As grocers ramp up deals and offerings for grilling season, this summer is poised to see food retailers also amplify meal options aimed at competing with restaurants.

Kroger Chairman and CEO Rodney McMullen told investors Thursday morning that the grocery chain is expanding its selection of ready-to-heat and ready-to-eat options. 

After revamping its fried chicken recipe, the grocer created a meal bundle that feeds a family for $3.50 a person, McMullen said during the company’s earnings call — “a fraction of what it would cost to eat out at restaurants with quality that’s difficult to beat,” he said.

“We are committed to making sure our customers can enjoy a great meal experience with zero compromise on quality, selection value and convenience,” McMullen said. “We see a significant growth opportunity to deliver convenient restaurant quality meals at an attractive value.”

Kroger’s deepening focus on meal offerings builds on an increasing trend by grocers to provide more meal solutions at price points intended to attract consumer spending that would have otherwise gone to restaurants. Giant Food, for example, told Grocery Dive earlier this year that it is setting aside more floor space for a wide selection of foodservice offerings, ranging from prepackaged meals to mix-and-match options to made-to-order offerings. 

Kroger’s mention of its growing focus on meals during its latest earnings call underscores the urgency supermarket companies are placing on competing with restaurants as consumers continue to worry about stretching their budgets. Serving as ready-to-eat meal destinations can help grocers stand out from discounters and mass retailers as those stores increase their food assortments and add grocery private brands.

In case you missed it

The Fresh Market moving into a former Dom’s store

The North Carolina-based grocer, which has four stores in the suburbs outside Chicago, is planning to move into the location that was once the first store for the now-shuttered Dom’s Kitchen & Market, Crain’s Chicago Business reported. 

“New Store Coming Soon to Lincoln Park in Chicago!” The Fresh Market said in a job posting for a store manager at 2730 N. Halsted St. Dom’s, which was founded by grocery industry veteran Bob Mariano, opened at that address in 2021 and then debuted its second location in the city’s Old Town neighborhood in late 2022. The specialty grocer abruptly ceased operations alongside Foxtrot Market in April when parent Outfox Hospitality went out of business.

Long time coming: Fiesta Mart opening new store

The Houston-based grocer plans to open a store in the Dallas-Fort Worth area city of Lewisville, Texas, — its first new location since 2015, Texas news outlet Chron reported. The 49,000-square-foot store, which is slated to open Wednesday, will have an in-house bakery, tortilleria and restaurant in addition to typical grocery store departments, according to the publication.

With the upcoming store, Fiesta Mart will have 60 stores in the Austin, Dallas-Fort Worth and Houston metropolitan areas, Chron noted. Fiesta Mart also unveiled plans for a multi-year remodel for all of its locations across the state by the end of 2025, according to the publication.

New cross-sector ecosystem

Dunnhumby announced Tuesday the launch of a program called Retail Innovation Network that aims to connect early-stage startups, enterprise partners and investors in the retail and consumer goods technology sectors. Seed and early-stage businesses can apply for direct funding from Dunnhumby ventures and its venture capital investment partners, the announcement noted. 

“By bringing together the collective ingenuity of startups, best practices of scaled technology partners, and market intelligence and capital of industry investors, we can establish a new gold standard for faster and more integrated ecosystem-led problem solving,” Leo Nagdas, head of corporate development and Dunnhumby ventures, said in the announcement. 

The inaugural invitation-only meeting for members of the program is set to take place this summer in Walmart’s hometown of Bentonville, Arkansas

Number of the week: 46%

That’s the percentage of surveyed consumers who said they plan to buy somewhat or much more private brands over the next year or so, according to new research from the FMI — The Food Industry Association. By comparison, only about a quarter (27%) said they plan to do the same for name brands, the trade group found.

Impulse find

Grilling game

Aldi and Doordash have cooked up a sweepstakes that gives people the chance to have a local grillmaster fire up seafood or meat purchased at Aldi.

Aldi announced Tuesday that through July 2, customers who shop the discounter via the third-party delivery service using a promo code could win a $250 credit towards a private chef service. The prize aims to address the summertime travesty of overcooking meat. 

“By giving our shoppers access to expert grillmasters, we’re highlighting our offerings to show that our premium assortment – from USDA Choice Steak to Cedar Plank Salmon – delivers on quality,” Scott Patton, vice president of national buying at Aldi, said in the announcement.