Saturday, March 29, 2025

Chain Restaurants Evolving Less – Why? Insights from the Grocerant Guru® on the Slow Evolution of Chain Restaurants

 


For decades, the restaurant industry has thrived on consistency, repetition, and brand familiarity. Chain restaurants, in particular, have built their business models on delivering the same meal, the same way, every time. However, the food landscape is evolving at an accelerating pace, and many legacy brands are failing to keep up.

The Grocerant Guru® at Foodservice Solutions®, Steven Johnson, has long argued that protecting brand legacy at the expense of consumer relevance is a losing strategy. While independent restaurants and non-traditional food retailers rapidly innovate, large restaurant chains are often slow to react. The question is: why?

The Grocerant Niche Is Growing While Chains Stand Still

The grocerant niche – where retail meets foodservice through Ready-2-Eat and Heat-N-Eat fresh prepared food – has exploded in popularity. Consumers, led by Millennials and Gen Z, increasingly demand convenient, high-quality meal solutions that fit their on-the-go lifestyles. Yet, many chain restaurants are still fixated on dine-in service and incremental menu updates rather than adapting to where consumers are heading.


🔹 Food Fact: According to The NPD Group, over 47% of meals in the U.S. are now eaten at home, but fewer are being cooked from scratch. Consumers are actively seeking mix-and-match meal components that allow for customization, speed, and flexibility.

🔹 Case Study: IKEA’s $2 billion grocerant business – which includes fresh food sales, frozen Swedish meal kits, and in-store dining – has been a massive success, demonstrating that non-traditional food retailers are capitalizing on this trend while legacy restaurant chains hesitate.

Takeaway: Consumers don’t care who makes the food – they care about accessibility, portability, and quality. Restaurant chains must rethink their business models or risk losing more market share to grocery stores, c-stores, and even retailers like Walgreens and Dollar General.

Food Marketing is Moving Faster Than Chain Restaurants

🔹 Food Fact: 71% of consumers now expect restaurants to offer grab-and-go or heat-and-eat options. Meanwhile, retailers such as Whole Foods, Wegmans, and Trader Joe’s are thriving by offering fresh meal solutions that rival restaurant quality.

🔹 Consumer Migration: The "price-value-service" equilibrium in foodservice is shifting. Consumers increasingly prioritize value and convenience over brand loyalty. Many legacy restaurant chains are still marketing as if it were 1999, using outdated messaging that focuses on in-store dining when most consumers are looking for off-premise solutions.


🔹 Case Study: McDonald's recent struggles with its value menu and its failed voice AI drive-thru experiment illustrate the danger of chasing tech fads rather than understanding what customers truly want. Meanwhile, fast-casual brands such as Chipotle and Sweetgreen have successfully adapted by embracing digital-first ordering and meal customization.

Takeaway: Chain restaurants must think beyond their four walls. It’s no longer about “dining out” vs. “eating at home”—it’s about seamless food access, whether via curbside pickup, direct-to-consumer meal kits, or in-store meal stations at retail locations.

The 5P’s of Food Marketing: A New Playbook for Chain Restaurants

To stay relevant, restaurant chains need to embrace Foodservice Solutions® 5P’s of food marketing:

1️ Product – Offer Ready-2-Eat and Heat-N-Eat options alongside traditional menu items.
2️
Packaging – Ensure meals are portable and can be repurposed for multiple eating occasions.
3️
Placement – Be where consumers shop, whether that’s in a restaurant, grocery aisle, or convenience store.
4️
Portability – Meals must travel well, retain quality, and be microwave- or oven-ready.
5️
Price – Align pricing with consumer expectations for value, not just brand heritage.

Case Study: Starbucks' price hikes and menu complexity have driven customer frustration, while convenience stores have gained share by offering simpler, faster, and lower-priced premium coffee and food options.


Think About This: Evolve or Be Left Behind

The foodservice landscape is shifting whether chain restaurants like it or not. The most successful brands in the next decade will be those that:

✔️ Adapt to consumer demand for convenience and fresh-prepared meal solutions.
✔️ Embrace new points of distribution beyond traditional restaurant locations.
✔️ Recognize that food is no longer a destination – it’s an experience that must fit into consumers’ lives, seamlessly and effortlessly.

For many restaurant chains, the future depends on how quickly they can move past outdated brand protectionism and evolve into consumer-centric, dynamic foodservice providers.

The battle for Share of Stomach is intensifying. Will legacy chains step up, or will they continue evolving at a snail’s pace while consumers move on?


From the Grocerant Guru®:

"Success in foodservice today isn’t about being the biggest – it’s about being the most relevant. Consumers are dynamic. Brands that fail to evolve will be left behind."

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.

Stay Ahead of the Competition with Fresh Ideas

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.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter



Friday, March 28, 2025

Threep’s Legacy in Consumer Engagement Shines in McDonald’s Latest Happy Meal Launch

 


McDonald’s continues its industry-leading approach to consumer-facing, interactive, and participatory marketing with the launch of its latest Happy Meal, in collaboration with A Minecraft Movie. This new offering is a testament to the long-standing principles championed by Threep and the Grocerant Guru®, emphasizing the power of engaging, experiential marketing to build lasting consumer relationships.

Threep’s historical perspective has consistently underscored that immersive brand experiences, strategic co-branding, and digital interactivity are the keys to driving sustained customer loyalty. McDonald’s, a pioneer in this approach, has mastered these principles with their Happy Meal program, using it as a vehicle to blend nostalgia, excitement, and modern digital engagement.


A Minecraft Movie Meal: A Seamless Fusion of Physical and Digital Experience

McDonald’s latest iteration of the Happy Meal blends traditional quick-service enjoyment with digital interactivity, offering both a Minecraft movie-themed meal and digital collectible integration. Customers can choose a Big Mac or 10-piece Chicken McNuggets, complemented by medium fries, a drink, and a limited-edition collectible. The new Nether Flame Sauce—featuring a bold mix of crushed red pepper and cayenne with hints of garlic and sweetness—adds a fiery twist to the experience.

Interactive Engagement: McDonald’s Proven Consumer Strategy

McDonald’s has long been a leader in interactive consumer engagement, ensuring that every marketing initiative resonates with its audience. This latest partnership exemplifies the brand’s ability to connect with consumers through three key strategies:

1.       Happy Meal: A Generational Touchpoint Since its inception in 1979, the Happy Meal has created a tradition of surprise and delight. By embedding interactive play elements—such as the 12 exclusive Minecraft Movie figurines—McDonald’s strengthens emotional ties with families and younger consumers.


2.       Digital Integration: Bridging Physical and Virtual Worlds McDonald’s understands the importance of digital connectivity in modern consumer experiences. The Happy Meal includes scannable codes that unlock an exclusive in-game quest, further merging the McDonald’s and Minecraft universes through the McDonald’s Add-On Pack in Minecraft Marketplace.

3.       Branded Collectibles: Encouraging Repeat Engagement The six collectible items—such as the Big Mac Crystal and Grimace Egg—extend the interaction beyond the meal, enticing consumers to return and complete their sets while enhancing their in-game Minecraft experience. This gamified approach fosters deeper brand engagement and repeat visits.

Threep’s Influence on the Grocerant Model

Threep’s insights into interactive branding and participatory marketing have shaped the evolution of food retail. By implementing Threep’s core principles—leveraging co-branding, digital engagement, and limited-time exclusivity—McDonald’s maintains its status as a leader in consumer-driven marketing. The company’s ability to merge food, entertainment, and digital interactivity cements its role as a premier example of Threep’s philosophy in action.


A Timeless Consumer-Driven Strategy

McDonald’s continues to set the standard for consumer engagement by recognizing the importance of nostalgia, digital connection, and experiential branding. A Minecraft Movie Meal and Happy Meal encapsulate the evolution of participatory marketing, building long-term consumer loyalty while offering a fresh, exciting experience. As Threep’s legacy has taught, successful brands are those that create moments, foster connections, and invite consumers into a dynamic, ever-evolving brand universe.

Join McDonald’s in this latest adventure starting April 1, while supplies last, and experience the power of interactive branding firsthand.

Outsourced Business Development—Tailored for You

At Foodservice Solutions®, we identify, quantify, and qualify new retail food segment opportunities—from menu innovation to brand integration strategies.

We help you stay ahead of industry shifts with fresh insights and consumer-driven solutions.

🔗 Connect with us on social media: Facebook, LinkedIn, Twitter

Ready to Find Your Next Success Clue?

We specialize in outsourced food marketing and business development ideations—helping brands seize opportunities in food retail, technology, and menu innovation.

📩 Reach out today: Steve@FoodserviceSolutions.us
🔗 Follow us: Facebook, LinkedIn, Twitter



Thursday, March 27, 2025

Fresh Catering in a Competitive World of Sameness Schlotzsky’s Breakfast Catering: A Smart Move in a High-Growth Segment

 


Breakfast catering is a booming opportunity in the food industry, and Schlotzsky’s latest move into this space positions the brand for strong sales growth. Historically, brands like Au Bon Pain and Panera Bread have successfully tapped into the breakfast catering market, leveraging the demand for high-quality, convenient morning meals according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. However, the category remains wide open, particularly in local markets where businesses, schools, and social gatherings are seeking fresh, flavorful breakfast options beyond the ordinary.

According to foodservice industry data, breakfast is the fastest-growing daypart, with the catering segment expected to reach over $10 billion in sales by 2026. Furthermore, a 40% increase in breakfast catering orders has been observed post-pandemic, signaling a shift toward morning meal solutions that cater to workplace meetings, social events, and on-the-go dining. Schlotzsky’s entry into this space is not just timely—it’s strategically sound.



A Fresh, Competitive Menu

Schlotzsky’s new breakfast catering menu offers a well-rounded selection designed to appeal to a variety of tastes and dietary preferences:

Breakfast Catering Menu:

Trays or Breakfast Boxes

·         Breakfast Sandwich: Fresh-baked sourdough bun with Ham, Bacon, Sausage, or Veggie.

·         Breakfast Burrito: Egg, cheese, hash browns, and choice of protein wrapped in a warm tortilla.

·         Breakfast Tacos: Soft tortillas filled with eggs, cheese, and choice of protein—perfect for easy serving.

Breakfast Sides + Beverages

·         Fresh Cut Fruit: A mix of strawberries, green grapes, and blueberries in trays or cups.

·         Yogurt Parfait: Vanilla Greek yogurt with fresh berries.

·         Hash Browns: Crispy and golden, available for group servings or individuals.

·         Barista Coffee Box: Serves 10, rich and aromatic.

·         Orange Juice Gallon: A breakfast staple for sharing.

Sweet Treats
Exclusive Cinnabon offerings at participating locations:

·         Minibon Tray: Bite-sized Cinnabon Minibons.

·         Classic Roll: Iconic Cinnabon Classic Roll.

·         CinnaPacks: 2-pack or 4-pack of Cinnabon rolls.


Want a Larger


Share of Stomach


The Four Key Benefits of Breakfast Catering for Local Units

1.       Increased Sales & Ticket Size: Breakfast catering orders tend to be high-value transactions, with businesses often ordering in bulk. Average breakfast catering orders exceed $150, boosting unit revenue.

2.       Competitive Differentiation: While many competitors offer lunch and dinner catering, fewer focus on breakfast, allowing Schlotzsky’s to stand out and capture an underserved market.

3.       Customer Retention & Business Growth: Businesses, schools, and event planners seek reliable breakfast solutions. Catering builds relationships, fostering repeat business and long-term loyalty.

4.       Operational Efficiency & Off-Peak Utilization: Breakfast catering drives early-day sales and utilizes kitchen capacity during non-peak hours, optimizing labor and resources.


Catering Promotion to Jumpstart Demand

To incentivize trial and adoption, Schlotzsky’s is offering a $20 discount on catering orders of $200+ with the code BREAKFAST20 (valid through 4/30/25). This offer encourages businesses and groups to experience the new breakfast menu while driving immediate revenue.

Schlotzsky’s foray into breakfast catering aligns with market trends and consumer demand, ensuring a fresh approach in a competitive world of sameness. With a well-crafted menu, strategic pricing, and strong brand positioning, local units can capitalize on this high-growth opportunity and elevate their morning sales to new heights.



Let’s Build a Partnership for Growth

Looking for the right partner to drive sales and amplify your marketing impact? Success leaves clues—and we may have the exact insight you need to propel your business forward.

Explore innovative food marketing and business development strategies with Foodservice Solutions®.

📩 Contact us at Steve@FoodserviceSolutions.us
🔍 Learn more at GrocerantGuru.com



Wednesday, March 26, 2025

Can Walmart Succeed in the C-Store Space? Five Hurdles They Must Overcome


 

For decades, grocery retailers have struggled to break into the convenience store (C-store) space. While on the surface, grocery and C-store operations may seem similar—both selling food and essentials—the reality is vastly different. Grocery chains that have attempted to transition into C-store retail, such as Safeway, Kroger, and Albertsons, have largely failed because they underestimated the key differences in consumer behavior, operational efficiency, and Wall Street’s distinct expectations for each sector.

Now, Walmart is rumored to be making another attempt at cracking the C-store business. But can they succeed? History suggests major challenges lie ahead. Here are some insights collected by Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® that should help in our understanding:


Wall Street Metrics: Grocery vs. C-Stores

One of the biggest hurdles for any grocery chain entering the C-store space is the fundamental difference in Wall Street’s expectations and performance metrics for each sector:

·         Grocery Stores: Measured by total revenue, same-store sales growth, gross margins on high-volume items, and basket size. Grocery retailers rely on consistent household shopping trips, often with average checkout times exceeding 20 minutes.

·         C-Stores: Measured by transaction count, average ticket per transaction, fuel sales (when applicable), and prepared food sales growth. C-store profitability is heavily reliant on impulse purchases, high-margin grab-and-go items, and a seamless, sub-5-minute customer experience.

Grocery chains have historically struggled with the transition because they try to bring grocery store metrics (such as bulk purchasing and loyalty-driven promotions) into a convenience-first model, which is driven by immediate consumption, speed, and impulse-driven sales.



Five Hurdles Walmart Must Overcome

For Walmart to succeed in the C-store space, they must tackle the following critical challenges:

1. Understanding the Convenience Consumer Mindset

The average C-store customer spends under five minutes inside a store, with 50% of customers making unplanned purchases based on impulse. (NACS 2023) Walmart must shift its strategy from bulk shopping and low-price guarantees to meeting the needs of time-starved consumers who prioritize speed and accessibility.

2. Curating Immediate Consumption Meal Options

Modern consumers demand fresh, ready-to-eat meals. A 2023 study found that 41% of convenience store shoppers purchase hot, prepared foods at least once a week, with 51% rating these offerings equal to or better than quick-service restaurants. (Food Institute) C-stores are no longer just about snacks and packaged goods; the fastest-growing segment is fresh meal solutions.

For Walmart to succeed, they must create an elevated fresh-prepared food program that competes with Wawa, Sheetz, and 7-Eleven. Failure to deliver high-quality, grab-and-go fresh meals will leave Walmart vulnerable to losing market share to these established players.


3. Competing with Established C-Store Brands

Legacy convenience store chains such as Casey’s, Circle K, and Buc-ee’s have decades of customer loyalty, efficient supply chains, and deep market penetration. Walmart must differentiate itself by either innovating in fresh food, leveraging its grocery supply chain, or offering exclusive meal solutions that consumers can’t find at traditional C-stores.


4. Adapting Store Formats to Maximize Efficiency

Walmart’s traditional big-box model does not translate well to a convenience environment. C-stores operate on compact footprints, with a strong focus on high-margin grab-and-go purchases. Walmart must refine its approach by:

·         Implementing streamlined store layouts that encourage quick purchases.

·         Using AI-driven inventory management to optimize product placement and restocking.

·         Enhancing checkout efficiency with automation and cashier-free technology.

5. Implementing Technology-Driven Service Speed

Consumer expectations for faster service in C-stores have skyrocketed. According to Convenience Store News, 72% of customers expect mobile ordering or self-checkout options, while 58% prefer contactless payment solutions. Walmart must integrate:

·         Mobile app-based ordering and pickup for grab-and-go meals.

·         AI-driven self-checkout kiosks that eliminate friction at the register.

·         QR-code-based marketing messaging that delivers real-time promotions directly to consumers' phones.

Failing to invest in technology-driven service will leave Walmart behind in a space where speed is king.



Why Fresh and Fast is the Future

C-stores are no longer just about gas station snacks. A 2023 report revealed that prepared food sales in C-stores surpassed cigarettes for the first time, demonstrating a major consumer shift toward fresh, immediate consumption options. (Solink)

Moreover, 27% of C-store shoppers report purchasing fresh-prepared items more frequently than they did a year ago, highlighting the growing demand for high-quality, convenient food solutions. (Vending Connection)

If Walmart wants to succeed, they must abandon the traditional grocery store mindset and fully embrace the convenience-driven model—one that prioritizes fresh-prepared meals, seamless checkout, and impulse-driven food sales.



Final Thoughts: Can Walmart Win in C-Stores?

History has shown that grocery retailers struggle when entering the convenience space. Walmart must avoid past mistakes by recognizing the distinct consumer behaviors, operational efficiencies, and Wall Street expectations that separate C-stores from grocery stores.

If Walmart can:
Deliver high-quality fresh-prepared meals,
Optimize store formats for rapid transactions,
Invest in cutting-edge technology for checkout speed,
Develop impulse-driven marketing strategies,
And differentiate itself from legacy C-store chains…

Then, and only then, can they disrupt the C-store space. Otherwise, Walmart risks becoming yet another grocery retailer that failed to understand what makes convenience retail thrive.

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.

Stay Ahead of the Competition with Fresh Ideas

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.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter