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In many cities, a deli is considered a grocery store because they only sell cold or "unprepared" foods. By heating the burrito, it becomes "prepared", and you have to have a restaurant license to sell food that can be immediately eaten. The distinction may seem small, but the legal differences in the laws and regulations governing restaurants and grocery stores are huge.
Now, why they don't provide a microwave so YOU could heat it up after paying is a different story, and it something you'd have to ask them yourself. Maybe the microwave loophole* has been closed in your area, or maybe they're worried about liability (*microwave loophole: commonly used by quickie marts and gas stations to skirt restaurant laws, the loophole works by permitting them to sell you an unprepared item, and then forcing you to prepare it yourself using facilities they provide at no charge. As long as you don't eat it on their premises, they aren't a restaurant).
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