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FMI study reveals supermarkets' expanding role in easy, affordable dining

FMI report shows consumers seek foodservice options for lunch and late afternoon.

ARLINGTON, Va. – FMI – The Food Industry Association has released The Power of Foodservice at Retail 2025 study, that reveals a major shift in consumer dining habits: consumers are increasingly choosing deli-prepared foods in place of restaurant meals, with this share more than doubling from 12% in 2017 to 28% in 2025. Many shoppers are also blending the best of both worlds: more than half of Americans (53%) now take a hybrid approach to create meals, combining deli-prepared options with items from their own kitchen.

“Consumers are increasingly viewing deli-prepared foods as a true alternative to restaurant dining, not just a convenient option,” said Allison Febrey, senior manager, research and insights at FMI. “This shift reflects how shoppers are redefining value in food: they want meals that deliver on quality and variety but also save time and money. This trend is substantiated by the steady growth in retail foodservice dollar sales rising 1.6% to $52.1 billion over the past 12 months.”

“With more than half of Americans shopping for hybrid meal occasions, there’s a real opportunity for retailers to support lunches and dinner time,” said Rick Stein, vice president of fresh foods at FMI. “Shoppers are purchasing deli-prepared options most frequently between noon and 5 p.m., and want the flexibility to pair fresh, high-quality prepared items with ingredients at home, creating meals that balance time savings and meet their well-being goals.”

“Having a signature item helps retailers ground their value proposition to the consumer,” said Andrew Brown, senior manager, industry relations at FMI. “This helps reduce decision fatigue, and if you deliver on quality and taste, you will have customers coming back again and again for that exact item." 

FMI’s The Power of Foodservice at Retail 2025 provides an in-depth look at foodservice at retail from the shopper’s perspective, exploring consumer motivations, health and nutrition drivers and the evolving purchase drivers of deli-prepared options.

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