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Grocery Foodservice Sales Rise

Specialty Food Association

A quarter of shoppers are purchasing more grocery foodservice items than a year ago, surpassing dollar and unit sales volume from last year and 2019, according to the "Power of Foodservice at Retail 2022” report by The Food Industry Association. 

The analysis finds that food retailers can compete for consumers’ food dollars by maximizing value, nutrition, and convenience, while clearly communicating these benefits to consumers.

“It’s our opportunity to put grocery foodservice on the map,” says FMI’s VP of fresh foods, Rick Stein, in a statement. “At a time when consumers are rethinking where to put their food dollars, retailers need to demonstrate the value of grocery foodservice and exceed expectations. The Power of Foodservice at Retail 2022 report provides a detailed roadmap on where retailers can supercharge segment success.”

As inflation continues to affect shoppers’ budgets, people are preparing more meals at home. More than half of those surveyed (53 percent) say foodservice items return good value compared to eating at a restaurant or ordering takeout.

Nutritional value is ranked high when considering foodservice options. About 58 percent of consumers are interested in vegetables or other healthy options, but only 36 percent are very satisfied with the nutrition levels of foodservice offerings. Consumers suggest retailers can satisfy their palates by reducing the number of fried foods and adding more plant-based options.

To capture more away-from-home spending dollars, the report suggests retailers consider adopting restaurant-style amenities. Half of shoppers surveyed find the ability to order grocery foodservice items online appealing. Drive-through lanes, a separate checkout in the foodservice area, delivery by the grocery store, and outside pickup stations, were also seen as ways to attract shoppers. 

Related: Grocers Continue to Invest in Shopper Experience; Industry Voices: COVID’s Effect on Consumer Behavior