Why
2025 and 2026 consumer behavior demands a new approach to fresh food, meal
solutions, pricing, and customer engagement according to Steven Johnson, Grocerant Guru®
at Foodservice Solutions® based in Tacoma,
Washington
The
grocery store service deli is sitting on one of the biggest untapped food
marketing opportunities in retail. Yet too many operators continue to manage
their deli departments as though consumers are simply looking for sliced
turkey, potato salad, a pound of ham, or a rotisserie chicken.
That
thinking is outdated.
Today's
consumers are looking for solutions to a much bigger question: What's for
dinner, how much will it cost, and how quickly can I get it on the table?
The
grocery service deli should be answering that question every day.
The
opportunity is bigger than selling fresh food. It is about capturing meal
occasions, increasing transaction value, building repeat visits, and competing
directly with restaurants, takeout, delivery, convenience stores, and other
retailers.
This
is where the Grocerant Niche comes into play. Ready-2-Eat (RTE) and
Heat-N-Eat (HnE) fresh-prepared foods are no longer peripheral grocery
offerings. They are increasingly important components of how consumers assemble
meals across channels.
The
challenge for grocers is that consumer expectations have evolved faster than
many service deli operating models.
The 2025–2026 Numbers: The Consumer Has Already Changed
Consider
several findings that should be influencing every grocery deli executive's
merchandising, pricing, and marketing decisions.
1.
Grocery-prepared foods are taking restaurant occasions.
FMI's
October 2025 Power of Foodservice at Retail research found that the
share of consumers choosing deli-prepared foods instead of restaurant meals
more than doubled, increasing from 12% in 2017 to 28% in 2025. Furthermore, 53%
of Americans reported combining deli-prepared foods with items from their own
kitchens to create meals.
That
is a significant change. Consumers are not necessarily choosing between cooking
and buying a meal. They are combining the two.
2.
In 2026, meal solutions are more important than individual products.
FMI's
October 2026 research found that 56% of households combine home preparation
with food prepared outside the home for dinner at least once a week. Grocery
retailers have an opportunity to sell the protein, sides, vegetables, sauces,
and accompaniments that complete a meal.
3.
Shoppers are under pressure to manage food budgets.
FMI's
2026 shopper research reports that 70% of shoppers say their income has not
kept pace with inflation. At the same time, 44% report having more family meals
at home than a year earlier, and 35% say they are cooking more often.
This
creates an opportunity for deli operators, but it also creates a pricing
challenge. A prepared meal must demonstrate why its convenience, quality, and
portion size justify its price.
4.
Convenience is still a powerful purchase motivator.
Circana's
2026 Eating Patterns in America research found that 86% of food
occasions are sourced from home. Consumers are increasingly balancing
convenience, nutrition, cost, and connection. The report also identifies
protein and convenience as important forces shaping eating behavior.
The
takeaway is straightforward: grocery operators should stop thinking exclusively
about deli department sales and start thinking about the share of stomach they
can capture.
Four Disconnects Holding Grocery Service Delis Back
1. Service Failures Cost More Than a Single Transaction
A
deli counter with inadequate staffing, long lines, inconsistent availability,
and employees who cannot explain the menu is not delivering convenience.
Consumers
may be willing to pay for someone else to prepare dinner, but they are not
eager to spend 15 minutes waiting to purchase it.
Imagine
a customer entering at 5:30 p.m. looking for a roasted chicken, two sides, and
a dessert. If the chicken is sold out, the sides are poorly stocked, and nobody
can provide an alternative, the retailer has lost more than a chicken sale. It
may have lost the entire dinner occasion.
The
answer is to schedule labor around actual purchasing patterns, not simply
traditional department hours. FMI's 2026 research found that half of same-day
dinner decisions occur between 3 p.m. and 7 p.m. That is when the deli needs to
be ready.
2. Confusing Pricing Destroys Perceived Value
Pricing
is not simply a matter of matching the competition. It is about demonstrating
value.
A
$9.99 rotisserie chicken may appear attractive, but a family purchasing that
chicken, two prepared sides, rolls, and dessert needs to understand the total
cost of dinner.
Retailers
should display complete meal prices, serving sizes, and individual component
prices. Consumers need to see what they receive, not discover the final cost at
checkout.
A
deli that charges premium prices without communicating premium ingredients,
preparation, freshness, portion size, or convenience risks losing the consumer.
Price
without context creates resistance. Price accompanied by a clear value
proposition creates an opportunity.
3. Poor Merchandising Makes Fresh Food Look Anything But
Fresh
Fresh
food sells with the eyes before it sells with the appetite.
Empty
trays, dried-out sandwiches, unattractive salads, inconsistent labeling, and
displays that look neglected undermine consumer confidence.
Consider
the difference between displaying a container of pasta salad and merchandising
a complete Mediterranean-inspired meal with grilled chicken, pasta salad,
roasted vegetables, and a complementary sauce.
The
ingredients may be identical. The consumer proposition is entirely different.
Merchandising
should communicate freshness, flavor, meal possibilities, and convenience.
4. Generic Packaging Sacrifices Brand Equity
A
clear plastic container is functional. It is not necessarily memorable.
Packaging
should tell consumers what they are buying, why it tastes good, how much it
serves, and how to enjoy it.
Imagine
branded packaging for a store's signature Nashville hot chicken, Mediterranean
grain bowl, Asian-inspired noodle salad, or smoked barbecue brisket.
Add
a product name, preparation story, ingredient information, reheating
instructions, and a recognizable visual identity.
A
retailer should want customers to return specifically for its food, not merely
because they happened to be shopping for milk.
The
2026 reputation challenge: FMI found that only about one-third of shoppers
could identify a deli-prepared food item for which their primary grocery store
was known. That is a major branding opportunity waiting to be captured.
Eight Strategies to Rebuild the Grocery Service Deli
The
following strategies move the department away from a traditional
counter-service mentality and toward a consumer-focused fresh-food business.
1. Sell Complete Meal Solutions, Not Isolated Products
Develop
meal combinations for different household sizes, budgets, and occasions.
Examples
include:
·
Two-person dinner:
Rotisserie chicken breast, roasted potatoes, and green beans.
·
Family dinner:
Whole roasted chicken, macaroni and cheese, salad, and rolls.
·
Game-day gathering:
Wings, sliders, potato skins, dips, and desserts.
·
Quick weekday dinner:
Heat-and-eat lasagna, garlic bread, and Caesar salad.
·
Global flavors:
Korean-style chicken, rice, vegetables, and sauces.
Offer
individual components as well as bundled combinations. Consumers want choices,
not mandatory packages.
2. Establish Transparent and Consistent Pricing
Display
prices prominently. Offer good, better, and best meal combinations.
For
example, a retailer might offer an entry-level meal for two, a larger family
meal, and a premium specialty meal.
Use
actual food costs and local competitive conditions to establish prices. Do not
assume every customer wants the cheapest option. Many want the best combination
of price, quality, portion size, and convenience.
This
is where the Grocerant Guru's Price Value Service Equilibrium becomes
important: price, quality, social relevance, and portability all contribute to
perceived value.
3. Staff for the Consumer's Clock
The
traditional 9-to-5 staffing mentality does not work when dinner demand peaks
after work.
Use
transaction data to identify lunch, afternoon, and evening demand. Cross-train
employees to assist with packaging, replenishment, order fulfillment, and
customer service.
Offer
online ordering and scheduled pickup for larger orders.
Most
importantly, keep popular items available during the hours consumers actually
want them.
4. Create Signature Products Consumers Recognize
Every
grocery retailer should have food worth talking about.
A
signature fried chicken, regional barbecue, premium sandwich, specialty mac and
cheese, or distinctive prepared salad can become a destination product.
Develop
a product consumers can identify without looking at the store's name.
That
is how a deli begins building its own brand equity.
5. Use Data Analytics to Improve Production and Reduce
Waste
Track
sales by daypart, item, location, weather, promotion, and season.
Measure:
·
Sell-through rates.
·
Out-of-stock frequency.
·
Food waste and markdowns.
·
Gross margin by item.
·
Repeat purchases.
·
Meal bundle attachment rates.
Use
those findings to forecast production and adjust batch sizes.
A
deli should not be producing 40 sandwiches simply because it produced 40
yesterday. Consumer demand is dynamic, not static.
6. Build Branded Packaging Around Freshness and Portability
Packaging
should reinforce the product's identity and make it easy to transport, store,
serve, and reheat.
Include
clear preparation instructions, ingredient information, portion details, and
appealing product descriptions.
Consider
packaging that works for office lunches, family dinners, individual
consumption, and on-the-go snacking.
The
container is part of the product experience, not just an operating expense.
7. Make Freshness, Food Safety, and Quality Visible
Freshness
is a promise that must be supported by operating discipline.
The
FDA's September 2026 report on retail deli food safety identified improper
holding time and temperature and poor personal hygiene as the two most common
out-of-compliance risk factors in its 2019–2022 study.
The
FDA also found that delis with a Certified Food Protection Manager present had
significantly better food safety management system scores.
Invest
in trained managers, temperature monitoring, proper sanitation, product
rotation, and documented procedures.
Communicate
freshness honestly. A marketing message cannot compensate for inconsistent food
safety practices.
8. Turn the Deli Into an Interactive Food Marketing
Destination
Sampling,
seasonal menus, limited-time offerings, digital promotions, and customer
feedback can make the deli more engaging.
Create
weekly themes such as:
·
Taco Tuesday meal solutions.
·
Friday family pizza night.
·
Saturday barbecue bundles.
·
Sunday comfort-food dinners.
·
Seasonal regional specialties.
Encourage
customers to vote on upcoming flavors, suggest new sides, and share their
favorite combinations.
Use
loyalty programs to measure which promotions generate incremental purchases
rather than simply discounting products customers would have purchased anyway.
The
objective is participation, engagement, and repeat business.
The Bigger Opportunity: Break Down the Grocery Department
Silos
One
of the biggest mistakes grocery retailers make is managing the deli, bakery,
produce, meat, seafood, and center store as separate businesses.
Consumers
do not shop that way when deciding what to eat.
A
shopper purchasing deli-prepared chicken may also need fresh vegetables, bakery
rolls, refrigerated sauces, beverages, and dessert. The retailer should
merchandise those products together around the meal occasion.
Consider
these combinations:
|
Meal occasion |
Grocery departments working together |
|
Italian night |
Deli lasagna, bakery garlic bread, produce salad |
|
Backyard barbecue |
Deli ribs, meat department steaks, produce sides |
|
Healthy lunch |
Deli grilled chicken, produce vegetables, refrigerated dressing |
|
Family breakfast |
Bakery pastries, deli breakfast sandwiches, dairy beverages |
|
Game-day gathering |
Deli wings, bakery sliders, produce vegetables and dips |
This
is cross-merchandising with a purpose. It increases convenience, exposes
consumers to additional products, and creates opportunities to increase basket
size.
The
future belongs to retailers who understand that consumers have no artificial
channel or departmental silos in their minds.
Think About This: The Deli Is Competing for Dinner, Not
Just Deli Sales
The
service deli has an opportunity to become one of the grocery store's most
important customer acquisition and retention tools.
But
that requires a different mindset.
Grocery
retailers must compete with restaurant takeout, drive-thru, convenience stores,
delivery services, and other sources of fresh-prepared foods. Consumers compare
all of them based on their own expectations of price, quality, convenience,
flavor, and service.
The
retailer that makes dinner easier, more affordable, and more enjoyable has an
opportunity to win.
The
2025 and 2026 FMI research reinforces an important point: consumers are
increasingly comfortable combining food prepared by someone else with food
prepared at home. That makes the grocery deli a meal-building resource, not
simply another department.
The
opportunity is to become the consumer's first stop when deciding what to eat.
Three New Insights from the Grocerant Guru®
1.
Stop measuring deli success exclusively by department sales.
Measure
meal occasions captured, repeat purchases, basket attachment, and customer
retention. A rotisserie chicken sale that generates purchases in produce,
bakery, beverages, and prepared sides is worth more than the chicken
transaction alone. Market the entire meal.
2.
Price transparency is the new customer service.
Consumers
under financial pressure do not want surprises at checkout. Build clearly
priced meal solutions for one, two, and four or more people. Demonstrate the
value of fresh preparation, portion size, quality, and convenience. Remember,
the lowest price does not always deliver the best value.
3.
Every grocery deli needs a signature food identity.
If
consumers cannot identify a distinctive food item associated with your grocery
brand, you are missing an opportunity to create destination traffic. Develop
signature sandwiches, chicken, regional specialties, salads, and complete
meals. Give customers something they cannot easily duplicate elsewhere.
The Grocerant Guru® bottom line: Consumers are dynamic, not static. Grocery retailers that continue operating their service delis as traditional sliced-meat counters will surrender meal occasions to competitors. Those that embrace RTE, HnE, foodservice-quality preparation, transparent pricing, and customer-focused merchandising can turn the deli into a genuine competitive advantage.
Steven
Johnson is the Grocerant Guru® at Tacoma, Washington-based Foodservice
Solutions®. Foodservice Solutions® identified and championed the Grocerant
Niche beginning in 1991 and coined the term in 1996.
For
corporate presentations, regional grocery chain consulting, food marketing
strategy, educational forums, and keynote engagements, contact Steven Johnson.






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