Coles has taken the wraps off its first-ever restaurant-supermarket hybrid in a move designed to give the $20 billion retailer a leg up on rival Woolworths in the grocery convenience wars.

At a test store in Tooronga, Victoria, the retailer is trialling new ready-made food offerings through partnerships with local favourite EARL Canteen and national sushi chain Sushi Sushi.

Both companies will run department-store style concessions within the supermarket using their own staff and products, which include barista-made coffee and sushi rolls containing Coles' 'special burger sauce'.

Coles chief executive Steven Cain dubbed the Tooronga store as Australia's first 'grocerant', a hybrid food hall concept pioneered by international grocers, such as Canada's Loblaws.