Prepared foods have become one of the fastest-growing opportunities in grocery retail, as stores expand beyond traditional deli counters into hot bars, sushi counters, catering, ready-to-heat meals and dine-in, sit-down restaurants within the store. For retailers, the challenge now is turning that momentum into profitable operations while meeting rising expectations for convenience, digital ordering and meal solutions.
“As demand grows for prepared meals, catering and special orders, having the right technology and the operational processes to support that technology becomes increasingly important,” says Spencer van den Eikhof, director of ecommerce and loyalty at Harmons Grocery, West Valley City, Utah. “It takes strong leadership, consistent execution and systems that support the complexity behind the scenes.”
According to the FMI – The Food Industry Association’s 2025 “Power of Foodservice at Retail” report, the US grocery foodservice category has surged to $52.1 billion in sales. As food retailers continue to expand their foodservice offerings, the line between grocery store foodservice and restaurants has blurred, and consumers are increasingly viewing their local grocer not just as a pantry supplier but as a direct competitor to their favorite restaurants.
In fact, 28% of grocery deli-prepared meals now replace restaurant meals, according to the research – a significant increase from just 12% in 2017.
The digital demand: Grocery shoppers are already there
Just as the deli counter of the past has stepped up its game, so has the foodservice ordering process in the grocery store.
Shoppers no longer have to pull a number and stand in line until their order is ready. Now, customers can – and want – to place orders digitally, FMI found, leading more food retailers to lean into digital doors to promote their offerings and simplify ordering.
- 66% of consumers say an online menu would influence their purchase.
- 62% want the ability to order in advance via a mobile app or website.
- 58% are looking for dedicated inside pickup stations for pre-ordered food.
- 53% want delivery directly from the grocery store.
“By 2027, these customers will have established new shopping patterns. The window to capture this growth is now,” says Rob Hill, GM of Order Ahead for FoodStorm, Instacart’s cloud-based order management system built for grocery foodservice.
The cost of inaction: A +10% sales wake-up call
Retailers that fail to modernize their foodservice operations risk missing significant revenue opportunities.
Lost potential could reach up to 10% of deli/foodservice sales annually, while operational inefficiencies can add further strain. For typical grocery retailer with $500M in annual sales, that can equate to up to $5.4M in missed deli/foodservice sales if on average deli/foodservice makes up 10% of total sales.
“Manual ordering processes can contribute to labor inefficiencies, costing as much as 15-20% in wasted staff time,” Hill says. “Furthermore, without the suggestive selling power of a digital menu, you miss out on the 32% impulse purchase rate driven by online meal bundles and upsells.”
A 90-day roadmap to 2026 success
For many grocers, though – particularly smaller, independent retailers – building a strong foodservice program can feel overwhelming, Hill says. But a structured rollout can help retailers build momentum quickly.
van den Eikhof advises retailers that success in 2026 requires a shift in mindset.
“Treat it like a true operational program, not just another department,” van den Eikhof says. “FoodStorm has been a strong partner for us in helping grow the catering and special-order side of the business, and because of that success, we’re now working on migrating additional specialty ecommerce experiences onto the platform.”
Hill outlines the following 12-week plan for foodservice integration.
Phase 1: Discovery and planning (Weeks 1-3)
Success starts with an honest audit, according to Hill. Begin by analyzing existing sales data to identify “signature” opportunities and choosing a technology foundation, he suggests.
- Identify high-engagement groups: Focus on Gen Z, millennials and busy families.
- Establish metrics: Define your baselines for labor efficiency and order accuracy.
- Tech selection: Prioritize a system that offers unified online menu management and real-time analytics.
Phase 2: Design and configuration (Weeks 4-6)
This is the “menu engineering” phase – “you aren’t just listing items; you’re creating solutions,” Hill explains.
- The power of bundles: 41% of shoppers want total meal solutions. Design bundles that combine mains, sides and desserts.
- Prioritize popularity: Lean into American (90% interest), Italian/pizza (85%) and Mexican (76%) cuisines.
- Packaging matters: Don’t overlook the physical experience. 90% of shoppers want to see the food through the packaging, and 89% require tamper-evident seals.
Phase 3: Technology implementation (Weeks 7-9)
Integrate an order management system with your POS, ecommerce and loyalty programs.
“Many retailers skip stress-testing,” Hill says. “Ensure you run peak-volume scenarios through your Kitchen Display Systems before the public ever sees the “Order Now” button.”
Phase 4: Training and soft launch (Weeks 10-11)
“Your technology is only as good as the team operating it,” Hill says.
- Train staff on order navigation, quality standards for packaged foods and pickup coordination.
- The 5 p.m. rule: Since 68% of foodservice purchases happen before 5 PM, start a soft launch during peak windows.
Phase 5: Full launch and optimization (Week 12+)
Now is the time to execute an omnichannel marketing campaign. Promote offerings through in-store signage, which accounts for 33% of discovery, and social media, which can influence 65% of those who see it, Hill says.
Built for the perimeter
While many general ecommerce platforms may attempt to add on a foodservice platform, FoodStorm was built specifically for the unique complexities of the grocery industry, Hill says.
“FoodStorm has completely transformed the way Stew Leonard’s manages our catering business,” says Stew Leonard’s Vice President of Culinary Operations, Richard Dibble. “From online ordering to production planning and customer communication, everything runs more smoothly.”
This is why industry leaders like Ahold Delhaize USA, Sprouts, Stater Bros. and Albertsons trust FoodStorm to power their programs, says Hill, explaining how FoodStorm solves the most significant foodservice-related issues.
- Unified order management: Manage online, phone and walk-in orders in one place.
- Production efficiency: FoodStorm production reports help stores optimize labor and reduce food waste.
- Meal bundling: Effortlessly create and promote the combo deals that 41% of your customers are looking for.
- Real-time data: Stop guessing. Use the analytics dashboard to see exactly what’s selling and where your margins are healthiest.
Playing to grocery’s strengths
While grocery foodservice continues to evolve, Hill says retailers shouldn’t try to replicate restaurants.
Instead, they should focus on convenience.
“Forty percent of customers choose grocery foodservice because they can shop for other groceries at the same time,” he says.
With nearly half of consumers deciding what’s for dinner the same day, retailers that combine prepared meals with seamless digital ordering can capture more of those occasions, he adds.
“Successful operators don’t just sell food,” Hill says. “They sell time.”
Related stories:
- Meet the newest diner: Generation Alpha’s early influence on the future of foodservice
- FMI Midwinter 2026: AI and collaboration take center stage
- Five reasons family meals are more important than ever
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