Consumers are increasingly turning to the grocery store deli for a quick meal, rather than restaurants.
That’s according to a retail foodservice report released Tuesday by grocery trade group FMI-The Food Industry Association.
The share of diners choosing deli-prepared foods instead of restaurants more than doubled from 2017 to today, increasing from 12% to 28%, according to FMI.
What’s more, 23% of shoppers said they are stopping less frequently at fast-food or fast-casual restaurants.
“Consumers are increasingly viewing deli-prepared foods as a true alternative to restaurant dining, not just a convenient option,” said Allison Febrey, senior manager of research and insights for FMI. “This shift reflects how shoppers are redefining value in food; they want meals that deliver on quality and variety but also save time and money.”
Retail foodservice, prepared foods at grocery stores that include sandwiches, pizza, sushi and much more, continues to grow. The segment grew 1.6% over the past 12 months, to $52.1 billion, FMI said.
Consumers were particularly interested in fully cooked meat, the report found, a segment that grew 4.8% in sales. Grocery store pizza also saw big gains, increasing 4.5% in sales over the past year. Sushi sales rose 3.8%.
“Shoppers are purchasing deli-prepared options most frequently between noon and 5 p.m., and want the flexibility to pair fresh, high-quality prepared items with ingredients at home, creating meals that balance time savings and meet their well-being goals,” FMI VP of Fresh Foods Rick Stein said.
In 2017, half of deli-prepared meals replaced home-cooked meals, FMI said. But now the deli is only replacing 30% of home-cooked meals. It’s a trend that suggests consumers are increasingly seeing retail foodservice as on par with restaurants.
Grocery meals are also seen as a good value. Thirty-eight percent of shoppers said deli-prepared foods are the same value as restaurants.
But value is about more than just saving money. Consumers said prepared foods from the grocery store save them time, allow them to shop for food at the same time, are less expensive, offer healthful options and larger serving sizes.
Restaurants still win out on some occasions, though. Thirty-four percent of those surveyed said they opt for quick-service or fast-casual restaurants when they’re not in the mood to prepare dinner, versus 17% choosing prepared food from the grocery store.
Grocery stores are taking some best practices from restaurants.
They’re increasingly developing (and marketing) a signature foodservice item. Four in 10 shoppers said their grocery store has a prepared food it is known for, up from 33% last year. Chicken dishes ranked the highest among grocery signature items, the report found, with sandwiches and deli meat also frequently mentioned.
Consumers, though, would apparently like to see supermarkets become more like restaurants. Sixty-six percent said they’d like to see a prepared foods menu online, 62% would like the ability to order in advance, 58% want an inside pick-up station for pre-ordered food, 58% want a drive-thru, 55% would prefer a separate checkout area in the deli department and 53% would like grocery delivery of prepared foods, FMI found.
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