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
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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
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
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
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”
APPENDIX
Market definition
Consumer research questions
Consumer research methodology
Generations
Abbreviations and terms
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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