2025
9
US Foodservice in Retail Market Report 2025
2026-01-07T20:01:12+00:00
REPBF136BD7_38FC_448A_9545_C4217D288DE5
3695
191550
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Report
en_GB
Prepared and made-to-order foods in grocery are core to consumers seeking value and flexibility, with 75% highlighting better value than dining out. Despite an overall dip in usage frequency YOY,…
US
Foodservice
Retail
simple

US Foodservice in Retail Market Report 2025

"Convenience remains foundational to foodservice in retail, but high quality and enjoyable taste are the driver behind increased engagement."

Sydney Riebe, Analyst - US Food and Drink

Sydney Riebe, Analyst - US Food and Drink

Prepared and made-to-order foods in grocery are core to consumers seeking value and flexibility, with 75% highlighting better value than dining out. Despite an overall dip in usage frequency YOY, engagement is polarized – core segments like young parents and urban, hybrid workers report increased purchases. Quality and taste now rival convenience with heavy users equating store foodservice to restaurant benchmarks on freshness and flavor. Economic headwinds have pressured budgets but reinforced the idea of prepared foods as an affordable indulgence. Retailers are broadening both assortment and location, with mass merchandisers, international grocers and urban small formats intensifying competition. Investments in AI and digital platforms are driving operational efficiency, waste reduction and convenience. Selections and engagement must continue to evolve, as healthy options remain a white space: 53% of consumers cite difficulty finding nutritious prepared options, highlighting rich innovation territory for BFY.

This report looks at the following areas:

  • Prepared food at retail purchasing behaviors
  • Prepared food at retail consumption occasions
  • Motivations for purchasing prepared foods at retail
  • Interest in retail foodservice concepts
  • Attitudes on foodservice in retail
  • Innovation and marketing strategies for foodservice in retail

Market Definitions

This Report explores consumer attitudes/behaviors surrounding foodservice concepts in retail, specifically grocery retailing. “Foodservice concepts in retail” refers to any restaurants located in a store, including grocery-owned restaurants as well as partnerships with existing brands such as a Subway located in a Walmart, or any meals sold on-site that are created by store employees (ie not shipped in from a manufacturer). Hot soups, prepared sushi, rotisserie chicken, hot and cold food bars and on-site alcohol bars are all examples of foodservice concepts in retail.

Foodservice in retail also refers to prepared packaged foods (eg packaged employee-made sandwiches) as well as MTO foods available at a station located in the store, where customers can have a meal made to order (eg a burger station). Throughout this Report the phrase “prepared food” refers to both prepared packaged and MTO food.

This Report segments prepared food purchasers into three user groups to help illuminate the behaviors and attitudes of different types of prepared food customers throughout:

Heavy users purchase prepared foods at least once a week.

Moderate users purchase a few times a month to once a month.

Light users purchase once every two to three months to a few times a year.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for foodservice in retail
    • Opportunities
    • Help consumers find convenient, BFY foodservice options at grocers
    • Continued investment in grocery technology adds ease
    • Retail foodservice can inspire culinary exploration
    • Graph 1: attitudes on foodservice in retail, 2025
  2. THE MARKET

    • Consumers and the economic outlook
    • Delays and loss of SNAP benefits impact households
    • As consumers pull back on dining out, prepared foods can supplement
    • Graph 2: spending habits, past 12 months – food, 2025
    • Consumers respond to elevated prices by shopping around
    • Graph 3: consumer behavior changes in response to grocery price increases, 2025
    • Grocers continue to invest in AI technologies
  3. THE CONSUMER

    • Lifestyle and accessibility impact foodservice retail occasions
    • Frequency shifts toward occasional, but key groups report strong engagement
    • Wider variety of prepared foods purchase locations reflect improved selections
    • Graph 4: prepared food at retail purchase locations, by change in purchase frequency, 2026
    • Casual occasions are drivers for increased prepared foods usage
    • Graph 5: prepared food at retail consumption occasions, by change in purchase frequency, 2026
    • Connect on occasions that fit into consumers’ busy lifestyles
    • Strengthen younger consumers’ perceptions of value and convenience
    • Younger consumers require a refresh in prepared foods selection
    • Graph 6: types of prepared foods and drinks purchased at retail, by generation, 2026
    • Improve convenience and value perceptions for Gen Z and Millennials
    • Graph 7: motivations for purchasing prepared foods at retail, by generation, 2026
    • Make healthy feel easy for younger consumers
    • Graph 8: attitudes on foodservice in retail – strongly agree, by generation, 2026
    • Foodservice in retail can strive to be an engaging, exploratory dining experience
    • Consumers are keen to explore via prepared foods
    • Global and seasonal foodservice in retail offerings
    • Increase engagement with exploration across a spectrum of healthy to indulgent
    • Graph 9: interest in retail foodservice concepts, by usage frequency, 2026
    • Highly engaged consumers view prepared foods as a dining experience
    • Graph 10: motivations for purchasing prepared foods at retail, by change in purchase frequency, 2025
    • Attitudes among heavy users – foodservice retail compared to restaurants
    • Utilize regional insights to connect with urban consumers
    • Prepared foods are a destination for urban consumers
    • Small-footprint innovations win in urban markets
    • Graph 11: interest in retail foodservice concepts, by area, 2026
    • Support urban consumers on the go with convenient options and packaging
    • Graph 12: prepared food at retail consumption occasions, by area, 2026
  4. INNOVATION AND MARKETING STRATEGIES

    • Grocers invest in quality breakfast options
    • Asian cuisine is at the forefront of success in foodservice in retail
    • Asian grocers offer authentic, fresh and community-centered foodservice options
    • Small-format options pop up in urban areas
    • Sam’s Club now offers pizza delivery
    • Kroger announces plans to open a “deli of the future”
  5. APPENDIX

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Abbreviations and terms

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