In today’s dynamic food retail landscape, grocery store
service delis, once known for their quality, convenience, and fresh food
options, are struggling to meet the demands of a modern consumer base hungry
for more than just another cold cut or outdated salad option. Consumers desire
for grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food consumers to
grow according to Steven Johnson
Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
Today, shoppers prioritize convenience and value over the
traditional grocery run, delis are failing to inspire loyalty due to service
issues, inconsistent food pricing, unappealing displays, and the overuse of
bland, brandless packaging.
For service delis to regain relevance, grocery store
operators need to transform their approach to fresh food, prioritize the
shopper experience, and standardize high-value touches that enhance brand
loyalty. Here, we’ll discuss key pitfalls grocery service delis face and
provide eight strategies to reshape deli departments for improved customer
experience and profitability.
1. Service and Availability Concerns
Many service delis fall short when it comes to the basics:
staffing and efficient service. A common customer experience includes long
lines, limited product availability, and undertrained staff. A report from FMI
(The Food Industry Association) indicates that 63% of shoppers now prefer
prepared foods, especially during evening hours, yet many service delis fall
behind in meeting peak demand. Chains such as Kroger and Safeway have been
criticized in customer feedback for failing to keep deli items stocked during
high-traffic hours, leading to missed opportunities and frustrated shoppers.
2. Inconsistent Pricing Frustrates
Shoppers
Inconsistent pricing remains a major deterrent to frequent
deli shoppers. For instance, while rotisserie chickens may be competitively
priced at one store, they can cost significantly more at another within the
same chain. According to a NielsenIQ report, nearly 75% of consumers report
feeling frustrated by unpredictable pricing in grocery stores, especially in
the deli section, where meal components often come with unexplained price
hikes. Walmart, for example, has adjusted prices on certain deli products based
on demand cycles, but this practice can create a negative impression of
‘nickel-and-dime’ pricing tactics.
3. Unappealing Fresh Food Displays
One of the central appeals of a service deli is its fresh,
inviting display. Yet too often, grocery service delis fail to deliver. It’s
not uncommon to find empty trays or food that looks tired and dried out, with
lighting that does nothing to enhance the appeal of the product. According to
FMI, 45% of consumers who would otherwise purchase from a deli department have
left without making a purchase due to stale or poorly displayed food. For
instance, while Wegmans has long been heralded as an innovator in fresh food
merchandising, many other chains lack the visual appeal necessary to pull
shoppers in.
4. Brandless Packaging Dilutes the
Experience
Many delis have leaned heavily into brandless, generic
packaging in a bid to reduce costs, which strips away a valuable layer of
differentiation. In the age of unique brand experiences and personalized
shopping, food packaging plays a critical role in creating a sense of quality.
A Nielsen report on consumer shopping habits found that 60% of consumers say
visually appealing packaging strongly influences their perception of quality.
Stores like Whole Foods understand this, using distinct branding and eco-friendly,
aesthetically pleasing containers that enhance both the shopping experience and
brand loyalty.
8 Ways Service Delis Can Become
Customer-Focused and Improve
To stay relevant, grocery store service delis need to
reimagine their approach and prioritize the needs of today’s consumers. Here’s
how they can make immediate, impactful changes:
1.
Offer Transparent,
Standardized Pricing Across Locations
Consistent pricing for popular deli items, such as rotisserie chicken or
sandwiches, across all store locations, will help build customer trust. For
example, Target has managed to build loyalty by offering consistent prices
across its food offerings, creating transparency and trust with shoppers.
2.
Implement Peak-Time
Staffing Solutions
Service delis need well-trained staff during peak hours to meet the demands of
time-starved shoppers. Introducing cross-trained personnel from other
departments during rush times or offering deli pre-order options can help
manage the crowd and reduce wait times.
3.
Emphasize Display
Quality
Regularly refresh displays to ensure that food appears fresh and appealing.
Chains such as H-E-B excel at food presentation with attractive displays that
make deli items look fresh, clean, and inviting. Leveraging vibrant lighting
and frequent restocking can create a sense of abundance, encouraging more
purchases.
4.
Develop Branded
Packaging that Enhances Quality Perception
Transition from plain, generic packaging to branded containers that reinforce
the store’s quality message. Walmart’s Great Value brand has used branded
packaging to enhance the perception of quality in its products, contributing to
a higher rate of repeat purchases.
5.
Optimize Fresh Food
Inventory with Data Analytics
Using data analytics to track popular items and optimize production can reduce
waste and ensure popular deli items remain in stock. Kroger, for instance, has
made strides in inventory management by using customer data to anticipate
demand spikes, keeping deli counters stocked with crowd favorites.
6.
Offer Prepared Meal
Solutions for Different Occasions
Expanding beyond simple cold cuts to offer bundled meal kits for various
occasions can elevate the deli experience. Wegmans has pioneered this approach,
providing easy-to-prepare options that cater to specific meals like “Game Day”
or “Movie Night.”
7.
Create “Fresh Daily”
Programs to Highlight Quality
Adding a “Fresh Daily” label or messaging can reassure customers of a product’s
freshness and increase sales. Food Lion, for example, uses this tactic across
its departments, signaling to shoppers that items are prepared and restocked
daily, improving customer perception of quality.
8.
Incorporate
Self-Service Kiosks for a Quick, Seamless Experience
Self-service kiosks are increasingly popular for their convenience. Safeway,
for example, has started implementing kiosks for quick deli orders, allowing
customers to skip the line and grab pre-prepared meals and components easily.
Think About This
Service delis can be one of the most profitable and
consumer-relevant sections in a grocery store, but they’re at risk of becoming
obsolete without proactive change. By focusing on consistent pricing, appealing
displays, and quality packaging, grocery delis can enhance the shopping
experience, align with modern consumer demands, and secure a loyal customer
base. Through a commitment to customer-centric service and innovative
solutions, grocery store delis can transform from a point of frustration to a destination
of choice in today’s fast-paced food retail environment.
For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869
