Sam's Club Expands Prepared Foods and Speeds Delivery Options

Watch out, restaurants: Sam's Club is speeding up its delivery options and including more fresh and prepared foods. Dominick Reuter/Business Insider Grocery chains have been leaning into ready-to-eat foods in recent years. The move aims to meet demand from time-stretched shoppers who don't want to pay restaurant prices.

The compromise is more expensive than groceries, but cheaper than eating out. Time is money. At least that's sometimes the thinking when opting for a quick meal from a restaurant or ordering delivery instead of shopping for groceries and cooking at home.

Caught between busy schedules and rising restaurant prices , however, US shoppers are looking for a compromise — and grocery stores are selling one. Many grocery chains are now offering some sort of freshly prepared options for shoppers who don't have time to cook and don't want to spring for restaurant food. ) The Whole Foods hot bar was one of the earliest to get in on this trend.

"We are actively making it easier for customers to stretch their budgets through solutions like our meals," Walmart US CEO David Guggina said at a recent investor conference. He said the store's ready-to-eat meals, like its rotisserie chicken and two sides, can feed a family of four for under $10.

Inflation data show that restaurant prices have been steadily rising over the past decade, while grocery prices have been more stable, apart from a few painful bumps since 2020.

A report from McKinsey out this month highlighted the shift from restaurants to ready-to-eat grocery store meals as one of the top themes reshaping the grocery industry right now — up there with heavy hitters like e-commerce, retail media, and AI. "Prepared foods are competing directly with restaurants for meal occasions," the report said.