For
more than two decades, I have consistently stated that consumers do not think
in retail channels—they think in meals, mini-meals, snacks, solutions,
convenience, value, and occasions. Long before most industry analysts
recognized Casey's General Stores as a serious foodservice competitor, the
Grocerant Guru® was identifying, quantifying, and qualifying the company's
remarkable success in fresh prepared foods and, specifically, pizza.
Today,
the rest of the food industry is finally catching up.
Casey's,
the Iowa-based retailer founded in 1968, now operates nearly 2,900 locations
across 19 states and proudly claims its position as the fifth-largest pizza
chain in America. That claim is no longer surprising. What is surprising is how
long it took much of the legacy food industry press to recognize what was
happening right in front of them.
For
years, traditional industry media segmented foodservice into neat little boxes:
convenience stores, quick-service restaurants, grocery service delis, club
stores, supermarkets, and fast-food outlets. Unfortunately, consumers never
received that memo.
Consumers
don't wake up and say, "I'm going to buy lunch from a convenience store
today." They ask, "What's for lunch?" They seek value,
convenience, portability, quality, taste, and speed. The channel is irrelevant.
The
ongoing discussion about "channel blurring" is itself evidence that
too many analysts remain trapped in outdated retail thinking. Channel blurring
exists only in the mind's eye of retail Neanderthals and channel-protecting
demagogues who continue to view food retailing through a 1980s lens. Consumers
don't blur channels because consumers never recognized those boundaries in the
first place.
What
Casey's understood decades ago is what many restaurant operators are only now
beginning to grasp: foodservice drives traffic, loyalty, frequency, and
profitability. Pizza wasn't an add-on category for Casey's—it became a
destination category.
The
company's pizza journey began in 1984 and accelerated through continuous
innovation, including breakfast pizza, taco pizza, thin-crust offerings, and
gluten-free options. More importantly, Casey's understood that consumers wanted
food where they already were, not where industry executives thought they should
go.
That
strategy is paying dividends. Casey's generated approximately $1.5 billion in
pizza sales in 2024, growing more than 10% year-over-year. While many
traditional pizza chains find themselves locked in relentless discounting
battles, Casey's has leveraged its broader business model to create a
competitive advantage.
Its
large pizzas often undercut national competitors by several dollars. Its highly
successful slice program captures immediate-consumption occasions that many
national pizza chains largely ignore. In fact, individual slices reportedly
account for about half of pizza sales, creating incremental traffic
opportunities throughout the day.
Even
more significant is Casey's dominance in smaller communities. Roughly 71% of
stores are located in towns with fewer than 20,000 residents. In many of these
markets, Casey's serves as the local restaurant, grocery supplement, fuel
station, and community gathering place all at once.
That
is not channel blurring.
That
is consumer relevance.
Meanwhile,
traditional pizza operators continue to face mounting pressure from every
direction. Third-party delivery has erased historical convenience advantages.
Consumers now have unprecedented access to restaurant meals, grocery prepared
foods, warehouse club food courts, convenience-store foodservice, meal kits,
and delivery-only concepts.
The
competitive set is no longer pizza chain versus pizza chain.
The
competitive set is every food option available to satisfy a meal occasion.
Recent
research showing that convenience stores increasingly capture visits that might
otherwise have gone to quick-service restaurants only reinforces what the
Grocerant Guru® has documented for years: consumers cross-shop food solutions,
not retail channels.
Casey's
success story is not really about pizza.
It
is about understanding that today's consumer purchases meals and mini-meals
based on value, convenience, quality, portability, and trust. The retailer that
best fulfills those needs wins the transaction regardless of whether the sign
outside says convenience store, supermarket, restaurant, club store, or fuel
center.
As
the Grocerant Guru® has said repeatedly, the future belongs to operators that
focus on meal solutions rather than channel definitions.
Casey's
simply figured that out before most of the industry as did our Grocerant Guru®.
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

















