Technical article by Olaf Hohmann, EHI

Retail gastronomy in Germany is undergoing dynamic change. The segment has evolved from classic snack bars in the checkout area to sophisticated, sometimes high-class catering concepts in retail. German retailers even operate several Michelin-starred restaurants now. Driven by changing consumer habits, new dietary trends and increasing demands on the quality of the customer experience, retail gastronomy is increasingly becoming an economically relevant part of brick-and-mortar retail.

According to surveys by the EHI Retail Institute, retail gastronomy sales in Germany rose from €10.09 billion in 2022 to €11.7 billion in 2023. For 2024, retailers are reporting an average sales growth of 6.1 per cent, corresponding to a total volume of €12.41 billion. The forecast for the current year assumes a further increase of 4.1 per cent, bringing gross turnover to an estimated €12.92 billion.

The importance of retail gastronomy

In an environment of declining customer footfall in brick-and-mortar retail, retail gastronomy is increasingly serving as a differentiator and a way to attract customers. As a so-called “third place” – alongside home and work – it fulfils the social, emotional and functional needs of customers. At the same time, retailers with high-quality catering offerings are increasingly positioning themselves on a par with traditional restaurants.

Successful concepts are ideally characterised by clear positioning, consistent quality, optimised operating processes and close integration with the brand identity of the retail company. Collaborations with experienced catering partners or franchise systems provide additional access to expertise and increased operational efficiency.

Definition of retail gastronomy

Retail gastronomy is the continuous provision of catering services, beverages and ready-to-eat meals that are directly or conceptually related to retail activities.

Experience catering as a differentiation tool

Modern retail gastronomy is not only about providing food and drink, but also about creating a pleasant atmosphere and contributing to emotional loyalty. It is increasingly seen as an integral part of brand staging. Concepts such as market hall catering, show kitchens and live cooking stations demonstrate how eating and shopping can be combined into a holistic experience. Food courts are developing into social meeting places with an urban character, complemented by temporary offerings such as pop-up or event formats.

Focus on health and sustainability

The demand for healthy and sustainable products is growing steadily. Organic, regionally sourced, vegetarian and vegan options as well as resource-saving preparation methods are increasingly becoming part of the offering. Nutritional trends such as low-carb and superfoods are also being taken into account. Sustainability is also reflected in packaging concepts, reusable systems and energy efficiency. In view of the legal requirements (e.g. ban on single-use plastics) and increased customer expectations, the implementation of transparent and ecologically oriented offerings is becoming a competitive factor, especially among younger target groups.

Digitalisation and automation

Digitalisation is increasingly shaping all stages of the gastronomic value chain. Digital menu boards, self-order terminals, contactless payment, AI-supported ordering and kitchen processes as well as food forecast systems to reduce food waste are already in use or in the pilot phase. Loyalty programmes, digital recipe suggestions and personalised offers based on AI-supported analyses of purchasing behaviour increase customer loyalty and efficiency. Robot-assisted systems – e.g. for food preparation or service activities – are also gaining in relevance. REWE Region West has announced the world’s first integration of autonomous food production into food retail for autumn 2025. As part of the eight-month pilot phase, the fully autonomous CA-1 kitchen robot will be used in several REWE supermarkets in Germany.

Growth drivers: convenience, to-go, lunch and more

In view of mobile lifestyles, the importance of to-go and convenience offerings continues to grow. Breakfast options, snacks, bowls and hot drinks must not only be available quickly and flexibly, but also be high quality, transparently labelled and attractively priced. Hybrid concepts that enable both in-house consumption and takeaway are gaining in importance. Globus provides an example of strategic development and a new business model: With its new catering menu, the retailer has established a system that opens up the restaurant area as a regional company canteen, especially at lunchtime. This gives companies in the vicinity of the locations a flexible option for providing their employees with inexpensive meals while strengthening their loyalty to the company.

New demands on staff and organisation

The ongoing shortage of skilled workers poses challenges for the industry. At the same time, the requirements for staff are changing: In addition to catering knowledge, communication skills, technical understanding and service orientation are in demand. Digital learning platforms, targeted training and transparent development prospects are becoming increasingly important in order to attract and retain skilled workers in the long term. Automation and digitalisation, for example in personnel planning, can help to relieve employees of routine tasks and qualify them for advisory or creative tasks.

Retail gastronomy of the future

Commercial catering is set for further growth – not only because of its attractive price-performance ratio, but above all because of its role as an emotional and functional added value in brick-and-mortar retail. In an increasingly hybrid consumer reality, with changing daily routines and a growing need for social interaction, catering is becoming a key factor in the quality of the customer experience and customer loyalty. Future-proof concepts are characterised by modular structures, sustainability, customer-oriented food offerings, technological integration and location flexibility. Retail gastronomy is thus understood not only as a supplement but also as a strategic component of a successful retail location. It can generate not only additional sales, but also make a decisive contribution to customer frequency, brand loyalty and differentiation in brick-and-mortar competition.

The future of retail gastronomy – scenario study and forum

The activities of the EHI research area Retail Gastronomy in 2025 will be entirely focused on the future. In a multi-stage scenario project, retailers and experts will work together on future spaces for retail gastronomy.
The results of these workshops will be presented on 24-25 September 2025 at the EHI Retail Gastronomy Forum.
Further information (in German): www.handelsgastronomie.de; www.handelsgastronomie-forum.de

About the author

Olaf Hohmann is a member of the management board of the EHI Retail Institute and head of research in the field of retail gastronomy.

About EuroShop 2026

The Food Service Equipment dimension in Hall 13 at EuroShop 2026 will present solutions for cooking and baking, convenience systems, food technology and to-go solutions. Catering is a megatrend in retail. The Food Service Innovation Hub will also highlight the digital transformation and automation in retail gastronomy, which is becoming increasingly important.

Exhibitors can still register for this dimension and the Food Service Innovation Hub. Further information is available at www.euroshop-tradefair.com.