The organized retail sector in India, though still at a nascent stage, has been growing at a rapid pace in the past few years. Food and grocery is the second-largest segment of India’s retail industry and there is enormous potential for new entrants in this segment, particularly in untapped markets like rural and semi-rural areas. The present paper aims at studying the determinants of customer satisfaction in Food and Grocery in two metropolitan cities of Mumbai and Delhi by surveying customers of traditional stores versus new modern formats. It also attempts to identify the reorientation needed by the traditional retail outlets to retain their place and consolidate their survival and growth which can take place despite the establishment of the modern retail formats. The paper uses factor analysis and multiple regression analysis and comes out with major drivers of traditional formats and modern formats based on customer responses. This study is expected to contribute to the existing body of knowledge on retail patronage in the food and grocery segment.