Is Walmart’s Pivot Toward Performance-Based Culture Enough?

 

Walmart’s new raise system reflects a strategic pivot toward performance-based culture, but without deeper integration of foodservice innovation and historical retail lessons, it risks repeating past missteps.

As the Grocerant Guru®, I’ve spent decades tracking the evolution of food retail — from the rise of the deli-prepared meal to the fusion of grocery and restaurant formats. Walmart’s latest move to introduce performance-based raises for over 500,000 hourly associates is more than a compensation tweak; it’s a cultural recalibration. But is it a hit, a miss, or a missed opportunity? Let’s take an outside-in look.

Performance Pay: A Familiar Fork in the Road

Walmart’s 2025 raise reform ties pay increases — up to 5% annually — to tenure, reliability, teamwork, and store performance. It’s a shift from tenure-only raises to a more dynamic, data-driven model. The inclusion of real-time dashboards is promising, offering transparency and accountability. But the reliance on store-level metrics introduces volatility: one department’s underperformance could jeopardize raises for all.

This echoes the retail incentive experiments of the 1980s, when chains like A&P and Safeway trialed team-based bonuses. Results were mixed — collaboration improved, but morale dipped when external factors (like supply chain hiccups) skewed performance scores.

Historical Lessons from Walmart’s Own Playbook

Let’s revisit three pivotal moments in Walmart’s labor strategy:

·       2015 Pay Bump: Raising starting wages to $9–$10/hour lifted morale briefly, but wage compression soon dulled motivation. Lesson: Pay increases must be paired with visible career progression.

·       2016 Pathways Program: Designed to upskill associates, it faltered under staffing pressures. Lesson: Training must be structurally supported, not squeezed into operational gaps.

·       2020–2021 Pandemic Bonuses: Short-term cash boosts created gratitude, but lacked lasting impact. Lesson: Loyalty stems from sustained investment, not episodic rewards.

These moments mirror broader food retail trends. In the early 2000s, Kroger and Publix saw retention gains by linking pay to culinary training and community engagement — not just metrics.

Grocerant Growth: A Missed Integration?

Walmart’s raise reform arrives as grocerant-style foodservice — think fresh-prepared meals, sushi kiosks, and rotisserie stations — becomes a staple in big-box retail. Yet, the current plan misses a chance to leverage foodservice as a career accelerator. Culinary roles offer higher wages, transferable skills, and customer-facing prestige. Why not fast-track associates into these positions?

Four Grocerant Guru® Ideas for Walmart’s Next Evolution

1.       Shift Share Bonuses: Reward entire shifts when performance targets are met. This builds camaraderie and reduces siloed competition.

2.       Fast Track to Foodservice: Launch a culinary training path for associates, linking performance to promotion into grocerant roles.

3.       Flex Hours for Family: Redefine attendance metrics to accommodate caregiving — rewarding reliability over rigidity.

4.       Community Engagement Points: Recognize associates who represent Walmart in local initiatives. This deepens emotional connection to the brand.

Think About This: Cultivating Performance, Not Just Measuring It

Walmart’s raise reform is a bold move toward empowering associates. But real empowerment requires trust — in the fairness of metrics, the authenticity of recognition, and the reality of opportunity. As food retail continues to blur the lines between grocery and dining, Walmart must evolve its labor strategy to reflect that fusion.

If it does, this program could be a hit. If not, it may be remembered as another well-intentioned memo from Bentonville that missed the moment.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 one of the following links: Facebook,  LinkedIn, or Twitter

Why Restaurants Must Migrate to a Grocerant Template—Before It’s Too Late

 

Consumers Aren’t Dining Out Less—They’re Dining Differently

Relentlessly high menu prices and macroeconomic pressures have created a turning point for restaurants. Inflation isn’t just raising food costs—it’s redefining how, where, and why Americans eat.

A new YouGov report (October 2025) paints a stark picture:

·       37% of Americans are eating out less frequently than a year ago.

·       Among lower-income dinners, that number spikes to 44%.

·       Only 8% of diners report eating out more than last year.

This pullback is driven by price perception. A full 82% of consumers say restaurant prices have increased over the past year, while fewer than 28% believe the prices are fair for the quality they receive. The Consumer Price Index backs them up—menu prices rose 3.7% year-over-year from September 2024 to September 2025.

In response, consumers are reshaping their behavior:

·       60% now choose cheaper restaurants.

·       53% actively use coupons or discounts.

·       51% order fewer items.

·       42% skip drinks.

The result? Shrinking traffic, shrinking frequency, and shrinking relevance.

“Americans still enjoy dining out, but value has become the deciding factor shaping where and how they choose to eat,” said Nora Hao, Senior Sales Director at YouGov America. “As costs continue to rise, consumers are becoming more selective—and restaurants that pair affordability with loyalty rewards and smart digital engagement will come out ahead in 2025.”

 

Legacy Chains Are Losing Ground

Despite their brand equity, many casual dining and fast-casual chains are suffering double-digit guest count declines. Circana data shows total restaurant visits down 1.7% year-over-year, with full-service restaurants hit hardest at –2.4%.

·       Applebee’s: Traffic down 3.6%, even as check averages rise.

·       Chili’s: Guest counts off 2.9%, with “value fatigue” undermining its loyalty gains.

·       Red Lobster: Filed for bankruptcy in 2024 amid declining customer counts and operational strain.

The takeaway is clear: value has migrated elsewhere. Consumers are replacing restaurant visits with hybridized, home-based, and cross-channel meal solutions—what the Grocerant Guru® calls “the Mix-and-Match Meal Movement.”

 

The Mix-and-Match Meal Movement

Today’s consumers build meals the way they build playlists—one component at a time, from multiple sources. The new “family dinner” might look like this:

·       Costco + Chick-fil-A + Trader Joe’s:
Rotisserie chicken, waffle fries, and a salad kit—fresh, fast, and under $20.

·       Whole Foods + Domino’s:
Pizza paired with hot bar veggies and soup—a blend of indulgence and balance.

·       Target Café + Panera Grocery Line:
Comfort-food favorites reimagined as modular convenience.

·       7-Eleven + Local Taqueria:
Local tacos meet national convenience—fresh meets fast.

This hybrid behavior represents a seismic channel shift. Consumers aren’t abandoning restaurants; they’re abandoning rigid formats. They want restaurant flavor, grocery value, and convenience-store accessibility—all at once.

 

Deals Still Matter—But Flexibility Matters More

According to YouGov, deals remain a powerful motivator:

·       58% of diners say “Buy One, Get One Free” (BOGO) offers would bring them back.

·       56% respond to straightforward discounts.

·       33% value loyalty points or rewards.

·       77% of all U.S. diners say a compelling loyalty offer could increase their frequency—though nearly half note “it depends on the offer.”

This underscores a crucial truth: consumers aren’t loyal to logos anymore—they’re loyal to value and flexibility.

The Grocerant Template enables operators to deliver both. It allows for modular meal pricing, component-based bundling, and multi-channel access (dine-in, delivery, grocery placement, or convenience partnerships).

 

Three Insights from the Grocerant Guru®

1.       “Consumers have redefined eating out as eating anywhere.”
Seventy-three percent of all prepared meal decisions are made within two hours of consumption. Winning brands meet consumers in that window—wherever they are, not just at the restaurant.

2.       “Value now means flexibility.”
Discounting alone won’t drive loyalty. Consumers want the power to curate their own meal experience through smaller, mix-and-match choices that reflect their tastes, budgets, and time constraints.

3.       “Channel blur is the new normal.”
The next generation of successful brands won’t be “restaurants” or “retailers.” They’ll be ecosystems that integrate both—offering freshness, flavor, and frictionless convenience across every channel.

 

The Future: Grocerant as the New Operating System

The restaurant of tomorrow won’t be defined by dining rooms or drive-thrus. It will be defined by its flexibility—its ability to serve, stock, and sell meal components that fit into consumers’ daily lives.

Those who adopt the Grocerant Template—with modular menus, retail integration, and loyalty programs rooted in value, not volume—will win the future of food.

Those who don’t will keep raising prices, losing traffic, and watching relevance fade.

The Grocerant isn’t a niche. It’s the next-generation business model for a generation that wants flavor, flexibility, and affordability—on their own terms.

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

Time for SNAP to Evolve: Let Low-Income Americans Eat Like It’s 2025, Not 1975

 

America’s largest food-assistance program, SNAP, feeds more than 41 million people each month,  a remarkable feat by any measure. It’s a lifeline for millions and a $100 billion federal investment in food security. Yet for all its success, SNAP remains stuck in a decades-old mindset: it assumes everyone has time, space, and tools to cook from scratch according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

That assumption was shaky 30 years ago. Today, it’s absurd.

 

The Cost of Cooking for One

Food policy experts love to claim that cooking from scratch is always cheaper. In theory, yes — if you’ve got a family of four, a working stove, and time. But for millions of SNAP recipients — especially single adults, seniors, or working parents juggling multiple jobs — cooking from scratch can be more expensive per meal, not less.

Think about it. A pound of chicken, a few fresh vegetables, rice, and seasonings might cost $12 to $15 in total. But for one person, that means multiple leftovers, wasted produce, and higher energy and time costs. The “cheap” home-cooked meal can easily exceed $7–8 per serving once waste and utilities are counted.

Meanwhile, a quick-service restaurant like McDonald’s or Subway can serve a balanced $6 combo meal that’s hot, portioned, and ready to eat — no shopping, no dishes, no spoilage.

The irony? Under current SNAP rules, that $6 meal is illegal to buy with benefits — but a cart full of frozen pizza, soda, and chips is fine.

 

Fast Food, Smart Policy

It’s time to evolve SNAP for the real world — and that means letting beneficiaries buy selected fast-food specials that meet health and price standards.

This isn’t about subsidizing burgers and fries. It’s about dignity, access, and efficiency. Let’s face it — the food industry has optimized affordability and convenience in ways the government can’t. If a low-income worker can grab a $5 healthy special on the way to a night shift instead of skipping dinner, that’s not wasteful — that’s practical.

The USDA already runs the Restaurant Meals Program (RMP) in a few states, allowing elderly, disabled, and homeless participants to buy hot meals at approved vendors. It works. Expanding that concept nationwide, with stricter nutritional standards and transparent pricing, would modernize SNAP without increasing fraud or cost.

 

Why This Would Save Money — Not Waste It

SNAP benefits currently average about $187 per person per month, or roughly $6 a day. That’s not much. But many recipients still end up wasting food or supplementing benefits with cash to cover real living costs.

Allowing select low-cost, ready-to-eat options could:

·       Reduce food waste (household waste is up to 20% of SNAP grocery purchases, per USDA data).

·       Cut utility costs — cooking and refrigeration aren’t free.

·       Increase meal consistency — fewer skipped meals means better long-term health outcomes.

·       Support local jobs — small chains and regional quick-service outlets could participate under transparent guidelines.

If done right, it could save taxpayers money over time by lowering food waste and related healthcare costs tied to food insecurity and malnutrition.

 

Four Other Out-of-the-Box SNAP Reforms

Let’s stop pretending SNAP can’t evolve. Here are four more ideas that would save consumers time, money — and federal dollars.

1. “Meal-Kit SNAP” Partnerships

Partner with meal-kit services like Everytable, Blue Apron, or local commissaries to deliver pre-prepped, single-portion kits to SNAP users in food deserts. With negotiated government rates, these kits could deliver healthy meals faster, fresher, and cheaper than scattered grocery runs.

2. Tiered Benefits by Household Type

A family of four with a full kitchen and a single parent living in a studio apartment shouldn’t have the same restrictions. Adjust benefits so individuals or seniors can use a portion for prepared meals, while larger families keep the raw-ingredient focus.

It’s common sense — equity doesn’t mean identical treatment.

3. Time-Value Credits for Working Households

Reward SNAP recipients who complete budgeting, cooking, or nutrition courses with bonus “Time Credits” they can spend on ready-to-eat items. The government gets better outcomes; recipients get flexible options that reflect their reality.

4. “SNAP Smart Packs” in Grocery Stores

Retailers could offer curated meal packs — think “3 days of dinners for one” — that meet nutritional and cost thresholds. Less decision fatigue, less waste, and lower overall spend per meal. It’s private-sector innovation solving a public problem.

 

Food Industry, Meet Policy Reform

The food industry already understands what SNAP bureaucrats don’t: time is currency. Americans — rich or poor — are buying meals, not ingredients. Grocery stores are transforming into hybrid “grocerants,” while convenience stores like Buc-ee’s and Casey’s are becoming fresh-meal destinations.

If SNAP doesn’t adapt, it risks becoming irrelevant to the very people it’s supposed to help.

And if policymakers are worried about nutrition, let’s be clear: fast-casual and quick-serve chains today can produce balanced meals under 600 calories that meet USDA guidelines. Just look at Panera’s “Pick 2,” Subway’s 6-inch Fresh Fit sandwiches, or Chick-fil-A’s grilled-chicken options. The technology, supply chain, and menu control exist. What’s missing is the political will.

 

The New Social Contract

We need to stop treating poverty as a moral failing expressed through food choice. If someone on SNAP buys a hot burrito instead of a sack of beans, that’s not evidence of irresponsibility — it’s a reflection of modern life.

The goal of SNAP isn’t to force cooking — it’s to prevent hunger.

By permitting limited, regulated fast-food and meal-kit options, SNAP could modernize its reach, support local economies, and give recipients back something too often denied: time. Time to work, care for family, or simply live.

 

Think About This

SNAP works — but it’s outdated. Allowing low-income Americans to buy approved fast-food specials or ready-made meal kits isn’t controversial, it’s logical modernization. The food industry has evolved. Consumers have evolved. It’s time for SNAP to evolve, too.

Because in 2025, no one should have to cook every meal from scratch to prove they deserve to eat.

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