An automated food processing system and method that allows food to be dispensed, fried and packaged in a suitable container, such as an individual portion-sized container. The system includes separate automated modules for dispensing, frying and packaging the food. The food is fried and thereafter it is dispensed from the fry device to an automated packaging device. The automated packaging device dispenses food to a container that may be an individual portion-sized container that is retrieved, erected and filled by an automated container handling and filling system. After a food container is filled, an automated device transports the filled container to a suitable pick-up location.