The crossover opportunities of foodservice in retail

Unlock growth with elevated customer experiences and brand loyalty
Robert Grimes
NRF Contributor
NRF 2025: Retail's Big Show

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In today’s rapidly shifting landscape, the convergence of foodservice and retail isn’t just a trend — it’s a strategic imperative for businesses looking to innovate and thrive. Retailers integrating foodservice offerings are discovering new ways to elevate customer experience, boost brand loyalty and unlock additional revenue streams. The question is no longer whether foodservice belongs in retail but how best to implement and scale it effectively.

At NRF 2025: Retail’s Big Show, attendees can get a taste of game-changing tech at the Foodservice Innovation Zone through more than 50 food tech-focused exhibitors and sessions led by industry leaders and innovators. Plus, immersive activations will highlight new customer experiences in C-store, autonomous retail and full-service restaurants.

The evolution of foodservice in retail

Historically, retail and foodservice operated in silos — retail focused on goods, foodservice on meals. But today’s consumers demand more: convenience, personalization and experience-driven shopping. They expect a seamless blend of these experiences, where dining complements shopping and vice versa.

Retailers embedding foodservice into their strategy recognize that customers now linger longer, spend more and leave with a stronger emotional connection to their brand. The data supports this shift, showing measurable gains in traffic, basket size and loyalty where foodservice integration is thoughtfully executed.

Leading growth segments for integration

While the opportunity spans all retail segments, some sectors have emerged as pioneers:

Grocery and supermarkets

  • Chains like Whole Foods and Wegmans exemplify how premium prepared foods, seating areas and experiential wine bars redefine grocery shopping.
  • Technology is pivotal — whether it’s app-based meal orders, loyalty integrations or automated kiosks making this transformation possible.

Convenience stores

  • Once gas-and-snack pit stops, stores like Wawa and 7-Eleven now lead with chef-inspired grab-and-go meals and touchless tech.
  • From touchscreen kiosks to mobile pre-order apps, convenience stores cater directly to the "need it now" mindset.

Shopping malls and department stores

  • Reinventing themselves as lifestyle hubs, these locations are tapping foodservice to drive foot traffic. Upscale food courts and experiential dining, backed by mobile ordering and digital reservations, are pivotal to their resurgence.

Big-box retailers

  • Collaborations like Target and Starbucks illustrate how foodservice partnerships can elevate the in-store experience. Walmart's experimental use of robotics in micro-kitchens hints at the future: high-tech, on-demand dining.

Specialty retailers

  • Brands like Barnes & Noble and IKEA prove that even niche retailers benefit. Whether it’s cafés tied to loyalty programs or app-based meal pre-orders, foodservice enhances the brand story.

Technology as the enabler

Technology isn’t just part of the equation; it’s the catalyst. AI-driven personalization, IoT-enabled food prep and predictive analytics for inventory are changing how retailers approach foodservice. Automation streamlines operations, while mobile apps and kiosks make customer interactions seamless. These innovations not only improve efficiency but also empower retailers to scale without sacrificing quality.

The bottom line: Growth and ROI

The numbers tell a compelling story. The global retail foodservice market is expected to grow by 6%-8% annually over the next five years. Retailers integrating unique dining experiences report up to 20% increases in foot traffic. The combination of convenience, quality and technology drives these gains, illustrating why the fusion of retail and foodservice is a game-changer.

Embrace the future

For retailers, the future lies in embracing this synergy. Whether it’s through AI-powered kiosks, app-based ordering or innovative partnerships, those who lean into the convergence of retail and foodservice will not just survive but thrive. This isn’t just about keeping up — it’s about setting the pace in a world where experience is the ultimate currency.

By investing in technology and focusing on customer-centric innovation, retailers can create lasting, profitable connections. The intersection of foodservice and retail is where the magic happens, and those who seize it will redefine the industry for years to come. Visit the Foodservice Innovation Zone at NRF 2025: Retail’s Big Show to learn more.

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