Mercadona's €3 Billion Ready-to-Eat Business Is Disrupting McDonald's and Burger King

The quiet transformation of supermarkets into direct competitors of traditional restaurants has reached a tipping point with numbers that reveal the scale of the shift. Mercadona, the Spanish retail chain that dominates the Iberian market, has turned its bet on prepared food into a €3 billion annual business in Spain and Portugal, according to 2025 data showing 20% year-over-year growth in this segment. This figure represents over 7% of the company's total revenue and exceeds the annual income of many established restaurant chains, positioning the Valencian giant as a direct threat to players like McDonald's, Burger King, and Spain's traditional daily menu bars.

The Rise of 'Grocerants'

The concept of the 'grocerant' —the hybridization between grocery store and restaurant— has evolved from an emerging trend to a consolidated business model with numbers that validate its viability. Mercadona launched its 'Ready to Eat' section in 2018 as a pilot experiment in a few stores, but in just seven years it has managed to implement it in 1,469 points of sale across Spain and Portugal, including 250 new openings during 2025. The section offers daily cooked dishes ranging from prepared salads and traditional stews to more innovative options like quinoa bowls or poke bowls, with prices ranging from €3 to €8 per serving.

What began as a convenience for time-pressed customers has become a strategic growth engine. In 2025, the 'Ready to Eat' section alone generated €700 million in Spain, a figure that, while representing only 1.8% of Mercadona's total €39.8 billion revenue in the country, shows exponential growth rates that double those of the core business. When including all prepared food offerings —from refrigerated dishes and pre-cooked trays to soups and pizzas— the total volume reaches €3 billion across the Iberian Peninsula.

The Time Economy as Competitive Advantage

Mercadona's success in this segment isn't explained solely by the quality or variety of its offerings, but by a deep understanding of what consumers are really buying: time. In a society where time has become the scarcest and most valuable resource, convenience has surpassed other decision factors like price or even perceived quality. Consumers are willing to pay a premium for solutions that allow them to reclaim hours of their day, especially in the post-pandemic context where work and consumption habits have changed permanently.

Mercadona has capitalized on this trend by creating a complete ecosystem around prepared food. It's not just about selling cooked dishes, but about offering an integrated experience that includes everything from purchasing fresh ingredients to immediate consumption in designated spaces within the supermarket itself. The recent addition of freshly ground coffee service —with automatic machines that prepare the beverage in under a minute— completes this value proposition, turning the supermarket visit into a multifunctional stop that replaces both restaurants and cafes.

Impact on the Restaurant Sector

The implications for the traditional restaurant sector are profound and multifaceted. McDonald's and Burger King, which have dominated Spain's fast food segment for decades with over 1,500 combined establishments, now face a competitor with a distribution network 20 times larger, significantly lower prices, and a proposition perceived as healthier. While a Big Mac meal with fries and drink costs around €9-10 at McDonald's, Mercadona offers complete dishes for €5-6 with ingredients consumers associate with greater freshness and quality.

But the threat isn't limited to international fast food chains. Spain's traditional daily menu bars —that pillar of local gastronomic culture offering first course, second course, dessert, bread, and drink for €10-12— are losing ground to the convenience of 'grocerants.' Data shows that daily menu consumption has fallen 15% over the past five years, while prepared food sales in supermarkets have grown 40% during the same period. The pandemic accelerated this trend, but structural changes in work habits —with more remote work and flexible schedules— are consolidating a new competitive landscape.

Expansion Strategy and Differentiation

The expansion of 'Ready to Eat' hasn't been random but part of a carefully planned strategy combining scalability with local adaptation. Mercadona has developed specific logistics for this segment, with central kitchens that prepare dishes following standardized recipes but with room for regional variations. In Catalonia, for example, the offering includes more seafood and rice dishes, while in the Basque Country there's greater presence of traditional stews and in Andalusia more gazpachos and salmorejos.

This local adaptation capability is a key advantage against international chains, whose menus are essentially identical across all locations. Mercadona has also invested in technology to maintain food quality and safety, with traceability systems that track each ingredient from supplier to point of sale, and packaging processes that ensure optimal shelf life without artificial preservatives.

The Competitive Landscape Redefined

Mercadona's entry into the prepared food market is triggering chain reactions across the entire sector. Other distribution chains like Carrefour, Lidl, and Aldi have accelerated their own initiatives in this segment, though none have reached the scale and sophistication of Mercadona's model. Carrefour, for example, has launched its 'Carrefour Kitchen' section with modest results, while Lidl has opted for a more limited strategy focused on refrigerated products.

On the restaurant side, traditional chains are responding with different tactics. McDonald's has increased its investment in delivery and launched healthier menu options, while Burger King has strengthened its presence on platforms like Glovo and Uber Eats. However, these responses seem insufficient against Mercadona's structural advantage: a massive distribution network, purchasing economies of scale, and a loyal customer base that already visits its stores weekly for grocery shopping.

Implications for the Future of Food Consumption

Mercadona's success in prepared food anticipates deeper changes in how consumers relate to food. The line between grocery shopping and eating out is blurring, creating a hybrid market where convenience, perceived healthiness, and integrated experience are the deciding factors. This phenomenon isn't exclusive to Spain —in the United States, Whole Foods and Trader Joe's have developed similar offerings, while in France Carrefour and Monoprix compete in this space— but the speed and scale of transformation in the Iberian market is particularly notable.

For sector investors and analysts, the 20% annual growth in Mercadona's prepared food business represents a valuation opportunity that could justify higher multiples for the company. Although Mercadona isn't publicly traded —it's owned by the Roig family— its performance serves as a barometer for evaluating other companies in the sector. Distribution chains that manage to replicate this model will have sustainable competitive advantages, while pure restaurant players will face increasing pressure on their margins and market share.

What began as another supermarket section has become a disruptor of the entire food industry. The €3 billion that Mercadona generates with prepared food isn't just an impressive number, but the signal of a structural change in consumption habits that redefines the rules of the game for all participants. In this new landscape, the advantage won't go to those who cook better, but to those who better understand what 21st-century consumers really want —and need.

“Markets are always looking at the future, not the present.”

— Xataka

— TrendRadar Editorial