The Grocery Foodservice Market is Growing—Fast

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According to FMI's latest "Power of Foodservice at Retail" report from 2025, the deli/foodservice category in the U.S. grocery market has reached $52.1 billion in sales with +1.6% growth in both dollars and units over the past year. More importantly:

• 85% of shoppers report purchasing the same or more deli-prepared foods compared to last year
• 18% plan to purchase MORE in 2026
• 28% of grocery deli-prepared meals now replace restaurant meals (up from just 12% in 2017)

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Your customers are already looking for what you could offer

The research shows clear demand for digitization:

• 66% of consumers say an online menu would influence their purchases
• 62% want the ability to order in advance via mobile app or online
• 58% are interested in inside pickup stations for pre-ordered food
• 53% want delivery by the grocery store

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The cost of inaction: What you stand to lose in 2026

Let's put real numbers to the opportunity cost of not modernizing your foodservice program.

For a typical grocery retailer with $500M in annual sales:

• Deli/foodservice represents approximately 10% of total sales = $50M annually
• Industry growth rate of 1.6% = $800K in baseline growth opportunity
• The 18% of customers planning to buy MORE in 2026 could drive an additional $1.8M in incremental revenue
• Failing to capture the 28% of meals shifting from restaurants to grocery deli means potentially missing $2.8M in competitive share gains

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Total missed opportunity in 2026:

$5.4M+ in revenue left on the table

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But the real cost goes deeper:

❌ Lost customers: 11% of shoppers already go to a specific store (not their primary store) for deli-prepared foods—meaning competitors with better foodservice offerings are stealing your traffic

❌ Margin erosion: Without digital ordering, you're missing the 32% impulse purchase rate that online menus and meal bundles drive

❌ Operational waste: Labor inefficiencies from manual ordering cost an estimated 15-20% in wasted staff time that could be redeployed to customer service

❌ Competitive disadvantage: While you wait, forward-thinking retailers are capturing the 62% of shoppers who want to order ahead—building loyalty that will be hard to win back

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By 2027, these customers will have established new shopping patterns. The window to capture this growth is now.

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Measurable impact with FoodStorm

Digitizing your foodservice program with FoodStorm means:

✅ Revenue Growth – Capture the 18% of customers planning to buy more, plus those currently choosing restaurants over your deli

✅ Operational Efficiency – Reduce order errors, optimize staff time, and improve kitchen workflow with integrated order management

✅ Competitive Advantage – Meet the 62% of shoppers who want to order ahead while most competitors still rely on walk-in traffic

✅ Enhanced Customer Experience – Deliver the convenience (44%), value (37%), and meal planning solutions (38% want more help) that today's shoppers demand

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The time is now

With 64% household penetration and consumers making an average of 95 deli purchases annually, foodservice represents one of your most valuable departments. Don't leave this revenue on the table in 2026.

The FoodStorm team will partner with you every step of the way from initial discovery to launch and ongoing support. You could be up-and-running with your new foodservice system in as little as 8 weeks. So why wait?

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Take the first step to making 2026 the year you make grocery foodservice a strategic differentiator for your business. Get started here.

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