355 | $3.1 | 3K | 1000 |
| Food At Home | $1,100 | 77,021 | $14.3 | 40K | 356 |
Looking at the spend data on a per capita basis
| Segment | $Bn Sales | Popn. (mn) | Annual $ / Capita. |
|---|---|---|---|
| Food Away From Home | $1,500 | 340 | $4,411 |
| Food At Home | $1,100 | 340 | $3,235 |
Combining these stats a restaurant on average captures 100% share of wallet for Food away from home each year from ~700 people while a supermarket captures 100% of wallet from ~4400 people/year.
What does this mean?
For an average family of 4 people, this is their breakdown of weekly spend on Food Away From Home vs Food At Home
| Segment | $ Weekly Spend |
|---|---|
| Food Away From Home | $339 |
| Food At Home | $248 |
Trader Joe's store size ranges from 10,000 SF to 15,000 SF while a Kroger Market Place stores occupy approx 145,000 SF