Growth in Foodservice and In-Store Bakery Continues to Accelerate

The recent reports from FMI — The Food Industry Association highlight that the foodservice and in-store bakery departments at grocery stores continue to offer significant value for shoppers. As more people prepare more meals at home, there is a growing demand for convenient and affordable meal options from grocery stores, particularly through the foodservice, deli, and bakery departments.

Key Takeaways:

1. Replacing Restaurant Meals
   • One out of every four shoppers (25%) now cite that they are replacing restaurant meals with foodservice options at grocery stores, which is an increase from 17% the previous year. This trend suggests that grocery foodservice departments are becoming a more viable option for consumers who previously relied more heavily on traditional restaurants or take-out services.
2. Convenience and Experience Matter
   • Shoppers are increasingly seeking the same convenience, experience, and quality they expect from restaurants in their grocery store foodservice and bakery departments. Features like online ordering (62%), easy pick-up (59%), and delivery (48%) are seen as essential by consumers, with many wanting these features to be more readily available in grocery stores.
3. Focus on Health and Value
   • Cost remains a primary factor for shoppers when choosing foodservice options, with 47% of respondents identifying it as a top decision-making factor. As consumers look for more nutritious and healthier options, there is also growing interest in foodservice meals, with 65% of shoppers stating that they pay attention to the nutritional value of deli-prepared foods. For the bakery department, two-thirds of shoppers say they pay attention to at least one nutrition claim when purchasing bakery items.
4. Hybrid Meal Preferences
   • As more people engage in hybrid meal planning (mixing scratch cooking with pre-prepared items), there is an increasing demand for foodservice options that deliver a balance of convenience and quality. Retailers need to adopt a restaurant-like approach by providing features like online ordering, easy pick-up, and delivery options to meet these expectations.
5. Freshness and Specialty Items
   • For the bakery department, freshness remains a top priority, with consumers looking for freshly baked items to round out their meals with options like bread rolls, dessert items, and other specialty bakery items. In-store bakeries that offer technology features for ordering specialty items (like online ordering or designing personalized items) can help meet shopper demands and enhance convenience.

This evolution in foodservice and bakery offerings underscores the importance of providing consumers with convenient, high-quality, and affordable meal options. As shoppers continue to look for convenient and healthier alternatives to traditional restaurant meals, grocery stores’ foodservice and bakery departments offer a valuable option.