Grocerants: Where Fresh Food Meets Innovation

 

In 1996, Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, revolutionized the retail foodservice industry by identifying, quantifying, qualifying, and naming the fastest-growing sector of the industry—the Grocerant Niche. His groundbreaking article Call Them Grocerants paved the way for a new era of fresh, convenient, and portable food, transforming consumer expectations and retail food strategies worldwide.

The Driving Force Behind the Grocerant Niche

One of the key drivers behind the grocerant niche's success is its ability to meet evolving consumer preferences. Shoppers today are more health-conscious, environmentally aware, and convenience-driven than ever before. Industry research reveals that:

·         73% of consumers prioritize healthier food options when dining out or ordering takeout.

·         The demand for eco-friendly packaging has surged, with consumers now willing to pay an extra $0.32 per item, up from $0.11 in 2016.

·         The fresh prepared foods segment within grocery stores has grown by 8% annually, outpacing traditional grocery sales.

·         67% of millennials and Gen Z consumers report that convenience plays a critical role in their food purchasing decisions.

These shifts underscore the grocerant niche's ability to thrive by offering high-quality, ready-to-eat meals that align with modern lifestyle demands.

Digital Transformation & Social Media Influence

The rise of digital engagement has further propelled the grocerant niche forward. With over 4.74 billion active social media users globally, platforms like Instagram, TikTok, and Facebook have become crucial marketing channels for food retailers. Consider these impactful statistics:

·         71% of consumers say social media influences their purchasing decisions.

·         The hashtag #FoodDelivery has garnered millions of views, reflecting the immense popularity of delivery-based food services.

·         65% of restaurant and grocery delivery orders originate from mobile apps, reinforcing the necessity of digital accessibility.

·         Online food delivery revenue is expected to reach $450 billion by 2030, with grocerants playing a significant role in this growth.

By leveraging digital marketing strategies, grocerants can enhance consumer engagement, drive brand loyalty, and capture a larger share of the evolving foodservice landscape.

Emerging Trends in the Grocerant Niche

Looking ahead to 2025 and beyond, the grocerant sector is poised for continued expansion, driven by these five key trends:

1.       Hyper-Personalization & AI Integration

o    AI-driven menu recommendations and dynamic pricing tailored to individual preferences are becoming mainstream.

o    Smart retail technology enables real-time inventory tracking and automated meal customization.

2.       Expansion of Plant-Based & Alternative Protein Offerings

o    62% of consumers are interested in plant-based meal options, prompting grocerants to expand their selections.

o    Lab-grown and alternative proteins are gaining traction as sustainable meal solutions.

3.       Sustainable & Zero-Waste Packaging

o    Retailers are investing in compostable, biodegradable, and reusable packaging to meet growing eco-conscious demands.

o    Government regulations on single-use plastics are accelerating industry-wide sustainable initiatives.

4.       Hybrid Retail Experiences

o    Grocerant concepts are merging with ghost kitchens, creating seamless dine-in, takeout, and delivery models.

o    Smart vending machines and autonomous stores are enhancing food accessibility.

5.       Health-Forward & Functional Foods

o    Demand for immune-boosting, gut-health-focused, and protein-packed meals is reshaping prepared food offerings.

o    Nutrient-dense "better-for-you" meals are now a top priority for on-the-go consumers.

The Future of Grocerants

Steven Johnson's visionary approach and Foodservice Solutions®' 5P's of Food Marketing — Product, Packaging, Placement, Portability, and Price — continue to serve as guiding principles for success in the grocerant space. As the industry embraces fresh food innovation, sustainability, and digital transformation, grocerants remain at the forefront of redefining convenience-driven dining.

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At Eatzi’s, Innovation with Customization and Personalization Drive Success

 

Alice May Brock once famously said, “Tomatoes and oregano make it Italian, wine and tarragon make it French, sour cream makes it Russian, lemon and cinnamon make it Greek, soy sauce makes it Chinese, garlic makes it good.” At Phil Romano’s Eatzi’s, you can get all of that—and more—thanks to its pioneering approach to customization and personalization.

Phil Romano, the visionary behind Eatzi’s, revolutionized the food industry by creating what Foodservice Solutions® Grocerant Guru®, Steven Johnson, dubbed the first grocerant. Johnson, who coined the term "Grocerant Niche" in 1996, recognized Eatzi’s as the trailblazer of this now-booming sector of retail foodservice. With chef-inspired Ready-2-Eat and Heat-N-Eat fresh prepared food, Eatzi’s set the gold standard for quality, interactivity, and portability in the grocerant niche.

The Grocerant Niche: A Growing Phenomenon

Grocerants like Eatzi’s empower customers to curate meals that reflect their unique tastes and preferences. Whether it’s sustainable American, Italian, French, Russian, or Greek cuisine, consumers can mix and match meal components to create personalized dining experiences. This flexibility aligns perfectly with the modern American meal, which has evolved into a melting pot of flavors and choices.

The grocerant niche continues to thrive, with major players like Central Market, Wawa, Corner Bakery Café, Whole Foods, Olive Garden, Wegmans, Denny’s, and 7-Eleven entering the fresh-prepared, better-for-you space. According to recent food marketing data, the U.S. food retail industry generates over $1 trillion annually, with fresh-prepared meals driving significant growth. Additionally, 65.7% of American households consist of one or two people1, underscoring the demand for portion-controlled, customizable meal options.

Social Media: A Catalyst for Success

Social media has transformed the food industry, enabling brands to connect with consumers in unprecedented ways. Platforms like Instagram and TikTok have popularized food photography and viral trends, such as baked feta pasta, which led to a 20% spike in feta cheese sales. For Eatzi’s, leveraging social media to showcase its vibrant, chef-inspired creations has been instrumental in attracting a diverse clientele and reinforcing its reputation as a leader in the grocerant niche.

Customization and Personalization: The Eatzi’s Advantage

From its inception, Eatzi’s understood the importance of portion size and bundling meal components. By offering customizable options, Eatzi’s caters to the needs of modern consumers who value convenience, differentiation, and individualization. Whether it’s a family meal or a solo snack, Eatzi’s allows customers to create distinctive, personalized dining experiences.

The Future of Grocerants

As the grocerant niche continues to expand, Eatzi’s remains at the forefront of innovation. By combining chef-inspired meals with customization and personalization, Eatzi’s exemplifies the sights, sounds, and scents of food and retail success. With the food industry projected to grow steadily, driven by trends like online grocery sales and plant-based proteins, Eatzi’s is well-positioned to lead the way in redefining how America eats.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

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Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

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Gen Z and Millennials' Eating Habits Mirror Memory’s

 

As Millennials transition into parenthood, their dining habits increasingly reflect those of their upbringing. According to Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, Millennials are embracing grocerant niche Ready-2-Eat and Heat-N-Eat fresh food options largely because they enjoyed these convenient meal solutions when their parents provided them. This generational continuity in eating habits is backed by compelling food industry data that underscores the evolution of consumer food choices.

Changing Consumer Behaviors: The Rise of Convenience

The demand for convenience continues to shape the food industry. Recent data highlights that online grocery shopping and food delivery services have surged, with food and beverage sales as a percentage of total retail e-commerce sales increasing from 9.3% in 2017 to nearly 16% in 2023. This trend is projected to reach 21.5% by 20271. Additionally, 44% of grocery transactions now involve self-checkout systems, reflecting a shift toward digital engagement.

For Millennials and Gen Z, convenience is not just about speed but also about quality. These generations are increasingly drawn to functional foods—products that offer health benefits beyond basic nutrition. Foods enriched with adaptogens, omega-3 fatty acids, and vitamins are gaining popularity, aligning with their focus on mental and physical wellness.

Millennials and Family Dining Trends

Millennials with children continue to influence dining trends. While dinner remains the most popular meal for foodservice options, breakfast and lunch are seeing increased engagement. Interestingly, Millennial parents often mix restaurant-prepared food with home-cooked items, a trend that signifies a preference for both convenience and customization.

Moreover, Gen Z is reshaping the food industry with their emphasis on sustainability and authenticity. They prefer organically sourced products and sustainable packaging, and they are more likely to choose plant-based or vegetarian options. This generation also values cultural authenticity in their dining experiences, favoring international cuisines prepared by chefs trained in authentic techniques. 

The Growth of Grocerant Niche Ready-2-Eat and Heat-N-Eat Fresh Food

The grocerant niche continues to thrive, with restaurants, service delis, and convenience stores investing in pre-prepared meal solutions to meet consumer demand. These options are particularly appealing to Millennials and Gen Z, who prioritize high-quality, ready-to-eat meals that align with their health and lifestyle goals.

Driving Change: How Businesses Can Adapt

To stay ahead, food retailers and service providers must recognize these shifting consumer patterns and adapt accordingly. Strategies include:

·         Offering functional and fortified foods that cater to health-conscious consumers.

·         Embracing sustainability by using eco-friendly packaging and sourcing ingredients responsibly.

·         Leveraging technology to enhance the customer experience, such as personalized recommendations and seamless online ordering systems.

·         Highlighting cultural authenticity in menu offerings to appeal to Gen Z's preference for diverse and meaningful dining experiences.

By aligning with the preferences of Millennials and Gen Z, businesses can tap into a lucrative and growing market segment. The future of dining is a fusion of convenience, digital engagement, and familiar comfort foods, making it essential to anticipate consumer demands and embrace change.

Elevate Your Brand with Expert Insights

For corporate presentations, regional chain strategies, educational forums, or keynote speaking, Steven Johnson, the Grocerant Guru®, delivers actionable insights that fuel success.

With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

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Costco Destination Dinning

 

Costco has long been recognized as a destination for consumers seeking Ready-to-Eat (RTE) and Heat-and-Eat fresh prepared foods. This strategic focus has significantly enhanced customer satisfaction and loyalty, positioning Costco as a leader in the grocerant niche—a sector characterized by the fusion of grocery and restaurant-quality offerings. Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, emphasizes that Costco's commitment to providing flavorful, affordable, and convenient meal solutions has been instrumental in this success.

The $1.50 Hot Dog and Soda Combo: A Timeless Favorite

Since its introduction in the mid-1980s, Costco's hot dog and soda combo has remained steadfastly priced at $1.50, becoming an iconic offering that exemplifies the company's dedication to value. In 2025, this commitment continues, with the notable change of switching from Pepsi back to Coca-Cola products, a move that has been met with enthusiasm from many customers. This enduring deal not only attracts shoppers but also reinforces Costco's reputation for delivering consistent value.

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Rotisserie Chicken: A Staple of Quality and Affordability

Costco's rotisserie chicken, priced at $4.99, has become a staple for many households. Customers appreciate its larger size, freshness, and distinctive flavor profile compared to offerings from other retailers. This product exemplifies the Price, Value, Service Equilibrium that Johnson highlights as crucial in today's evolving fresh food sector. ​

Pizza: A Growing Contender in the Food Court

Costco's food court pizza has gained a loyal following, with customers praising its affordability and taste. The 18-inch pizza, priced at $9.95, offers a value proposition that rivals traditional pizzerias. In fact, Costco has become one of the largest pizza chains in the U.S., a testament to its success in the grocerant space. 

Evolving to Meet Consumer Preferences

In 2025, Costco continues to adapt its food court offerings to align with changing consumer preferences. Recent changes include menu adjustments and a renewed focus on customer experience. These efforts reflect an understanding of the importance of staying responsive to customer desires in the competitive retail landscape.​

Customer Satisfaction and Industry Standing

While Costco's fresh food initiatives have historically driven high customer satisfaction, recent reports indicate a slight decline. The American Customer Satisfaction Index (ACSI) survey revealed that Costco's satisfaction score dropped to 81 in 2025, down from previous years. Factors contributing to this decline include increased competition and evolving consumer expectations, particularly among younger demographics who prioritize technological integration and convenience. ​

Costco's emphasis on fresh, ready-to-eat foods like the hot dog and soda combo, rotisserie chicken, and pizza has been central to its strategy of enhancing customer satisfaction. By maintaining a balance of price, value, and service, and by adapting to consumer preferences, Costco continues to be a formidable player in the grocerant niche. As the retail food landscape evolves, ongoing innovation and attentiveness to customer needs will be key to sustaining and growing its market position.

​In recent years, Costco's Ready-to-Eat (RTE) offerings have significantly contributed to its customer satisfaction and loyalty. However, recent data indicates a shift in customer satisfaction levels. According to the American Customer Satisfaction Index (ACSI) Retail and Consumer Shipping Study 2025, Costco's customer satisfaction score has declined to 81, down from 85 in 2024. ​

Several factors may be contributing to this decline:

·         Increased Competition: Competitors like Sam's Club have enhanced their customer experience through technological innovations such as touch-free checkout, leading to higher satisfaction scores. ​

·         Evolving Consumer Expectations: Younger demographics, particularly Gen Z consumers, prioritize seamless shopping experiences that integrate both in-person and online tools. Costco's current offerings may not fully align with these expectations. 

·         Product Changes: Adjustments to popular food court items, such as the introduction of standing tables and modifications to menu offerings, have received mixed reactions from customers. ​

Despite these challenges, Costco continues to focus on delivering value through its RTE options, including the iconic $1.50 hot dog and soda combo, $4.99 rotisserie chicken, and $9.95 18-inch pizza. Maintaining the balance of price, value, and service remains central to sustaining customer satisfaction in the evolving retail landscape.

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