Supermarket Foodservice Segment​

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The supermarket foodservice refers to prepared foods and beverages that are served in ready-to-eat or ready-to-heat formats. This segment reported retail sales equivalent figures worth $39.2 billion in 2020, up $4.2 billion from 2015. By 2025, the segment is expected to grow by another $14.7 billion to reach total retail sales valued at $47.1 billion.

The supermarket foodservice segment has seen tremendous growth which has been occurring relatively consistently for the past decade. The segment saw a decline from 7.3% in 2012 to 5.6% and 5.9% in 2013 and 2014 respectively but reached its peak in 2015 at 8.5%. The supermarket foodservice segment experienced a decline of  9.3% in 2020, but is expected to rebound in 2021 and continue strong growth through 2025.

Examples: ​Publix, Whole Foods Market, Walmart, Kroger, Safeway​

Key Segment Trends​

  • Many providing curbside pickup options. 
  • Increase in plant-based offerings for prepared menu items.
  • More unique made-to-order options.
  • ​Offering food preparation presentations to improve customer experience. 

​Key Decision-Makers

  • Owner - Important​ decision maker in independents supermarkets and grocery stores. 
  • Director of Operations - Manages and coordinates the procedures for maintenance and purchase of equipment in larger chains. 
  • General Manager - May not have direct say in equipment purchase, but can escalate equipment related concerns. 
  • Design Consultants - Supermarket operations often defer to design consultants on brand and equipment specifications on new builds and major remodels. 

Role of Equipment Within the Segment

  • Specialized equipment may be required to meets demands for global fare. 
  • High-end operations looking to create a more restaurant-like feel may use individual action stations to put on a show for customers. 
  • Food warmers and hot bar stations offering extended holding times without sacrificing appearance or taste are beneficial. 
  • Lower-tiered operations are short on foodservice equipment space and benefit from compact and multifunctional equipment. ​

In-Store Bakery​

Download In-Depth Report for In-Store Bakery Segment here​

The in-store bakery section of supermarkets includes those bakery items that are sold separate from the prepared-foods department. The bakery section of supermarkets made $7.4 million in sales in 2020 which was a slight decrease from 2018.

Examining the in-store bakery section by individual bakery categories, there is above-average growth in the following categories: croissants (14%), Danishes/sweet rolls (5%), loaf breads (3.9%), specialty breads/rolls (3.7%) and brownies/dessert bars (3.3%). All other categories contracted during 2020, except cookies, which grew at a minimal rate. 

Download In-Depth Supermarket Foodservice ​Segment Report here​