Foodservice at retail is a strategic advantage
for food retailers, and through informed strategy, an efficient operating model and a differentiated consumer experience, foodservice can be a growth-driving superpower in the competitive grocery market.
By: Andrew Brown, Senior Manager, Industry Relations, FMI
In today’s rapidly evolving food landscape, foodservice at retail stands out as a true superpower for supermarkets. It’s a strategic advantage that enables supermarkets to better meet the diverse and ever-changing needs of consumers more than any other format. But with great power comes great responsibility.
Our new whitepaper Framework for Retail Foodservice Success 2025 was developed in collaboration Kearney with the goal of helping our members make sense of this powerful department and avoid treating it like any other department in the store.
The Three Pillars of Success
- Strategy:
Success starts with a clear, informed strategy that’s tailored to the store’s unique customer base. Retailers must define their aspirations. Are they aiming to be a foodservice destination or simply add incremental revenue? It’s about understanding your shoppers and aligning foodservice offerings to their lifestyles and preferences. - Operating Model:
A winning strategy is nothing without the right operating model. This means moving beyond traditional retail metrics and adopting a production mindset, focusing on consistency, quality and efficiency. Whether it’s in-store prep, commissary production or partnerships, the model must deliver on the promise of freshness, convenience and value. - Consumer Experience:
The final pillar is the consumer experience. Retailers must create differentiated, memorable experiences that make their stores top-of-mind for meal solutions. This includes everything from store layout and technology integration to marketing and menu variety. The goal is to make foodservice a seamless part of the shopper’s journey, whether they’re grabbing a quick lunch, ordering online or enjoying a sit-down meal in-store.
Unlocking the Superpower
Foodservice at retail is a strategic imperative. By aligning strategy, operating model and consumer experience, grocery stores can transform foodservice into their superpower, meeting a wide range of consumer needs and driving growth in a competitive market. The framework provided in this white paper is a great tool for having those high-level conversations and getting the ball rolling! To learn more, download the full whitepaper or contact me for guidance on implementing these pillars in your organization.
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