Whole Foods, which has been at the vanguard of retail foodservice in the U.S. for more than two decades, reigns atop Supermarket News’ 2024 list of the top 50 prepared foods operations in the country.
The list, featuring research by SN sister company Technomic and based on estimated average prepared foods sales per location, comes as such offerings have been outperforming the rest of the store, thanks to the innovations of these operators.
“Persistently high restaurant prices have created opportunity for retailers to step in and increasingly compete for traffic among value-conscious consumers,” said Kevin Schimpf, director of industry research at Technomic. “Most consumers perceive that foodservice offerings at retailers are generally a good value.”
A key trait shared among the top foodservice players is the presence of proprietary foodservice outlets, he said. These include a range of concepts, including WFM Coffee Bar at Whole Foods, True Texas BBQ at H-E-B, The Burger Bar by Wegmans, and others.
Also of note, Asian supermarkets, which often feature expansive, experiential food courts, occupy three spots on the following top 10 list.
1. Whole Foods
Whole Foods has raised the bar for the entire industry with its hot and cold food bars, well-merchandised grab-and-go prepared foods, and extensive array of chef-driven meals and meal components.
One of the keys to the success of the supermarket industry’s No. 1 foodservice performer is its dedication to the freshness and quality of its offerings, said Rich Van Patten, director at The Stores Consulting Group, based in Wilmington, Ohio. Retailers like Whole Foods that are successful with their prepared foods offerings excel at the operational details, he said, with speedy farm-to-store supply chains, well thought-out assortments tied to the demographics of their individual markets, good ordering tools and processes, excellent store inventory control, space allocation aligned with sales, and technology tools to optimize production planning and markdowns.
Jonathan Raduns, partner at consulting firm Merchandise Food, based in Greenville, S.C., said Whole Foods does a good job merchandising prepared meal components, with meal offerings such as an entrée with two or three sides for a set price.
In addition, the company’s catering operations effectively compete with the restaurant industry, said Schimpf of Technomic. “Catering is a growing foodservice channel for retailers, with players like Whole Foods increasingly competing against the office catering programs of Panera and other chain restaurants,” he said.
2. Mitsuwa
Mitsuwa Marketplace is “revered for its stellar food court” and expansive selection of Japanese groceries, Eater Los Angeles said of the Torrance, Calif.-based chain, which has 12 locations in the U.S.
“Many of the Asian retailers stick out as ‘destinations,’ where consumers can both shop for harder-to-find items and dine at a food court during their visit,” said Schimpf.
These retailers focus on experience, rather than convenience, he said. The Mitsuwa Marketplace in Chicago has more than 10 on-site foodservice outlets and draws shoppers from all over the broader Chicagoland area, for example, Schimpf said.
Mitsuwa’s expansive food courts often feature small vendors offering traditional Asian dishes, including bundled meals with rice, soup, or other sides, at what are described as “reasonable” prices. Examples include ramen bowls made to order, sushi and sashimi, bento boxes, fried chicken, chicken katsu, dumplings, musubi, and rice bowls. Soft-serve ice cream, including flavors such as matcha and black sesame, is also a popular foodservice offering at the chain.
Other prepared foods offerings include a Japanese bakery and a cafe with matcha confectioneries and beverages.
3. H Mart
Korean-food-focused H Mart takes a similar approach to Mitsuwa Marketplace with a diverse assortment of Asian foodservice vendors in the food courts found in most of its 80 U.S. stores. The size of the food courts and the amount of prepared food varies, but among H Mart’s staple offerings are its Korean meal components, including house-made kimchi.
“We make our delicious, mouthwatering banchans and kimchi in-house, from scratch, daily,” the company says on the website for its Pacific Northwest division. “From hearty namul to bulgogi, our seasonally rotating menu will allow you to next-level your lunch or bring home a dinner your family will enjoy.”
The retailer often incorporates the concepts of local Asian restaurant and café operators in its foodservice mix. At the American Dream Mall in New Jersey, a newly opened H Mart has a food court that features 11 branded foodservice outlets. These include K-Town Hero from Michelin-star chef Hooni Kim, owner of Danji in New York, offering Korean-inspired dishes such as bulgogi beef brisket, fried chicken, and gochujang pork belly. Other concepts in the store include restaurants offering Asian specialties such as dim sum and bubble tea, a wok bar, a Japanese curry outlet, a Tous les Jours bakery, and more.
4. Kowalski’s
Kowalski’s Markets has distinguished itself in the Minneapolis-St. Paul area for the past four decades with a store design that seeks to replicate the feel of traditional, Old World European markets. Prepared foods are a centerpiece of Kowalski’s offerings at its 11 store locations.
“Our deli is truly the heart of our market and every foodie’s dream,” the company says on its website, citing chef-prepared foods and an “ever-expanding selection of hot items.”
These include Skuna Bay salmon and Gerber’s Amish Farm chicken, for example, grilled-to-order paninis, and hot breakfast sandwiches. Other prepared foods include a variety of deli salads, take-and-bake pizza, sushi, and more.
Kowalski’s opened a bakery commissary to supply its growing network of stores in 1991, and in 2000 the company opened its first store built from the ground up, featuring a glass-walled bakery oven, three restaurant concepts, and other amenities.
Earlier this year, Kowalski’s debuted what is perhaps its most foodservice-forward store to date in Edina, Minn., featuring seven restaurant and café concepts: The Burger Bar, Hibachi Bar, Phở & Ramen Bar, Skoops Ice Cream Counter, Pizzeria Pezzo, Starbucks, and Nékter Juice Bar.
5. Seafood City
Pomona, Calif.-based Seafood City has been steadily expanding, with a grocery and prepared foods assortment focused largely on Filipino foods. It draws a dedicated following for its authentic cafeteria-style and quick-service restaurants, which feature meal deals and in-store seating, as well as its Filipino baked goods and other prepared foods.
It now has more than 30 locations, mostly on the West Coast, and recently opened its first Texas store in the Houston suburb of Sugarland.
A prime attraction in many of the chain’s stores is the Grill City barbecue restaurant offering Filipino dishes that can be ordered by weight, by the piece, or in “plates” — entrees with rice and side dishes — for takeout or to dine in at the stores’ seating areas. Menu items include grilled pork belly and other pork, chicken, and seafood items familiar to Filipino and other Pacific Islander customers.
Some stores have Crispy Town quick-service restaurants offering a menu of Filipino fried foods, such as Chicharon Calamari, Shrimp Okoy, and Veggie Lumpia.
The Bakers Avenue bakeries offer mainstream breads and cakes along with traditional Filipino baked goods, such as Pan de Sal, Ensaymada, and Biscocho.
6. PCC Community Markets
This 16-store Seattle-based co-op is known for its high product standards, its focus on health and nutrition, and its efforts to operate sustainably. Many of its customers also compare the chain’s offerings favorably with those of Whole Foods.
PCC drives deli-prepared food sales with a large variety of innovative, seasonal house-made dishes. Customers on social media sing the praises of PCC-branded items such as chipotle salmon cakes, oven-roasted chicken, and a variety of prepared veggies and salads, such as the smoked mozzarella pasta salad.
“We’re proud to put our name on all our private-label deli offerings, because the only cookbook we use is our own,” Kate Hudson, director of communications at PCC Community Markets, told Supermarket News. “Our recipes are true originals. And we use the same organic ingredients available in our stores whenever possible.”
The co-op also recently introduced sushi that is hand rolled in its stores daily using fish that is responsibly sourced according to PCC’s standards. Rolls include California, veggie, rainbow, sushicado, inari, and spicy shrimp varieties.
Several PCC stores also have a pizza program offering several types of ready-to-to-eat pies and take-and-bake versions — all featuring organic dough, organic sauce, and organic vegetables, of course.
7. Bristol Farms
This 13-store, upscale grocer prides itself as a destination for foodies in Southern California, with a fresh-from-the-fields ambiance and an array of high-quality, chef-prepared prepared foods.
Bristol Farms excels at customer service in its foodservice departments, said Rick Marino, managing director at The Stores Consulting Group.
“They make sure their people are always there for the customer, and they are often providing samples,” he said. “They do a good job of taking care of their customers.”
Raduns said Bristol Farms’ prepared foods merchandising also stands out from the crowd, often showcasing the retailer’s own brand and incorporating unique flourishes such as the heated merchandiser that displays the bakery department’s signature item, simply called The Cookie.
“They have these points of difference, and I think they lean into them where they can,” he said.
Other examples include store-made bagels displayed vertically, stacked on wooden dowels, and poke bars that allow customers to create their own bowls.
Among some of Bristol Farms’ other unique prepared foods offerings are on-trend items such as Bahn Mi sandwiches, the Maple Bacon Fried Chicken Scone sandwich, and a Burnt Ends Wrap.
Bristol Farms also offers an extensive catering program that leans into its culinary creativity, such as a Quiche Brunch party package for Mother’s Day.
8. Wegmans
Long regarded as one of the top supermarket operators in the country for people who love to cook, Rochester, N.Y.-based Wegmans Food Markets also offers a variety of prepared meals solutions for those times when customers would rather leave the cooking to the experts.
The retailer merchandises an array of fully prepared meals and meal components as solutions for everyone from the single shopper to the large family. In particular, Wegmans appears to have the busy “soccer mom” in mind with its convenience-oriented, oven-ready packaging, said Raduns.
For example, the retailer’s EZ Meals line includes some “Cook in Bag” dishes, and other meals are clearly designed for putting a family dinner on the table quickly, with a wide variety of fully cooked entrées and sides.
Wegmans also operates full-blown branded restaurants at some locations, including the Market Café, Next Door by Wegmans, Amore Italian Restaurant & Lounge, and The Burger Bar by Wegmans.
In addition, the retailer’s Meals 2Go program incorporates both an extensive catering program and individual meal pickup and delivery that competes with restaurant takeout and delivery options. One recent promotion included a large, one-topping pizza and 10 chicken wings for $25, for example.
9. Erewhon
While many supermarkets appear to position themselves as a value-priced alternative to restaurant dining, that’s not how Erewhon rolls.
The 10-unit, maximally upscale retailer, operating in and around Los Angeles, proudly sells $20 smoothies — and often has lines of people waiting to buy them.
“I think for Erewhon, it’s all about quality, freshness, and flavor,” said Raduns.
The foodservice areas of the stores, which focus on providing restaurant-quality dining throughout the day, can deliver sticker shock to many customers. But items such as Korean Short Rib Burritos ($20) and Organic Turmeric Chicken Tenders ($26.50 per pound) provide quality and flavor that’s worth the price, many fans say.
Raduns pointed out that the retailer also excels at merchandising a variety of prepared grab-and-go items that enable shoppers to create their own mix-and-match meals or grazing platters.
“The plating of their pre-packaged prepared foods is top notch; the foods are presented very thoughtfully,” he said.
Cold, grab-and-go items that can be easily combined or purchased individually as healthful, flavorful snacks include such offerings as Kelp Noodle Chow Mein, Organic Quinoa Spinach Cakes, and Vegan Organic Turmeric Lasagna.
10. H-E-B
Texans like to say that “everything is bigger in Texas,” and that’s certainly true for H-E-B’s vaunted foodservice operations.
The San Antonio-based retailer has embraced the strategy of operating branded, in-store restaurants, which include multiple locations of True Texas BBQ — which was voted best barbecue in the state by Texas Monthly magazine in 2019 — the Flaming Bird grilled chicken concept, South Flo Pizza, and True Texas Tacos.
H-E-B also operates the multi-concept Main Streat by H-E-B Food Hall & Bar in Austin, and one location of True Texas Boil House at a store in Houston, featuring a menu of fresh seafood including boiled crawfish, shrimp, snow crab legs, fried catfish, and more.
In addition to its branded foodservice offerings, H-E-B also merchandises an array of grab-and-go prepared meals and sacks, many of which are merchandised under the Meal Simple by H-E-B brand. These include global or regional dishes that the retailer imparts with its own Texas-style culinary flair, such as Southwest-Style Chicken Egg Rolls, Hot Italian Sausage-Stuffed Mushrooms, and others.
The retailer also carries a selection of prepared grab-and-go Mexican foods, including several varieties of tamales merchandised under the Mi Tienda label.
Click here for an interactive version
Originally Appeared Here
