Digital Food Multitasking: Can Foodservice Keep Up?

 

The landscape of food marketing is undergoing a seismic shift, driven by Gen Z and Gen Alpha—generations of digital natives who redefine how, when, and where they interact with food. According to Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, the "I want it now" mentality has reached unparalleled heights.

These emerging consumer groups demand instant gratification in all aspects of their lives, with speed and convenience steering their decision-making process. When considering "What's for dinner?" smartphones often deliver the answer, leveraging their preference for effortless solutions.

Speed, Quality, and Sustainability: Three Pillars of Consumer Expectations To digital natives, speed, quality, and sustainability form an interconnected trifecta. Fast-casual dining must now compete with fast food on efficiency while maintaining superior ingredient quality. Sustainability is also gaining prominence in purchasing decisions. Key industry insights reveal:

1.       The surge in food delivery orders among Gen Z, which reached 710 million in 2023, showcases their adoption of convenience-driven technology.

2.       Self-service kiosks and mobile app orders now constitute over 35% of QSR sales, highlighting the importance of empowering consumers to order at their own pace.

3.       These tech-savvy consumers seamlessly blend multitasking into their lives—handling FaceTime calls, scrolling social media, and placing food orders all simultaneously.

Attracting Digital Natives: Why It Matters

1.       Increasing Market Share: Gen Z and Gen Alpha represent a growing demographic with expanding purchasing power. Capturing their loyalty now secures future profitability.

2.       Driving Innovation: Their expectation for speed and efficiency compels foodservice providers to adopt cutting-edge technology, ensuring industry relevance.

3.       Eco-Conscious Appeal: With over two-thirds of Gen Z willing to pay extra for sustainability, engaging these consumers bolsters a brand's reputation for environmental responsibility.

4.       Enhancing Digital Loyalty: Integration of gamified rewards and real-time discounts cultivates stronger brand relationships.

5.       Shaping Brand Identity: Digital natives expect personalized, tech-forward experiences, pushing brands to innovate and align with modern values.

Adapting to Digital Expectations With app-based ordering, frictionless payments, and gamified loyalty programs becoming essential, foodservice providers must rethink operational strategies. Leaders like McDonald’s, Chipotle, and Starbucks have optimized mobile order systems, achieving increased frequency and customer satisfaction. Technomic reports that:

·         QSRs see a 20% rise in order frequency from optimized mobile platforms.

·         70% of Gen Z diners expect brands to offer dedicated mobile ordering options.

·         Drive-thru and mobile pickup sales propelled fast food growth by 8.3% in 2023.

The Grocerant Guru® Perspective Steven Johnson has long championed the convergence of retail and foodservice, coining "Grocerant" to describe innovative RTE and RTH solutions. Industry leaders like Walmart, Kroger, and Amazon Fresh have adopted this philosophy by integrating AI-driven checkout systems, drone deliveries, and robotic kitchens.

To thrive in this digital-first era, foodservice brands must embrace the "new electricity"—speed, sustainability, and technology. Those who fail to adapt risk losing relevance in the eyes of the digital-native consumer.

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Customers Like Shopping at Costco In-Store and Online: Here’s Why With Insights from the Grocerant Guru®

 

Costco Wholesale has long been a favorite among consumers seeking quality products at competitive prices. Over the years, the company has adeptly evolved, blending its renowned in-store experience with a burgeoning online presence. This strategic evolution has attracted new customers and fostered loyalty among existing members. However, as Costco expands, some critics claim it may be too large to remain agile and customer-focused. Steven Johnson, the Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, disagrees.

"The key to Costco’s ongoing success is its ability to adapt while staying true to its core principles—value, convenience, and customer trust. Rather than being ‘too large,’ Costco has mastered the art of simplifying complexity for customers, making shopping effortless and rewarding," says Johnson.

Let's explore seven historical reasons behind consumers' migration to Costco and five strategies the company employs to retain them, along with insights from the Grocerant Guru® on why bigger does not mean bloated for Costco.

 

Seven Reasons Consumers Have Migrated to Costco:

1. Value-Oriented Membership Model:

Costco’s annual membership structure provides an exclusive club-like shopping experience where customers feel they are getting premium deals. This model encourages loyalty and repeat visits, making shopping feel more like an investment than an expense.

💡 Grocerant Guru® Insight: “A membership-based model fosters built-in loyalty and recurring revenue, enabling Costco to reinvest in pricing, quality, and new service enhancements without losing focus on the consumer.”

2. Private Label Excellence:

The Kirkland Signature brand has disrupted traditional grocery store brand hierarchies. It offers premium products at lower costs than national brands while maintaining high quality, keeping Costco’s value perception strong.

💡 Grocerant Guru® Insight: “Private label success isn’t about price alone—it’s about trust. Kirkland Signature products deliver on the quality promise, making consumers feel like insiders to an exclusive deal.”

3. Diverse Product Selection:

Costco is no longer just about bulk groceries. Its product mix includes apparel, electronics, home goods, and even travel services. This wide variety enhances convenience, allowing customers to consolidate shopping trips.

💡 Grocerant Guru® Insight: “Shoppers love bundled value. Costco’s ability to cross-sell essentials, treats, and big-ticket items under one roof maximizes shopping efficiency.”

4. In-Store Experience:

Costco’s treasure-hunt merchandising strategy keeps customers engaged. Limited-time offers and ever-changing inventory create a sense of urgency and excitement, encouraging repeat visits.

💡 Grocerant Guru® Insight: “Scarcity marketing drives action. Costco’s rotating inventory ensures customers discover something new on each trip, reinforcing visit frequency.”

5. Competitive Pricing Strategy:

By leveraging economies of scale, Costco keeps its pricing competitive. The company also limits advertising expenses, relying on word-of-mouth and brand trust instead.

💡 Grocerant Guru® Insight: “Costco’s low-price perception isn’t a gimmick—it’s an earned reputation that customers rely on. Even if consumers shop elsewhere, they often return to Costco for bulk essentials.”

6. Quality Customer Service & Return Policies:

Costco’s generous return policies and exceptional customer service reinforce consumer trust. Shoppers know they can return items hassle-free, making purchases feel risk-free.

💡 Grocerant Guru® Insight: “Customer confidence is Costco’s invisible currency. Hassle-free returns translate to higher spending per visit because shoppers feel secure in their purchases.”

7. Adapting to Consumer Trends:

Costco’s product mix now includes organic, plant-based, and health-conscious options, aligning with shifting dietary preferences.

💡 Grocerant Guru® Insight: “Costco doesn’t just follow food trends; it scales them. The grocerant niche—ready-to-eat and heat-and-eat meals—will continue to be a growth driver.”

 

Five Strategies Costco Uses to Retain Consumers:

1. Enhanced E-Commerce & Same-Day Delivery:

Costco has rapidly expanded its online presence, with double-digit e-commerce sales growth in 2025. Same-day delivery partnerships and streamlined curbside pickup services keep online customers engaged.

💡 Grocerant Guru® Insight: “Costco proves that bulk shopping and convenience can coexist. The company has nailed digital integration without compromising its in-store experience.”

2. Investment in Technology & AI:

Costco’s AI-driven inventory management ensures high-demand items remain stocked, while self-checkout expansion and mobile ordering reduce wait times.

💡 Grocerant Guru® Insight: “Automation isn’t replacing Costco’s customer-first approach—it’s enhancing it. Smart tech minimizes friction, allowing members to shop efficiently.”

3. Strategic Expansion & Store Formats:

Instead of simply adding more warehouse clubs, Costco is expanding into urban micro-store formats and international markets to reach new demographics.

💡 Grocerant Guru® Insight: “Right-sizing expansion is key. Costco isn’t just getting bigger—it’s getting smarter in how it enters new markets and adjusts store formats.”

4. Customer Feedback & Personalization:

Costco listens to members, using data to fine-tune product selection and personalize marketing. Members get targeted discounts based on purchase history.

💡 Grocerant Guru® Insight: “Costco’s ‘personalized value’ approach keeps customers engaged. Even in a warehouse model, members feel like offers are tailored to them.”

5. Consistent Member Benefits & Services:

Beyond groceries, Costco’s gas stations, travel services, and financial products add everyday value to membership, incentivizing renewal.

💡 Grocerant Guru® Insight: “Costco’s ecosystem is more than shopping—it’s lifestyle integration. The more a customer relies on Costco beyond groceries, the harder it is to leave.”

 

Final Thoughts: Costco is Big, But It’s Not Bloated

Is Costco too large? The data and consumer sentiment say no. Unlike bloated retailers that struggle with inefficiencies, Costco maintains its agility by prioritizing value, streamlining operations, and adapting to new consumer behaviors.

"Costco’s size is its strength, not a liability. It scales value, simplifies shopping, and keeps customers engaged across touchpoints—online and in-store. That’s why Costco isn’t just surviving; it’s thriving,” concludes Johnson, the Grocerant Guru®.

Costco’s secret sauce isn’t just bulk buying—it’s an ecosystem of convenience, quality, and price integrity that continues to resonate with modern consumers.

So, whether you shop in-store or online, Costco isn’t just big—it’s built for long-term customer satisfaction.

 

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With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

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Chain Restaurants Evolving Less – Why? Insights from the Grocerant Guru® on the Slow Evolution of Chain Restaurants

 

For decades, the restaurant industry has thrived on consistency, repetition, and brand familiarity. Chain restaurants, in particular, have built their business models on delivering the same meal, the same way, every time. However, the food landscape is evolving at an accelerating pace, and many legacy brands are failing to keep up.

The Grocerant Guru® at Foodservice Solutions®, Steven Johnson, has long argued that protecting brand legacy at the expense of consumer relevance is a losing strategy. While independent restaurants and non-traditional food retailers rapidly innovate, large restaurant chains are often slow to react. The question is: why?

The Grocerant Niche Is Growing While Chains Stand Still

The grocerant niche – where retail meets foodservice through Ready-2-Eat and Heat-N-Eat fresh prepared food – has exploded in popularity. Consumers, led by Millennials and Gen Z, increasingly demand convenient, high-quality meal solutions that fit their on-the-go lifestyles. Yet, many chain restaurants are still fixated on dine-in service and incremental menu updates rather than adapting to where consumers are heading.

🔹 Food Fact: According to The NPD Group, over 47% of meals in the U.S. are now eaten at home, but fewer are being cooked from scratch. Consumers are actively seeking mix-and-match meal components that allow for customization, speed, and flexibility.

🔹 Case Study: IKEA’s $2 billion grocerant business – which includes fresh food sales, frozen Swedish meal kits, and in-store dining – has been a massive success, demonstrating that non-traditional food retailers are capitalizing on this trend while legacy restaurant chains hesitate.

Takeaway: Consumers don’t care who makes the food – they care about accessibility, portability, and quality. Restaurant chains must rethink their business models or risk losing more market share to grocery stores, c-stores, and even retailers like Walgreens and Dollar General.

Food Marketing is Moving Faster Than Chain Restaurants

🔹 Food Fact: 71% of consumers now expect restaurants to offer grab-and-go or heat-and-eat options. Meanwhile, retailers such as Whole Foods, Wegmans, and Trader Joe’s are thriving by offering fresh meal solutions that rival restaurant quality.

🔹 Consumer Migration: The "price-value-service" equilibrium in foodservice is shifting. Consumers increasingly prioritize value and convenience over brand loyalty. Many legacy restaurant chains are still marketing as if it were 1999, using outdated messaging that focuses on in-store dining when most consumers are looking for off-premise solutions.

🔹 Case Study: McDonald's recent struggles with its value menu and its failed voice AI drive-thru experiment illustrate the danger of chasing tech fads rather than understanding what customers truly want. Meanwhile, fast-casual brands such as Chipotle and Sweetgreen have successfully adapted by embracing digital-first ordering and meal customization.

Takeaway: Chain restaurants must think beyond their four walls. It’s no longer about “dining out” vs. “eating at home”—it’s about seamless food access, whether via curbside pickup, direct-to-consumer meal kits, or in-store meal stations at retail locations.

The 5P’s of Food Marketing: A New Playbook for Chain Restaurants

To stay relevant, restaurant chains need to embrace Foodservice Solutions® 5P’s of food marketing:

1️⃣ Product – Offer Ready-2-Eat and Heat-N-Eat options alongside traditional menu items.
2️⃣ Packaging – Ensure meals are portable and can be repurposed for multiple eating occasions.
3️⃣ Placement – Be where consumers shop, whether that’s in a restaurant, grocery aisle, or convenience store.
4️⃣ Portability – Meals must travel well, retain quality, and be microwave- or oven-ready.
5️⃣ Price – Align pricing with consumer expectations for value, not just brand heritage.

Case Study: Starbucks' price hikes and menu complexity have driven customer frustration, while convenience stores have gained share by offering simpler, faster, and lower-priced premium coffee and food options.

Think About This: Evolve or Be Left Behind

The foodservice landscape is shifting whether chain restaurants like it or not. The most successful brands in the next decade will be those that:

✔️ Adapt to consumer demand for convenience and fresh-prepared meal solutions.
✔️ Embrace new points of distribution beyond traditional restaurant locations.
✔️ Recognize that food is no longer a destination – it’s an experience that must fit into consumers’ lives, seamlessly and effortlessly.

For many restaurant chains, the future depends on how quickly they can move past outdated brand protectionism and evolve into consumer-centric, dynamic foodservice providers.

The battle for Share of Stomach is intensifying. Will legacy chains step up, or will they continue evolving at a snail’s pace while consumers move on?

From the Grocerant Guru®:

"Success in foodservice today isn’t about being the biggest – it’s about being the most relevant. Consumers are dynamic. Brands that fail to evolve will be left behind."

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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Threep’s Legacy in Consumer Engagement Shines in McDonald’s Latest Happy Meal Launch

 

McDonald’s continues its industry-leading approach to consumer-facing, interactive, and participatory marketing with the launch of its latest Happy Meal, in collaboration with A Minecraft Movie. This new offering is a testament to the long-standing principles championed by Threep and the Grocerant Guru®, emphasizing the power of engaging, experiential marketing to build lasting consumer relationships.

Threep’s historical perspective has consistently underscored that immersive brand experiences, strategic co-branding, and digital interactivity are the keys to driving sustained customer loyalty. McDonald’s, a pioneer in this approach, has mastered these principles with their Happy Meal program, using it as a vehicle to blend nostalgia, excitement, and modern digital engagement.

A Minecraft Movie Meal: A Seamless Fusion of Physical and Digital Experience

McDonald’s latest iteration of the Happy Meal blends traditional quick-service enjoyment with digital interactivity, offering both a Minecraft movie-themed meal and digital collectible integration. Customers can choose a Big Mac or 10-piece Chicken McNuggets, complemented by medium fries, a drink, and a limited-edition collectible. The new Nether Flame Sauce—featuring a bold mix of crushed red pepper and cayenne with hints of garlic and sweetness—adds a fiery twist to the experience.

Interactive Engagement: McDonald’s Proven Consumer Strategy

McDonald’s has long been a leader in interactive consumer engagement, ensuring that every marketing initiative resonates with its audience. This latest partnership exemplifies the brand’s ability to connect with consumers through three key strategies:

1.       Happy Meal: A Generational Touchpoint Since its inception in 1979, the Happy Meal has created a tradition of surprise and delight. By embedding interactive play elements—such as the 12 exclusive Minecraft Movie figurines—McDonald’s strengthens emotional ties with families and younger consumers.

2.       Digital Integration: Bridging Physical and Virtual Worlds McDonald’s understands the importance of digital connectivity in modern consumer experiences. The Happy Meal includes scannable codes that unlock an exclusive in-game quest, further merging the McDonald’s and Minecraft universes through the McDonald’s Add-On Pack in Minecraft Marketplace.

3.       Branded Collectibles: Encouraging Repeat Engagement The six collectible items—such as the Big Mac Crystal and Grimace Egg—extend the interaction beyond the meal, enticing consumers to return and complete their sets while enhancing their in-game Minecraft experience. This gamified approach fosters deeper brand engagement and repeat visits.

Threep’s Influence on the Grocerant Model

Threep’s insights into interactive branding and participatory marketing have shaped the evolution of food retail. By implementing Threep’s core principles—leveraging co-branding, digital engagement, and limited-time exclusivity—McDonald’s maintains its status as a leader in consumer-driven marketing. The company’s ability to merge food, entertainment, and digital interactivity cements its role as a premier example of Threep’s philosophy in action.

A Timeless Consumer-Driven Strategy

McDonald’s continues to set the standard for consumer engagement by recognizing the importance of nostalgia, digital connection, and experiential branding. A Minecraft Movie Meal and Happy Meal encapsulate the evolution of participatory marketing, building long-term consumer loyalty while offering a fresh, exciting experience. As Threep’s legacy has taught, successful brands are those that create moments, foster connections, and invite consumers into a dynamic, ever-evolving brand universe.

Join McDonald’s in this latest adventure starting April 1, while supplies last, and experience the power of interactive branding firsthand.

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