In an economic landscape where many businesses are struggling to merely survive, one sector of the F&B industry appears to be thriving: food retail.
Local, community-focused businesses, including bottle shops, grocery stores, and convenience stores, are achieving growth by leveraging strategic technology and customer experience upgrades – and the results speak for themselves.
A recent survey of 492 retail operators conducted by Toast signals that the food retail sector has not only remained resilient, but also optimistic about the future, despite a tough environment.
Let’s dig into a few of the key takeaways from the 2025 Voice of the Retail Industry Survey.
A Glass Half Full
In the survey, a whopping 94% of food retail operators reported that the health of their business was either in “good” or “excellent” shape – and this is no “pie in the sky” outlook either, as nearly two-thirds of CBGs saw their profits increase (63%) over the last year.
This optimism has fueled a growth spurt of sorts, with 32% of the operators reporting that they are “very likely” to open a new location in the coming year.
Survey respondents with a foodservice component in their retail businesses – whether that’s a deli counter, catering service, salad bar, hot bar, or selection of made-to-order meals – were even more likely to expand.
And many of these businesses are relying on technology to facilitate these expansion efforts.
Tech Integration
The most popular tech tools include:
- Point-of-sale (POS) systems: 74%
- Accounting software: 60%
- Barcode scanners: 59%
Grocery stores have been utilizing a particularly broad range of tech, with operators increasingly relying on specialized tools such as produce scales (55%) and deli scales (52%) to enhance their precision and accuracy.
So, where does artificial intelligence come into play?
According to the results of the survey, opinions vary based on the size of the business.
For instance, 52% of operators of single locations expressed feeling comfortable with using AI, compared with 44% of operators of multi-unit establishments.
And while 43% of single-unit operators said they’ll use AI more in the future, just 34% of multi-unit operators expressed the same sentiment.
In addition, a sizable portion of operators of bottle shops (53%) and grocery stores (50%) reported that the process of collecting and analyzing guest data is either a “moderate” or “extreme” challenge – and tech implementation is but one of the many challenges retail operators are up against.
When asked about the most difficult aspects of running a CBG, the survey participants shared:
- Marketing: 19%
- Supplier and vendor management: 17%
- Security: 16%
- Inflation: 15%
- Inventory management: 15%
While inflation has remained top of mind for retailers, the impact has been disproportionate, as operators of grocery stores and bottle shops are bearing the brunt more than convenience stores.
Roughly 48% of grocery stores and 41% of bottle shops report that inflation poses a moderate to extreme challenge to their business, compared with just 27% of C-store operators.
The Food Institute Podcast
How will the One Big Beautiful Bill Act (OBBBA) impact your food business? Unraveling the implications of new legislation is never easy, but Patrick O’Reilly and Jeff Pera of CBIZ explain how provisions of the bill related to no tax on tips, depreciation and expensing of capital purchases, and research and development will impact the industry.
