Consumers are embracing prepared foods and retailers couldn’t be happier. Supermarkets embracing prepared foods are experiencing significant growth. Grocerants, which are in-store restaurants offering dine-in and take-out meals, generated more than $10 billion in sales last year, according to the NPD Group. Grocerants, combined with other foodservice offerings such as pre-ordered, heat-and-eat, and meal kits, will push retail foodservice over the $35 billion mark in 2017.
In 2018, prepared foods is likely to grow an additional 10%, which is more than five times the growth-rate expected from traditional restaurants.1 Astute supermarket operators may achieve even higher growth rates considering prepared foods address two key challenges: