Food Tariffs Drive Brand Trial: Navigating the New Retail Landscape

 

The food retail industry is experiencing a seismic shift as macroeconomic factors, particularly the imposition of tariffs, reshape consumer behavior and compel retailers to adapt swiftly according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Price-sensitive consumers are now more discerning, prompting restaurants, convenience stores, and grocery stores to innovate in their offerings, pricing strategies, and marketing approaches to sustain brand trial and customer retention.

Impact of Tariffs on Consumer Behavior

Recent tariffs on imports from key trading partners have driven up the prices of essential food items, especially fresh produce. For example, the U.S. imports nearly 45% of its fresh fruit and 32% of its fresh vegetables, with Mexico being a primary supplier. Tariffs on produce such as avocados, tomatoes, and citrus fruits have led to price hikes that disproportionately impact low- and middle-income families who already spend a significant portion of their income on food.

According to the USDA, food-at-home prices rose 5.6% year-over-year, while food-away-from-home prices increased 8.4%. These financial pressures have led consumers to rethink dining choices, meal planning, and brand preferences. As inflation persists, grocery spending has shifted toward private-label brands, and restaurant visits have increasingly centered around promotional deals and value-driven menus.

Strategies in the Restaurant Industry

1.       Value-Based Pricing: Some restaurants are shifting to a value-based pricing model, setting menu prices according to perceived customer value rather than cost alone. This approach is particularly effective in quick-service restaurants (QSRs) and casual dining, where customers prioritize affordability.

2.       Good-Better-Best Menus: Many restaurant chains, such as McDonald's and Panera Bread, have introduced tiered pricing strategies to cater to different budget levels. A "good" option provides a basic meal at an entry-level price, while "better" and "best" tiers offer enhanced ingredients, premium add-ons, or combo meal incentives.

3.       Digital and App-Based Discounts: Digital ordering platforms and mobile app-based rewards programs have gained traction, with Starbucks and Taco Bell leveraging personalized promotions to drive loyalty and first-time trials.

Adaptations in Convenience Stores

1.       Everyday Low Pricing (EDLP): Convenience stores, including major players like 7-Eleven, are adopting EDLP to attract budget-conscious consumers. Maintaining stable, low prices fosters trust and encourages repeat business.

2.       Penetration Pricing: To capture market share, convenience stores are introducing new products at promotional launch prices. For example, Wawa has tested limited-time discounted items in its foodservice section to encourage trial before transitioning to regular pricing.

3.       Private Label Expansion: Many convenience chains are investing in private-label food and beverage products to offer lower-cost alternatives to national brands while maintaining competitive margins.

Innovations in Grocery Stores

1.       Supplier Negotiations: Large grocery retailers like Walmart and Kroger are actively negotiating lower costs with suppliers to mitigate tariff-induced price increases. Walmart, for instance, has requested price cuts of up to 10% from Chinese suppliers to maintain affordability.

2.       Local Sourcing: Retailers are shifting toward domestic supply chains to minimize the impact of tariffs. Regional grocers such as Publix and H-E-B have expanded partnerships with local farms, reinforcing their commitment to fresh, locally sourced products.

3.       Shrinkflation & Smart Packaging: To offset rising costs without deterring consumers, brands are downsizing product sizes (shrinkflation) or optimizing packaging to maintain pricing integrity.

4.       Subscription and Membership Models: Grocery stores like Sam’s Club and Amazon Fresh are leveraging membership-based discounts to lock in customer loyalty and drive recurring purchases despite price fluctuations.

Top Five Strategies to Drive New Customer Trials

1.       Transparent Pricing & Honest Marketing: Clearly communicating price structures and value propositions builds consumer trust and fosters brand credibility.

2.       Promotional Sampling & Limited-Time Offers: Sampling programs at grocery chains like Costco and targeted BOGO (buy-one-get-one) deals in QSRs entice hesitant consumers to try new items.

3.       Loyalty & Rewards Programs: Restaurants and retailers alike are refining rewards systems, such as Chipotle’s tiered loyalty program, to incentivize repeat visits and trials.

4.       Bundling Offers: Pairing high-demand items with lesser-known products at a discounted rate encourages discovery. McDonald's and Domino’s frequently bundle menu items to increase trial of new flavors.

5.       Community Engagement & Experiential Marketing: Grocery stores like Whole Foods and Wegmans engage customers through cooking classes, local food festivals, and influencer partnerships to showcase product quality and drive brand advocacy.

Think About This

The current economic landscape, driven by tariffs and evolving consumer sensitivities, is accelerating transformation within the food retail sector. Restaurants, convenience stores, and grocery chains must stay agile—leveraging innovative pricing models, loyalty incentives, and strategic sourcing to navigate cost pressures while ensuring sustained brand engagement and customer retention.

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

 

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Wendy’s Has Found Customer Relevance, Now Set for Growth: Insights from the Grocerant Guru®

 

Wendy’s, the Dublin, Ohio-based fast-food chain, has long aimed for expansion, but under the leadership of CEO Kirk Tanner, the brand is accelerating its growth strategy with an ambitious plan: to open 1,000 new locations globally by 2028, including 350 in the U.S. To achieve this, Wendy’s is doubling its investment in company-owned stores, positioning itself for stronger brand control and sustained profitability.

Why Now? Five Key Market Factors Driving Wendy’s Expansion

1.       Incremental Foodservice Growth: The quick-service restaurant (QSR) segment continues to see strong demand, with the U.S. fast-food industry projected to grow at a 4.6% CAGR through 2028. Consumers are increasingly looking for convenient, high-quality options, which aligns with Wendy’s fresh, never-frozen beef strategy.

2.       Shifting Consumer Preferences: Customers are gravitating toward value-driven and premium fast food. Wendy’s ability to cater to both markets with offerings like the Biggie Bag and premium Made to Crave menu items enhances its competitive edge.

3.       Competitor Contraction: McDonald’s, Burger King, and Hardee’s have been closing units, creating opportunities for Wendy’s to capture more market share by filling these gaps with strategically placed locations.

4.       Increased Average Unit Volumes (AUVs): Wendy’s AUVs have grown consistently, signaling strong consumer engagement and store-level profitability. Higher AUVs mean a more enticing proposition for franchisees looking to invest.

5.       Company-Owned Store Investment: By doubling the rate of company-owned store openings, Wendy’s demonstrates confidence in its model while speeding up development, refining operations, and improving unit economics for franchisees.

Why Wendy’s Could Exceed Growth Goals

1.       Underserved Market Density: Wendy’s has one location per 56,000 people in the U.S., compared to its competitors’ one per 36,000, signaling significant room for expansion.

2.       Enhanced Profit Margins: Operational efficiencies and marketing initiatives are expected to add 200 basis points to profit margins by 2028, creating a stronger financial foundation for growth.

3.       Franchisee Incentives: The company has strengthened its franchise pipeline through attractive development incentives, leading to increased buy-in from operators.

4.       International Market Growth: Wendy’s international footprint remains far smaller than competitors, offering immense room for expansion in high-growth regions.

5.       Strategic Relocations and Upgrades: By moving underperforming stores to stronger trade areas, Wendy’s is enhancing unit economics and brand visibility, ensuring that new locations thrive from day one.

With Wendy’s focusing on relevance, operational excellence, and strategic expansion, the brand is well-positioned to meet and potentially exceed its growth goals. As the QSR industry evolves, Wendy’s is leveraging market dynamics and internal strengths to solidify its place among top-tier fast-food brands.

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Good Food News: Gen Z Showing Leadership

 

The food industry is undergoing a major transformation, driven in large part by the changing preferences and digital habits of Generation Z. From restaurants and convenience stores to grocery retailers, businesses are recognizing the need to adapt their strategies to meet the demands of this socially connected, health-conscious, and convenience-driven generation. Recent data from FMI’s "The Power of Produce 2025" report underscores how Gen Z is influencing the produce industry, leveraging social media, e-commerce, and innovative engagement strategies to shape the future of food marketing and distribution.

As the Grocerant Guru® has long pointed out, the convergence of foodservice and retail has been accelerated by younger consumers who prioritize convenience, quality, and digital discovery. Here are five ways Gen Z is showing restaurants, convenience stores, and grocery stores how to connect with consumers and stay relevant, ultimately driving top-line sales and bottom-line profits.

1. Social Media as a Discovery Engine for Food Trends

Gen Z is redefining food marketing through social media platforms like Instagram, TikTok, and YouTube. According to FMI’s report, 94% of produce shoppers actively use social media, with 36% discovering new fruits and vegetables through these channels. Retailers and foodservice operators that harness the power of visually engaging content, influencer partnerships, and interactive campaigns can drive product awareness and increase trial rates.

2. E-Commerce and Digital Integration in Food Retail

The growth of online food purchasing is accelerating, with 31% of consumers planning to order more fresh produce online next year. Gen Z expects seamless digital experiences, from mobile ordering to in-app promotions and loyalty rewards. Grocery stores, restaurants, and c-stores that optimize their digital presence with user-friendly apps, subscription-based meal services, and direct-to-consumer options will capture more of this tech-savvy audience’s spending power.

3. Convenience and Value-Added Offerings Drive Sales

Gen Z places a high value on convenience, contributing to the $14.6 billion in sales for value-added produce in 2024. Ready-to-eat meals, meal kits, and pre-cut produce are particularly appealing to this demographic. Food retailers that expand their selection of grab-and-go and heat-and-eat items while ensuring a fresh, high-quality experience will see continued growth in this sector.

4. Health and Wellness-Driven Purchasing Behavior

Health-conscious consumers are prioritizing nutrition, with 34% actively searching for healthier food options and 46% seeking more information about produce health benefits. Restaurants and food retailers that emphasize transparency in ingredient sourcing, promote plant-based and functional foods, and educate consumers through digital and in-store experiences will align with Gen Z’s lifestyle choices and increase customer loyalty.

5. Engaging Experiences that Build Community and Loyalty

Beyond just purchasing food, Gen Z values experiences and authenticity. Whether through interactive cooking classes, in-store tastings, or community-driven social media campaigns, brands that create engaging, memorable moments will build deeper connections with younger consumers. Encouraging user-generated content, rewarding brand loyalty through personalized incentives, and leveraging AI-driven personalization will further enhance engagement.

Think About This

Gen Z is leading the charge in reshaping the food industry, utilizing digital platforms, prioritizing convenience, and embracing healthier lifestyles. Restaurants, grocery stores, and convenience stores that adapt to these shifts by leveraging social media, enhancing digital experiences, and offering value-added, health-focused options will not only stay competitive but thrive. As the Grocerant Guru® has often emphasized, the future of food is all about meeting consumers where they are, and for Gen Z, that means blending the physical and digital worlds to create seamless, engaging, and satisfying food experiences.

Let’s Build a Partnership for Growth

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Checkers & Rally’s Expands Frozen Food Court Options

 

The evolution of the grocerant niche continues to reshape the landscape of food retailing, and Checkers & Rally’s latest expansion in the frozen food aisle is a testament to this powerful trend, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.   The quick-serve brand, in partnership with Lamb Weston, is bringing four new side dishes to grocery stores nationwide, further solidifying the role of grocerants in brand building and customer migration.

For decades, grocerants—a fusion of grocery stores and restaurants—have been at the forefront of food retail innovation, offering consumers restaurant-quality meals they can enjoy at home. This concept has gained momentum as time-starved customers seek convenience without compromising flavor. Checkers & Rally’s, a brand synonymous with bold, craveable flavors, understands this dynamic and has leveraged its long-standing partnership with Lamb Weston to deliver an expanded lineup of frozen favorites.

Checkers & Rally’s Seasoned Fries have dominated the frozen food category since their introduction in 2005. Now, with the addition of Seasoned Onion Rings, Seasoned Waffle Fries, Seasoned Sweet Potato Fries, and Seasoned Cheesy Potato Bites, the brand is doubling down on its commitment to providing restaurant-quality experiences beyond its drive-thru windows.

This strategic move is not just about product diversification; it plays a critical role in customer migration. Consumers who first encounter Checkers & Rally’s through their grocery purchases are more likely to visit the restaurant locations, reinforcing brand affinity and loyalty. By meeting customers where they are—whether in a grocery aisle or at the drive-thru—the brand ensures that its signature flavors remain top of mind.

Historically, grocerants have been a pivotal force in the food industry, dating back to the introduction of private-label frozen meals and prepared foods in supermarkets. From Stouffer's pioneering frozen entrees in the 1950s to today’s proliferation of restaurant-branded retail items, the concept has continually evolved. Brands like TGI Fridays, White Castle, and Chick-fil-A have successfully extended their reach through frozen and refrigerated grocery products, reinforcing their presence in the minds and kitchens of consumers. Checkers & Rally’s follows this proven playbook, ensuring its bold flavors remain a household staple.

Lamb Weston’s partnership with Checkers & Rally’s, spanning over 20 years, has been instrumental in making this expansion possible. The collaboration has not only resulted in the top-selling licensed fry SKU in the country but also set the stage for continued innovation. As grocery shoppers increasingly seek out restaurant-quality meal solutions, the introduction of these new products strengthens Checkers & Rally’s position as a leader in the grocerant space.

With more consumers enjoying their favorite restaurant flavors at home, the boundary between retail and foodservice continues to blur. Checkers & Rally’s latest move is more than just an expansion; it is a strategic embrace of the evolving consumer landscape, ensuring the brand remains a dominant force in both the restaurant and retail sectors. As the grocerant trend gains even more traction, expect to see more brands following suit, capitalizing on the growing demand for convenient, high-quality meals beyond the traditional dining experience.

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

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Mr. Pickle’s Sandwich Shop Growing Relevance

 

For centuries, salt has played a crucial role in human survival, serving as both a preservative and a vital nutrient. Research has consistently shown that sodium is essential for maintaining proper hydration, nerve function, and muscle contractions. According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, many studies have indicated that both adults and children often seek out salty foods to satisfy their body’s natural cravings, and pickles have long been a preferred source of salt, offering both taste and nutritional benefits.

In the evolving food industry, quality, consistency, and service remain key drivers of consumer loyalty. At Mr. Pickle’s Sandwich Shop, a brand known for its premium sandwiches and customer-first approach, leveraging cutting-edge technology ensures it stays at the forefront of operational excellence and customer satisfaction. With more than 60 locations, Mr. Pickle’s is set to introduce Samsung Kiosks powered by GRUBBRR alongside dynamic digital menu boards to enhance the dining experience and streamline service.

GRUBBRR’s advanced technology seamlessly integrates with Mr. Pickle’s existing PAR point-of-sale (POS) system, offering intelligent upselling features that drive efficiency and increase revenue. These self-ordering Samsung Kiosks allow for reduced wait times, improved order accuracy, and optimized workflows, ensuring that customers receive their meals quickly without sacrificing quality.

“Today’s consumers expect convenience, high-quality service, and personalized choices,” said Sara Grofcsik, Head of Sales, Display Division, Samsung Electronics America. “Mr. Pickle’s Sandwich Shop understands these expectations and is leveraging Samsung and GRUBBRR solutions to enhance every dining experience. With seamless ordering and dynamic content management, the brand continues to build lasting connections with its loyal customers.”

To further enrich the customer experience, Mr. Pickle’s is implementing Samsung digital menu boards. Positioned as a focal point upon entry, these menu boards provide visually engaging displays that enhance menu visibility and streamline operations. Integrated with the POS system, they allow real-time updates on menu offerings and pricing, ensuring accuracy and efficiency while reinforcing the brand’s modern and customer-focused approach.

Samsung’s restaurant and retail solutions are celebrated for their reliability and innovation. The kiosks are designed for high-traffic environments, ensuring durability and performance, while digital menu boards offer crisp, vibrant visuals that strengthen branding and communication. With Samsung Visual eXperience Transformation (VXT), a cloud-native content management system, Mr. Pickle’s can remotely create and deploy content across its entire network, keeping its messaging fresh and relevant.

“We are excited to partner with Mr. Pickle’s Sandwich Shop, a brand committed to leveraging technology for operational excellence and superior customer experiences,” said Sam Zietz, Chief Executive Officer, GRUBBRR. “By integrating our dynamic solutions with their existing systems, we’re helping them optimize operations, enhance revenue, and create engaging experiences for their guests.”

GRUBBRR software will analyze customer interactions, gathering insights into order patterns and popular menu selections. With this data, Mr. Pickle’s can fine-tune its menu, reduce waste, and maximize the impact of its digital menu boards.

“At Mr. Pickle’s, we are always looking for innovative ways to improve our operations and provide the best experience for our customers,” said Chris Schefler, Chief Operating Officer, Mr. Pickle’s Sandwich Shop. “With GRUBBRR’s technology and Samsung’s hardware, we have the tools to enhance efficiency and elevate the in-store experience through impactful, real-time digital solutions.”

As Mr. Pickle’s continues to embrace next-generation technology, the introduction of self-ordering kiosks and digital menu boards represents a significant step in its growth. Looking ahead, the brand plans to launch the GRUBBRR Retail Media Network as a new revenue stream, utilizing Samsung Visual eXperience Transformation (VXT) to manage advertising content across its kiosks and in-window displays. With a commitment to quality, consistency, and service, Mr. Pickle’s is poised to lead the way in consumer-centric food technology.

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.

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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.

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