How to save money on groceries
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When Sydney Martin is looking for a quick and affordable dinner for her mother and daughter, she’s increasingly stopping at the grocery store to buy prepared meals. She makes the side dishes at home, including rotisserie chicken, pot pie, and stuffed salmon.
“I feel like it’s cheaper than buying take-out food,” said Martin, 31, of Riverside, California. “With the fast food prices, you end up spending a lot more money than you do now.”
A new report from FMI, the food industry association, says shoppers like Martin are increasingly choosing food prepared in grocery store delis for their family meals, opting for pre-made snacks over going out to restaurants and using a combination of some prepared foods and some home-cooked foods.
Shoppers want dining convenience
Rick Stein, vice president of fresh produce at food industry association FMI, said grocery store owners have gone from feeling like they were competing primarily with the next supermarket to finding themselves competing with restaurants for “shares of stomach.”
“People have every opportunity to eat where they want to eat,” Stein told USA TODAY. “Consumers want convenience, so we think our industry is poised to be a great solution for consumers because they can combine that with their regular grocery shopping, but still enjoy that convenience with premium prepared foods.”
According to NIQ data cited in the FMI report, grocery store foodservice/prepared food purchases continue to increase. $19.6 billion was spent in the 52 weeks ending Aug. 9, an increase of 3.7% from the same period last year.
Nearly 64% of households said they purchased prepared food from a grocery store at least once in a 52-week period, an increase of 0.7%.
Fully cooked meat led the category, with dollar sales up 4.5% and unit sales up 8.1%. Pizza and marinated olives/vegetables also saw strong dollar strength and strong sales volume, according to NIQ data cited by FMI.
Two processed food categories that saw declines were lunch meats and deli processed beverages.
The variety of prepared foods at supermarkets is expanding
23% of shoppers surveyed by FMI said they shopped less at quick-service and fast-casual restaurants. Instead, 85% said they are purchasing more at a grocery store or equivalent food service compared to last year.
Shoppers who said they plan to purchase more deli-prepared foods from grocery stores in the future included hybrid workers (40%), households with children (38%), Millennials (41%), urban households (29%), high-income households (28%), and Hispanic households (24%).
The appeal of grocery store-made meals has accelerated during the COVID-19 pandemic and continues to grow among shoppers, Stein said. It has also expanded to-go options, options for fully or partially cooked meals that are not hot, he said.
Stein said stores are offering more diverse menus for shoppers looking for healthier options and different cooking styles, while also managing “shrink,” or over-preparing food that goes to waste instead of being purchased.
When shoppers are asked where they plan on buying their meals, Stein said, grocery stores are starting to become more of an answer. For years, supermarkets were No. 5 or 6 on the list, but in some areas they are starting to move up to No. 1 or No. 2 on the list, he said.
“We’re finally starting to realize as an industry that when we start thinking about what we want to eat, we say, ‘Oh, my grocery store might have it,'” Stein said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
