Subway’s Quest to Reclaim Customer Momentum: Leading with ‘Better for You’

 

As fast food continues to be dominated by price wars and value-driven menus, Subway finds itself on a different path, relying on its foundational “better for you” brand promise according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

For decades, Subway positioned itself as the go-to fast-food option for health-conscious diners, offering customizable, veggie-packed sandwiches and emphasizing freshness over fried. However, regaining momentum in the fast-food market while remaining profitable is no small feat, especially when competitors aggressively leverage pricing to attract legacy customers.

The Core of Subway's "Better for You" Promise

Subway's branding has long revolved around three key aspects:

1.       Customizable options, allowing healthier ingredient choices.

2.       Nutritional transparency, promoting calorie-conscious dining.

3.       Wide availability of fresh produce and lean proteins compared to fried or highly processed alternatives.

While these traits resonate with a portion of consumers, they face pressure to remain affordable in a marketplace driven increasingly by “2 for $5” and other low-price offerings. Competitors are banking on perceived value and volume rather than a niche health positioning to bolster unit sales.

The Challenges: Why Boosting Profits Without New Customers Is Tough

Subway faces a unique set of challenges in its pursuit of higher profitability:

1.       Limited Pricing Flexibility
Subway’s brand is historically tied to affordability, with its $5 Footlong campaign once becoming a cultural phenomenon. Introducing higher-priced menu items risks alienating core customers while failing to attract new ones.

2.       Customer Migration to Competitors
With a portion of consumers opting for bundled deals like McDonald’s Extra Value Meals or Taco Bell’s Cravings Box, Subway’s focus on premium options leaves it vulnerable to losing value-seekers entirely.

3.       Dependence on Loyalty Without Innovation
Without new menu innovations or unique offerings, Subway risks relying on a declining loyal customer base that increasingly demands exciting and diverse flavors.

4.       Operational Efficiency vs. Ingredient Quality
Higher ingredient costs for premium, fresh items can limit profits, particularly without streamlined operations to offset expenses.

Competitors’ Strategies: Leveraging Price to Gain Legacy Customers

Subway’s competitors, particularly McDonald's, Taco Bell, and Wendy’s, are thriving on value-driven campaigns that attract both budget-conscious diners and volume sales:

1.       Bundling and Meal Deals
Competitors frequently roll out family-sized value meals or dollar menu items, encouraging customers to buy more. For example, Wendy’s 4 for $4 has created a loyal following, building traffic in-store and online.

2.       Limited-Time Promotions
Leveraging promotions like McDonald's Famous Orders campaigns, competitors create buzz while keeping prices approachable, creating a fear-of-missing-out (FOMO) effect that drives in-store traffic.

3.       Tech-Driven Value Perception
Mobile apps offer exclusive discounts and rewards, gamifying value-driven eating in ways that Subway has yet to master fully.

4.       Breadth of Menu
Diversified offerings, such as Taco Bell’s variety of nacho boxes or McDonald's mix-and-match deals, ensure repeat visits while staying wallet-friendly.

What Subway Can Do to Stay Relevant

To compete effectively, Subway must amplify its “better for you” message while finding creative ways to appeal to value-conscious consumers without devaluing its brand. Possible strategies include:

·         Offering “Better for You Bundles” with a balanced mix of nutrient-packed sandwiches, sides, and drinks.

·         Introducing Tiered Rewards in loyalty programs to incentivize frequent purchases.

·         Doubling Down on Localized Innovations that offer regional or culturally relevant menu items, leveraging mix-and-match options.

·         Enhancing Tech Integration by personalizing deals based on ordering history, further targeting customer needs.

Subway’s challenge is one of balancing its heritage and profit margins. By evolving its model with smarter pricing, innovation, and a tech-enabled customer focus, the chain may yet regain its stride without abandoning the principles that made it a household name.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Chili’s Comeback: A Return to Its Roots and Core Culture

 

From its foundation in 1975 as a casual dining spot that catered to flavor-driven, value-conscious customers, Chili's Grill & Bar has maintained its focus on delivering Ready-2-Eat and Heat-n-Eat fresh food options according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The brand, long admired for innovation and customer relevance, has recently seen a remarkable resurgence, overcoming industry challenges through strategic marketing, menu evolution, and an unwavering commitment to its core principles.

Historical Leadership in Ready-2-Eat and Heat-n-Eat

The early success of Chili’s was built on its ability to deliver bold flavors in an approachable, customer-friendly environment. Long before “grocerant” concepts emerged, Chili's offered customers convenient, high-quality meals to enjoy at the restaurant or at home. During the 1990s, their focus on takeout paved the way for their future Ready-2-Eat innovations. Their robust Heat-n-Eat options also stood out in an era when most casual dining restaurants lagged in take-home meal strategies.

This vision of convenience has been a hallmark of their success, driven by consumer-first decisions and a clear understanding of evolving customer needs. These initiatives were further supported by a cohesive company culture that valued both employees and customers, ensuring every new innovation resonated with Chili’s community-centric ethos.

A Focus on Customer-Centric Culture

At its core, Chili’s operates with a focus on three key pillars: customers, employees, and innovation. They have consistently empowered their employees to champion the brand’s values, reinforcing customer loyalty through a service-driven approach. This employee-centric focus ensures a consistent and exceptional dining experience—whether customers enjoy their meals onsite or take them home.

Their recent resurgence aligns with this legacy, but they’ve doubled down on one critical factor: staying “a customer ahead.” Through insights and analytics, Chili's has tailored offerings to address consumer needs, keeping relevance at the forefront despite broader economic challenges.

The Comeback Formula: Marketing and Menu Innovation

Chili’s comeback success lies in its focused execution across two domains: marketing campaigns and menu innovations.

1. Iconic Marketing Reinvented

Few marketing campaigns have captured public imagination as effectively as Chili’s “I Want My Baby Back Ribs.” First introduced in the 1990s, the jingle became a cultural phenomenon, later immortalized in the Austin Powers franchise and countless pop culture moments. This campaign positioned Chili’s as synonymous with hearty, indulgent dining, driving massive traffic to the chain and securing a stronghold in American casual dining.

In its resurgence, Chili’s has revisited this legacy, introducing updated advertising themes that evoke nostalgia while appealing to a modern audience’s tastes. Social media engagement and digital-first campaigns have allowed them to connect with younger consumers, maintaining relevance in an ever-shifting marketing landscape.

2. Menu Evolution for the Value-Seeking Consumer

While maintaining their bold flavors, Chili’s has leaned into value-based offerings, launching mix-and-match promotions, upgraded to-go meals, and limited-time deals. Recognizing that economic pressures are squeezing dining budgets, their emphasis on affordability has resonated with cost-conscious diners. Recent examples include affordable combos, tiered menu pricing, and promotions designed to encourage repeat visits or online orders.

A notable highlight of their comeback is the introduction of streamlined menus that focus on fewer, high-performing items. This reduces operational complexities and enhances the quality of every dish—both for dine-in and takeout.

Value Propositions That Deliver

Beyond taste and convenience, Chili’s comeback is anchored in its value-driven philosophy. They've met consumers where they are, offering budget-friendly meals, innovating with Heat-n-Eat options for busy households, and providing variety for groups with mix-and-match platters. Chili’s has successfully tapped into the grocerant mindset, bridging the gap between quick-service convenience and sit-down dining experiences.

Looking Forward: Sustainability and Digital Initiatives

To sustain this momentum, Chili’s is embracing new technology like AI-driven ordering, digital loyalty programs, and enhanced third-party delivery integration. Their ability to innovate within the grocerant space ensures that they stay competitive while appealing to the modern consumer’s lifestyle.

Think About This

Chili’s enduring commitment to bold flavors, convenience, and customer-first values has cemented its status as an industry innovator. Its recent revival showcases the power of staying true to core principles while adapting to a new dining landscape. By blending nostalgia with forward-thinking strategies, Chili’s is proving that it can remain a leader in Ready-2-Eat and Heat-n-Eat solutions, a standout for value-driven customers navigating a challenging economic environment.

From their iconic baby back ribs jingle to their present-day innovations, Chili’s reminds us why the right blend of food marketing and brand culture is critical for long-term success.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Dollar General Food Focused Forward

 

In periods of economic uncertainty, consumers traditionally tighten their belts, seeking affordable solutions for everyday needs according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Dollar General, long recognized as a discount retail powerhouse, is emerging as a key player in the grocery and food retailing sector—a remarkable evolution that has been decades in the making. With price-sensitive shoppers flocking to its aisles in search of value, the chain’s strategic food focus highlights a pivotal shift in consumer behavior and market dynamics.

A Historical Lens: From General Goods to Food Staples

Dollar General was founded in 1939 as a family-owned business, emphasizing discounted pricing for household essentials. Initially stocked with nonperishable items and general goods, food offerings were minimal. However, as economic turbulence began reshaping consumer spending—most notably during the Great Recession of 2008—2009—the company gradually pivoted toward food. Recognizing a growing demand for convenient and affordable groceries, Dollar General expanded its footprint to include cooler and freezer sections, along with an increasing array of shelf-stable and fresh food items.

Between 2010 and 2020, the company accelerated this focus, introducing Dollar General Market stores—a concept that combined general merchandise with a robust selection of groceries. This evolution positioned the retailer to meet consumer needs for both affordability and convenience, critical drivers for success during challenging times.

Political and Economic Instability Fuels Change

Periods of political upheaval and economic instability often result in heightened consumer caution. Historically, these conditions have driven shoppers to discount retailers like Dollar General. The uncertainties surrounding government shutdowns, inflation surges, and geopolitical conflicts exacerbate concerns about personal finances. As a result, consumers pull back from premium-priced brands and gravitate toward retailers that promise savings without sacrificing essential goods.

In the current climate, Dollar General’s food-forward strategy resonates deeply with consumers struggling with rising grocery prices. Its ability to offer grocerant niche Ready-2-Eat and Heat-n-Eat fresh food solutions meets evolving consumer preferences, particularly as many lack the time or skills to prepare meals from scratch. This trend has also been fueled by the lingering impact of the COVID-19 pandemic, which reshaped food habits across all income brackets.

Key Drivers of Market Share Growth

As Dollar General intensifies its focus on food, several factors position it to capture market share from legacy grocery chains:

1. Aggressive Store Expansion

Dollar General operates over 19,000 locations nationwide, often in rural and underserved areas where traditional grocery stores are scarce. By increasing its presence and adapting store layouts to accommodate more fresh and frozen food items, the retailer broadens its appeal to shoppers seeking one-stop convenience.

2. Private Label Success

The chain’s private-label brands, such as Clover Valley, deliver value-priced alternatives that compete directly with higher-priced national brands. These products—ranging from pantry staples to frozen entrees—drive customer loyalty and higher margins.

3. Targeted Innovation

Investments in store modernization and digital innovation, including mobile coupons and DG’s "Pickup" services, streamline the shopping experience. For food shoppers, time efficiency has become as crucial as cost savings, and Dollar General’s initiatives cater to this demand.

4. Appealing to Younger Demographics

The company’s focus on snack-sized, Ready-2-Eat products has particular resonance with younger consumers and single-person households, segments historically underrepresented in traditional grocery.

5. Holiday & Seasonal Trends

Dollar General leans heavily on seasonal promotions, offering budget-conscious solutions for everything from Thanksgiving spreads to back-to-school snacks. These tie-ins enhance relevance and cater to shoppers looking to economize without sacrificing tradition.

Looking Ahead: A Food-Focused Future

With a proven ability to adapt to shifting consumer needs, Dollar General’s food-forward approach sets it on a trajectory to outpace many traditional grocery competitors. By 2030, the retailer could expand its grocery market share to rival that of mid-tier supermarkets. Its commitment to affordability, coupled with its accessibility in underserved areas, ensures enduring relevance.

As consumers navigate uncertain economic and political landscapes, Dollar General’s blend of low prices, convenience, and expanding food offerings guarantees its place as a crucial resource. For legacy grocers, the rise of Dollar General should serve as a call to innovate, recalibrate pricing, and reevaluate distribution strategies to stay competitive. For Dollar General, the future of food is not just a pivot but a powerhouse opportunity.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 the following links: Facebook,  LinkedIn, or Twitter

Grocerant Guru Says Wingstop & OPI’s ‘Snack in :60 Challenge’ is a Brand Invitation Others Should Have Thought of First

 

Food marketing is all about relevance, timing, and creating a brand invitation that turns heads. The latest collaboration between Wingstop and OPI hits all three marks, proving once again that consumer behavior is the key to unlocking incremental sales growth according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In a world where grocerant niche Ready-2-Eat and Heat-N-Eat fresh foods continue to drive consumer migration from traditional restaurants to convenience-driven options, Wingstop’s newest partnership with OPI’s RapiDry Quick-Dry Nail Polish exemplifies a mix-and-match meal solution that extends beyond just what’s on the plate—it’s a cultural moment wrapped in indulgence, convenience, and self-expression.

Why This Collaboration is Food Marketing Gold Wingstop, known for its craveable, sauced-and-tossed wings, and OPI, a leader in nail color innovation, are tapping into a consumer truth: no one likes to wait. This collaboration is built on real-world consumer habits—today’s customers are not only looking for bold flavors, but they also want experiences that fit seamlessly into their fast-paced lives. According to food industry data, 63% of consumers decide what they’ll have for dinner after 4 PM, and nearly 50% of meals today are consumed alone. This means convenience-driven, low-friction dining solutions win every time.

Enter the Snack in :60 Challenge, where fans are invited to paint their nails with OPI’s new RapiDry Quick-Dry Nail Polish and then grab their made-to-order Wingstop wings within 60 seconds—without worrying about smudging their fresh manicure. That’s a mix-and-match meal solution beyond just food—it’s about integrating lifestyle choices into dining occasions.

Why This is a Grocerant-Style Game Changer Grocerant niche success is about bundling, relevance, and timing. This partnership checks all the right boxes:

1.       A Perfect Pairing for Young Consumers: Gen Z and Millennials, the most influential consumer groups today, thrive on social-driven experiences that combine food, self-care, and entertainment. This campaign builds on those consumer behaviors while giving brands a competitive edge.

2.       Driving Incremental Sales Through Bundling: Bundling food with an engaging lifestyle product enhances brand value. Other brands should be asking themselves: Why didn’t we think of this first?

3.       Creating a Brand Invitation: Every retailer, restaurant, and C-store needs to rethink how they engage consumers beyond just food. This partnership extends beyond traditional marketing—it's an invitation to interact with the brand in a new, exciting way.

A Lesson for Foodservice Operators & C-Stores This kind of cross-industry collaboration is something restaurants, grocery stores, and even convenience stores should be exploring. The concept of ‘meal occasions’ is shifting, and brand relevance now depends on how well companies adapt to the consumer lifestyle. From boxed meal solutions to gamified promotions that drive digital engagement, the Snack in :60 Challenge should be a wake-up call for competitors.

So, while fans get ready to take on the challenge with their exclusive OPI RapiDry x Wingstop Snack in :60 Kit—which includes two OPI RapiDry shades, a 60-second timer, and a Wingstop gift card—other brands should be strategizing their next move. Because in today’s fast-paced foodservice landscape, being late to the game means missing out on a feast of opportunity.

The Snack in :60 Kits will be available beginning Friday, January 31 at 12 p.m. ET through Wednesday, February 5 at 9 p.m. ET at Snackin60.com—but only while supplies last.

For the rest of the industry, the Grocerant Guru asks: What are you waiting for?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 the following links: Facebook,  LinkedIn, or Twitter

Walmart’s Pay and Benefits May Surprise You

 

For decades, Walmart has been both criticized and praised for its treatment of employees. However, in recent years, the retail giant has made significant strides in enhancing the compensation and benefits for its workforce, particularly for management and supervisory roles. This renewed focus is reshaping perceptions about career growth at the world’s largest retailer according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The Journey from Hourly to Management

Walmart's employees often begin as hourly workers, earning a starting wage of $18 an hour, a rate that significantly exceeds the federal minimum wage. Over time, these associates have opportunities for advancement, with many progressing to supervisory or department manager roles. Notably, Walmart promoted over 130,000 associates in fiscal year 2024, showcasing a pathway to better pay and responsibility for long-term employees.

For department managers, the journey typically takes three to five years of dedicated service. These roles include a base annual salary that can reach $65,000, depending on the store's size and region. Supervisors, another critical tier of leadership, earn competitive wages and enjoy benefits such as quarterly bonuses.

Store Managers: High Pay, High Responsibility

Store manager positions have always been aspirational within Walmart’s career structure. In 2024, Walmart raised the annual base salary for store managers to between $90,000 and $170,000, with the average now reaching $128,000. This represents a dramatic increase from previous years when starting pay for managers was as low as $65,000.

Beyond base pay, store managers now receive an annual stock grant that can reach $20,000, emphasizing Walmart's focus on long-term wealth-building for its leaders. Bonuses tied to performance metrics further enhance earning potential. For an employee climbing the ranks, this represents a remarkable transformation from entry-level work to six-figure compensation.

Market Managers: Earning CEO-Level Salaries

Taking managerial success to new heights, Walmart’s market managers—responsible for overseeing multiple locations—can now earn between $420,000 and $620,000 annually when factoring in bonuses. Base pay for this role starts at $160,000 and can rise to $260,000, accompanied by stock grants and bonuses of up to 100% of their base salary.

The timeline to ascend to market manager is approximately 15-20 years, showcasing Walmart’s commitment to rewarding experience and leadership within its ranks. This role underscores the competitive nature of management opportunities at Walmart compared to other retail employers.

Competitive Benefits and Promotions

Beyond pay, Walmart has introduced initiatives to attract and retain top talent. Hourly workers are now eligible for an annual bonus of up to $1,000, and stock purchase programs encourage long-term financial security. These enhancements coincide with healthcare benefit changes, though critics have noted higher deductibles in some plans.

In contrast to unionized retailers like Kroger, which face frequent pay-related conflicts, Walmart has managed to sidestep labor disputes by offering structured, transparent compensation plans. This proactive approach to employee satisfaction highlights Walmart’s desire to remain competitive in the retail landscape.

Historical Perspective: A Long Road to Change

Historically, Walmart faced scrutiny for low wages and minimal benefits. However, the tide began to turn in the mid-2010s when public pressure and competitive threats from retailers like Amazon prompted significant investments in worker compensation. Since then, Walmart has outpaced many industry peers, including Hobby Lobby and Target, in pay structure and promotional opportunities.

Think About This: A Career Worth Considering

Walmart’s career progression for hourly workers to store and market managers demonstrates a remarkable journey fueled by pay increases and performance incentives. While challenges such as healthcare costs remain, Walmart’s commitment to employee development is clear.

For workers willing to put in the time and effort, a career at Walmart can culminate in earnings and benefits that rival executive roles in other industries. Far from the stereotypes of retail work, Walmart’s initiatives may indeed surprise those exploring its employment opportunities.

For international corporate presentations, regional chain 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 GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869