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."
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.
Collapse All
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
Market Intelligence Made Easier With Mintel
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
£ 3,695(Excl.Tax)
Download today with instant access
Pay via credit card or invoice (net 30 payment terms)
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
Mass merchandisers, such as Target, remain a key staple in consumers' shopping ecosystem; Mintel predicts the market will reach approximately $793B in sales in 2026. Mass merchandisers offer...
The toy and games market is experiencing a shift driven by economic pressures and changing consumer preferences. Parents remain the key decision-makers in toy purchases, significantly influencing trends...
Private label food and drink sales and share notched their fourth consecutive gain in 2025 and are poised to make further gains over the next five years. While...
Rising menu prices and economic uncertainty dominate the foodservice landscape in 2026, as 57% of consumers worry about their restaurant spending and the price index for food AFH...
Back to college season remains a resilient pillar of the retail calendar, with consumer spending estimated at $88.8 billion in 2025 – the second‑highest total on record. Accounting...
Non-winter holidays anticipated spending reached $138B (+37% since 2019), illustrating that even under prolonged inflation, consumers largely refuse to forgo celebration, highlighting these occasions' emotional resilience and commercial...
There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.
However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.
Stephen Taylor-Brown, Managing Director, Abacus
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Abby Carvosso, Group Managing Director, Bauer Media Group
We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.
Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.
Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.
Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.