Restaurants entering retail
- Leon, Itsu, and Wagamama enter supermarkets
- Restaurant brands now offering full meals
- Strong branding helps restaurants compete in retail
- Shelf space is limited and competition is high
- Jamie Oliver’s Shell range shows demand for healthy food on the go
Anyone paying close attention to the supermarket aisles over the past twelve months will have noticed a significant change.
The increasingly powerful presence of restaurant brands.
Restaurant chains have been quietly but determinedly entering the retail sector in efforts to diversify and grow, and the move is proving hugely successful.
Service sector entering retail
Last week, fast food restaurant Leon announced the launch of Korean Gluten-Free Chicken Nuggets into online retailer Ocado, as it works to boost its retail offerings, under the banner Leon Grocery.
“We’re thrilled to be adding this spicy take on a fan favourite to our growing grocery range, giving people even more ways to enjoy naturally fast food at home,” says Miriam Rose, Head of Leon Grocery.
This follows a move by Asian fast food restaurant Itsu, which now sells its products into supermarkets across Europe.
Similarly The Real Greek has launched a range of ready meals, snacks and dips into the UK’s biggest supermarket retailer Tesco, Wagamama launched a range of ready meals and sauces into multiple supermarkets, and even KFC has dipped it toe into the space as part of a collaboration with British popcorn start-up Proper popcorn.
Of course, this is not an entirely new phenomena. Consumer favourites like Pizza Express and Nando’s have been selling their sauces into supermarkets for years. What is new is the scale and variety. It’s no longer just condiments, it’s entire meal options.
“Restaurant brands are increasingly ripping up the rule book of just delivering traditional hospitality in-venue,” says James Hacon, founder of food and beverage consultancy Think Hospitality Group.
Increasingly, says Hacon, restaurants are thinking much more holistically about the commercial opportunity to stretch their brands.
What’s more, he believes restaurant ranges are a force to be reckoned with, saying the power of a successful restaurant brand should not be underplayed, even when pitted against the biggest names in grocery or supermarket home brands.
“They not only hold their own but can often compete fiercely, even at a premium price point.”
Though he cautions the retail sector is not an easy one to crack. A fact food and beverage manufacturers know all too well.
“Winning in retail is a step further away from many restaurants’ core business than offering meal kits, and getting access to shelf space,” he says. “Suddenly, one is up against the many thousands of new products that are introduced to supermarket consumers every year, and supermarkets are themselves among the toughest buyers and partners in the retail world.”
Elsewhere, famed British chef Jamie Oliver’s to-go range partnership with forecourt operator Shell has proved hugely popular, and highlights consumer demand for healthier options and the appeal of chef-quality foods on the go.
But not all restaurants are making the switch.
Pret bucks the trend
Sandwich maker Pret A Manger is bucking the retail trend and is instead attempting to tempt consumers back through its doors, with the offer of made-to-order sandwiches in a more relaxed environment.
“Throughout the past five years, we’ve made it a priority to bring Pret to more people, whether it’s a City worker commuting to the office, a parent juggling work and family life, or someone catching up with friends,” says Clare Clough, UK and Europe managing director for Pret A Manger.
Clough goes on to explain that Pret is focussing on becoming a “a destination for customers in a bit less of a rush who want a comfortable space to enjoy delicious food and spend time with family and friends”.
So, who has the right approach for future success – Pret A Manger, the restaurant retailers, or both?
The future of restaurants and retail
The growing crossover between foodservice and retail reflects a broader shift in consumer behaviour – towards convenience, flexibility, and brand-led trust. Restaurant brands like Leon, Itsu, and Wagamama are capitalising on this by launching full meal solutions into grocery, expanding their reach and revenue streams.
But as Pret A Manger demonstrates, retail isn’t the only path forward. By investing in made-to-order offerings and creating relaxed, dine-in environments, Pret is doubling down on experiential value.
For operators, the key is choosing the right channel mix – balancing brand extension with operational focus – to meet evolving consumer expectations while maintaining profitability.
