Foodservice ‘renaissance’: How grocers are spicing up their deli and premade meals

From gourmet sandwiches to premade salads, The Save Mart Companies has done “a lot” of work to spice up its prepared foods, said Mark Van Buskirk, the grocery company’s senior vice president of merchandising and marketing.

The grocery company, which runs around 200 supermarkets in California and Northern Nevada under banners such as Save Mart, Lucky and FoodMaxx, has recently revamped its sandwich program and its behind-the-glass salads and grab-and-go salads, Van Buskirk said. Earlier this year, it also launched a gourmet sandwich line.

These changes aim to provide healthy alternatives for people in addition to “core basic programs” that focus on rotisserie chicken and fried chicken, said Van Buskirk.

“You can come in, pick something up and get a high-quality meal at a price that's a value relative to what you would pay if you were going to a restaurant,” Van Buskirk said.

Research from FMI—The Food Industry Association indicates that foodservice at grocery stores is increasingly replacing quick-service or fast-casual restaurant meals, said Rick Stein, the trade group’s vice president of fresh foods.

“We’re really seeing a renaissance in the foodservice department with retailers investing heavily in these departments after many closed during the COVID-19 pandemic,” Stein wrote in an email. “Retailers have invested in chefs and specialty staff, increased space allocation and enhanced variety in an effort to reenergize foodservice departments and make them more top-of-mind for consumers.”

While some grocers are adding in-store restaurants, food halls and made-to-order stations, other grocers are focused on bringing their deli and pre-made meals up to par with restaurant fare.

But as competition grows from restaurant chains as well as convenience stores like Foxtrot, supermarkets are getting creative with offerings, deals, labor models and shopping experiences in order to differentiate beyond just price.

Deli-prepared takes a larger slice of shoppers’ dollars

September was a major month for deli-prepared offerings, with strong sales across pizza, soups and chili indicating consumers are choosing alternatives to home-cooked or restaurant meals, according to research from Circana.

“The strength of deli-prepared food continues to be very encouraging,” Jonna Parker, the fresh foods team lead at Circana, said in 210 Analytics’ latest report. “It reflects a marketplace in which consumers need a break from cooking every once in a while, but...