Culinology - June 2021 - 9

EMERGING trends
Predicting the
pandemic's
impact on retail
Consumer adoption of digital platforms accelerated
during the pandemic. A panel of executives discussed
the implications on packaged food brands, retailers and
restaurants during a discussion this past March at the
virtual Future Food-Tech seminar.
" We are looking at a new era in grocery retail that's
going to be digital-forward with multiple formats and
multiple channels, " said Walter Robb, former co-chief
executive officer of Whole Foods Market and executive-inresidence
at S2G Ventures, a venture fund that invests in
food and agriculture.
Chipotle Mexican Grill began responding to a consumer
transition to online transactions several years ago. Early
investments in digital capabilities positioned the fastcasual
chain to pivot successfully as in-store traffic
evaporated, said Scott Boatwright, chief restaurant officer.
" Brands that fail to innovate and move their business
to more of an omnichannel version will fall behind, " Mr.
Boatwright said.
People will once again gather for meals in restaurants,
he said, noting the traditional brick-and-mortar model will
retain relevance for years to come. However, he said, the
shift to digital was already underway prior to the pandemic.
The past few years saw an emergence in new ways
to procure food. Represented on the panel were the
Chipotle Digital Kitchen is a new store format from
Chipotle Mexican Grill, Inc. The restaurant opened in
Highland, NY, and has no dining room or customer-facing
service line, and guests order in advance.
founders behind two options gaining traction over the
past year. Tovala offers a meal service that is paired
with a countertop smart oven. Misfits Market is a directto-consumer
grocery platform tackling food waste by
offering imperfect or surplus produce and pantry staples
at lower costs. Both businesses tracked strong growth
following the onset of the pandemic, and the leaders of
the companies said they expect continued momentum as
recent consumer habits stick.
" In general, I think the trend was alternative e-grocery
platforms like ours - we were alternative before - we
got thrust to the main stage from the backstage, " said
Abhi Ramesh, founder and CEO of Misfits Market.
His business partnered with suppliers to repackage
and sell products such as bulk popcorn kernels directly to
consumers. Additionally, emerging packaged food brands
began tapping into alternative distribution channels such
as Misfits Market as the pandemic thwarted opportunities
to gain shelf space at conventional grocery retailers.
" Building their own direct-to-consumer experience isn't
necessarily an option for all of these brands, so they're
looking for the marketplace or distribution channel, ours
being one of them, " Mr. Ramesh said.
Data and analytics will play a key role in building an
online shopping experience that benefits the retailers,
manufacturers and consumers. Mr. Ramesh noted the
possibilities and limitations of the virtual shelf model.
" How we think about it is ... there's infinite shelf space,
but we can't have infinite products on a giant scrolling
page, " he said. " We have to be data-driven about what we
put in front of a customer, when and why. I think data and
machine learning is probably the way to do that. "
There are elements of the physical retail experience that
must be replicated in the digital world, Mr. Robb said. For
example, a significant portion of purchase decisions at
brick-and-mortar grocery stores is driven by discovery or
impulse. Digital retail should provide similar opportunities
to explore and engage with new innovation.
" Don't be under any illusion physical retail is going
away, " Mr. Robb said. " People still love and miss the
spontaneity that happens when you come to a physical
store. I really believe folks will come back to the physical
store and spend more time. The trips won't come back in
the way they have historically, but they will come back. "
8 | Culinology | JUNE 2021
Culinology - June 2021

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