Consumers Eat Everywhere: Why Amazon’s Siloed Grocery Strategy Misses the Meal-Time Moment No Silos in the Shopper’s Mind

 

In the world of food, one thing is certain: consumers have no silos. When it comes to meals, they don’t think in terms of traditional grocery formats according to the Grocerant Guru® at Foodservice Solutions®. They want fresh food fast at a good price — wherever they are, whenever hunger strikes. The modern consumer’s meal journey is fragmented by design, not default. From gas stations to street corners, consumers seamlessly integrate eating into their everyday routines — and they’re not waiting on a weekly grocery trip to do it.

Seven Dramatic Examples of Seamless Eating

1.       IKEA’s Swedish Meatballs – Shoppers don’t just browse for furniture; they plan lunch. IKEA’s restaurants generate billions globally, often turning a home furnishing trip into a sit-down meal experience.

2.       Wawa’s Hoagie Culture – What began as a convenience store evolved into a foodservice leader. Today, Wawa is known more for handcrafted sandwiches and fresh coffee than fuel, proving gas stations can be gourmet.

3.       Costco’s $1.50 Hot Dog Combo – Arguably the best food deal in America, this iconic offering drives foot traffic and demonstrates that prepared food can coexist with bulk groceries.

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4.       Starbucks Drive-Thru Breakfast – With grab-and-go breakfast sandwiches, protein boxes, and lunch items, Starbucks has moved far beyond coffee — and into the weekday meal routine.

5.       Trader Joe’s Grab-and-Go Coolers – From sushi to pre-packed salads, TJ’s leads in impulse meal solutions that don’t require a cart, list, or long checkout line.

6.       Street Vendors in Urban Centers – In NYC, LA, and Chicago, food trucks and carts meet consumers exactly where they are with warm meals ready in minutes — no app, no plan.

7.       Walgreens and CVS Meal Kits – Drugstores now stock sandwiches, wraps, and even heat-and-eat meals, understanding the consumer’s “right now” hunger pangs better than many traditional grocers.

Amazon’s Fragmented Grocery Play

Amazon, by contrast, has taken a more banner-heavy, siloed approach. Despite innovation and deep pockets, it has failed to create a cohesive meal-time identity across its grocery ecosystem. Consumers are faced with a menu of separate brands rather than a unified food experience:

·       Amazon Fresh: A hybrid grocery concept with evolving layouts and local foodservice selections.

·       Whole Foods Market: Premium organic fare, mostly aspirational, not everyday.

·       Amazon Go: A tech-first format that hasn’t scaled.

·       Amazon Grocery: A pilot model trying to compete with mini-marts.

·       Online Platforms: A fragmented mix of third-party and private labels.

While each banner may have strengths, Amazon has built grocery silos — each pulling in different directions — instead of constructing a singular, omnichannel food identity that meets today’s "anytime, anywhere" eating patterns.

Where Amazon Is Missing the Mark

1.       No Singular Meal-Time Voice
Consumers don’t want to decode which banner offers what. They want a reliable, frictionless meal solution, and Amazon has yet to present a unified brand that says: “We’ve got your next meal — fresh, fast, and affordable.”

2.       Siloed Branding Confuses, It Doesn’t Convert
While Amazon touts 90% satisfaction with its new Fresh layouts and brags about Whole Foods’ profitability, there’s no shared customer journey across these formats. There’s no instinctive association between Amazon and “great food right now.”

3.       Innovation Without Integration Is Just Noise
The company is undeniably experimenting — from Amazon Saver to grocery delivery subscriptions — but each initiative lives within its own mini-ecosystem. What’s missing? Holistic execution. A street-vendor-style lunch should be as easy to get via Amazon as a paper towel restock — and it’s not.

What Consumers Actually Want

As the Grocerant Guru® has studied for decades, food success today is built around the consumer’s evolving need set — not banner strategy or store count. That need set includes:

·       Fresh Food – Not just shelf life, but meal relevance: hot, wholesome, and craveable.

·       Fast Access – From curbside to counter to couch delivery, consumers expect immediacy.

·       Good Price – Affordability isn’t just a concern; it’s a requirement in a value-driven market.

And perhaps most importantly: it has to fit into their lives — not the other way around.

Lessons from the Past: Supermarket to Super Meals

Grocery retail has transformed from pantry-filling to meal-solving. The success of retailers like Wawa, Trader Joe’s, and even Costco’s food courts reflect a deeper truth: the line between food retail and foodservice is not just blurry — it’s irrelevant.

Shoppers no longer shop aisles — they shop occasions, emotions, and convenience. That’s why a cold brew and sandwich at Starbucks feels more relevant at noon than a trip to a 50,000-square-foot Amazon Fresh.

Final Thought: Amazon’s Grocerant Opportunity

Amazon still has the tools, tech, and talent to revolutionize food retail. But unless it unites its banners into a cohesive grocerant strategy — one that addresses meals, not shelves — it will continue to grow grocery in volume, not in value.

The future belongs to the brands that understand eating is an anytime act. If Amazon wants to truly dominate grocery, it must stop building banners and start building a food-first identity that fits inside a consumer’s day — not just their cart.

Steven Johnson is the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been tracking the convergence of restaurants, retailers, and food-forward CPGs for over 35 years. His insights focus on consumer behavior, grocerant strategies, and meal migration trends shaping the future of food.