Whole Foods, which has gone from a single natural foods store “run by hippies for hippies,” in 1974 to a $4.7 billion dollar (with a goal of $12 billion in sales by 2010) company with more than 180 units in the U.S., Canada, and the United Kingdom, makes the most of its health-conscious roots. It does so by assuring customers that a meal purchased in the market is “good food that customers can pick up quickly,” according to its web site. (On a related note: In answer to an interview request for this article, Whole Foods politely replied that the company’s global corporate policy dictates that “We do not grant interviews or photo requests to trade publications.” Central Market’s parent company, Texas-based H-E-B Markets, holds a similar policy.)

Whole Foods’ web page on prepared foods points out that “ingredients are clearly labeled, so you can make sure that our good food is good for you.” And it appears that the message is coming across to customers loud and clear. In its 2005 Organic Foods Trend Tracker report, Whole Foods said that prepared and ready-to-eat meals represent a little over 12 percent of its total organic food sales.

The new Austin Whole Foods flagship store is the company’s most ambitious, both in terms of size and in terms of foodservice offerings.

And they aren’t the only grocer doing more with prepared foods.

“Not too long ago, if you were looking for a prepared meal at a supermarket, you might find a sandwich,” says Marcia Mogelonsky, senior research analyst at Mintel International. “Today, you can find an entire foodcourt in some of them.”

Ready-to-eat has gone global, with kiosks and displays putting a world of flavors at shoppers’ fingertips. In one store, customers can now find Indian, Italian, Chinese, Japanese, Latin, and other ethnic specialties.

At Minnesota-based Lunds Market’s Edina store, a concept called Shanghai Circus, developed in conjunction with Lettuce Entertain You, offers Asian-style specialties such as Kung Pao chicken, vegetable and tofu stir frys, and Thai chicken curry. All are cooked in small batches for take home or dining in. Entrée prices average between $4.99 and $5.69 for lunch and $5.99 to $6.99 for dinner, with combo options ranging from $6.99 to $7.49.

Inside Lunds’ Minnetonka store is a dine-in restaurant with an extensive selection of breakfast-to-dinner foods including omelets, burgers, fried chicken or fish in a basket, salads, and entrée-plus-side meals such as charbroiled dry-aged prime sirloin with potato and a vegetable to a roast turkey feast with sage dressing, mashed potatoes and gravy, a vegetable, and cranberry sauce. Prices for the dinner run from $7.29 to $12.99. Meals can also be packaged to go.

High-end food retailers aren’t they only concepts seeking a greater share of stomach among the growing numbers of time-starved consumers too busy to cook at home.

“Moderately priced supermarkets are also responding to both the threat and the opportunity the prepared meals segment represents,” says Hale. “The opportunity is that more and more consumers are looking for convenient, healthful, and good tasting meal solutions; the threat is the possibility of losing more customers to restaurants or their supermarket competitors if all they can manage to offer is fried chicken.”

Wild Oats, a national chain in the organic/ natural category, creates seasonal Gourmet to Go menus that range from the rotisserie chicken to fresh sushi to 19 different toasted sandwiches. Buffalo, New York-headquartered Top’s Markets offers ready-to-eat or take out meals from a hot buffet in some of its stores.

In the past, supermarket prepared food quality and variety has been iffy at best, agree the experts. But, they emphasize, those days are gone.

“You don’t feel as if there’s a mass-production mentality at Central Market or Whole Foods,” says Texas-based freelance food writer June Naylor. “And the level of sophistication of the food is head and shoulders above most other takeout.”

Naylor points to the availability of a number of creative vegetarian selections, aside from the traditional salads, offered by both markets as a sign of their commitment to providing healthful options. Central Market, for example, recently featured a to-go dinner comprised of tofu with broccolini and mushrooms, brown basmati rice pilaf, Asian slaw, and vegetable egg rolls.

For customers who wish to sit back and relax over a meal, both Whole Foods and Central Market offer plenty of seating. In fact, Whole Foods can seat 200 diners inside and another 200 outside. Both also offer wine and beer by the glass to enhance the dining experience and promote “third place”—or home away from home—conviviality.

From spring through fall, Central Market ramps up the fun factor by setting up a giant grill on its patio and hosting Burgers and Bock (the beer, not the composer) nights, says Naylor.

Play areas for children make both stores favorite dining destinations for families and patio seating—often with live musical entertainment—attract young singles and couples, says Kitty Crider, food editor of the Austin American-Statesman newspaper.

“If you drop by after work, you will stand in line at Central Market with everyone from students to medical personnel to families with young children to older people,” she says. “Both Whole Foods and Central Market have become very popular spots for friends to get together for lunch or dinner.”

Turning a visit to the supermarket from a dreaded chore to an eagerly anticipated outing or even a fun social event might be just what the doctor ordered for this ailing industry.

“Foodservice is a great way to reach out to more customers and to increase the frequency of visits by current ones,” says WD Partners’ Lombardi.

Still, logistically, quick-serves have an advantage; supermarkets tend to be a little less convenient in terms of parking and paying, says Mintel’s Mogelonsky. “Dedicated parking for takeout close to the entrance is virtually unenforceable and, with McDonald’s and other fast-food restaurants now accepting credit cards, fewer customers are opting for cash-only express lines,” she said. “Add a quart of milk or a bottle of laundry detergent to an order and you’ve moved out of the fast-food experience into a more complicated fast-food and groceries experience.”

In addition to wanting to avoid experience overload for their customers, many markets are reluctant to invest the substantial amounts of capital necessary to market, merchandise, and staff extensive in-store eateries until they can get a better read on the feasibility and profitability of doing so, according to Mintel research.

While Mintel acknowledges that “supermarkets are expected to continue to win business from traditional restaurants,” the organization’s research also suggests that “many grocery retailers are likely to take a go-slow or even wait-and-see approach.”