Eat-in supermarkets catching on in Japan

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Japanese retail group Aeon will expand dining areas at its domestic stores, aiming to capture demand from the growing ranks of seniors and dual-income families wanting to spend as little time as possible on household chores.
Within three years, group unit Aeon Retail plans to double to around 150 its stores with spaces seating at least 50. Most of its 360 locations stores already have dining spaces, but only for 20 to 30 people.
The plan is to create the roomy spaces at 30 or so locations each year as stores undergo renovation. Dedicated registers may be set up so that customers need not wait in the same lines as grocery shoppers. Such new items as pizzas baked to order and make-your-own salads will be gradually introduced.
Yaoko, a supermarket operator in the greater Tokyo area, has renovated a flagship store in Kawagoe, northwest of the Japanese capital. It serves freshly made meals there for eating in-store, such as a 680 yen ($6) bowl of seafood over rice with eight toppings.
Yokohama-based discount retailer OK runs a food court at one of its stores that serves dishes made from such supermarket-section ingredients as rice, eggs and beef.
Supermarkets sell prepared foods at lower prices than convenience stores and restaurants. Eating on the premises spares customers from dealing with the resulting trash at home. Retailers hope to leverage these benefits to pull in more shoppers. Since foods prepared on-site carry higher margins than processed foods from manufacturers, in-store eating is seen buoying earnings as well.
In the U.S., such major retailers as Whole Foods Market have “grocerant” — a portmanteau of “grocery” and “restaurant” — dining areas offering prepared foods for purchase by weight. These are drawing attention as a new way to lure customers. The market for prepared foods from grocers has been estimated at $10 billion a year.
Questions & Answers
Q.What is the primary reason Japanese retailers are expanding eat-in dining areas?
What is the primary reason Japanese retailers are expanding eat-in dining areas?
Retailers like Aeon aim to meet demand from growing numbers of seniors and dual-income families. These groups wish to spend less time on household chores, finding the eat-in options convenient.
Q.How many of Aeon Retail's stores currently have substantial dining spaces, and what is their expansion target?
How many of Aeon Retail's stores currently have substantial dining spaces, and what is their expansion target?
Only about 75 of Aeon Retail's stores currently have spaces seating at least 50 people. The company plans to double this number to around 150 within three years.
Q.Beyond customer convenience, what financial benefit do retailers anticipate from expanding in-store eating options?
Beyond customer convenience, what financial benefit do retailers anticipate from expanding in-store eating options?
In-store eating is expected to boost earnings because foods prepared on-site generally carry higher profit margins than processed foods purchased from external manufacturers.
Q.How do prices for prepared foods in supermarkets compare to other options?
How do prices for prepared foods in supermarkets compare to other options?
Supermarkets sell prepared foods at lower prices than both convenience stores and traditional restaurants. This offers customers a more affordable alternative for ready-to-eat meals.