Dinner Tops Supermarkets’ Prepared-Foods Growth Priorities

Dinner has become supermarket operators’ single biggest growth priority within the prepared-foods department, according to Datassential’s Supermarket Prepared report.

Sixty-eight percent of supermarket operators say they are actively trying to grow their dinner business, up 18 points from 50% in 2023, the largest gain of any daypart in the report. 

Lunch and off-peak hours are also priorities for at least half of operators, though neither moved as sharply: lunch rose 3 points, to 53%, while off-peak actually slipped 4 points, to 60%. Catering, down 4 points, and meal kit sales, down 8 points, both lost ground as stated priorities over the same period. 

Dinner’s rise carries a defensive motive. Thirty percent of operators say they are specifically trying to compete more with restaurants, a signal that grocery prepared foods and restaurants are increasingly chasing the same customer and the same meal occasion.

The category already has a strong foundation to build on. Dinner is now offered by 87% of operators, and among those who offer it, 61% saw sales increase over the past year, versus just 12% who saw a decline.

Consumer data points to more upside if operators execute well. Datassential’s Retail Reinvention report from the previous year found that 59% of consumers would visit retail prepared-foods sections more often if quality improved further. The upgrades most likely to shift that behavior include higher-quality hot meals, repeat-visit discounts, meal customization, and family meal deal pricing.

For suppliers, the dinner push signals where new product development and promotional support are likely to land the best reception. Operators are looking for items that hold up well during transport, reheat cleanly, and stand in for a full meal rather than a side or a snack. 

Beyond new product development, dinner gives the prepared-foods department an opportunity to go head-to-head with takeout and delivery, positioning it as “the easier, often cheaper choice for a weeknight meal,” the Supermarket Prepared report notes.