Non-Traditional Fresh Food Retailers Are Disrupting the Industry in 2025

 

When Ronald Reagan famously declared, “Tear down this wall,” he wasn’t talking about the barriers in fresh food retail—but today, those walls are crumbling faster than ever. In 2025, the food industry has fully entered a phase of accelerated channel blurring and consumer-driven disruption. What was once the realm of traditional grocers is now a battleground for convenience-driven, digital-first, and non-traditional players.

For the first time in the history of the U.S. food retail landscape, non-traditional retailers are commanding not just attention, but also share of wallet—and stomach. Drugstores, e-commerce giants, club stores, and dollar stores are now core components of how consumers source their daily meals and snacks. According to the latest Supermarket News Top 75 Grocery Retailers ranking, Amazon, Dollar General, CVS, and even regional convenience store chains like Sheetz and Wawa are aggressively expanding their fresh food and meal solution offerings.

The Rise of the Grocerant: The Meal is the New SKU

Consumers today prioritize convenience, personalization, and speed. According to Foodservice Solutions® Grocerant Guru®, the Ready-2-Eat and Heat-N-Eat segment—known as the Grocerant Niche—is driving transformational change. This sector is not a trend; it's a full-fledged shift. Fresh prepared meals, bundled meal components, and grab-and-go options are being leveraged by every type of retailer—from Costco and Amazon to 7-Eleven and Walgreens.

While legacy grocers still dominate top-line revenue, they're losing momentum. Consumers are increasingly migrating from grocery stores to c-stores, e-commerce platforms, and delivery-based services like HelloFresh, Factor, and Amazon Fresh. According to the USDA's most recent data, the share of food expenditures spent on "Food Away From Home" surpassed 55% in 2024, a record high, and a far cry from the days when supermarkets monopolized meal decisions.

Grocery Shoppers Are Migrating to Restaurants for Takeout Meals & Meal Components

Another accelerating trend in 2025 is the migration of traditional grocery shoppers to restaurants—not for dine-in experiences, but for takeout meals and mix-and-match meal components. Today, over 68% of restaurant orders are consumed off-premises, according to Technomic, and a growing share of those orders are replacing grocery trips entirely.

Consumers seeking variety, speed, and restaurant-quality meals are leveraging takeout and curbside pickup from fast-casual and quick-service chains in place of cooking at home. Meal components such as rotisserie chickens, sides like mac-and-cheese, Caesar salads, or global sauces are bundled together by restaurants and marketed similarly to how grocers used to promote meal kits.

In fact:

·       36% of Gen Z and Millennials now say they buy dinner from a restaurant 3+ times per week to avoid grocery shopping altogether (NPD Group, 2025).

·       Restaurants like Panera, Sweetgreen, and Cava have begun packaging family meals and modular meal kits as grab-and-go options, mimicking grocerant offerings.

·       Chick-fil-A and Panda Express now promote bundled "family meals" that include entrees and shareable sides—designed specifically to intercept grocery store dinner traffic.

This movement isn't just about convenience—it's also about confidence. Many consumers report they lack the time, skills, or energy to cook from scratch, especially when global flavors or dietary needs are involved. As restaurants lean into this grocerant-style positioning, the line between retail and restaurant continues to blur. The net result: grocery stores are losing both basket size and shopper frequency to restaurant brands that embrace meal bundling, digital ordering, and portioned meal components.

 

Market Shakeup: Retail is Fragmenting

Today’s consumer is loyal to no one. Brand and banner loyalty are fading as consumers fluidly migrate between retailers and platforms based on need, occasion, and experience. A consumer might buy produce at Aldi, get a heat-and-eat meal at Walgreens, and subscribe to a plant-based meal kit—all in one week. This fragmentation is both a challenge and an opportunity for brands who can meet consumers wherever they are—on mobile, in-store, or at the curbside.

The traditional “Big Three” grocers remain on top in gross revenue, but their dominance is being chipped away at the edges:

·       No. 1 – Walmart: Still leading with over $270 billion in grocery sales, thanks to omnichannel fulfillment, expanded private label, and aggressive pricing.

·       No. 2 – Kroger: Holding strong with $125 billion, buoyed by their investments in robotics, digital fulfillment (via Ocado), and smart pricing.

·       No. 3 – Costco: With $105 billion, Costco’s treasure-hunt model and expanding fresh food assortment continues to drive traffic and loyalty.

But the real story lies in the disruptors:

·       Amazon: Now ranked in the top 10, with over $40 billion in food-related revenue, combining Whole Foods, Amazon Fresh, and Prime deliveries.

·       Dollar General: Emerging as a significant player, Dollar General now operates over 5,000 DG Market stores with expanded perishables and fresh food lines.

·       CVS and Walgreens: Both continue to evolve into neighborhood wellness and meal hubs, capturing the convenience-first consumer with upgraded food options.

 

The New Competitive Set: Everyone Sells Food Now

Food is no longer sold just in grocery aisles. It’s offered through TikTok shops, livestream e-commerce, delivery apps, and micro-fulfillment centers. AI and predictive analytics allow platforms to recommend meal solutions in real time. Brands like Trader Joe’s, Erewhon, and Foxtrot Market are leaning into experience, curation, and community to attract foodies, while value chains like Lidl and Aldi emphasize price and quality.

Meanwhile, meal kits and direct-to-consumer food startups are pivoting toward hybrid retail, creating co-branded kiosks, in-store pickups, and even licensing their menus to c-stores. The Grocerant Niche is no longer a side gig—it’s a core growth engine across the board.

 

Who’s Next to Fall? Who’s Poised to Rise?

Legacy giants like A&P, once untouchable, have long since faded into history. Today, brands like Albertsons and Save A Lot face existential questions: Can they adapt fast enough? Will they become acquisition targets or transform into innovation leaders?

On the rise? Amazon’s vertical integration, Instacart’s tech-first grocery marketplace, and fast-growing regional players like H-E-B and Wegmans are setting the pace. Meal-first thinking is now essential. Brands like Sweetgreen, FreshRealm, and Cava are redefining how fresh food is marketed, sold, and consumed—digitally native, supply-chain savvy, and experiential by design.

Foodservice Solutions® has been the global leader in Grocerant Niche Strategy since 1991. As consumer behavior continues to shift, the winners will be those who understand that fresh meals, not just groceries, are the future of retail food.

Connect with us:

·       LinkedIn: Grocerant

·       Twitter/X: @grocerant

·       Email: Steve@FoodserviceSolutions.us

Is Fresh Fruit the Key Ingredient for Fast Food Growth?

 

If your restaurant isn’t catering to Gen Z and Millennials with fresh, fast, and better-for-you options—2025 might leave you behind. The fusion of fresh fruit, vegetable-forward meals, and customizable grab-and-go formats is fueling a tectonic shift in consumer demand—and fast food restaurants are ripe for transformation.

According to Foodservice Solutions® Grocerant Guru®, the grocerant movement—where grocery, restaurant, and convenience food formats blur—is now a $83 billion sector in the U.S., growing at 9.1% annually. The driver? Fresh, portable, and socially relevant foods that align with evolving consumer lifestyles.

5 Insights on How Fresh Food Can Refuel Fast Food Restaurants in 2025

1.       Snackification Reigns: In 2025, 64% of Gen Z and Millennials report eating 4–5 mini meals per day, rather than traditional 3-meal patterns. Fresh fruit and veggie snacks—like apple slices, avocado toast cups, and fruit skewer packs—fit perfectly into this new eating rhythm.

2.       Customization Is Currency: 72% of Gen Z diners now say they expect menu personalization. Fast food chains integrating build-your-own fruit bowls, veggie wraps, and add-on fresh sides are seeing a 13% increase in ticket size per transaction.

3.       Health is the New Indulgence: “Better-for-you” now equates to satisfaction. Brands that position fresh offerings as energizing, empowering, and part of wellness (not sacrifice) are finding more engagement on social platforms—up 41% in engagement when fresh ingredients are spotlighted.

4.       Technology Meets Freshness: Smart menus powered by AI are allowing QSRs to rotate in-season fresh items dynamically. Chick-fil-A and Sweetgreen are piloting programs where local produce determines part of the rotating daily menu.

5.       Convenience + Fresh = Loyalty: Loyalty apps that reward health-conscious choices are booming. One QSR chain saw a 27% increase in app usage by giving bonus points for ordering fresh items over fried ones.

5 Reasons Why It Will Work (According to the Grocerant Guru®)

1.       Cultural Fit with Modern Diners
Gen Z and Millennials don’t just want fast food—they want food that fits into their values. Fresh options align with transparency, sustainability, and wellness trends.

2.       Profitability in Perishables
Contrary to old myths, fresh doesn’t always mean lower margins. When bundled strategically (e.g., fruit cup + sandwich combo), fresh items raise average spend and perceived value.

3.       Daypart Expansion
Fresh fruit and vegetable-forward offerings open new revenue windows—morning, mid-afternoon, and late-night snacking, all underserved in traditional QSRs.

4.       Social Shareability
Fresh food is inherently more photogenic. According to the Grocerant Guru®, “If it’s not Instagrammable, it’s not scalable.” Fresh bowls, wraps, and smoothies outperform burgers on social media impressions by 3x.

5.       Cross-Channel Leverage
Grocerants are winning with mix-and-match fresh meal components. Fast food can do the same—offering take-home snack packs, meal kits, and in-app subscription boxes that stretch their brand beyond the drive-thru.

Evolved Value Equation: 2025 Formula for QSR Success

As Foodservice Solutions® Grocerant Guru™ notes, the outdated formula of value—Price + Quality + Service + Portability = Value—is now obsolete.

2025’s winning formula is:

Price + Quality + Service + Social Relevance + Fresh Portability = Consumer Value

Fast food operators that embrace this equation by integrating fresh fruit, customizable veggie options, and snackable meal kits into their model will not just survive—they’ll thrive.

Do you want to Grow

Share of Stomach

Think About This

The “Fresh Forward” movement is not a passing fad—it’s a permanent pivot. If fast food wants to stay relevant, it must go beyond fries and fountain drinks. With fresh food at the core, QSRs can attract younger audiences, unlock new revenue streams, and differentiate in an increasingly crowded market.

As the Grocerant Guru® says:

“The future of fast food is fresh, frictionless, and filled with flavor. You don’t have to choose between speed and health—you just have to design for both.”

Want to Lead Instead of Follow?

Visit www.FoodserviceSolutions.us to learn more about the 5P’s of Food Marketing and how your brand can drive growth through participation, personalization, and product innovation. Connect with the Grocerant Guru® on Facebook, LinkedIn, or Twitter for daily insights.

Fresh Prepared Frozen Complements Mix and Match Meal Bundling The Grocerant Guru® Explores Why Frozen Food Is Reshaping the Family Table in 2025

 

If you haven’t taken a stroll down the frozen food aisle lately, you’re missing out on one of the biggest foodservice transformations of 2025. Today’s frozen foods aren’t just about convenience — they’re about customization, discovery, and family meal bundling like never before.

According to a new study from the National Frozen & Refrigerated Foods Association (NFRA), the way consumers discover and purchase frozen foods is shifting fast. While classic in-store signage still matters, platforms like TikTok, YouTube, and Instagram are increasingly influencing what ends up in the cart — especially for younger shoppers.

But this isn’t just about marketing. According to the Grocerant Guru®, it’s about how consumers are redefining dinner at home.

“Consumers are building meals the same way they stream TV — mixing and matching for every mood, taste, and family member,” says the Grocerant Guru®. “Frozen foods have become a flexible solution, not a fallback.”

 

The Digital Influence on Frozen Food Discovery

Let’s talk numbers:

47% of consumers still rely on in-store displays.

40% ask family and friends for ideas.

But social media is catching up fast, especially among younger consumers:

YouTube: 29%

Facebook: 25%

TikTok: 21%

Instagram: 18%

In fact, 50% of Gen Z now turn to TikTok for food inspiration — compared to just 5% of Boomers. YouTube remains a cross-generational go-to.

Social media isn’t just sparking interest — it’s driving purchases.

36% of all consumers say social platforms influence their frozen food buying decisions.

For Gen Z and Millennials, it’s closer to 50%.

The most effective content?

Brand ads (41%)

Influencer reviews and grocery hauls (25%)

Food challenges (24%)

 

Frozen Foods That Fit Real Life — and Real Families

It’s not just that frozen is popular — it’s that it works. NFRA’s research shows:

73% of consumers say frozen foods help them make affordable, tasty meals.

69% believe frozen meals can support healthy eating goals.

52% are more likely to try new products if there’s an in-store discount.

But here’s where it gets exciting: frozen foods aren’t just for solo dinners anymore. They’re being used to assemble customized family meals.

“Think one spicy entrée for the teen, one plant-based for mom, one globally inspired side for dad, and snacks for the kids — all from the frozen aisle,” says the Grocerant Guru®. “It’s the perfect meal bundling toolkit.”

 

Global Flavors, Smaller Portions, Big Impact

According to Conagra’s Future of Frozen Food 2025 report:

28% of grocery store trips now include at least one frozen food item.

24% of younger consumers say they’re more likely to buy globally inspired frozen meals.

48% of Gen Z say they prefer spicy frozen foods — a huge driver of new product success.

Mini-meals and bites are booming, with $2.4 billion in sales and 31% growth YoY.
And here’s the kicker: 84% of those are eaten as full meals, not just snacks.

The Grocerant Guru® points out:

“This is fresh-prepared frozen with a purpose. It’s giving time-starved families the ability to serve up variety, save time, reduce waste, and still please everyone at the table.”

 

How Retailers and Brands Can Stay Ahead

The NFRA has some timely advice:

Elevate in-store promotions. They’re still the No. 1 purchase driver.

Show up where your customer scrolls. Create platform-specific content on TikTok, Instagram, and YouTube.

Partner with influencers. Authenticity sells — especially content around flavor, value, and speed.

Create a seamless digital-to-store journey. Let digital inspiration lead to in-store discovery.

 

The Frozen Food Aisle: Now a Meal-Bundling Destination

The takeaway? Frozen food is evolving — fast. What was once seen as a backup plan is now a versatile, flavorful, and family-centered meal solution. Consumers want customizable, mix-and-match options that support their personal tastes and their family’s preferences — all without spending hours in the kitchen.

“Frozen is the new fresh — with benefits built in,” the Grocerant Guru® concludes.
“It’s personalized, portionable, and perfect for today’s busy, blended households.”

So next time you're in the frozen aisle, don’t just pick one box. Build a bundle — and build a better dinner.

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.

💡 Visit GrocerantGuru.com or FoodserviceSolutions.US
📞 Call 1-253-759-7869

NOW, MORE THAN EVER: The National Restaurant Show is a Launchpad for Your Future in Foodservice

 

In an age of inflation-fatigued consumers, rising operational costs, and rapidly evolving consumer preferences, there's never been a more critical time for convenience store operators, supermarket deli managers, and restaurant innovators to future-proof their foodservice strategy according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solution®. The 2025 National Restaurant Association Show—May 17–20 at McCormick Place in Chicago—isn’t just a trade event. It’s the incubator of your next big growth phase.

Whether you’re a corner C-store testing new meal solutions, a deli eyeing premium grab-and-go, or a regional grocery banner ramping up fresh prepared foods, this year’s show is your chance to turn possibilities into profits. As the Grocerant Guru®, I’m here to tell you: now is the time to empower your vision of foodservice, because the insights, innovations, and connections available at this show are exactly what you need to boost top-line sales and bottom-line performance.

Do You Want to Grow

Sell More and Make Larger Profits

Then Think About Garnering A

Larger Share of Stomach

 

WHY THIS SHOW MATTERS FOR FOOD RETAILERS

The National Restaurant Association Show is the largest of its kind in the Western Hemisphere, but size isn’t its only asset. What matters most is its relevance to your business today. Supermarkets and food retailers are uniquely positioned to meet consumer demand for restaurant-quality experiences at home—at a better price point. That means prepared foods, fresh meals, and smart technology matter more than ever.

This show delivers all that and more:

·       Over 2,200 exhibitors across 900+ product categories

·       Firsthand access to tech-driven solutions (think ventless ovens, AI-enhanced tools, and self-serve kiosks)

·       Flavor and format innovations that align with changing tastes and convenience demands

·       Packaging and sustainability solutions to help balance cost, operations, and ESG priorities

As Stacy Hodge, the show’s senior director of programming, put it, “It’s not just about hearing what’s new—it’s about tasting, testing, and making direct supplier connections.” For food retailers, it’s about immersion in what’s next—and how to bring that future back to your own aisles.

 

HOW TO TURN INSIGHTS INTO ACTIONABLE WINS

Food retailers should approach the show with one goal: leave with ideas you can implement next quarter—not next year. Here’s how to get the most out of your experience:

1.       Taste What Sells: Live culinary demos, beverage innovation zones, and flavor trend showcases will let you evaluate what resonates with consumers before making an investment.

2.       See the Tech in Action: From AI-enhanced prep systems to compact, efficient cooking tools, the TECH Pavilion offers hands-on comparisons to guide your next kitchen upgrade.

3.       Source Smarter: Explore emerging brands in the reimagined Pavilion for disruptive product ideas, and tap into the Global Food Expo for authentic, international flavor inspiration.

4.       Learn from Leaders: Must-attend sessions like “Lessons from the Winners” and Technomic-led trend briefings offer data-backed blueprints from the most successful players in the industry.

5.       Connect with Peers: Dedicated networking opportunities and informal retailer meetups give you the chance to share best practices with other progressive operators in your channel.

 

NOW IS THE TIME TO COMMIT TO GROWTH

With Carla Hall headlining as the keynote on May 18, and special guests like Courtney Storer (culinary producer for FX’s The Bear) offering behind-the-scenes insights on consumer expectations and culinary creativity, this year’s show goes beyond operations. It’s about vision, culture, and passion.

More than 100 sessions across six education tracks—including Culinary Insights, Operations Solutions, and Technology Strategies—equip you to lead your team into the next era of food retail.

And don’t overlook the FABI & KI Innovation Showcases. These aren’t just awards—they’re your curated preview of solutions that can simplify back-of-house execution while elevating your menu.

 

FROM CONCEPT TO CART: WHY RETAILERS NEED TO ACT NOW

Foodservice within retail is no longer an add-on—it’s a growth engine. And with consumer demand for convenience, value, and fresh-driven quality higher than ever, the right insights can translate to increased basket size, customer loyalty, and operational resilience.

Retailers who attend the National Restaurant Show will walk away with more than a notebook of ideas. They’ll gain the tools to execute, the partners to support them, and the inspiration to lead.

So whether you run a single store or manage 100, don’t just show up—show up with purpose. The future of foodservice is waiting on the show floor. It’s time to meet it.

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
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