Dollar General Consumers Fresh Food Alternative Advantage over Legacy Grocers

 

In an era where legacy grocery stores struggle to maintain consumer relevance, Dollar General has rapidly emerged as a competitive force in the fresh food market according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The discount retailer, known for its convenience and affordability, now operates over 19,000 branded stores across the United States, more than any traditional grocery chain. With its continued expansion and commitment to fresh food accessibility, Dollar General is positioning itself as a formidable alternative to conventional grocers.

The Rise of Dollar General’s Fresh Food Expansion

Dollar General’s investment in fresh food is exemplified by the recent opening of a state-of-the-art distribution center in North Little Rock, Arkansas. The $160 million facility spans approximately 1 million square feet and is designed to support the company’s DG Fresh network, which specializes in distributing perishable products. This strategic move allows Dollar General to streamline its fresh food supply chain, ensuring that consumers in rural and underserved areas have access to affordable, quality groceries.

Beyond supply chain enhancements, Dollar General has also deepened its community engagement. The company’s donation of $20,000 to the Arkansas Food Bank underscores its commitment to addressing food insecurity. Over time, Dollar General’s contributions in the area have equated to over 300,000 meals, reinforcing its mission of "Serving Others."

Five Key Advantages of Dollar General over Legacy Grocers

1.       Unmatched Store Presence – With over 19,000 locations, Dollar General surpasses all grocery chains in terms of physical stores. This expansive footprint allows for greater convenience, particularly in rural and suburban communities where traditional grocery stores are scarce.

2.       Affordability – Dollar General offers budget-conscious consumers an opportunity to purchase essential grocery items at lower prices compared to traditional supermarkets. The company's emphasis on private-label brands also provides cost-effective alternatives.

3.       Convenience and Speed – Shoppers can quickly access essentials without navigating massive supermarket aisles. This streamlined shopping experience is increasingly attractive to consumers seeking efficiency in their grocery trips.

4.       Expansion into Fresh and Perishables – With the implementation of the DG Fresh network, Dollar General is rapidly increasing its offerings of fresh produce, dairy, and meat, making healthy food options more accessible.

5.       Community Investment and Philanthropy – By supporting food banks and creating jobs through new distribution centers, Dollar General strengthens its community ties, enhancing customer loyalty.

Legacy Grocery Stores: Struggling to Keep Up

While Dollar General gains traction, legacy grocery chains face growing challenges that hinder their ability to compete effectively:

1.       Declining Consumer Relevance – Many traditional supermarkets have failed to adapt to changing consumer preferences, leading to reduced foot traffic and declining sales.

2.       Higher Prices – Due to operational costs, supply chain inefficiencies, and reliance on name-brand products, legacy grocers often struggle to match Dollar General’s competitive pricing.

3.       Limited Store Expansion – Unlike Dollar General’s aggressive growth strategy, most legacy grocers focus on urban and suburban areas, leaving rural communities underserved.

4.       Cumbersome Shopping Experiences – Large-format grocery stores require more time for shopping, making them less appealing for quick trips compared to Dollar General’s compact and efficient layout.

5.       Supply Chain Challenges – Traditional grocery chains often rely on third-party distributors, leading to higher costs and logistical inefficiencies. In contrast, Dollar General’s DG Fresh initiative provides greater control over perishable inventory.

Think About This

Dollar General’s aggressive expansion, affordability, and commitment to fresh food accessibility position it as a dominant player in the grocery market. As legacy grocery stores struggle with declining consumer relevance, Dollar General continues to capitalize on its strengths, offering an increasingly viable fresh food alternative. With its expanding footprint and innovative supply chain solutions, Dollar General is not just competing with traditional grocers—it is redefining the grocery shopping experience for millions of Americans.

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Why should foodservice retailers think about Google? The answer is simple: Millennials and Gen Z engage with their smartphones more than they do with actual humans. A recent study found that 39% of people interact more with a smartphone than with their loved ones, friends, or coworkers. Smartphones are handheld marketing powerhouses, and every brand must have a handheld marketing toolkit to stay competitive.

The Grocerant Guru® at Foodservice Solutions® identified, quantified, and named the Grocerant Niche—focused on Ready-2-Eat and Heat-N-Eat fresh prepared food. This rapidly growing sector continues to attract customers across all retail foodservice segments. However, marketing to this evolving customer base has become more complex than ever.

The Power of Handheld Marketing

We live in an era where digital immediacy defines consumer behavior. One-on-one marketing has transformed into real-time engagement. Consider this: 51% of all mobile searches on Google are for restaurants. When consumers search on Google, they’re ready to buy. If your business isn’t visible, you’re missing out on sales opportunities.

Moreover, The NPD Group reports that 79% of all restaurant meals are sold at fast food outlets. Grocery delis, convenience stores, and restaurants must integrate handheld marketing strategies to stay connected with their customers.

7 Reasons Food Retailers Need the Grocerant Guru®

1.       Mastering Handheld Marketing – We help you create a seamless, engaging mobile marketing strategy that reaches customers in real-time.

2.       Enhancing Brand Relevance – Stay ahead of shifting consumer preferences with insights that ensure your brand remains modern and compelling.

3.       Optimizing Google Search Presence – With 51% of searches focused on food, we position your brand to be discovered and clicked on.

4.       Driving Higher Sales – Our expertise in the Grocerant Niche fuels strategies that increase revenue through consumer-driven meal solutions.

5.       Innovating with Omni-Channel Marketing – From social media to digital ordering platforms, we build a dynamic conduit that integrates all marketing channels.

6.       Tapping into Convenience Trends – We leverage the latest data on Ready-2-Eat and Heat-N-Eat meals to ensure your offerings meet consumer demand.

7.       Future-Proofing Your Business – By continuously Looking A Customer Ahead™, we prepare your brand for long-term success in a rapidly evolving market.

The information superhighway is now handheld, and the Grocerant Guru® has been leading the charge since 1991. If you’re ready to edify your brand and drive consumer engagement through the 5P’s of Food Marketing, reach out to us today.

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7-Eleven’s Big Bite is Still Driving Success

 

When it comes to leveraging branded food items, few companies do it as effectively as 7-Eleven. According to the team at Tacoma, WA-based Foodservice Solutions®, 7-Eleven has managed to maintain its position as a convenience store leader by continuously innovating around its branded food offerings. One of the earliest trends identified by Foodservice Solutions® Grocerant Guru®, Steven Johnson, was the decline of the roller grill as a mainstay of convenience stores. However, 7-Eleven’s Big Bite hot dog has managed to stand the test of time, largely because of its branding.

Fast, affordable, and always hot, the Big Bite has remained a key driver of 7-Eleven's foodservice success. But with changing consumer habits—especially as millennials increasingly gravitate toward fresh, fast, and flavorful foods, and Gen Z demands even quicker access to fresh options—will the Big Bite continue to be the hook that it once was? In an age where you can have almost anything delivered to your door within the hour, either by Amazon or a ride-sharing service, is the traditional convenience store still relevant?

Joe DePinto, CEO of 7-Eleven, spoke candidly about the fast-evolving landscape of convenience retailing. “The landscape is changing so fast. Yes, there’s Amazon and there’s GrubHub... It’s all about immediate consumption,” DePinto remarked. “We have to be prepared and ready in ways that our customers want. And the last four or five years, we’ve had our heads down, grinding it out. And we’re doing a lot of things right.”

So, does the Big Bite represent the convenience store of the past or one that will thrive in the future? As consumer focus increasingly shifts to healthier options and ‘better-for-you’ foods, it’s likely that 7-Eleven will soon rebrand the Big Bite and offer a healthier version that caters to these evolving preferences. This could involve options such as lower-fat or plant-based alternatives, giving the classic Big Bite a modern, health-conscious twist.

In line with staying relevant to today’s consumers, Foodservice Solutions® suggested the use of digital menu boards, and 7-Eleven has begun to implement these at select locations. This is an important step toward maintaining relevance in a landscape where convenience store food offerings are rapidly evolving. Jeff Lenard, vice president of the National Association of Convenience Stores, puts it simply: “7-Eleven is still the face of the industry.” However, that face must adapt to reflect the changing consumer expectations for fresher, healthier, and more customizable food options.

Historically, one of the cornerstones of 7-Eleven’s branded food offerings has been the Slurpee, which has also evolved to meet consumer demand for ‘better-for-you’ options. Today, Slurpee’s come in low-calorie and no-calorie variations, catering to those seeking a lighter, more health-conscious treat. However, the roller grill, while still cranking out Big Bite hot dogs, can seem like a relic of a past era, a symbol of convenience stores' older model of foodservice.

Today’s retailers—such as Sheetz, Rutter’s, Wawa, and even Safeway—have eliminated the roller grill, opting instead to allow consumers to customize their meals, which are prepared fresh. This shift in the market is particularly appealing to Gen Z and millennials, who now see convenience stores as a place to grab a high-quality, fresh meal—like a customized sandwich—on the go. Meanwhile, Baby Boomers may still associate convenience stores with the nostalgia of roller grills, old-school hot dogs, and sandwiches that have seen better days.

7-Eleven has started to evolve, offering fresh fruit, salads, sandwiches, and other healthier options in some of its locations, including at its new headquarters. However, convincing franchisees to abandon the roller grill tradition and move toward more fresh, prepared meals has proven to be a challenge. Joe DePinto acknowledges that “healthy” and “cheap” are not terms often associated with convenience stores. Yet, 7-Eleven is working hard to change that perception. The company reports that today, more than 50% of 7-Eleven stores worldwide no longer offer gasoline. This change is part of 7-Eleven’s broader effort to diversify and rebrand itself as a destination for fresh, affordable meals that cater to the growing demand for healthier food options.

As convenience stores evolve, it’s clear that fresh, fast food that is ‘better for you’ and affordably priced will be 7-Eleven’s key differentiator in the coming years. This evolution represents an exciting opportunity for the convenience store industry as a whole, and 7-Eleven in particular, to redefine what it means to be a modern, relevant retailer.

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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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Building Brand Loyalty through Celebrating Regional, Seasonal, and Recurring Festivals and Events

 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes, in an increasingly competitive market, convenience stores and restaurants need to stand out to foster brand loyalty. One highly effective strategy is to celebrate regional, seasonal, and recurring festivals and events. This not only attracts customers but also enhances community relations and drives incremental sales. Historically, the role of festivals in society has been profound, often marking the rhythms of agricultural life, religious observances, and local traditions.

Embracing Regional and Seasonal Events Convenience store and restaurant owners can take inspiration from the grocery industry, where leveraging smaller holidays or "micro-holidays" has been a successful tactic. For instance, Halloween, which dates back to the Celtic festival of Samhain over 2,000 years ago, is now a key marketing period for many retailers. Sally Lyons Wyatt of Circana notes that micro-holidays offer retailers opportunities to surprise and delight customers, leading to bigger shopper baskets and enhanced community engagement.

The history of the grocery industry itself includes key milestones such as the opening of the first Piggly Wiggly store in Memphis, Tennessee, in 1916, which introduced the self-service grocery model.

Micro-Holiday Celebrations Micro-holidays are perfect for retailers looking to create special moments for their customers. Social media has amplified the importance of these celebrations, as customers seek unique items to share online. Dana Rodio from Nassau Candy highlights that micro-holidays can benefit the entire store, driving sales beyond the usual high-traffic perimeter areas.

Promoting Authentic Regional Events To effectively promote regional events, retailers should tap into their community’s unique celebrations. For instance, Mardi Gras, originating from medieval Europe and brought to America by French settlers in the late 17th century, has gained national recognition and offers opportunities for themed promotions. Multicultural aspects of the country also present chances to celebrate a variety of Hispanic and other cultural holidays, appealing to a diverse consumer base.

Creative Merchandising Ideas A great example is the use of imported products, like Brioche Gourmet breads for Bastille Day. Bastille Day, which commemorates the storming of the Bastille on July 14, 1789, during the French Revolution, can inspire retailers to create "French Market" cross-merchandising displays. Pairing brioche with imported French cheeses, pâtés, and charcuterie encourages Parisian-inspired shopping experiences. Collaborating with wine category managers to highlight French wines as accompaniments can also boost sales.

Social Media and Community Engagement Engaging customers through social media challenges, like a “Bastille Day at Home” photo competition, can generate excitement and encourage brand loyalty. Offering limited-time discounts on themed products can further drive basket-building and repeat purchases.

Regional Event Marketing

Drives Growth Helping Build A

Larger Share of Stomach

Examples of Regional and Seasonal US Domestic Events Here are some regional and seasonal events that convenience stores and restaurants can leverage:

·         Big Game (February): Highlight snacks and beverages for the Super Bowl.

·         Opening Day for Baseball (April): Feature baseball-themed snacks and merchandise.

·         Pi Day (March 14): Promote bakery items like pies and related discounts. (Fun fact: The U.S. Congress recognized Pi Day in 2009.)

·         St. Patrick’s Day (March 17): Offer themed candies, Guinness-flavored products, and more. (Celebrated since the 9th or 10th century in Ireland.)

·         Fourth of July: Emphasize patriotic-themed food and beverages.

·         Thanksgiving: Highlight seasonal ingredients and ready-made meal options. (Declared a national holiday by Abraham Lincoln in 1863.)

·         Earth Day (April 22): Showcase eco-friendly products and sustainable practices. (First celebrated in 1970.)

·         Local Cultural Festivals: Participate in events like regional fairs, food festivals, and parades.

Think About This: By creatively celebrating regional, seasonal, and recurring festivals and events, convenience stores and restaurants can build strong brand loyalty. Authenticity, community engagement, and strategic promotions are key to leveraging these opportunities for increased sales and customer satisfaction. Through thoughtful execution and embracing the spirit of celebration, retailers can create memorable experiences that resonate with their customers.

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McDonald's Breakfast Competitive Innovation as Fast-Food Breakfast Wars Heat Up

 

In 1975, McDonald's sparked a breakfast revolution with the nationwide debut of the Egg McMuffin. Whether it was the melty cheese, the freshly cracked egg (now sourced 100% cage-free in the U.S.), or the perfectly toasted and buttered English Muffin, this simple yet delicious sandwich struck a chord with America—ultimately inspiring a whole new way to enjoy the most important meal of the day.

Fifty years later, as competition in the fast-food breakfast category reaches an all-time high, McDonald’s remains a leader in quality, consistency, and customer experience. In an industry where convenience, affordability, and innovation drive consumer choices, McDonald’s breakfast has stood the test of time—earning the continued endorsement of the Grocerant Guru® himself, who praises the brand for its service, mix-and-match meal bundling, and enduring commitment to excellence.

A Breakfast Legacy That Stands the Test of Time The fast-food breakfast landscape has evolved dramatically since McDonald's first changed the game. Competitors now aggressively market new morning menu items, limited-time promotions, and innovative digital deals to capture a growing audience of breakfast diners. With fast-food breakfast sales accounting for nearly 30% of industry revenue and a projected market value exceeding $65 billion in the U.S., brands are investing heavily in morning meal strategies. Yet, despite increasing pressure from rivals, McDonald’s continues to thrive, maintaining its reputation as the go-to choice for millions of breakfast lovers nationwide.

Celebrating 50 Years of Breakfast with Exclusive Deals To honor this golden anniversary, the Golden Arches are doubling down on breakfast—offering fans even more reasons to wake up with McDonald’s and enjoy unbeatable savings:

·         Celebrate National Egg McMuffin Day: History makers deserve their own holiday. On Sunday, March 2, customers can grab an Egg McMuffin or Sausage McMuffin with Egg for just $1, exclusively through the McDonald’s App.*

·         Double Up with McDelivery: What’s better than one McMuffin sandwich? Two! From March 3 through March 30, fans can enjoy a BOGO (Buy One, Get One) Sausage McMuffin with Egg when making a McDelivery order in the McDonald’s App.**

·         Bagel Sandwiches Now Nationwide: For the first time ever, McDonald’s beloved bagel sandwiches are available across the U.S. Fans can now enjoy classics like the Bacon, Egg & Cheese or the iconic Steak, Egg & Cheese, no matter where they are.

·         Krispy Kreme Lands in the Big Apple: Nothing pairs better with a McCafé coffee than a fresh Krispy Kreme doughnut. Starting today, New Yorkers can enjoy this perfect pairing at participating McDonald’s locations—joining customers in Chicago, Cleveland, Indianapolis, Pittsburgh, and Louisville. By the end of 2024, over half of all McDonald’s U.S. restaurants will offer Krispy Kreme, with nationwide availability expected by 2026.

Fans can also find everyday value on McDonald's breakfast menu through the McValue offerings and exclusive app deals, making mornings more delicious and affordable than ever.

A Heritage of Innovation: The Egg McMuffin’s Lasting Impact The legend of the Egg McMuffin began in 1971 with the vision of a single franchisee, Herb Peterson, in Santa Barbara, California. Inspired by Eggs Benedict, Peterson wanted to create a handheld version of the diner classic. When he presented the concept to McDonald’s visionary Ray Kroc, neither could have anticipated that this simple sandwich would revolutionize breakfast-on-the-go forever.

“When I watched my father introduce this idea to Ray Kroc, we never imagined it would become the foundation of McDonald’s breakfast menu,” said Peterson’s son and McDonald’s Owner/Operator, David Peterson. “It’s been incredible to see how this innovation has endured over five decades, and we’re excited to share that heritage with a new generation of breakfast fans.”

Why McDonald’s Breakfast Stands Apart In an increasingly crowded fast-food breakfast market, McDonald’s continues to differentiate itself with quality ingredients, consistent service, and unbeatable convenience. From its fluffy hotcakes and crispy hash browns to the sweet and savory McGriddles, McDonald’s breakfast isn’t just a meal—it’s a cherished tradition.

“At McDonald’s, breakfast is more than just another menu offering; it’s part of our DNA,” said McDonald’s USA President Joe Erlinger. “Every morning, we open our doors as a breakfast restaurant first. Whether it’s my personal favorite, the Egg McMuffin, or any of our other beloved morning options, we are committed to providing our customers with the best start to their day.”

With a national campaign rolling out to celebrate breakfast all year long, McDonald’s invites fans to join the festivities and keep the tradition alive. So set those alarms, because at McDonald’s, Breakfast Comes First!

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