Kroger is making a bold bet on the future of in-store dining with the launch of its first “deli of the future” prototype, opening later this month at a new Marketplace location in Edgewood, Kentucky.
The cutting-edge, 6,500-square-foot prepared food section anchors a massive $25 million, 101,000-square-foot store that aims to redefine how grocery delis compete in an era where convenience and experience drive consumer choices.
The concept is not quite a restaurant, but not quite take-out, either.
Nor is Kroger’s new design just a bigger deli counter — it’s an open-kitchen concept inspired by both neighborhood delis and restaurant kitchens.
Kroger is testing out a new restaurant concept.
Image source: Bloomberg/Getty Images
Kroger reinvents the grocery deli
Kroger shoppers can expect an immersive experience where made-to-order sandwiches feature house-roasted meats and an array of homestyle sides. The deli also incorporates a Murray’s Cheese station and a Private Selection by Snowfox sushi bar, pushing the prepared food envelope well beyond standard fare.
At three to four times the size of a typical Kroger deli, the new facility boasts dedicated counters and high-top seating. The layout is meant to encourage guests to linger, enjoying their meals on-site while watching culinary staff at work in the open kitchen.
Kroger’s investment signals its confidence that experiential deli formats can turn prepared foods into genuine in-store destinations.
It’s a model that seems to have worked well for Whole Foods, where many locations have huge DIY salad bars and hot-food bars, plus deli counters.
“We’re trying to understand where the customer is heading and how we meet them there with ready-to-eat foods,” Kroger’s Cincinnati-Dayton Division President Jake Cannon told Supermarket News about the new deli concept.
Kroger seizes trend with elevated deli concept
Situated on the site of a former K-Mart just 10 miles from Kroger’s Cincinnati headquarters, the Edgewood store is part of a larger strategy to modernize Kroger’s footprint in core markets.
The Marketplace format — a blend of full-service grocery offerings, a gas station, apparel, and liquor — creates a one-stop shop environment designed to broaden consumer appeal. Kroger’s $25 million investment in the store is a clear sign that the retailer sees significant upside in enhancing both food service and overall store amenities.
Kroger (KR) is not alone in elevating its deli offering. Other regional chains are racing to upgrade their foodservice operations.
Weis Markets, for instance, just completed a major expansion of its deli and food area in Pen Argyl, Pennsylvania, while Schnuck Markets in Mahomet, Illinois, is installing a new, larger deli counter as part of a sweeping renovation.
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Industry experts point to heightened consumer expectations as driving greater focus on made-to-order, high-quality options. As Americans spend more on prepared meals and less time cooking at home, grocers see an opportunity not just to capture more frequent visits, but also to boost margins through innovation.
By providing fresh, ready-to-eat meals in a setting that merges convenience and comfort, grocery chains hope to differentiate themselves from both traditional fast-food and casual dining competitors and become a one-stop shop of sorts.
Kroger’s “deli of the future” is a calculated risk
The Edgewood deli concept will be a proving ground for Kroger’s ambitions. If successful, the model could roll out to additional locations, reshaping the company’s deli and prepared food strategy nationwide.
However, such investments also come with risks.
Upfront costs are significant, and changing consumer habits can be unpredictable. Plus execution across diverse locations is never guaranteed: A concept we love today could be one we loathe tomorrow.
The Edgewood Marketplace is set to open its doors on September 19.
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