Meet the 50 Facilities Leaders to Watch in 2025
Learn more
A new report from FMI—The Food Industry Association reveals that consumers are increasingly swapping restaurant meals for prepared foods from grocery stores, a trend driven by the search for convenient, affordable dining, as first reported by MMR. The migration has ignited a new battleground for the American meal, forcing grocers to act more like restaurants and restaurants to watch their backs.
The great migration: The data is stark: 28% of shoppers now buy deli meals as a restaurant replacement, more than double the rate from 2017. That consumer shift has swelled the retail foodservice market to over $52 billion, with many shoppers now creating "hybrid meals" that combine store-bought items with ingredients at home to save time and money.
An appetite for better: There's a major disconnect, however. While grocers are winning on price, they are failing on quality perception, with half of all shoppers calling the prepared foods at their primary grocer just “somewhat appetizing.” It’s a glaring gap that shows the battle for diners is only half-won.
Thinking like a restaurant: To close that gap, FMI advises grocers to adopt the restaurant playbook. "Having a signature item helps retailers ground their value proposition to the consumer," said FMI's Andrew Brown, noting it reduces "decision fatigue." As consumers demand more, grocers are being pushed to offer restaurant-style features like online menus, advance ordering, and even drive-thrus.
The line between the grocery aisle and the fast-casual counter is blurring. For consumers, this means more choice and better value, but for the industries, it means the fight for share of stomach has never been more intense.
As the grocery-restaurant battle heats up, major players are already making moves, with Kroger planning to roll out a "deli of the future" to elevate its offerings. The disruption extends to the meal-kit space as well, where Wonder-owned Blue Apron is shaking up its model to stay competitive.
