Retail Foodservice Roundup: Good news for 2027, H-E-B upgrades and more

A bright spot for 2027

Let’s start with some good news, at least when it comes to retail foodservice.  

IFMA The Food Away from Home Association released its 2027 industry forecast and updated its IFMA Scope data platform. On the whole, the news is not great for 2027.  

Consumer uncertainty and overall economic malaise is projected to lead to nearly flat operator spending across all food-away-from-home segments next year.  

However, the Association predicts that retail foodservice will be among the industry’s fastest-growing channels.  

“That’s where we are the most bullish, is with those retail foodservice segments,” said Charlie McConnell, the Association’s vice president of Industry Insights, Research & Education. “Which is the grocery perimeter and convenience stores, both sizeable and what I would still call emerging segments within the food-away-from-home marketplace.”   

All IFMA The Food Away from Home Association members have access to IFMA Scope data. Find the 2027 industry forecast here. 

H-E-B expands its meal offerings

Texas grocer H-E-B is reportedly expanding its Fresh Initiatives program and is investing in equipment to bolster its hot prepared foods platform, Meal Simple, according to local news reports.  

H-E-B launched its Fresh Initiative remodels in 2022, but plans to speed up the pace of the makeovers. The grocer said it intends to remodel 42 stores this year and early next, for a total of 70 Fresh Initiative locations.  

H-E-B’s Meal Simple offerings include a wide range of pre-cooked proteins and sides like Beef Pot Roast Bowl, Chicken & Sausage Jambalaya Bowl, Cajun Grilled Shrimp Pasta and many more. The dishes are oven- or microwave-ready, and the assortment also includes ready-to-eat sandwiches, wraps, snack trays, family meals and other offerings. 

Deli entrees get a boost in July

Restaurant trips declined 2% year over year in July, but entrees (including sushi) sold at the grocery deli were up 5.2% in dollar sales and 2.8% in unit sales during the same period, according to the latest Circana data.  

Overall, deli prepared foods rose 1.1% in dollar sales in July but were down 0.3% in units sold.  

Perhaps unsurprisingly, deli salad sales dropped 3.9% in dollar sales and 4.8% in units sold in July, during the widespread cyclospora outbreak, Circana noted.  

For the latest 52-week period, deli prepared meals dollar sales increased 3.6% and unit sales are up 2.9% over the year-ago period.  

Some restaurant competition on the horizon?

We have seen this week, though, some encroachment from restaurant chains into foodservice domains typically presided over by convenience stores.  

First, we have Domino’s Pizza, which announced the upcoming launch of the Domino. That’s the chain’s new Detroit-style, single-serving pizza that’s shaped like the pizza purveyor’s rectangular logo.  

Joe Jordan, Domino’s incoming CEO, said the new offering “fills a gap in our portfolio.” It also competes with c-stores and grocers offering grab-and-go pizza by the slice.  

And then we have burger giant McDonald’s foray into energy drinks with its upcoming Red Bull Dragonberry Energizer.  

The beverage blends Red Bull with “blue raspberry syrup and freeze-dried dragonfruit inclusions,” McDonald’s said.  

It comes as the chain has been growing its menu of deluxe sodas and refresher beverages, offerings that, along with energy drinks, have also been growing swiftly in the c-store space.