Supermarkets are elevating their food offerings to replicate outside dining experiences, including via full-service, in-store restaurants. Executives report that grocery chains are making meal prep more convenient for consumers, helping them recreate restaurant-style dishes close to home. Grocery stores seek to capture an increasing share of consumers' spending by positioning themselves as convenient, high-quality, and affordable alternatives to restaurant dining. This trend is further driven by economic factors that influence consumer spending on dining out versus meal preparation at home.
In 2023, demand for supermarket deli prepared foods rose significantly as consumers continued looking for indulgent experiences. With the rise of hybrid and remote work, nearly 20% of shoppers reported consuming deli-prepared foods more often due to changes in their work situations. Grocery retailers have launched various initiatives such as SpartanNash's private-label line, Finest Reserve, offering high-quality meal solutions. Other grocery chains are also embracing concepts to provide restaurant-quality meals within their stores, focusing on customer convenience and meeting evolving consumer preferences.