Blurring the line between retail and foodservice continues to be a winning strategy for grocery stores looking to position themselves as strong alternatives to sit-down restaurants and takeout. By offering fresh, ready-to-eat meals and unique in-store dining experiences, retailers can show customers that the grocery store isn’t just a place to shop — it’s a place to enjoy. This approach not only enhances convenience but also builds loyalty and elevates the overall customer experience.
FMI – The Food Industry Association recently released a study, “The Power of Foodservice at Retail 2025,” that revealed 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 of 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.”
Shoppers tend to learn about deli-prepared meal options by walking around grocery stores or from in-store signage, underscoring the importance for grocers of paying attention to such factors as the smell and appearance of the items they sell, FMI noted in the report.
More than 60% learn about a store’s options by exploring the offerings, and about a quarter said they find out from social media. Only 19% of respondents turn to apps to become familiar with grocers’ deli-prepared offerings.
Younger consumers, especially Millennials and Gen Z, showed a greater reliance on grocery deli-prepared foods when they don’t feel like cooking. Over half of Millennials and Gen Z shoppers want their grocery stores to offer more help with meal planning. Most Millennials (91%) and Gen Zers (87%) are interested in discounted, bundled meal deals that combine a main course with sides and dessert.
FMI found that people often make meal-planning decisions on the fly. Sixty percent of survey respondents indicated that they decide what to have for lunch on the same day, and 54% make same-day decisions about breakfast. Almost half settle on what to eat for dinner on the same day they eat the meal.
Chains up the ante
Hy-Vee has long offered a variety of ready-to-eat meals in its stores, including Market Grille, Mia Italian, HyChi and Nori Sushi options.
“Hy-Vee is focused on offering innovative meal solutions for our customers as their needs and preferences continue to evolve. Whether they are looking for ready-to-eat or heat-and-serve options, Hy-Vee is dedicated to finding ways to make our customers’ lives easier and healthier,” said Bryan Polc, assistant vice president of Food Service at Hy-Vee.
Polc said the Market Grille meals come in four different sizes to meet customers’ needs, from a single serving up to family-sized portions. Hy-Vee is also now offering 15-minute meal kits that include all the components, which customers assemble and warm in a skillet at home.
He added that all Mia Italian items are made fresh inside Hy-Vee stores, whether they are ready-to-eat or take-and-bake. Over the last year, Hy-Vee has expanded Mia Italian in-store offerings to include calzones, cheesy garlic breadsticks, individual pizzas and pepperoni pinwheels.
“Hy-Vee continues to expand our Asian food offerings through both the HyChi and Nori Sushi options, with new Japanese, Korean and Vietnamese items recently introduced. One of our newest Nori Sushi items, the Loch Ness Monster Sushi Roll, is an entire pound of sushi, and demonstrates Hy-Vee’s ingenuity in following current sushi trends.”
Polc added that all meals are now produced inside each individual store, making each order as fresh as possible for the customer.
Publix has been successful with Publix Pours bar, where shoppers can buy beer, wine and coffee drinks in addition to food.
“We believe in meeting the customers where they are; whether they are on the move or looking to relax, Publix offers fresh, high-quality grab-and-go options alongside inviting in-store dining areas, said media relations manager Jared Glover. “It’s all a part of our commitment to treating the customer like royalty by providing premier customer service and convenience without compromise.”
“We currently have 540 stores with indoor seating and an additional 10 stores with Pours, so a total of 540 in Kentucky. The only caveat is that in Kentucky we do not serve wine on tap, due to state laws,” he added.
A Wellington, Fla., location is home to Publix Pours, which features a full bar serving beer, wine, coffee, smoothies and açaí bowls. It has become a viral sensation for its “sip-and-shop” environment.
It’s earned the name of “Clublix” in local headlines and among customers who claim that it lives up to the Florida-based supermarket chain’s slogan, “Where shopping is a pleasure.”
H-E-B recently opened its Parmer Ranch H-E-B, the retailer’s third store in Georgetown, Texas.
The new location features a Sushiya department, offering fresh, made-in-store sushi and Asian grill selections, including fried rice and noodle bowls. In addition, H-E-B Meal Simple offers fresh, convenient chef-inspired meals prepared in-store.
The expansive deli features a large assortment of cheese and a charcuterie station, along with assorted party tray options for any occasion.
“We’re excited to officially welcome the Parmer Ranch community and surrounding areas to their new H-E-B,” said Cathy Harm, H-E-B senior vice president of Central Texas. “For nearly 60 years, we’ve been proud to serve the Georgetown community, and now Texans in this growing area can enjoy a store that offers the very best of H-E-B.”
