Banning Surveillance Pricing Won't Save Grocery Stores—Winning Back Consumer Trust and Reinventing Fresh Prepared Foods Will

 

By Steven Johnson, Grocerant Guru®
Tacoma, WA-based Foodservice Solutions®

For decades, grocery retailers competed primarily on price. Today, they compete on convenience, time savings, meal solutions, personalization, portability, digital engagement, and trust. New Jersey's decision to become the second state to prohibit surveillance pricing may seem like a setback for retailers seeking new pricing technologies, but in reality it may become an unexpected catalyst that forces supermarkets to focus on what consumers actually value.

Ironically, removing the temptation to pursue AI-driven individualized pricing could ultimately save grocery retailers millions of dollars by redirecting investment toward operational efficiency, fresh prepared foods, and customer loyalty rather than controversial pricing algorithms.

Consumers have spoken. They want value—but they also demand transparency.

The passage of New Jersey's Fair Price Protection Act follows growing public concern surrounding "surveillance pricing," where artificial intelligence and customer data could potentially influence what one shopper pays versus another for identical products. The legislation also places a one-year moratorium on the installation of new electronic shelf labels, slowing adoption of technology many retailers envisioned using for dynamic pricing.

While headlines focus on AI pricing, they miss the far bigger story.

Consumers Don't Want Personalized Prices

Consumers want personalized meals—not personalized prices.

Food marketing research throughout 2025 and 2026 consistently shows shoppers are seeking:

·       Ready-2-Eat fresh prepared meals

·       Heat-N-Eat family meal solutions

·       Mix-and-match meal components

·       Restaurant-quality foods at grocery prices

·       Quick shopping trips

·       Transparent everyday value

·       Digital convenience without sacrificing trust

Consumers have become remarkably sophisticated. They understand that AI can improve shopping experiences through recipe suggestions, inventory accuracy, personalized coupons, and meal recommendations. What they reject is the possibility that their income, shopping habits, or digital behavior might influence the price they pay for milk, eggs, chicken, or bread.

Trust remains one of retail's most valuable assets.

Grocery's Real Competitive Battle Isn't Price—It's Dinner

The real competitive battle isn't between Kroger, Walmart, Aldi, Costco, or regional supermarket chains.

It's between every retailer competing for tonight's dinner.

According to multiple industry studies released during 2025 and early 2026, approximately 80% of evening meals are still sourced from home, yet consumers increasingly refuse to cook entirely from scratch. Instead, they assemble meals using fresh prepared foods, refrigerated entrées, rotisserie chicken, meal kits, side dishes, deli offerings, frozen vegetables, bakery items, and restaurant takeout.

This is exactly where the Grocerant opportunity continues to expand.

Consumers aren't asking retailers to lower every price.

They're asking retailers to eliminate work.

Time has become the new currency.

The Smart Investment Is Fresh Prepared Food

Rather than investing tens or hundreds of millions of dollars into dynamic pricing systems that invite regulatory scrutiny, grocery retailers should redirect those investments toward:

·       Expanded Ready-2-Eat meal production

·       Improved Heat-N-Eat family meals

·       Better prepared food packaging

·       Faster checkout

·       More efficient labor deployment

·       AI forecasting that reduces food waste

·       Stronger inventory management

·       Better fresh food merchandising

Artificial intelligence absolutely belongs inside grocery stores.

Just not between the customer and the shelf price.

AI can reduce shrink, forecast demand, optimize labor scheduling, improve replenishment, reduce out-of-stocks, predict fresh production, and personalize meal recommendations without creating consumer distrust.

That is where technology creates long-term shareholder value.

Electronic Shelf Labels Still Have Value

Electronic shelf labels should not be viewed solely as dynamic pricing tools.

Properly deployed, they reduce labor costs by eliminating manual price changes, improve pricing accuracy, decrease pricing errors, simplify promotions, and allow associates to spend more time helping customers and merchandising fresh foods.

Those operational efficiencies remain valuable regardless of whether individualized pricing is prohibited.

In fact, labor savings from electronic shelf labels may become one of the strongest financial justifications for adoption once public concerns surrounding surveillance pricing are addressed.

The FTC Changed the Conversation

Federal scrutiny of AI pricing practices accelerated after investigations into digital grocery pricing raised questions about transparency and consumer protection. Public confidence became just as important as technological capability.

Retailers increasingly recognize that shoppers willingly share personal information in exchange for relevant coupons, personalized recipes, loyalty rewards, and meaningful savings.

They do not expect that same information to determine the price of essential groceries.

That distinction matters.

The retailers that preserve consumer trust will strengthen long-term customer loyalty.

The Future Belongs to Grocerants

The future grocery winner will not be the company with the smartest pricing algorithm.

It will be the retailer that best answers one simple consumer question:

"What's for dinner tonight?"

Consumers continue migrating toward retailers capable of providing complete meal solutions rather than simply selling ingredients.

Every investment should help shoppers save time, simplify meal preparation, reduce cleanup, and create restaurant-quality experiences at home.

That is the Grocerant model.

That is where profitable growth continues to accelerate.

 

Three Grocerant Guru® Insights

1. Transparency Is Becoming a Competitive Advantage
As states increasingly regulate AI-driven pricing practices, retailers that embrace consistent pricing, meaningful loyalty rewards, and operational excellence will strengthen consumer trust while differentiating themselves in an increasingly skeptical marketplace.

2. AI Delivers Greater ROI Behind the Scenes Than at the Shelf Edge
The highest returns from artificial intelligence come from demand forecasting, labor optimization, inventory management, food waste reduction, and fresh production planning—not charging different shoppers different prices for identical products.

3. Dinner Drives the Future of Food Retail
The fastest-growing opportunity remains Ready-2-Eat and Heat-N-Eat fresh prepared foods. Consumers increasingly want to customize family meals using restaurant-quality meal components that are quick to serve, easy to personalize, and require minimal cleanup. Retailers that invest in the Grocerant model will compete more effectively against restaurants while improving both top-line sales and bottom-line profitability.

Tap into the Foodservice Solutions® team for greater understanding of New Electricity or for a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

The Future of Grocery Isn't About Selling Groceries—It's About Selling Dinner

 

For more than two decades Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has said that the future of grocery retail would not be won by selling more ingredients—it would be won by making dinner easier.

Today, consumers are proving that prediction correct every day.

The fastest growing opportunity in food retail isn't convincing shoppers to cook from scratch. Instead, consumers increasingly want Ready-2-Eat (RTE) and Heat-N-Eat (HNE) fresh prepared foods, customizable meal bundles, and meal components that allow them to create a family meal in minutes—not an hour.

Digital marketplaces, grocery apps, AI-powered shopping assistants and delivery services are simply becoming the newest highways leading consumers to those meal solutions.

The destination isn't groceries.

The destination is dinner.

Consumers Have Changed the Definition of Convenience

Convenience once meant shopping quickly.

Today convenience means avoiding meal planning, reducing preparation time, minimizing cleanup and satisfying multiple family members with different tastes.

Consumers increasingly assemble meals instead of cooking them from scratch.

A typical family dinner today might include:

* Fresh prepared grilled chicken

* Restaurant-quality side dishes

* Fresh-cut fruit

* Artisan bread

* A salad kit

* Ready-made dessert

The consumer still "made dinner."

They simply didn't cook it.

That distinction is transforming every food retailer in America.

According to industry data from FMI—The Food Industry Association, Circana, and NielsenIQ, online grocery continued to account for a substantial share of grocery sales growth in 2025 as digital shopping became increasingly integrated into everyday consumer behavior. Consumers are using digital tools not merely to purchase groceries—they are searching for complete meal solutions that save both time and effort.

The Kitchen Isn't Disappearing—It's Being Reimagined

Many industry observers continue asking whether consumers will return to cooking.

They're asking the wrong question.

Consumers have already answered.

Today's shoppers are not abandoning home meals.

They're abandoning unnecessary work.

The modern family wants flexibility.

One child wants chicken tenders.

Another wants sushi.

Mom wants a fresh salad.

Dad wants barbecue brisket.

Consumers increasingly personalize meals by combining Ready-2-Eat and Heat-N-Eat meal components into customized family dinners that satisfy everyone around the table.

That's exactly what successful grocerants have been enabling for years.

Digital Marketplaces Are Becoming Discovery Engines

Marketplaces including grocery delivery platforms have fundamentally changed how consumers discover food.

Consumers increasingly begin their shopping journey on digital platforms where they search for convenience rather than specific retailers.

The winning retailers recognize that digital marketplaces are no longer simply delivery channels.

They have become customer acquisition platforms.

However, the retailers creating the strongest long-term customer relationships are those offering differentiated prepared foods that cannot easily be replicated elsewhere.

 

Anyone can sell canned soup.

Far fewer retailers can consistently deliver restaurant-quality fresh prepared meals that consumers trust.

The Prepared Foods Department Is Becoming the New Center Store

For decades, center store generated grocery profits.

Increasingly, fresh prepared foods are becoming the emotional center of the grocery shopping experience.

Why?

Because dinner drives shopping frequency.

Prepared meals generate incremental purchases.

Meal bundles increase average basket size.

Fresh prepared foods encourage impulse purchases.

Consumers purchasing dinner tonight frequently add beverages, desserts, snacks, breakfast items and tomorrow's lunch during the same shopping trip.

Dinner is no longer simply another category.

Dinner has become the traffic generator.

AI Will Recommend Meals—Not Ingredients

Artificial intelligence is poised to accelerate this transformation.

Consumers will increasingly ask:

What's for dinner?

Not:

What ingredients do I need?

AI shopping assistants will recommend complete meals based upon family size, dietary preferences, previous purchases, available promotions and time constraints.

Retailers whose prepared food content includes strong photography, accurate nutritional information, customization options and compelling meal descriptions will enjoy greater digital discoverability.

In the AI economy, dinner solutions become even more valuable than individual products.

The Future Belongs to Meal Solutions

Consumers continue demonstrating that value is no longer determined by price alone.

Today's value equation includes:

 

* Time savings

* Convenience

* Quality

* Portability

* Personalization

* Easy cleanup

* Family acceptance

Retailers that successfully merchandise Ready-2-Eat meals, Heat-N-Eat entrees and customizable meal components across every shopping channel—physical stores, mobile apps, delivery platforms and AI-assisted commerce—will be best positioned to capture tomorrow's food dollars.

The future of grocery isn't centered on selling more ingredients.

It's centered on helping consumers answer one simple question every day:

What's for dinner?

The retailers providing the easiest, freshest and most customizable answer will continue winning customer loyalty while driving both top-line sales and bottom-line profits.

 

Three Grocerant Guru® Insights

1. Dinner Has Become the New Competitive Battleground.

Consumers increasingly choose retailers based on who can solve tonight's dinner problem fastest—not who offers the lowest price on pantry staples. Ready-2-Eat and Heat-N-Eat meal solutions are becoming the primary driver of shopping frequency and customer loyalty.

 

2. Customization Is the New Family Meal.

Families no longer expect everyone to eat the same entrée. Successful retailers merchandise meal components that allow consumers to mix, match, personalize and satisfy multiple tastes while still sharing one meal occasion.

 

3. Digital Discovery Must Lead to Fresh Prepared Food.

Whether consumers begin shopping through a retailer's app, a third-party marketplace or an AI-powered shopping assistant, the retailers that consistently feature differentiated fresh prepared foods and complete meal solutions will cultivate customer migration, increase basket size, and build stronger long-term brand loyalty.

Steven Johnson, Grocerant Guru®

For international corporate 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 www.GrocerantGuru.com , www.FoodserviceSolutions.us or call    1-253-759-7869

Copyright 2026 Foodservice Solutions®

Dining-Out While Eating-In Is Winning Every Day for Food Retailers

 

For years restaurant operators focused almost exclusively on one metric—getting "butts in seats." Today, the marketplace tells a very different story.

At the Grocerant Guru®, we've consistently said:

"The consumer is dynamic, not static."

That statement has never been more relevant.

Today's consumer doesn't think in terms of restaurants versus grocery stores. They simply ask:

"Where can I get the best meal with the least amount of friction?"

That single shift has permanently transformed food retail.

The fastest-growing opportunities today sit squarely in the Ready-2-Eat (RTE) and Heat-N-Eat (HNE) fresh prepared foods category. Consumers are purchasing restaurant-quality meals to enjoy wherever they happen to be—at home, at work, at youth sporting events, or while traveling.

The dining room is no longer the center of the restaurant business.

The consumer's kitchen is.

Industry research throughout 2024, 2025 and into 2026 continues to reinforce several powerful trends:

• Off-premise sales now account for a substantial percentage of restaurant revenue across quick-service and fast-casual brands.

• Consumers continue to value convenience, portability, flavor consistency and value over traditional dining occasions.

• Smaller meals, meal bundles, snack-sized offerings and mix-and-match meal solutions continue to outperform traditional entrée-only thinking, particularly among Gen Z and Millennials.

• Fresh prepared foods remain one of the strongest traffic-driving departments in supermarkets, convenience stores and club stores as consumers increasingly replace cooking from scratch with professionally prepared meals.

Perhaps most importantly, consumers are becoming increasingly brand loyal—not location loyal.

If they love your food...

They want to enjoy it:

✔ At home

✔ At work

✔ At the park

✔ During family gatherings

✔ While traveling

✔ During game day

The question every food retailer should be asking isn't:

"How do we get customers into our restaurant?"

Instead ask:

"How do we get our brand into more eating occasions?"

Winning brands understand that every meal occasion represents incremental revenue.

Breakfast has become portable.

Lunch has become flexible.

Dinner has become customizable.

Late-night has become delivery.

Snacking has become a meal.

Consumers no longer organize their day around traditional meal periods—they organize it around their schedules.

That's why successful operators are investing in:

·       Ready-2-Eat and Heat-N-Eat meal solutions

·       Meal bundles designed for families

·       Portable packaging

·       Limited-time flavors that create social engagement

·       Digital ordering and loyalty integration

·       Fresh prepared foods that travel well without sacrificing quality

At Foodservice Solutions®, we've long believed that restaurants, supermarkets, convenience stores and club stores are no longer competing in separate industries.

They're competing for the same meal occasions.

The brands that understand this evolution—and build products around convenience without compromising food quality—will continue gaining market share.

The future belongs to brands that allow consumers to dine out while eating in.

Three Grocerant Guru® Insights

1. Convenience Has Become a Competitive Advantage
Consumers aren't replacing restaurants with grocery stores—they're rewarding whichever brand delivers the best combination of convenience, flavor, quality and value.

2. Every Meal Occasion Matters
Growth isn't coming from adding more dining rooms. It's coming from capturing more eating occasions throughout the day with Ready-2-Eat and Heat-N-Eat solutions.

3. Brand Consistency Travels
Consumers expect the same great taste whether they're dining in, taking out, ordering delivery or enjoying your food at home. Consistent execution builds loyalty and repeat purchases.

Steven Johnson
Grocerant Guru®
Foodservice Solutions®
Tacoma, Washington

"Helping food retailers discover where consumers will eat next—not just where they'll shop next."