Why Will Walmart's ‘Pay by Bank’ Program Drive Customer Adoption and Save Millions in Service Fees?

 

Walmart's newly introduced "Pay by Bank" payment option is poised to make a significant impact on both consumer behavior and the company’s bottom line. As the retail giant seeks to streamline transactions and lower costs, this innovative payment method could lead to widespread customer adoption while helping Walmart save millions in service fees.

Now according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the success of the program will hinge on just how well Walmart can explain the benefits to consumers.  Let’s see what our Grocerant Guru® thinks. Success does leave clues and Walmart has a clear record of success.

1. Convenience for Customers

The "Pay by Bank" program allows customers to link their bank accounts directly for transactions, bypassing traditional payment networks like Visa and Mastercard. This eliminates the need for credit or debit cards and offers a simplified checkout experience. As consumers become more accustomed to digital wallets and mobile payments, this frictionless payment option is expected to resonate, especially with younger demographics like Millennials and Gen Z who value convenience and efficiency.

2. Cost Savings for Walmart

Payment processing fees, which can range from 1% to 3% per transaction, have long been a significant cost for retailers. By offering a direct bank payment option, Walmart can avoid these card network fees entirely. Walmart handles billions of transactions annually, and even a small reduction in fees can result in substantial savings. Industry estimates suggest that Walmart could save hundreds of millions of dollars each year as more customers opt for this method.

3. Enhanced Security

Direct bank payments come with heightened security protocols, reducing the risk of fraud. By utilizing tokenization and secure bank-to-bank transfers, Walmart can protect customer data more effectively than traditional card-based transactions. This added layer of security is likely to attract cautious consumers concerned about data breaches and identity theft.

4. Building Customer Loyalty

Walmart has long focused on offering customers lower prices and value. By providing a fee-free payment option, the company strengthens its image as a consumer-first brand. Additionally, Walmart could incentivize adoption of the "Pay by Bank" program through exclusive discounts, rewards, or cash-back offers, encouraging customers to use this method regularly. This creates a cycle of loyalty, driving return visits and higher spending.

5. Appealing to Unbanked and Underbanked Consumers

Approximately 5.9 million U.S. households remain unbanked, and many more are underbanked. By enabling direct bank transfers without the need for credit, Walmart opens the door to millions of customers who rely on alternative financial services. This aligns with Walmart’s mission to serve every segment of society, making the "Pay by Bank" program an inclusive solution that could significantly broaden its customer base.

Think About This: A Win-Win Strategy

Walmart’s "Pay by Bank" program is a forward-thinking move that will likely drive customer adoption through increased convenience, security, and accessibility. By cutting down on transaction fees, Walmart stands to save millions annually, a move that could help fund further investments in technology, pricing strategies, or in-store improvements. In essence, this program benefits both Walmart and its customers, positioning the retailer to remain competitive in an evolving digital marketplace.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

What's for Dinner: Convenient Meals for Today’s Families

 

The age-old question, “What’s for dinner?” has evolved dramatically over the decades, shaped by societal changes and consumer demands. In a world where speed of service, affordability, portability, and dietary preferences take center stage, families today are more interested in finding meal solutions that satisfy everyone at the table without sacrificing quality or convenience, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Restaurants, grocery stores, and convenience stores have risen to the challenge, adapting their offerings to meet these evolving needs. Let’s take a look.

A Historical Shift in Dinner Dynamics

Once upon a time, the family dinner was an event where everyone gathered around the table at home, enjoying a home-cooked meal prepared with love. But as the pace of life quickened with dual-income households, longer work hours, and more extracurricular activities for kids, home-cooked dinners have become a luxury for many. The average time a person spends preparing a home-cooked meal has dropped significantly—from over an hour in the 1960s to just 37 minutes in recent years.

Enter the rise of the grocerant niche—where the lines between grocery store and restaurant blur. Retailers offering grocerant meals and meal components, along with fast-food chains and convenience stores, have become key players in providing quick, affordable, and nutritious meals for busy families. But it’s not just about speed; families now demand customization and mix-and-match options to cater to varied tastes and dietary preferences. Let’s break down the elements of today’s successful family meal solutions.

Speed of Service

Today’s consumers want their meals fast. In fact, speed of service is a primary driver behind the rise of fast-food chains and grab-and-go sections in grocery stores. The 2023 National Restaurant Association report showed that the average drive-thru wait time across the top fast-food chains has decreased by 20 seconds year over year, with the fastest chains averaging around 4 minutes and 15 seconds. This might not seem like much, but when you're juggling a busy schedule, every second counts.

Convenience stores are also catching up. According to the 2024 Supermarket News Fresh Foods Survey, nearly 55% of convenience store operators now offer fresh, prepared meals that can be served in under five minutes, a sharp contrast to their historic reputation for unhealthy snack foods.

Price

Affordability is a key factor in the dinner equation, especially for families with multiple mouths to feed. Grocery stores have been particularly adept at keeping prices in check by offering ready-to-eat meals that compete directly with fast food, but at lower price points. According to a 2024 FMI study, the average cost of a prepared meal from a grocery store is 15% cheaper than a comparable meal from a restaurant.

This price-conscious approach has made grocery stores a go-to solution for families looking for affordable, quality meals that don’t require a drive-thru.

Portability

Portability is a major consideration for modern families on the go. Whether it’s soccer practice, after-school tutoring, or a late-night work shift, today’s dinner often happens on the road. Fast-food chains have long dominated in this area, offering portable meal options that can be consumed on the go. But grocery stores and convenience stores have made significant strides, with pre-packaged, heat-and-eat meals that can be easily transported.

Families can pick up entire meals—complete with sides, salads, and desserts—that are portable and ready to eat. The trend toward portability is why 7-Eleven has seen a 10% increase in sales of its portable fresh foods over the last two years. In fact, many convenience stores are now offering meal kits that cater to specific dietary needs and can be easily reheated or eaten cold, providing families with even more flexibility.

Healthy Options

The demand for healthier meal options continues to grow, and the food industry has responded. Fast food chains are now offering everything from salads to fruit cups, and even grocery store delis are prioritizing health. According to the 2024 Supermarket News Fresh Foods Survey, 68% of shoppers now seek out fresh, organic, or plant-based prepared foods in their local grocery store.

Convenience stores, often dismissed as unhealthy food havens, have made impressive leaps forward, with over 60% now offering fresh fruit, salads, and sandwiches. These healthy, grab-and-go options offer families more choices than ever before, allowing parents to feel good about what they’re feeding their kids, even when they’re short on time.

The Perfect Family Meal: Mix-and-Match Components

One of the biggest challenges of family dinners today is finding something everyone will eat. The solution? Mix-and-match meal components. Restaurants, grocery stores, and convenience stores alike are excelling at offering customizable meals that cater to each family member’s preferences.

1. Grocery Stores:
Grocery stores, particularly in their deli sections, have embraced the idea of family-friendly mix-and-match meals. With options ranging from rotisserie chicken to freshly prepared sides like mac and cheese, roasted vegetables, or mashed potatoes, everyone can create their ideal plate. In fact, 42% of families regularly rely on grocery stores for their dinner needs, according to a 2023 FMI report.

2. Restaurants:
Fast food chains like McDonald's and Chick-fil-A have introduced family meal bundles, where customers can choose from a variety of entrees and sides to accommodate picky eaters. For instance, Chick-fil-A’s Family Meals let families mix chicken nuggets, sandwiches, salads, and sides, so everyone gets what they want.

3. Convenience Stores:
Convenience stores have also gotten creative, offering mix-and-match meal solutions with healthier options. Wawa and Sheetz have made significant strides in this area by allowing customers to customize their sandwiches, salads, and sides with various ingredients, making it easier for families to get meals that cater to everyone’s tastes.

Think About This: The Future of Family Meals

The modern dinner solution is all about convenience, flexibility, and choice. Whether you’re grabbing a rotisserie chicken from your local grocery store, picking up a family meal from a fast-food drive-thru, or assembling a personalized dinner at a convenience store, the food industry has successfully adapted to meet the needs of today’s busy families. By focusing on speed of service, affordability, portability, healthy options, and customization, restaurants, grocery stores, and convenience stores are excelling at answering the “What’s for dinner?” question with delicious, family-approved solutions.

The mix-and-match future is bright, and families can continue to expect meals that are not only quick and affordable but also perfectly suited to every family member’s preference.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Aldi’s Growing Food Industry Influence

 

Aldi's Fan Favorites list has become a vital barometer for both the grocery industry and consumer trends. Why? Because the selections reflect emerging shopper preferences, and Aldi's ability to act quickly on consumer feedback is a blueprint for others. Aldi fans voted to bring back Huntington Home Swedish Dish Cloths, but more importantly, this shows the power of listening to consumer voices in real-time. From the perspective of Steven Johnson, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, these fan-voted products are a microcosm of larger trends that are shaping the food and retail industry. Here’s why Aldi’s top 10 shopper items hold significance beyond Aldi itself.

The Power of Private Label & Shopper Feedback

Aldi's leadership in the private label space is no secret, and its annual Fan Favorites survey showcases the power of curated feedback. According to Aldi's VP of National Buying, Scott Patton, this feedback loop builds loyalty and keeps Aldi competitive in a fiercely changing market. Retailers and restaurants alike should take notice—whether it's crafting new menus or expanding grocery offerings, listening to customer feedback isn't just a trend but a critical strategy.

3 Key Examples of Industry Impact

1. Grocery Stores: Trader Joe’s & Fan-Driven Products

Just like Aldi, Trader Joe’s excels in cultivating a loyal customer base with unique, fan-favorite private label items. When Trader Joe’s customers demanded a return of the Everything But the Bagel Seasoning, they responded. It’s a clear reflection of how important staying in sync with consumer desires is. Aldi’s focus on its Swedish Dish Cloth aligns with this by keeping low-cost, sustainable household products that customers genuinely want.

2. Convenience Stores: 7-Eleven's Fresh Food Strategy

Convenience stores like 7-Eleven have also been paying attention to customer feedback, incorporating more fresh, grab-and-go items. Aldi's inclusion of Mama Cozzi’s Deli Pizza in the Fan Favorites reflects the broader market shift toward fresh, easy meals at low prices. 7-Eleven, with its expansion of fresh food, is adopting similar strategies to attract more frequent, value-conscious shoppers.

3. Restaurants: McDonald's Interactive Product Launches

In the restaurant industry, consumer feedback also drives innovation. Look at how McDonald's successfully embraced social media trends to launch customizable cold drinks and interactive customer experiences with collectible cups. Aldi’s inclusion of the Barissimo Barista Cold Foam shows how the coffee-at-home trend, driven by social media, can be capitalized on by both retailers and restaurants alike. Over two million cans of this cold foam sold off Aldi shelves in 2024 alone, demonstrating the growing appeal of at-home specialty drinks.

Aldi’s Industry-Wide Influence

Aldi’s Fan Favorites list is more than just a fun marketing campaign. It highlights essential shifts in the food industry—sustainability, private label dominance, and the blending of convenience and quality in every sector. Whether it’s grocery stores taking cues to expand their private labels, convenience stores prioritizing fresh foods, or restaurants adapting to social media-driven demand, Aldi’s approach serves as a model for staying relevant in an ever-changing landscape.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Why Branding Side Dishes for Takeout Matters

 

Side dishes have long been an underappreciated part of the culinary landscape, often treated as a mere afterthought to the main course. However, in today’s competitive retail and restaurant market, branding a quality side dish as a standalone takeout option is a smart strategy that can drive unit sales, store sales, and boost brand loyalty.

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that when executed well, branded side dishes not only offer consumers flexibility but also create additional points of fresh food distribution. This, in turn, builds a stronger connection with the brand and fosters repeat business. Chick-fil-A’s recent move to offer its Pimento Cheese as a side dish is a textbook example of this strategy in action.

The Power of Branded Side Dishes

Side dishes represent an opportunity for restaurants and grocery stores alike to extend their menu offerings and elevate the customer experience. Branded, high-quality sides act as a natural extension of a company’s identity, reinforcing consumer perceptions about the brand's food quality, creativity, and customer-centricity. A well-branded side dish can do the following:

1.       Drive Incremental Unit Sales: Offering a side dish, particularly when it has standalone appeal, entices customers to add more to their orders. In Chick-fil-A’s case, the Pimento Cheese, available for $3.99, serves as a tempting add-on that feels like a premium upgrade to an already beloved meal. Even customers who come in for the main menu items will often opt to tack on a side that is exclusive, branded, and available for a limited time.

2.       Boost Store Sales: When sides like Chick-fil-A’s Pimento Cheese are available for takeout, they not only complement in-restaurant sales but also drive additional revenue through carry-out and catering. Larger orders, like catering trays of Pimento Cheese starting at $6.50, offer customers the convenience of adding a unique, branded option to their events while driving higher ticket prices for the restaurant. This extension into larger, take-home portions for parties and gatherings creates another lucrative revenue stream.

3.       Build Brand Loyalty: A branded side dish reinforces the relationship between the customer and the brand. Limited-time offerings, like Chick-fil-A’s Pimento Cheese, create a sense of urgency and exclusivity, compelling loyal customers to return frequently to enjoy it before it's gone. When a branded side resonates with customers, it becomes part of their habitual purchasing behavior, driving repeat visits long after the side is taken off the menu.

4.       Diversify Fresh Food Distribution Points: The flexibility of branded sides allows for multiple points of distribution, whether through the app, in-store, or for catering. More access points mean more opportunities for the customer to interact with the brand. As Chick-fil-A positions its Pimento Cheese for dine-in, carry-out, and catering, they effectively maximize its reach. This multifaceted approach to distribution extends their fresh food presence into consumers’ homes and events, cementing Chick-fil-A’s brand as part of their daily lives.

Four Examples of Consumer Response to Incremental Points of Fresh Food Distribution

1.       Mobile App Convenience: Consumers increasingly value the convenience of ordering food via mobile apps, where branded side dishes can act as quick add-ons to their main orders. For example, Chick-fil-A’s Pimento Cheese side can be ordered directly through the app, encouraging customers to bundle their orders effortlessly. This quick, convenient access drives incremental sales and boosts the overall satisfaction of time-strapped customers.

2.       Carry-out for Flexible Meal Planning: Offering branded sides for carry-out provides an ideal solution for consumers who want flexibility in their meal planning. With Chick-fil-A’s Pimento Cheese available for pick-up, customers can easily incorporate it into their home meals or snacks. The grab-and-go convenience of these sides allows consumers to plan meals around branded items they trust, making their purchase a regular occurrence.

3.       Catering Orders for Special Occasions: Catering is an excellent way for brands to extend their reach into family gatherings, parties, and corporate events. By offering the Pimento Cheese in larger quantities, Chick-fil-A can secure a spot at special occasions, embedding itself in consumers' personal and professional lives. The social sharing of these branded side dishes fosters word-of-mouth marketing, leading to new customer acquisitions.

4.       In-store Promotion and Cross-sell Opportunities: In-store distribution offers an additional chance to cross-sell branded sides. When customers come in for a meal, they may not plan on ordering a side but will often be persuaded by promotional signage, samples, or recommendations from staff. Branded side dishes like Pimento Cheese allow employees to upsell, driving unit sales with minimal effort.

Why Branding Matters for Sides

Branding a side dish is about more than just flavor—it’s about creating an emotional connection with the consumer. Chick-fil-A’s decision to release their Pimento Cheese as a standalone item taps into consumer desire for indulgence, uniqueness, and the comfort of familiarity. Limited-time branding further fuels the exclusivity factor, making the product feel special and irreplaceable. This creates a memorable experience for the customer, who associates the side dish with a positive interaction with the brand. Ultimately, branded sides like this one can elevate a company’s overall brand perception, making customers feel more loyal to the experience and thus returning more frequently.

In a competitive marketplace, where innovation and differentiation are key, branding quality side dishes for takeout and catering provides an avenue for not just boosting immediate sales but building long-term brand equity. Chick-fil-A’s Pimento Cheese is a brilliant example of how focusing on these strategic side offerings can drive not just unit sales, but also foster deep, lasting connections with customers.

By tapping into this opportunity, restaurants and grocery stores can turn what was once an overlooked part of the meal into a driver of revenue and loyalty. As always, the grocerant niche, where fresh and customizable food reigns supreme, offers the perfect environment for this incremental strategy to thrive.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Strategic Partnerships: The Key to Growth for Local Food Retailers

 

Consumers are dynamic not static, in the dynamic landscape of food retailing, strategic partnerships have emerged as a critical driver of growth, particularly for regional and local food retailers. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, believes that these collaborations allow brands to leverage the strengths of established platforms to broaden their reach and enhance customer engagement. A prime example of this is Magnolia Bakery’s successful partnership with DoorDash, a relationship that highlights the benefits of third-party aggregators in modern retail.

Since the onset of the pandemic, many quick-service concepts have recognized the immense value in partnering with third-party delivery services. Magnolia Bakery, renowned for its iconic banana pudding, has reaped the rewards of such a collaboration. By launching exclusive products like their new Banana Pudding with Peanut Butter, Chocolate Chunks, and Chocolate Cookie Pieces through DoorDash’s DashMart platform, Magnolia Bakery has successfully tapped into the vast audience that these platforms provide.

Why Strategic Partnerships Work

1.       Access to Larger Customer Bases: By partnering with a major aggregator like DoorDash, Magnolia Bakery gained access to a customer base that spans hundreds of millions of users in the U.S. This partnership allows brands to reach consumers who may not be physically near their retail locations. According to a study by The NPD Group, 60% of consumers are more likely to purchase from a brand that offers delivery through a third-party service.

2.       Enhanced Brand Visibility: Exclusive product launches through delivery platforms not only create buzz but also enhance brand visibility. Magnolia Bakery has seen compelling sales growth by strategically leveraging DoorDash’s marketing resources to promote their new offerings.

3.       Innovation Through Collaboration: The partnership has facilitated joint innovation, with DoorDash contributing to flavor and packaging development. This collaborative approach allows brands to create unique products that resonate with consumers and cater to emerging trends, such as indulgent desserts that combine popular flavors.

4.       Scalability and Flexibility: By utilizing DoorDash’s existing infrastructure and logistics, Magnolia Bakery has been able to scale its operations quickly and efficiently. This flexibility is crucial for local retailers looking to expand their reach without the significant overhead costs typically associated with distribution.

Examples of Successful Partnerships in the Food Retail Sector

1.       Sweetgreen and Grubhub: The popular salad chain partnered with Grubhub to offer delivery and exclusive menu items. This collaboration has enabled Sweetgreen to grow its customer base beyond its brick-and-mortar locations, particularly during peak lunch hours.

2.       Peet's Coffee and Uber Eats: By partnering with Uber Eats, Peet's Coffee has successfully introduced its beverages and baked goods to consumers who prefer the convenience of home delivery, tapping into the growing market for at-home coffee experiences.

3.       Insomnia Cookies and Postmates: This partnership allows Insomnia Cookies to offer late-night delivery of their warm cookies to customers craving a sweet treat. It has significantly boosted sales during nighttime hours, a traditionally underserved market.

4.       Local Farmers Markets and Instacart: Many regional farmers markets have started partnering with Instacart to offer local produce and goods online. This approach not only supports local agriculture but also caters to the increasing demand for fresh, locally sourced food delivered to consumers’ homes.

Think About This:

As we observe the evolution of the food retail industry, it is evident that strategic partnerships with third-party platforms like DoorDash can redefine a brand's growth trajectory. For Magnolia Bakery and others, such collaborations not only expand their market reach but also facilitate innovation and enhance customer engagement. Moving forward, local food retailers should consider how similar partnerships could be leveraged to meet growing consumer demands and enhance their competitive edge in an increasingly digital marketplace.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter