Tuesday, January 14, 2025

DoorDash Pioneers Non-Traditional Food Distribution: A Grocerant Guru® Perspective

 




The evolution of food distribution continues to challenge legacy grocery stores. DoorDash, the delivery platform originally known for restaurant meal delivery, has rapidly expanded into diverse product categories successfully according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Johnson asks, do your new food marketing ideations look more like yesterday than tomorrow?

Now, with products like cannabis-infused gummies, drinks, and candy joining its marketplace, the platform is positioning itself as a disruptor in non-traditional food retail. The Grocerant Guru® believes DoorDash’s willingness to explore unconventional products will erode the margins of legacy grocery stores.

Here’s how DoorDash is succeeding and why legacy grocers should take note.


Expanding Product Categories: The Cannabis Market Opportunity

DoorDash’s recent move into selling cannabis-infused products is emblematic of its bold strategy to embrace what legacy grocery chains typically avoid due to regulatory hurdles, image concerns, or operational complexities. The cannabis market is estimated to reach $57 billion globally by 2027, with edibles and beverages accounting for nearly 50% of sales. DoorDash is tapping into this lucrative category to meet shifting consumer preferences for wellness-oriented indulgence.

Legacy grocery stores often shy away from cannabis products due to challenges in licensing and potential brand image issues. In contrast, DoorDash’s nimble marketplace model allows it to partner with specialty retailers, bypassing the logistical hurdles faced by brick-and-mortar grocers. This agility gives DoorDash access to new customer demographics seeking cutting-edge product offerings.

 


Meeting the Demand for Convenience

According to food industry studies, 67% of consumers decide what to eat less than four hours before mealtime. Consumers prioritize convenience and time-saving solutions, making platforms like DoorDash indispensable in their decision-making processes. Beyond convenience, the addition of niche products like cannabis-infused gummies provides DoorDash with a unique selling proposition—consumers can now bundle restaurant meals with grocery items, snacks, and unconventional products in one transaction.

This innovation resonates deeply with younger consumers, particularly Millennials and Gen Z, who demand seamless access to curated goods that reflect their lifestyle choices. These generations value experiences over traditional shopping habits, gravitating towards platforms that combine entertainment, novelty, and convenience.

 


Eroding Grocery Store Margins

Legacy grocery chains operate on razor-thin margins—averaging 1-3% in profitability. Their reluctance to innovate and adopt high-demand, high-margin niche products leaves significant opportunities for non-traditional distributors.

DoorDash is leveraging its digital-first platform to exploit these weaknesses. It offers products unavailable in traditional grocery stores, driving incremental revenue while enhancing customer adoption rates. Consumers may initially turn to DoorDash for cannabis edibles but are likely to explore its other offerings, from fresh produce to restaurant meals. This creates a cascading effect where DoorDash becomes a go-to resource, further weakening the relevance of brick-and-mortar grocers.

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The Grocerant Guru's Take

From the perspective of the Grocerant Guru®, DoorDash’s strategy underscores three core principles of incremental success in non-traditional food distribution:

1.       Target Unmet Consumer Needs: DoorDash identifies and prioritizes underrepresented product categories—like cannabis-infused products—that resonate with emerging consumer demands.

2.       Leverage Partnerships Over Infrastructure: Unlike legacy grocery stores, which must integrate new products into their physical shelves, DoorDash relies on flexible partnerships with retailers to quickly test and deploy offerings.

3.       Emphasize Mix-and-Match Convenience: Bundling cannabis edibles, beverages, restaurant meals, and snacks simplifies decision-making for consumers, enhancing its value proposition.

DoorDash will continue to "eat away" at legacy grocery store margins as its innovation outpaces traditional retailers’ ability to adapt. With the cannabis category alone poised to redefine profitability benchmarks in food retail, DoorDash exemplifies how agility in product offerings leads to long-term dominance.

 


Implications for Legacy Grocery Stores

To remain competitive, traditional grocers must reconsider their aversion to high-margin, non-traditional product categories. Expanding into cannabis-infused goods, leveraging e-commerce for unique product bundling, and fostering digital partnerships can help grocers recapture lost market share.

However, without immediate action, the Grocerant Guru® predicts a seismic shift where DoorDash and other digital-first platforms not only exploit emerging trends but reshape the food distribution landscape, leaving legacy retailers struggling to maintain relevance.

The Takeaway: DoorDash’s ability to embrace unconventional opportunities underscores the evolving needs of today’s consumers. As it continues to innovate, legacy grocers must look beyond their comfort zones—or risk obsolescence

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 participationdifferentiation 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



Monday, January 13, 2025

The Grocerant Guru®: TikTok’s Marketing Power and the Way Forward

 


As the Supreme Court prepares to hear arguments about the potential U.S. ban on TikTok, the food retail and restaurant industries face critical questions about their future advertising strategies. TikTok has proven itself as a dominant force in the digital marketing ecosystem, delivering unparalleled engagement and influencing consumer behavior according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Here is a closer examination of its role and alternatives is essential for brands planning their next steps.

TikTok: A Marketing Titan for Food Brands

With 31% of U.S. adult consumers using TikTok, the platform ranks as the fifth-most-popular social media app. Its impact is even more pronounced among Gen Z, where 76% of the demographic actively engages on the platform. From a marketing perspective, these numbers are gold. Why? Gen Z represents not just todays but tomorrow’s core consumer base, shaping trends and demanding authenticity from brands.


Consider these marketing insights:

·         Highly Engaged Audience: TikTok users are 51% more likely to cite social media as their top advertising touchpoint, signaling a deep connection with the platform’s content.

·         Influence of Creators: Nearly double the users follow influencers, a crucial channel for food brands to build trust and drive purchases.

·         Mobile-Centric Behavior: With 41% of TikTok users spending over six hours daily on mobile devices, brands have unparalleled opportunities to meet consumers where they are.

For food and restaurant marketers, TikTok’s ability to showcase visually stunning, Ready-2-Eat, or Heat-n-Eat fresh meals makes it a natural fit. From viral food challenges to daypart promotions, the platform’s interactive features enable brands to cultivate emotional connections and loyalty among younger audiences.

The Age Factor: Why Gen Z and Millennials Matter

Gen Z and millennials form a combined powerhouse of purchasing potential. Their preferences for authentic, diverse, and experience-driven offerings align perfectly with TikTok’s ecosystem. For instance, the growing popularity of global flavors and plant-based meals is amplified by TikTok creators. These younger consumers not only dictate trends but also introduce older generations to innovative products through peer influence.

With TikTok’s future uncertain, the big question remains: How can brands maintain their momentum and capture these valuable audiences if the platform vanishes?


Five Strategic Alternatives for Food and Retail Brands

1.       Instagram and Facebook:

o    Both platforms offer robust advertising tools and significant overlap with TikTok’s user base. Instagram’s Reels mimic TikTok’s short-form video format, making it an ideal channel for visual storytelling. According to Numerator, 44% of TikTok users plan to shift to Instagram, making it a priority for continuity.

2.       YouTube Shorts:

o    With 40% of TikTok users eyeing YouTube as their next destination, YouTube Shorts offers an excellent opportunity. Food brands can leverage its long-form content history for recipes, cooking tips, and storytelling while maintaining snackable video options.

3.       Pinterest:

o    As the fourth-most-popular platform, Pinterest provides a creative hub for meal inspiration and Ready-2-Eat solutions. With its focus on planning, brands can effectively position meal kits and bundled grocery options to attract family and convenience-focused consumers.

4.       Third-Party Food Delivery Apps:

o    Numerator reports that TikTok users are three times more likely to use DoorDash and 2.5 times more likely to order through Uber Eats. Expanding ad spend and in-app promotions on these platforms can capture TikTok’s lost audience and translate engagement into direct orders.


5.       Emerging Niche Platforms:

o    Platforms like Temu and other short-video apps are gaining traction among low-income and younger demographics. Exploring these spaces early can position brands as leaders in new digital territories.

Fresh Food Facts for Brand Success

Consumers are increasingly gravitating towards Ready-2-Eat and Heat-n-Eat solutions due to time constraints and a lack of cooking skills. Here’s how brands can pivot successfully:

·         Promote meal component bundling with visually appealing content.

·         Highlight family-friendly, diverse offerings that align with consumer values.

·         Lean into influencers who resonate with authenticity and convenience themes.

As a key insight, Numerator’s data emphasizes TikTok users' affinity for third-party delivery services, making it essential for brands to optimize these partnerships. With 47% of users considering Facebook as their fallback, marketers should craft strategies that seamlessly bridge TikTok’s creative energy with platforms more rooted in transactional advertising.



The Path Ahead

Whether the Supreme Court’s decision reshapes the digital landscape or leaves it intact, food marketers must remain agile. TikTok has set a high bar for engagement, and its potential loss forces the industry to rethink how to capture Gen Z and millennial attention effectively. By prioritizing platforms where these demographics migrate and emphasizing fresh, ready-to-consume offerings, the industry can thrive even in the face of disruption.

From the perspective of the Grocerant Guru®, the focus must remain on delivering convenience, relevance, and emotional connection—ingredients that ensure lasting consumer loyalty in a shifting digital world.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.



Sunday, January 12, 2025

Casey’s General Stores Strengthens Consumer Bonds with ‘Darn Good Coffee’ Launch

 



In a bold move to deepen its relationship with consumers and elevate its position within the convenience store sector, Casey’s General Stores, Inc. has introduced eight new blends in its innovative “Darn Good Coffee” lineup. With this launch, Casey’s is poised to redefine how consumers view coffee offerings from convenience stores, leaning into decades of consumer adoption trends and the vital role coffee plays in driving incremental food sales within the C-store space according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

A Legacy of Coffee at Convenience Stores

The history of coffee consumption at convenience stores underscores its profound connection to consumer habits and purchasing behavior. In the 1970s and 1980s, convenience stores began offering coffee as an essential on-the-go beverage. By the 1990s, C-stores solidified their role as coffee hubs for millions of Americans, delivering a quick and affordable caffeine fix that seamlessly complemented breakfast or snack purchases. Today, more than 50% of all convenience store shoppers buy coffee, with nearly two-thirds pairing it with food items such as pastries, breakfast sandwiches, or snacks. Coffee sales have long been a catalyst for driving basket size and fostering consumer loyalty—and Casey’s knows it.

“Coffee has always been more than just a beverage—it’s an invitation to linger, to pair, and to enjoy. By enhancing its coffee offering, Casey’s isn’t just filling cups; it’s filling baskets,” said the Grocerant Guru®.

Celebrating Darn Good Coffee with Free Brews

To celebrate this milestone, Casey’s Rewards members are invited to enjoy a free any-size coffee through January 28, with one free coffee per transaction. This promotion not only underscores the brand’s commitment to quality but also serves as an opportunity for customers to explore the elevated coffee experience Casey’s is delivering. By investing in freshly ground and brewed-on-demand coffee, Casey’s is meeting and exceeding consumer expectations of quality—proving that coffee at a convenience store can indeed rival other premium offerings.


The Coffee Lineup: Tailored to Every Palate

Casey’s new “Darn Good Coffee” lineup, made from high-quality beans, features blends for every type of coffee lover:

·         Casey's Country House Blend: Approachable, well-rounded, and always smooth.

·         100% Colombian: A bright and rich aroma with a well-balanced flavor.

·         French Roast: Full-bodied dark roast with a satisfying depth.

·         Rooster's Call High Caffeine: A bold burst of energy with a dark, satisfying finish.

·         Salted Caramel Toffee: Buttery toffee meets creamy caramel with hints of salt.

·         Light Roast: Crisp and balanced for early risers and night owls.

·         Decaf: A lighter roast with none of the caffeine, perfect for all times of day.

·         Toasted Pecan (Limited Time): A rich and nutty flavor profile with smooth balance.

All blends can be customized with complimentary creamers, sweeteners, and condiments, reinforcing Casey’s as a consumer-centric destination.


Deepening the Coffee and Food Connection

Historically, convenience stores that elevate their coffee programs see a direct correlation in increased food sales. From breakfast sandwiches to sweet treats, consumers are more likely to add food items when they perceive the coffee experience as premium. For Casey’s, this launch not only satisfies current coffee fans but also invites new guests to explore the full breadth of its culinary offerings, including its acclaimed pizza and breakfast options.

Casey’s has cracked the code: a quality cup of coffee isn’t just an end in itself—it’s the key to unlocking deeper consumer engagement and higher check averages,” added the Grocerant Guru. “By aligning coffee excellence with its food offerings, Casey’s is strengthening the all-important relationship between their brand and their customers.”


Casey’s Continued Commitment to Innovation

With over 50 years of history and more than 2,600 locations across 17 states, Casey’s has consistently demonstrated its ability to adapt to consumer demands and set industry trends. As the third-largest convenience store chain in the United States and the fifth-largest pizza retailer, this latest initiative firmly positions Casey’s as a leader in redefining the convenience store experience.

For coffee enthusiasts and convenience store patrons alike, Casey’s Darn Good Coffee is more than just a beverage—it’s an invitation to explore, enjoy, and embrace the evolving world of modern convenience. Don’t miss the chance to try it for free before January 28. The Grocerant Guru® guarantees you’ll leave with more than just a smile.

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 participationdifferentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us



Saturday, January 11, 2025

KFC Invigorating the Grocerant Niche with $5 Bowls Featuring Nashville Hot Favorites

 


In a move that rekindles its innovative roots in the Ready-2-Eat fresh prepared food sector, KFC has announced a fresh new lineup of $5 flavor-packed bowls, that according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Once a trailblazer in the grocerant space, KFC redefined how consumers approached convenient meal solutions with its iconic bucket of chicken—and later, the Famous Bowl. Now, they aim to reignite their position as an industry leader by offering five bold and hearty bowls, each combining their signature flavors and consumer value for just $5.

This initiative brings the anticipated return of their crowd-pleasing Nashville Hot Sauce and introduces inventive new dishes that are sure to capture the imagination of on-the-go diners looking for convenience without compromise. Here's what’s on the menu:

·         NEW Nashville Hot Loaded Fries Bowl – A flavor-packed combination of crispy fries, coleslaw, pickles, and five Original Recipe® Nuggets drizzled with Nashville Hot Sauce, offering an unexpected explosion of taste.

·         Nashville Hot Mac & Cheese Bowl – A tantalizing twist blending creamy mac & cheese, a three-cheese medley, five Original Recipe® Nuggets, and a kick of Nashville Hot Sauce.

·         Nashville Hot Famous Bowl – Layers of comfort, including mashed potatoes, gravy, corn, a three-cheese blend, five Original Recipe® Nuggets, and their signature spicy sauce.

·         Mac & Cheese Bowl – An iconic favorite featuring creamy mac & cheese topped with five Original Recipe® Nuggets and melted three-cheese blend.

·         Famous Bowl – A long-standing KFC hallmark, delivering the perfect mix of mashed potatoes, gravy, corn, three-cheese blend, and nuggets.


The Historical Trail of KFC’s Grocerant Success

In the 1960s and ’70s, KFC not only brought fried chicken to the masses but also pioneered the idea of restaurant-branded Ready-2-Eat meals. Families found comfort in the convenience of bringing a bucket of chicken—a complete meal—home, bypassing the need for preparation or cleanup. The Famous Bowl, introduced in the mid-2000s, signified a bold step in appealing to the grocerant mindset: bundling comfort, quality, and convenience in a single dish. It resonated with busy customers seeking fresh, satisfying, and accessible meal solutions.

However, as competition stiffened, KFC’s focus on consumer-driven innovation waned, allowing competitors to step into the grocerant niche with Ready-2-Eat and Heat-n-Eat solutions that captured market share. This new bowl lineup, priced to attract today’s price-sensitive customer, signals KFC’s intention to reclaim its rightful place in the fresh prepared food market.

A Consumer-First Focus: The Key to Regaining Industry Leadership

KFC’s $5 bowls illustrate a commitment to delivering value-packed meal solutions that resonate with today’s consumer. With 61% of consumers deciding what to have for dinner at 4 PM or later, KFC’s fresh, hearty, and portable offerings meet a critical need for quick decision-making. By reviving Nashville Hot Sauce—a proven fan favorite—and debuting flavor-forward innovations like Korean BBQ bowls, KFC is blending nostalgia with novelty to engage new and returning customers alike.


The Path Forward: KFC’s Chance to Reclaim the Grocerant Throne

The road to resurgence lies in staying laser-focused on the consumer. By consistently introducing high-quality Ready-2-Eat options that highlight their core strengths—bold flavors, comforting ingredients, and convenience—KFC has the opportunity to regain the innovative edge it once held. As grocerants continue to evolve to meet the demands of busy, flavor-driven diners, KFC’s proactive reinvention of its offerings exemplifies how legacy brands can remain relevant in a highly competitive market.

For those seeking a hearty, flavorful solution to their post-holiday cravings, KFC’s $5 bowls are available nationwide through KFC.com and the KFC app. With every bowl, KFC takes a step closer to reestablishing itself as the undisputed leader in the grocerant niche.

Will KFC fully reclaim its crown? If they keep listening to their customers and adapting to evolving tastes, there’s every reason to believe they will.

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



Friday, January 10, 2025

Food Price Wars and Service in Focus: EG America Introduces $3 Meal Deal

 


Throughout history, price wars have shaped consumer decision-making in the competitive foodservice landscape according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

However, price alone seldom guarantees success; service, convenience, and quality frequently emerge as decisive factors. In this context, EG America’s introduction of its $3 Meal Deal signals a strategic bid to solidify its position amid intensifying competition between convenience stores (C-stores) and quick-service restaurants (QSRs).

EG America’s promotion, launching on Jan. 8 at participating Cumberland Farms and Fastrac locations, offers breakfast enthusiasts a sausage, egg, and cheese croissant sandwich paired with a choice of any size coffee (hot or iced) for just $3. Customers can enhance their meal with a hashbrown for an additional $1. This value proposition underscores the historical tendency of C-stores to evolve by blending cost-conscious offerings with an emphasis on fast, efficient service.



A Historical Perspective on Price Wars in Foodservice

The tug-of-war over pricing in the food industry dates back decades, often precipitated by economic downturns or shifts in consumer behavior. In the late 20th century, fast food brands like McDonald’s and Burger King slashed menu prices to maintain traffic during recessions, later realizing that the effectiveness of these tactics depended heavily on accompanying service improvements. Convenience stores, traditionally known for fuel and snacks, have evolved to embrace “heat-and-eat” and “ready-to-eat” meals, offering both affordability and convenience to a growing demographic of time-strapped consumers.

“We understand the importance of providing high-quality, delicious meals at an affordable price,” remarked Mendy Meriwether, vice president of food, dispensed beverage, and QSR at EG America. “Our $3 Meal Deal offers guests a quick and tasty breakfast option that doesn't compromise on flavor or convenience, all at an incredible price.” This emphasis on quality and service aligns with historical lessons—even during fierce price wars, consumers remain loyal to brands delivering seamless and pleasant experiences.

Leveraging Historical Consumer Insights

EG America has experimented with meal deal promotions to build its value-oriented reputation. The $3 Meal Deal follows the successful implementation of a $5 customizable summer Meal Deal, which offered customers a wider array of choices for several months in 2023. Building on this momentum, EG America introduced fall promotions that bundled breakfast sandwiches with popular beverages for $5, reinforcing the idea that convenience store chains must constantly adapt to meet evolving consumer preferences.

This historical pivot toward more structured and value-driven food offerings reveals C-stores’ intent to disrupt traditional QSR daypart domination. Breakfast, once the QSR’s stronghold, is now under scrutiny as C-stores enhance their competitive positioning. This latest deal targets time-pressed morning commuters seeking alternatives to higher-priced fast-food breakfasts.



Looking Forward: The Price-Service Equation

C-stores’ future growth hinges on balancing affordability with superior service—a lesson derived from decades of competition in the foodservice industry. As EG America competes with QSR heavyweights, its ability to combine low pricing with a dependable and pleasant customer experience will determine its sustained success. The targeted rollout across Connecticut, Massachusetts, Maine, New York, New Hampshire, Rhode Island, and Vermont reflects the company’s intent to bolster customer loyalty in regions with established convenience store cultures.

EG America operates more than 1,500 locations across the U.S. and is owned by EG Group, a U.K.-based retail powerhouse. With service-focused initiatives like the $3 Meal Deal, EG America is poised to leverage historical insights into consumer preferences, positioning itself as a formidable competitor in both pricing and service excellence in 2024 and beyond.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869