Foodservice Packaging Evolving for Survival

 

Throughout history, foodservice packaging has played a critical role in shaping consumer behavior and the success of the food industry. From humble beginnings, where simplicity and function were the primary concerns, to the current demand for sustainability, convenience, and branding, packaging has evolved in response to societal needs, technological advances, and environmental pressures.

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that ‘packaging’s evolution’ has often been driven by crisis or opportunity, and its survival has mirrored the survival of the food industry itself. Here, we explore three dramatic examples where packaging innovation not only adapted but became essential for a brand's survival and growth.

Example 1: The Birth of Fast-Food Packaging – McDonald’s Transformation

In the early 1960s, fast food was experiencing explosive growth, yet McDonald’s faced a logistical nightmare—how to serve consistent meals quickly while maintaining quality. The solution lay in packaging. Their revolutionary switch to disposable packaging systems, including paper bags, wax-coated cartons, and paper cups, allowed them to streamline operations and reduce costs. This packaging pivot was crucial for McDonald’s ability to scale, eliminating the need for washing and reusing dishes. Beyond operational efficiency, the packaging itself became a branding tool, reinforcing the iconic golden arches and “speedee” service promise.

This transformation of fast-food packaging not only saved time and reduced overhead but also aligned with post-WWII American values of convenience and disposability. It became the blueprint for the industry and spurred the rapid rise of fast -food giants. Today, McDonald's packaging innovations of the 1960s are credited with enabling the birth of a global industry that thrives on speed and consistency.

Example 2: The Frozen Meal Revolution – Swanson’s TV Dinners

In the 1950s, Swanson introduced the now-famous TV dinner, which fundamentally changed the way Americans consumed meals. The packaging innovation was as critical as the frozen food itself. Swanson utilized compartmentalized aluminum trays to keep meal components separate while maintaining their flavor and texture during freezing and reheating. This move capitalized on the growing popularity of television and a culture increasingly driven by convenience and novelty.

The packaging's success wasn't just about keeping the food intact—it was about changing consumer habits. It created a new category of meals meant to be eaten quickly and with minimal cleanup. The compartmentalized tray became a symbol of modern domesticity, providing families with quick, balanced meals that mirrored the structure of home-cooked dinners but without the time investment. Without this innovation, the frozen food sector may never have achieved its pivotal role in American households.

Example 3: Eco-Friendly Push – Starbucks’ Shift to Sustainability

In more recent years, Starbucks has faced a different kind of packaging challenge, one driven by environmental sustainability. In response to growing consumer concerns over plastic waste and the company’s carbon footprint, Starbucks made a dramatic shift by introducing compostable straws, reusable cups, and recyclable packaging materials. While these changes may seem incremental, they represent a sea change in how a global brand with thousands of stores operates on a daily basis.

The shift, though essential, wasn’t without hurdles. Starbucks had to balance consumer convenience with environmental responsibility, all while maintaining the brand’s premium image. The introduction of reusable cups required changes to supply chains, store operations, and consumer education. While still evolving, this packaging initiative reflects the larger industry trend toward sustainability, a response to both consumer demand and regulatory pressures around the world. For Starbucks, the shift wasn't just about survival—it was about future-proofing the brand in an era where eco-consciousness defines consumer loyalty.

Packaging as a Lifeline

From McDonald’s disposable fast-food containers to Swanson’s aluminum TV dinner trays and Starbucks’ eco-conscious cups, packaging has consistently been at the forefront of foodservice innovation. These examples demonstrate that packaging isn’t just a peripheral concern; it is fundamental to foodservice survival. As we move further into the 21st century, foodservice packaging will continue to evolve, driven by technology, sustainability, and changing consumer demands. The next wave of packaging innovation will likely come from a similar mix of crisis and opportunity, as the industry adapts to new challenges.

For brands seeking to stay relevant, packaging must be viewed not just as a necessity, but as a tool for growth, customer engagement, and long-term survival.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

Starbucks Floundering in Yesterday’s Solutions Won’t Help Today

 

Starbucks' decision to pull back from pricing promotions under new CEO Brian Niccol could create ripple effects across the brand and the wider foodservice landscape according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Starbucks pivot away from discounting, once a staple to lure in price-sensitive consumers, signals a fundamental shift in Starbucks’ marketing and messaging. While the intention is to revive its "community coffee house" identity and reduce transactional customer-employee interactions, the strategy may come with substantial risks. The following analysis explores how halting all pricing promotions could backfire and what positive outcomes Starbucks might hope to achieve. Finally, a comparison of other retail brands that tried similar strategies highlights potential long-term pitfalls.

Negative Results from Stopping Pricing Promotions

1.       Drop in Foot Traffic: Promotions like BOGO weekends and discount days have historically driven high customer traffic at Starbucks. In Q3 2024, U.S. same-store sales already fell by 2%, and foot traffic decreased by 6%. Without these promotions, Starbucks risks accelerating this decline, as fewer customers will visit without the incentive of a deal.

2.       Diminished Customer Loyalty: Starbucks’ rewards program, which boasts over 30 million members, has thrived on regular promotional offerings like “Summer App-y Days” and half-price Fridays. Removing these promotions may cause disillusionment among loyal customers who depend on these discounts for affordable access to premium coffee. The risk of attrition is real, with fewer reasons for customers to engage frequently.

3.       Competitive Disadvantage: With McDonald’s and Burger King continuing aggressive discount campaigns like the $5 Meal Deal and $5 Your Way Meal, Starbucks could lose market share. Customers facing inflationary pressures are likely to opt for competitors who still offer value-driven promotions. This could widen the traffic gap and intensify Starbucks' 7% transaction drop in fiscal Q2 2024.

4.       Loss of Digital Engagement: Starbucks' app-based promotions drive customer engagement and increase average ticket sales by encouraging add-ons. Ending these deals may reduce the frequent app use that has fueled digital orders and loyalty points redemptions. In a tech-savvy consumer market, a dip in digital engagement could hurt Starbucks’ momentum in the convenience and quick-service space.

5.       Employee Burnout Persists: One of the justifications for reducing promotions is to alleviate strain on baristas who face high volumes during discount periods. However, without addressing core operational inefficiencies, Starbucks may continue to see sluggish order preparation times, which was a major complaint under former CEO Laxman Narasimhan. Cutting promotions won’t fix systemic issues like understaffing or slow service.

6.       Negative Consumer Perception: Starbucks' move to focus on premium experiences and steer away from promotions might alienate its broader customer base. Many customers view Starbucks as an affordable luxury, not a high-end coffee house. If the brand is perceived as elitist or out of touch with the average consumer, it could face long-term reputational damage.

Potential Positive Outcomes of the Strategy

1.       Brand Elevation to Premium Status: By focusing on creating an upscale coffee experience, Starbucks hopes to transition away from a value-oriented image and attract higher-paying customers willing to pay for premium quality. This aligns with Niccol’s goal of rebuilding Starbucks' identity as a community coffee house rather than a quick-service pitstop.

2.       Increased Average Ticket Value: Though traffic may decline, Starbucks could see an increase in the average ticket size. A more refined, premium menu could attract customers willing to spend more per visit. This strategy could stabilize the company’s revenue even with lower customer counts.

3.       Better In-Store Experience: Niccol’s push for improved store design and seating, as well as distinguishing between dine-in and to-go services, could enhance the in-store customer experience. If successful, this might encourage guests to linger and spend more on additional items such as pastries or sandwiches, helping to boost same-store sales over time.

4.       Operational Efficiency: By easing off promotions, Starbucks might streamline operations and reduce the chaos that stems from overwhelming discount-driven traffic spikes. A more consistent flow of customers could lead to improved service quality, faster order fulfillment, and better employee morale.

5.       Stronger Brand Identity: Positioning Starbucks as a space for community engagement rather than purely transactional visits could reinforce customer loyalty among those seeking more than just a quick coffee fix. This aligns with Niccol's aim to reconnect the brand with its roots as a "third place" between home and work.

6.       Long-Term Profitability: While the short-term hit to traffic may be painful, eliminating discounts could ultimately lead to a more sustainable business model. Starbucks may cultivate a more loyal, higher-spending customer base and avoid the pitfalls of discount dependency, a strategy that can erode profit margins over time.

Lessons from Other Retailers

1.       J.C. Penney’s Pricing Strategy: In 2012, J.C. Penney famously removed its regular discount offers, aiming to reposition the brand as a premium retailer. This resulted in a steep sales decline as loyal customers fled, accustomed to the brand's deep discounts. It took years for J.C. Penney to recover from the backlash, proving that eliminating promotions can alienate core customers and lead to financial losses.

2.       Applebee’s Shift to “Neighborhood” Vibes: Applebee’s once emphasized community engagement and a return to its "neighborhood" roots, moving away from its well-known value promotions. Sales stagnated as customers viewed the chain as a low-cost dining option and balked at paying higher prices. Applebee's eventually reintroduced discount promotions to revitalize its traffic.

3.       Chili's Focus on Premium Menu: Chili’s tried to abandon discounting in favor of promoting premium menu items to boost revenue per customer. The result was a dip in traffic that led to stagnant same-store sales and a reversion to more value-driven deals. The move showed that customers often expect promotions as part of the dining experience.

Think About This

While Starbucks may have valid reasons for stepping back from promotions, history shows that such decisions come with substantial risks. Consumer expectations, especially in the current economic climate, lean toward value-driven options. If Starbucks fails to navigate this transition carefully, it could suffer long-term consequences, just as other brands have. Balancing premium aspirations with customer engagement will be critical for its success.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Tocaya Expands its Brand Reach with Boxed Meals: A Grocerant Guru's Perspective

 

In a world where convenience and customization are king, Tocaya Modern Mexican is expanding its reach by launching a new line of Individual Boxed Meals. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® said, I’ve seen time and time again how smart moves like this not only garner new customers but also deepen loyalty with legacy ones.

Tocaya’s strategic decision to branch into boxed catering touches on something more profound than just offering another option—it embodies what the modern consumer craves: personalized, flavorful, and easy-to-enjoy meals that fit seamlessly into their busy lives.

The fast-casual space is increasingly competitive, and brands need more than great flavors to stand out. For Tocaya, introducing these boxed meals is a direct way to connect with multiple customer segments—from the office worker seeking convenience to event organizers looking for dietary diversity. In fact, boxed meals have become a powerful touchpoint for many brands, and Tocaya’s expansion strategy taps into some key industry trends that position it for incremental success.

The Value of Expanding Reach Through Boxed Meals

Expanding your brand through innovative offerings like boxed meals does more than increase revenue streams. It extends the essence of your brand to a broader audience. This type of brand extension accomplishes two crucial things: it captures new customers who may not have tried Tocaya otherwise and solidifies its presence with existing fans. Brands that successfully navigate this delicate balance build long-term relevance in an ever-shifting market.

For Tocaya, offering individually boxed meals caters directly to today’s demand for convenience, while staying true to its core values: health-conscious, flavorful Mexican cuisine. Each boxed meal comes with the customization that modern diners expect, offering options for vegan, vegetarian, pescatarian, and gluten-free diets. When done right, this level of customer-focused expansion turns one-time buyers into loyal advocates.

Let’s break down how this expansion connects on eight crucial customer touchpoints that will ensure Tocaya’s brand stays relevant today and continues to grow tomorrow.

8 Key Customer Touchpoints Driving Tocaya’s Brand Relevance

1.       Convenience
Boxed meals are the epitome of grab-and-go dining. Whether for a quick office lunch, a casual event, or even a personal meal on-the-go, Tocaya delivers the ease of single-serving meals with no hassle. Convenience is paramount in today’s food culture, and by offering easily accessible boxed meals, Tocaya caters to a consumer lifestyle built around speed and efficiency.

2.       Customization
With options for various dietary preferences, including vegan, vegetarian, and gluten-free, Tocaya ensures that no customer feels left out. In a world where personalization is expected, the ability to cater to individual needs with ease makes the brand more attractive to a broad audience. This taps into the growing trend of consumers seeking food choices that align with their personal values and health goals.

3.       Flavorful Experiences
The vibrant flavors that define Tocaya—whether it’s the beef birria fajita burrito or the potato torta—are amplified in these boxed meals. The brand’s signature boldness helps set it apart from competitors, allowing new and loyal customers alike to enjoy an elevated culinary experience without having to dine in. Consistency in flavor is key for legacy customers, who return because they trust the experience will be just as satisfying as their last visit.

4.       Health-Conscious Options
Tocaya’s commitment to serving organic, hormone-free ingredients is a powerful message. Consumers today are not only more health-conscious but are also more discerning about where their food comes from. The boxed meals extend this promise, giving both new and returning customers confidence in the quality and sustainability of their food choices.

5.       Event-Friendly Appeal
The practicality of boxed meals for group gatherings, whether it’s corporate meetings or casual get-togethers, opens Tocaya to new channels of revenue. By tapping into the catering market, Tocaya expands its brand into areas where convenience meets demand—making it the go-to choice for events that prioritize both flavor and simplicity.

6.       Engagement Through Digital Platforms
With its robust online presence on platforms like Facebook, Instagram, and X (formerly Twitter), Tocaya engages customers where they spend much of their time. These channels not only promote the new boxed meals but also encourage user-generated content and feedback, driving ongoing engagement and brand loyalty.

7.       Sustainability Commitment
Modern consumers expect brands to stand for something beyond the product itself. Tocaya’s focus on sustainability and the use of 100% hormone- and steroid-free meats appeals to the environmentally and ethically conscious shopper. This commitment strengthens its relationship with existing customers who value these initiatives while drawing in new ones who seek brands aligned with their values.

8.       Memorable Packaging
Packaging plays a critical role in the boxed meal experience. The combination of visually appealing, eco-friendly packaging and the convenience it offers makes a lasting impression. Thoughtful packaging elevates the experience, making each meal feel curated and intentional, which in turn enhances brand perception.

Want to Build Brand Relevance

and Increase Share of Stomach

The Path to Incremental Success

Tocaya’s new boxed meal offering is more than just a new product; it’s a multi-faceted strategy that touches on the very essence of what modern customers want: convenience, customization, and conscious consumption. By expanding into the catering space with individual boxed meals, Tocaya continues to innovate while staying true to its roots, offering bold flavors, sustainable choices, and health-conscious options that resonate with both legacy customers and new patrons.

For brands in the food industry, the lesson here is clear: To stay relevant and grow, you must meet customers where they are—whether that’s at a corporate meeting, a social gathering, or simply at home. Expanding your brand’s reach, especially in ways that offer personalized, convenient experiences, will drive long-term success. And as the Grocerant Guru® always says, "The path to incremental success is paved with thoughtful touchpoints that resonate deeply with the customer."

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

True Food Market: A Grocerant Revolution in Healthy Eating on the Go

 

True Food Kitchen, the health-focused casual-dining chain, is stepping boldly into the grocerant niche with its newest concept, True Food Market—a fusion of fast-casual dining and grab-and-go retail.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, recently, near its headquarters in Scottsdale, Arizona, True Food Market opened its doors, marking a pivotal moment for the brand's evolution into the grocerant space.

At 2,800 square feet, the new location is significantly smaller than True Food Kitchen’s typical 5,000 to 7,000-square-foot footprint. But smaller isn’t a limitation; it’s a strategic move designed to offer time-crunched customers access to healthy, made-to-order meals alongside snacks and premade options for those on the go. This blend of retail and dining is exactly where the future of food is headed.

1. Understanding the Grocerant Customer Base

Today’s consumers prioritize health, convenience, and sustainability. They are busy, but they no longer want to sacrifice quality when they are short on time. The customers True Food Market is targeting are part of a rapidly growing demographic seeking clean, locally sourced food without the hassle of a full sit-down experience. This group includes millennials, health-conscious families, and professionals seeking to improve their diet in a fast-paced world. Recent studies show that 50% of consumers now seek healthier fast-food options, and True Food Market is perfectly positioned to meet that demand.

2. Why This Concept Will Work

The grocerant model, combining elements of grocery retail and restaurant-style service, has been gaining momentum for years. Chains like Whole Foods and Wegmans have successfully integrated prepared meals into their grocery operations, and food-focused convenience stores like Foxtrot have set a trend. True Food Market is tapping into this synergy by offering a retail space that showcases local and national brands, prepared meals, and even lifestyle items such as aprons and cookbooks. Grocerant growth continues to outpace both traditional grocery stores and fast food, driven by customers wanting variety, quality, and speed. With its established reputation for healthy, high-quality meals, True Food Market has a winning formula.

The star of the menu? True Crisp’d air-fried chicken tenders, available either solo or as a sandwich, known as a Torpedo Roll, alongside salads, flatbreads, and sides. Importantly, the addition of breakfast—a feature missing from True Food Kitchen—caters to early risers with offerings like biscuits, tacos, and overnight oats. These expanded menu items reflect the growing trend of breakfast-on-the-go, with breakfast sales in the fast-casual sector increasing by 7% annually.

3. Next Steps for True Food Market

To capitalize on this promising start, True Food Market should:

·         Leverage Data-Driven Marketing: By using customer data and social media insights, True Food Market can engage its core audience in real-time, offering personalized promotions and meal suggestions based on popular choices.

·         Expand to Key Markets: Next, consider replicating the concept in urban areas where time-starved professionals are eager for convenient, healthy meals. A focus on urban development would align with industry trends, as city dwellers are 30% more likely to frequent fast-casual and grocerant spaces.

·         Embrace Technology for Seamless Integration: With the rise of digital ordering and contactless payment, the integration of an app or partnership with delivery services like DoorDash or Uber Eats could significantly boost accessibility. Tech-enabled grocerants have seen a 20% increase in sales due to app-driven convenience, and True Food Market is primed to capitalize on this.

4. The Grocerant Advantage: A Competitive Edge

While True Food Kitchen has historically excelled as a full-service restaurant, the grocerant model brings it into competition with convenience stores and grocery chains like Whole Foods. However, it doesn’t just replicate what’s already available—it elevates it. True Food Market’s grab-and-go selection, coupled with its focus on sustainable, locally sourced ingredients, gives it a unique edge. Consumers are willing to pay up to 25% more for meals with clear sourcing and sustainability messaging, which positions True Food Market as a premium option in the grab-and-go space.

5. Brand Story Matters

Founded in 2008 by integrative medicine pioneer Dr. Andrew Weil and restaurateur Sam Fox, True Food Kitchen has always had a wellness-centric brand identity. This heritage carries over into True Food Market, which highlights the same commitment to high-quality, wholesome ingredients, but in a more accessible format. The smaller footprint and streamlined menu ensure that the brand’s core values are front and center, while the added retail channel reinforces its holistic approach to well-being.

In the words of CEO John Williams, “We created True Food Market to make eating real food easier, empowering people to enjoy wholesome meals every day, no matter how busy life gets.” This message resonates deeply in an era when health, wellness, and sustainability are at the forefront of consumers' minds.

6. Sustainability: A Key Driver

Customers today are highly attuned to the environmental impact of their food choices. True Food Market’s focus on locally sourced ingredients taps into this concern, offering a solution for eco-conscious consumers. Data from 2023 suggests that 67% of millennials and Gen Z shoppers prefer to buy from brands with sustainable practices. True Food Market’s decision to integrate local products into its retail space speaks to this growing demand for transparency and environmental responsibility.

7. A Growth Opportunity

By entering the grocerant market, True Food Market is tapping into a high-growth sector. The grocerant industry is projected to grow by 10% annually over the next five years, driven by the consumer shift toward convenience without compromise. True Food Market can further expand this model by experimenting with smaller, more modular locations in dense urban centers or near busy transit hubs, where foot traffic is high, and the need for quick, healthy meals is constant.

Think about this, True Food Market’s innovative approach merges health-conscious eating with modern convenience, addressing the evolving demands of today’s consumer. The grocerant model, with its blend of retail and fast-casual dining, ensures that True Food Market is not just a new concept, but a next-level solution for busy, health-conscious customers. This is just the beginning of a broader grocerant revolution, and True Food Market is poised to lead the charge.

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