Profiting from Prepared Food in Deli

Premade salads and sandwiches are driving significant growth in the deli.

Supermarket delis that are not capitalizing on premade salads and sandwiches are missing a big opportunity.

According to a recent Deli Business article, prepared foods and grab-and-go options are driving significant growth in the deli sector, with over half of deli sales attributed to these categories, which increased by 5.6% in dollars.

In the premade salad and sandwiches segment, supermarket delis typically offer a mix of grab-and-go packaged sandwiches, wraps and salads, as well as bulk-prepared deli case salads and heat-and-eat sandwiches. Some retailers also provide customizable solutions, like sandwich and salad bars, either staffed with store personnel or as self-service.

“The benefit of premade programs is that they make the deli a true destination for shoppers looking for quick, ready-to-eat meals, and they also drive bigger baskets by pairing with sides, drinks or snacks,” says Chris Darling, chief commercial officer, Mama’s Creations, which is based in East Rutherford, NJ. “Challenges include shelf life and shrink, along with labor availability.”

According to Aaron Eversgerd, director of marketing at Deli Star, headquartered in St. Louis, MO, supermarkets often use three main models for in-store deployment of prepared foods. Each model offers unique benefits in terms of labor, control and margin.

The traditional in-store model involves preparing all items in a back-of-house deli kitchen.

“This promotes the perception of freshness and offers local control, allowing stores to better meet customer demands, such as ingredient customization,” says Eversgerd. “Stores also offer services like custom cutting and made-to-order cuts to meet specific local preferences.”

The downside to in-store models is limited scalability. In addition, this program type is often less cost-effective due to high labor rates and food waste.

“These programs rely heavily on high-cost, skilled labor, leading to inconsistent product quality and flavor across store locations,” Eversgerd explains. “Because the model depends on daily demand, a short, refrigerated shelf life, and strict adherence to food safety standards, it is vulnerable to product shrinkage due to overproduction and to an increased risk of food safety events.”

The next program type, a retailer-owned commissary, operates a large, centralized facility dedicated to mass-producing prepared components or finished meals for distribution to individual stores. Centralization addresses many of the inconsistencies found in the in-store model.

“The process enables significant quality control improvements by allowing production teams to follow precise, uniform instructions, ensuring consistency across all market outlets,” says Eversgerd. “The model achieves economies of scale, justifying investment in advanced cooking procedures and equipment to achieve higher yields and minimize food costs.”

However, while centralization improves consistency and efficiency, it requires substantial retailer capital expenditure and a high-volume market presence to offset fixed costs, he adds.

The last model, third-party manufacturing partnerships, is a strategic, outsourcing model that involves partnering with specialized third-party manufacturers that produce standardized, high-volume components or complex, shelf-ready products.

“Retailers can then deploy sophisticated culinary offerings without needing in-house expertise or capital investment in specialized manufacturing equipment,” says Eversgerd. “External partners provide products in ready-to-eat packaging, offering variety while eliminating the need for retailers to manage labor and equipment.”

This model typically provides longer shelf-life options, allowing the retailer to reduce shrinkage.

PRODUCT OFFERINGS

When it comes to items geared for premade salad and sandwich programs, supermarket delis have many options.

Staple sandwiches and salads continue to be classics, such as traditional potato and pasta salads, chicken and tuna salads, and turkey or ham sandwiches. However, consumers’ changing palates are expanding the category.

Deli Star is a B2B protein partner serving a variety of commissary, sandwich assembly and deli salad programs. The company primarily offers products based on beef, pork, chicken and turkey, along with some specialty items.

“These are traditional, simply crafted deli meats designed for high yield and operational performance,” says Eversgerd. “Some of our most popular products include Black Forest Ham, Oven Roasted Turkey Breast, All-Natural Corned Beef and Rotisserie Chicken.”

The company’s ready-to-use sous vide proteins are whole-muscle, clean-label meats, ready to assemble in prepared foods.

“The commoditization of deli staples necessitates the outsourcing of innovation,” Eversgerd notes. “Staples provide necessary volume, but they are often low-margin. Sustainable profit growth requires the deployment of premiumization and ethnic innovation to engage younger consumers seeking taste explosions.”

Because manufacturing sophisticated, multi-ingredient meals safely and consistently in-store is operationally prohibitive, the complexity must be transferred to a specialized co-packer, he adds.

“A manufacturer’s strength, therefore, is defined by its ability to deliver these highly complex, finished culinary components, turning challenging culinary trends into turnkey, safe retail solutions,” Eversgerd explains.

Another company that covers the core premade salad and sandwich categories is Mama’s Creations. The company offers pasta and grain salads, protein salads, like chicken and seafood, plus sandwiches and wraps.

“We also provide heat-and-eat items, such as our flame-grilled paninis, which perform well in grab-and-go sets, as well as behind the glass,” says Darling. “Our paninis have proven very successful as they meet the trends of differentiated high-protein options that can be heated up in minutes.”

Because globally inspired recipes are gaining traction, Mama’s Creations recently expanded its panini lineup to include flavors, such as Greek Chicken and Nashville Hot.

Rachel’s Table, based in Greenville, RI, takes a different approach with its mayonnaise-based seafood salads.

“We offer both snail and octopus salads, along with mayo-based imitation crab surimi salad,” says Adam Lagreca, owner. “These are ethnic products that have broad appeal and are growing.”

The company’s Italian-based marinated salads harken back to family recipes.

TODAY’S TRENDS

There are several trends driving the premade sandwich and salad segment in delis.

“The demand for protein will continue to grow through 2026,” says Eversgerd at Deli Star. “This market shift is driven by increased GLP-1 use, heightened sensitivity to the health impact of ultra-processed foods and the health-conscious mindset of the Gen Z demographic, all of which are profoundly shaping supermarket shelves.”

“The demand for protein will continue to grow through 2026. This market shift is driven by increased GLP-1 use, heightened sensitivity to the health impact of ultra-processed foods, and the health-conscious mindset of the Gen Z demographic.”
— Aaron Eversgerd, Deli Star, St. Louis, MO

Another core and ongoing trend is the elevation of the grocery deli from a simple convenience to a direct competitor to restaurant dining. Delis looking to up the ante should look to area restaurants as direct competitors.

“Consumers are increasingly viewing fresh-prepared foods as a true alternative to restaurant dining, not just a convenient option,” Eversgerd notes. “Remarkable market growth substantiates this.”

He adds that it’s the younger consumer, particularly Gen Z, who is most aggressively embracing new prepared food formats.

“Innovation in the segment is focused on culinary sophistication, global inspiration and flexible formats that suit modern eating occasions [such as snacking, bowls and meal kits],” Eversgerd says.

A growing category, grab-and-go meals provide quick, portable and ready-to-eat alternatives, such as sandwiches, salads and wraps.

“New deli items are pushing flavor boundaries,” says Eversgerd. “The salad category is seeing lighter, vinaigrette-based innovation, such as our Lemon Capellini and ethnic varieties like our Thai-Style Noodle and Greek Pasta Salad.”

He adds that premium and indulgent sandwiches are also on the rise.

“The evolution targets the restaurant replacement trend with complex, high-quality builds utilizing artisan breads and specialty sauces,” Eversgerd says.

Darling at Mama’s Creations is seeing both global and bolder flavors trending.

“Options like Mediterranean or Asian profiles are capturing attention,” Darling says. “At the same time, there’s strong interest in better-for-you options, whether that’s simpler ingredients, higher protein or portion-controlled formats.”

“Options like Mediterranean or Asian profiles are capturing attention.”
— Chris Darling, Mama’s Creations, East Rutherford, NJ

On the retail side, packaging is a big focus, with the desire to extend shelf life without losing the fresh, just-made quality.

“At Mama’s Creations, we’re leaning into all three of those areas, bringing globally inspired flavors to our paninis, leveraging high protein ingredients like grilled chicken, and investing in packaging innovation to extend shelf life,” says Darling.

MARKETING & MERCHANDISING

Success in this segment is contingent on creating a prepared food destination, with not only the proper assortment, but also merchandising that prompts impulse purchases.

“Bundling and offering free samples are great marketing tactics for our products,” says Lagreca at Rachel’s Table. “Our salads have a great mouth feel and pair with red wine vinaigrette. These also are very popular around the holidays as part of the Feast of 7 Fishes.”

Darling agrees that bundling these items is an effective tactic.

“Pairing a sandwich with a salad or side, or cross-merchandising deli meals with drinks and chips, creates a complete meal solution and drives bigger baskets,” Darling says. “For example, a Mama Mancini’s panini plus a salad cup makes an easy, well-rounded combo.”

Looking ahead, Eversgerd sees innovations in the areas of both food safety and extended shelf life in the premade salad and sandwich category.

“Following several high-profile recalls in recent years, the demand for consistently healthy, safe food is only growing,” Eversgerd notes.