What: Economic pressures and changing habits are driving consumers to choose high-quality ready meals and food delivery over traditional restaurant visits.

Why it is important: Growing demand for premium ready meals and delivery highlights the need for both supermarkets and restaurants to adapt quickly to evolving economic and social trends.

Amid rising inflation and economic uncertainty, consumers in the UK and US are increasingly opting for premium ready meals and food delivery as alternatives to dining out. Brands such as Charlie Bigham’s, along with supermarket chains like Waitrose and Tesco, are launching high-end, “restaurant quality” meal ranges to attract customers deterred by the escalating costs of eating out. The rapid expansion of the food delivery market, with players like DoorDash and Deliveroo consolidating their positions, further reinforces this shift. As households reduce discretionary spending, middle-income consumers are trading down, prioritizing value and convenience at home over restaurant visits. This has led to a notable decline in restaurant footfall, especially in the casual and fast-food segments, and a wave of closures among mid-market chains. Restaurants are responding by focusing on immersive, unique experiences and higher quality to justify the value of dining out. The evolving “eat-at-home” economy is fundamentally altering how both retailers and restaurants compete for consumer attention and spend. 

IADS Notes: The rise of premium ready meals and “restaurant quality” supermarket offerings directly competing with traditional dining out reflects a broader transformation in both retail and hospitality. Wegmans’ launch of the Next Door fine-dining restaurant in its Manhattan flagship (Grocery Business, August 2025) exemplifies how retailers are integrating high-end foodservice and experiential elements to attract both shoppers and diners, blurring the lines between retail and hospitality. This trend is echoed by Harrods’ strategic pivot away from celebrity chef partnerships toward in-house dining concepts (The Standard, August 2025), as well as Liberty London’s new restaurant initiative (The Standard, March 2025), both of which highlight how heritage retailers are leveraging distinctive dining destinations to complement the shopping experience. Economic pressures and inflation are further accelerating this shift, with recent analyses from McKinsey (June 2025), Visa (March 2025), and Forbes (September 2025) documenting how value-conscious consumers are increasingly opting for at-home consumption and delivery, forcing retailers and restaurants alike to innovate. The rapid growth of quick commerce and food delivery, as seen in the expansion of Reliance Retail’s dark stores (Inside Retail, October 2025) and Amazon’s entry into 15-minute grocery delivery (Fashion Network, December 2024), underscores the importance of convenience and operational agility. Meanwhile, experiential retail strategies—such as those described in the Los Angeles Times (March 2025), Inside Retail (January 2025), and The Robin Report (January 2025)—demonstrate that both retailers and restaurants must now deliver unique, immersive experiences to justify dining out and maintain customer engagement in a cost-conscious, post-pandemic environment.
The rise of the eat-at-home economy