The Rise Of The ‘Grocerant’

TORONTO — The full-service dining sector has just begun to emerge from a decade-long slump, beset by competition from more innovative fast-food rivals and the trend of nesting consumers who prefer Netflix and pizza over a night out. Now, the low-margin grocery industry is out to eat the restaurant industry’s lunch — and dinner.

So-called ‘grocerants’ — grocery stores with sit-down dining areas and a lineup of ready-to-eat or take-out meals — are becoming more ubiquitous as large retailers such as Loblaw Cos. follow in the footsteps of boutique supermarkets such as Whole Foods, Longo’s and Ottawa-based Farm Boy.

Traditional grocers have been looking to diversify their businesses under intense competitive pressure from Walmart and Costco, who have broadened their food market share dramatically in Canada over the last decade.

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