Kroger + Giant Eagle: Why? If Neither Company Can Win More Customers Organically, What's the Point?

 

When Kroger announced its $1.65 billion acquisition of Giant Eagle, the grocery industry immediately began talking about buying power, scale, retail media, private label, and operational synergies.

As the Grocerant Guru®, my first question is much simpler:

Why?

Not why buy Giant Eagle.

Why would consumers care?

Because consumers—not investors—ultimately determine whether acquisitions succeed.

For decades, the grocery industry has relied on the same playbook. Acquire another chain. Add another banner. Increase purchasing leverage. Cut costs. Promise efficiencies. Hope market share follows.

Yet history continues to show that bigger retailers do not automatically become more relevant retailers.

Kroger already operates one of the largest collections of grocery banners in America. Adding Giant Eagle simply gives Kroger one more regional nameplate.

Consumers do not wake up saying, "I wish this store belonged to a larger corporation."

They wake up asking:

What's for dinner?

Where can I get it quickly?

Is it affordable?

Is it fresh?

Is it easy?

 

Can I feed everyone in my family without cooking from scratch?

Those are entirely different questions.

While traditional supermarket operators continue consolidating, customer migration tells a much different story.

Retailers such as Aldi, Lidl, WinCo Foods, and Costco continue attracting shoppers because their value proposition is immediately obvious.

Each has developed a highly differentiated position based on everyday low prices, limited assortment with high inventory turns, operational simplicity, strong private brands, fast shopping trips, and clear customer value.

Warehouse clubs continue benefiting from larger basket sizes, treasure-hunt merchandising, and strong member loyalty. Discount grocers continue attracting shoppers looking for relief from persistent food inflation, while employee-owned retailers such as WinCo maintain pricing advantages through low operating costs.

Those retailers are earning customer migration not because they are larger, but because they consistently solve consumer problems better.

The grocery industry often talks about competing against each other.

That is yesterday's battle.

Today's competitors include warehouse clubs, dollar stores, convenience stores, quick-service restaurants, fast-casual restaurants, meal delivery services, meal kits, and Ready-2-Eat and Heat-N-Eat meal solutions.

Consumers no longer think in retail channels.

They simply ask, "What's the easiest way to feed myself or my family tonight?"

The retailers answering that question best are winning.

Supporters of the acquisition point toward greater buying power, improved retail media opportunities, stronger personalization, and operational efficiencies.

Those improvements may help margins.

 

They do not necessarily improve customer traffic.

Neither Kroger nor Giant Eagle has demonstrated consistent organic traffic growth in recent years. Both have faced increasing competitive pressure from value retailers, warehouse clubs, and retailers that better align with changing shopping behaviors.

Simply combining two slower-growth organizations does not automatically create a faster-growing one.

It often creates a larger version of the same problem.

Today's shoppers are making decisions differently than they were just a few years ago.

Industry research throughout 2025 and 2026 continues pointing toward several consistent behaviors.

Consumers are making more frequent shopping trips while purchasing fewer items per visit.

Value remains the primary purchase driver, but convenience increasingly determines where meals are purchased.

 

Ready-2-Eat and Heat-N-Eat fresh prepared foods continue outperforming many traditional center-store categories as consumers seek faster meal solutions.

Private label continues gaining share as shoppers become increasingly comfortable substituting retailer brands for national brands.

Digital engagement and personalized promotions influence shopping behavior, but only when paired with meaningful value and relevant meal solutions.

The winners are not simply selling groceries.

They are helping consumers solve dinner.

That is the question investors should be asking.

Not, "How many stores are being acquired?"

 

Instead, ask:

How many new customers will this acquisition create?

How many shoppers will switch from Walmart?

How many Costco members will change their buying habits?

How many Aldi shoppers will return?

How many younger families will choose Kroger over convenience stores and restaurant meal solutions?

 

Those answers remain far less certain than the acquisition announcement itself.

Consumers increasingly want Ready-2-Eat meals, Heat-N-Eat meal solutions, mix-and-match meal components, restaurant-quality food at grocery prices, fresh foods with minimal preparation, personalized meal bundles, and convenient grab-and-go options.

 

That is where future grocery growth will come from.

Not another logo.

Not another banner.

Not another acquisition.

The companies that best integrate fresh prepared foods, meal solutions, portability, personalization, digital engagement, and compelling value will capture tomorrow's customer.

Simply owning more supermarkets will not.

 

Grocerant Guru® Insights

1. Bigger companies do not automatically create bigger customer demand. Organic growth begins with consumer relevance, not acquisition announcements.

2. Scale without differentiation rarely creates customer migration. Consumers switch retailers because of superior value, convenience, meal solutions, or experience—not because ownership changes.

3. The future grocery winner will compete for meals, not merely grocery baskets. Ready-2-Eat, Heat-N-Eat, and meal-component merchandising remain among the industry's greatest growth opportunities.

4. Kroger's biggest challenge is not integrating Giant Eagle. It is convincing consumers that shopping at Kroger offers a meaningfully better experience than shopping at Aldi, Lidl, WinCo Foods, Costco, or simply picking up dinner from a restaurant.

Steven Johnson is the Grocerant Guru® at Tacoma, Washington-based Foodservice Solutions®. Since 1991, he has helped retailers and foodservice companies identify customer migration opportunities by focusing on Ready-2-Eat and Heat-N-Eat fresh prepared foods, meal solutions, and changing consumer behavior. His work centers on where grocery and foodservice intersect to drive both top-line sales and bottom-line profits.

Warning to Restaurateurs: Your Customer Already Left—Now It's Time to Catch Up Before It's Too Late

 

Restaurant employment numbers don't tell the whole story—but they do tell the truth.

When restaurants and bars shed nearly 33,000 jobs in June 2026, many operators blamed inflation, labor costs, tariffs, or the economy. While all of those issues matter, they're not the primary reason many restaurants are struggling.

The real reason is much simpler.

The customer evolved. Too many restaurant operators didn't.

Today's consumer has fundamentally changed how they shop, order, eat, and define value. Unfortunately, thousands of restaurant operators continue to operate with a business model built around consumer behavior that disappeared years ago.

Consumers haven't stopped buying food.

They've simply shifted where, when, how, and why they buy it.

The Grocerant Guru® has been warning the industry for more than two decades that consumers would increasingly migrate toward Ready-2-Eat and Heat-N-Eat fresh prepared foods, portable meal solutions, digital ordering, and personalized meal occasions. Today, that migration is no longer a prediction—it is the marketplace.

The National Restaurant Association reports that restaurant employment remains uneven despite projected industry sales of approximately $1.55 trillion because operators continue balancing labor with inconsistent guest traffic, higher operating costs, and changing consumer demand.

The message couldn't be clearer:

Consumers didn't disappear. They simply found operators who better fit their lifestyle.

The Top 10 Food Facts Every Restaurateur Must Understand

Convenience Has Become the New Competitive Advantage

Consumers increasingly purchase food based upon how quickly it fits into their day—not simply taste.

Speed, portability, digital ordering, curbside pickup, drive-thru, grab-and-go, delivery, and meal bundles now represent competitive necessities rather than optional conveniences.

Convenience is no longer an added benefit.

It is the product.

 

Ready-2-Eat Beats Ready-to-Cook

Consumers are spending less time cooking from scratch.

Instead they increasingly assemble meals using restaurant takeout, grocery prepared foods, convenience stores, club stores and meal components.

The winning retailers understand consumers want to personalize dinner—not prepare dinner.

Mintel consumer research has consistently shown convenience, reduced preparation time, and meal flexibility remain primary purchase drivers across prepared food categories.

 

Value Is No Longer About Lowest Price

Consumers define value differently today.

Value equals:

Quality + Convenience + Portion Size + Customization + Speed + Experience + Portability + Digital Ease.

Simply discounting prices rarely builds long-term loyalty.

Creating perceived value does.

 

The Dining Room Is No Longer the Center of the Business

The customer journey now frequently begins on a smartphone.

Digital ordering, loyalty programs, mobile payment, delivery, pickup shelves and drive-thru windows often generate more incremental traffic than additional dining room seats.

Technology is now part of hospitality.

Not separate from it.

Technomic research continues to show digital ordering and loyalty participation produce higher visit frequency and larger average checks than traditional transactions.

 

Meal Components Outsell Full Meals

Families increasingly buy:

Rotisserie chicken

Prepared proteins

Fresh sides

Salads

Desserts

Beverages

Then customize dinner at home.

Restaurants that package meal components instead of forcing complete meals create greater flexibility while increasing average ticket size.

 

Labor Problems Often Reflect Business Model Problems

Many operators believe staffing shortages caused slower growth.

More accurately...

Outdated operating models require more labor than today's consumer is willing to pay for.

Automation, kiosks, AI scheduling, digital ordering, kitchen display systems and production simplification allow successful operators to produce more sales with fewer labor hours.

Technology is replacing repetitive work—not hospitality.

 

Consumers Eat Across Multiple Channels Every Week

The average household no longer identifies itself as loyal to restaurants or grocery stores.

Instead consumers routinely purchase meals from:

Restaurants

Grocery stores

Convenience stores

Warehouse clubs

Delivery platforms

Meal kits

Coffee chains

Quick-service restaurants

Every food retailer now competes with every other food retailer.

Welcome to the Grocerant Economy.

Limited-Time Offers Create Discovery

Consumers increasingly chase "what's new."

Seasonal products, collaborations, global flavors, premium beverages, spicy offerings and social-media-worthy menu items drive trial far faster than permanent menu additions.

Innovation now generates traffic.

Static menus generate indifference.

 

Data Is Becoming More Valuable Than Real Estate

Operators who understand purchasing behavior, loyalty activity, visit frequency, personalization and menu mix make faster and better business decisions.

Successful restaurants increasingly manage customer data with the same discipline they manage food cost.

 

Evolution Is No Longer Optional

Restaurant employment slowing is a symptom.

Consumer migration is the cause.

The operators growing today aren't waiting for consumers to return.

They're building businesses around where consumers already are.

That difference determines who grows and who disappears.

The June employment report showing restaurants losing approximately 32,900 jobs, following downward revisions to previous months, reflects the industry's cautious response to uneven traffic rather than a collapse in consumer demand. Operators are hiring more selectively while investing in technology, productivity, and alternative service channels.

The Bottom Line

Restaurants have never competed against more alternatives than they do today.

Consumers can order dinner from a supermarket app, pick up prepared meals at a convenience store, subscribe to meal delivery, stop at a warehouse club, purchase restaurant takeout, or assemble dinner from fresh prepared meal components—all within minutes.

The customer has already embraced this new food ecosystem.

The question every restaurateur must answer is simple:

Has your restaurant?

Because evolving isn't optional.

It's inevitable.

And consumers aren't waiting for anyone to catch up.

 

Three Grocerant Guru® Insights

Stop Thinking Like a Restaurant—Start Thinking Like a Food Solution. Consumers buy solutions to meal occasions, not restaurant categories. The winners solve breakfast, lunch, dinner, snacks and family meals wherever those occasions occur.

Ready-2-Eat and Heat-N-Eat Fresh Prepared Foods Represent the Fastest Path to Customer Migration. Operators that package fresh meal components, family bundles and portable meal solutions position themselves where consumer demand is expanding—not where it is shrinking.

The Next Competitive Battle Isn't Restaurant vs. Restaurant. It's restaurant versus grocery, convenience stores, club stores, delivery platforms, meal kits and every retailer selling fresh prepared food. The operators that embrace the Grocerant business model will capture tomorrow's consumer, while those clinging to yesterday's operating model risk becoming increasingly irrelevant.

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

Moe's Southwest Grill Understands Today's Consumers: Build-Your-Own Meal Kits Are the Future of Family Dining

 

While many restaurant brands continue chasing value through discounts and limited-time offers, Moe's Southwest Grill has taken a much smarter path. The introduction of its new Meal Kit XL, designed to feed six to eight people for just $49.99, demonstrates that Moe's understands exactly how today's consumers want to eat, shop, and share meals according to Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®.

The Grocerant Guru® has long maintained that the future of food retail is not simply about lower prices—it's about providing consumers with customizable, Ready-2-Eat and Heat-N-Eat meal solutions that fit modern lifestyles. Moe's newest offering is another example of why personalization, portability, and perceived value continue outperforming one-size-fits-all meal deals.

The Meal Kit XL includes two proteins, rice, beans, cheese, lettuce, pico de gallo, Moe's signature queso, chips, and salsa, allowing every member of the family or group to create exactly the meal they want. That level of customization has become one of the strongest drivers of consumer satisfaction in today's restaurant marketplace.

Consumers Want Control

Over the past several years, consumers have fundamentally changed how they define convenience.

They no longer simply want someone else to cook dinner.

They want flexibility.

They want customization.

They want everyone in the family to eat what they prefer without preparing multiple meals.

Perhaps most importantly, they want solutions that reduce stress while still creating an enjoyable meal occasion.

That is precisely what Moe's Meal Kit XL delivers.

According to Circana, nearly 80% of evening meals are now sourced from food prepared at or brought into the home, regardless of where the food was purchased. Consumers are increasingly replacing traditional restaurant dining with meals enjoyed around the kitchen table, in front of the television, during youth sporting events, or at family gatherings. The home has become America's largest restaurant dining room.

Moe's clearly recognizes this consumer migration.

Build-Your-Own Is Becoming the New Value Menu

Traditional value menus built around individual discounted items are no longer enough to drive sustained traffic.

Today's consumers evaluate value differently.

They look at:

·       Variety

·       Portion size

·       Shareability

·       Customization

·       Convenience

·       Leftover potential

·       Overall family affordability

For approximately $6 to $8 per person, Moe's Meal Kit XL delivers restaurant-quality food while allowing each diner to personalize every bite.

That represents outstanding perceived value in today's marketplace.

Technomic recently noted that restaurant operators must discover the "next generation" of value programs because simple price-point promotions have become increasingly difficult to differentiate. Consumers are responding much more favorably to meal bundles and customizable group offerings than another discounted combo meal.

The Grocerant Revolution Continues

The Grocerant Guru® has written for years that consumers are migrating toward meal components rather than complete plated meals.

Instead of everyone eating identical dinners, today's families increasingly assemble meals based upon individual tastes.

One child skips onions.

Dad adds extra protein.

Mom wants more vegetables.

Someone else doubles the queso.

Everyone leaves happy.

That is exactly why build-your-own formats continue gaining momentum.

Moe's joins a growing list of brands recognizing this shift.

Chipotle introduced Build-Your-Own family meals.

Applebee's expanded combination meal offerings.

Chili's continues seeing strong performance from its "3 For Me" platform.

KFC launched its Build-a-Bucket promotion.

Panera, Buffalo Wild Wings, Little Caesars, Habit Burger Grill, Sweetgreen, and Pret A Manger have all expanded customizable bundled offerings because consumers increasingly reward brands that make feeding multiple people easier.

The Real Competition Is Dinner at Home

Many restaurant executives still believe they compete primarily against other restaurants.

The Grocerant Guru® disagrees.

The largest competitor today is what consumers choose to eat at home.

Consumers are asking themselves every afternoon:

"What's for dinner?"

The winning brands are those that eliminate the decision-making process by offering simple, customizable meal solutions that everyone can enjoy.

Moe's understands this.

Rather than asking consumers to order six separate entrées, the company is simplifying the occasion with one purchase that satisfies multiple tastes while reducing ordering friction.

Why This Matters

Consumers continue facing elevated food prices across grocery stores and restaurants. They have become much more intentional with discretionary spending, yet they remain willing to pay for convenience when they perceive genuine value.

Meal kits like Moe's XL deliver exactly that.

They reduce preparation time.

They reduce cleanup.

They encourage family interaction.

They create leftovers.

Most importantly, they transform takeout into an experience rather than merely another transaction.

Brands that combine affordability with personalization are increasingly winning customer loyalty.

Moe's Southwest Grill appears to understand that better than many competitors.

Three Grocerant Guru® Insights

1. Build-Your-Own Beats One-Size-Fits-All. Consumers increasingly want meal components they can customize rather than fixed menu combinations. Personalization has become one of the strongest drivers of repeat visits.

2. Group Meals Drive Higher Average Checks. Family meal bundles and shareable meal kits increase average transaction values while simplifying purchasing decisions, making them profitable for operators and valuable for consumers.

3. The Future Belongs to Ready-2-Eat Meal Solutions. The fastest-growing food retail opportunities continue to center around fresh, Ready-2-Eat and Heat-N-Eat meals that combine convenience, customization, portability, and value. Moe's Meal Kit XL is another strong example of how restaurant brands can successfully meet consumers where they increasingly choose to eat—at home.

Steven Johnson, Grocerant Guru®
Tacoma, Washington-based Foodservice Solutions®