Consumers Know What is Right and What They Want: The Role of Legacy DEI Programs in the Food Industry

 

Consumers have long demonstrated that they know what is right and what they want when it comes to corporate policies, including Diversity, Equity, and Inclusion (DEI) according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The recent consumer-driven responses to major retailers’ handling of DEI initiatives—such as Costco’s increase in web traffic after reaffirming its DEI stance and Target’s decline following a rollback—prove that DEI is not just a corporate checkbox, but a business imperative. The food industry is no exception, as history has shown that consumer sentiment can shape the success or failure of companies. Here are seven key things that consumers care about when it comes to DEI programs, each illustrated by a historical food industry example.

1. Commitment to Inclusive Branding Matters

Consumers reject brands that reinforce outdated or offensive stereotypes. A prime example is Sambo’s, a once-thriving restaurant chain that faced national backlash due to its racially insensitive name and imagery. By the 1980s, growing public awareness and consumer pressure led to the company rebranding and eventually closing many locations. This illustrates that businesses ignoring inclusive branding put themselves at risk of consumer-driven decline.

2. Supplier Diversity Impacts Purchasing Decisions

Shoppers want to support businesses that invest in a diverse supplier base. Costco, which recently reaffirmed its DEI initiatives, has seen success by partnering with minority- and women-owned food vendors. Target, on the other hand, saw negative consumer response after eliminating its supplier diversity team, reinforcing that consumers value businesses that promote equity in their supply chains.

3. Equitable Workplace Practices Drive Consumer Loyalty

Consumers appreciate companies that treat their employees equitably. A historical example is McDonald’s, which, after facing criticism in the 1960s for racial discrimination in franchising, actively worked to include more Black franchise owners. The move not only addressed systemic issues but also won over a more diverse customer base, proving that equitable business practices lead to long-term loyalty.

4. Companies That Reverse DEI Commitments Face Consumer Backlash

Much like Target and Walmart’s recent DEI pullbacks resulted in boycotts and declining web traffic, the food industry has seen similar reactions. In 2020, Goya Foods faced consumer pushback after its CEO publicly opposed social justice movements, leading to widespread boycotts. Companies must recognize that withdrawing from DEI commitments can have real economic consequences.

5. Authentic Representation in Advertising Matters

Consumers respond positively to brands that reflect diverse audiences. Coca-Cola’s famous 1971 "I'd Like to Buy the World a Coke" campaign was groundbreaking in its portrayal of racial and ethnic diversity, solidifying its reputation as an inclusive brand. More recently, brands like Ben & Jerry’s have thrived by integrating social justice messaging into their marketing. Authentic representation is key to sustaining consumer trust.

6. Retail and Food Industry DEI Leadership Translates to Sales

Brands that take a leadership role in DEI often gain market share. PepsiCo’s $400 million commitment to racial equity, including investing in Black-owned restaurants and businesses, has reinforced consumer confidence. In contrast, Walmart’s decision to defund the Center for Racial Equity was met with skepticism, mirroring the declines in web traffic seen during the Feb. 28 consumer boycott. Leadership in DEI translates directly to consumer preference.

7. Consumers Want Actions, Not Just Words

Empty corporate statements are no longer enough; consumers demand tangible action. Starbucks learned this firsthand when it faced criticism in 2018 over racial bias incidents in its stores. In response, the company implemented nationwide racial bias training, which helped rebuild consumer trust. The lesson is clear: proactive DEI measures resonate more than reactive damage control.

Think About This

The food industry has long been a reflection of broader societal values, and consumer-driven demands for DEI are shaping corporate strategies. As demonstrated by historical examples and recent consumer actions against companies like Target and Walmart, businesses that fail to prioritize DEI initiatives risk losing public trust—and revenue. On the other hand, brands like Costco and PepsiCo that stand firm on their commitments benefit from consumer loyalty. The message from consumers is clear: they know what is right, and they want companies to act accordingly.

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Subway Franchisees Are Getting It Wrong: Overpricing Is Driving Customers Away, and They Must Adapt to Win Them Back

 

An independent group of Subway franchisees is resisting the company’s $6.99 Footlong offer, but their stance is misguided and ultimately harmful to both their businesses and the brand’s future according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Their claim that offering a competitive price devalues the product is not only incorrect but ignores the broader issue: consumers increasingly perceive Subway as overpriced, leading them to abandon the brand for more affordable alternatives.

Overpricing Drives Customers Away—And History Proves It

Time and time again, brands that refused to address consumer pricing concerns have suffered the consequences. Here are five examples:

1.       Applebee’s attempted to push higher-priced menu items while downplaying value deals. The result? Sales plummeted, stores closed, and the brand scrambled to revive its value perception with late-game promotions like $1 margaritas.

2.       Boston Market insisted on maintaining premium pricing despite declining traffic. Consumers turned to lower-cost competitors, forcing Boston Market to shutter numerous locations.

3.       Quiznos priced itself out of competition with Subway by refusing to adjust its high menu prices, leading to a dramatic franchise collapse.

4.       Ruby Tuesday failed to compete on price while rivals like Chili’s and TGI Fridays introduced aggressive promotions. The result? Store closures and lost market relevance.

5.       Starbucks experienced a major sales slowdown when they raised prices too aggressively in the late 2000s, forcing them to reintroduce value-driven options to regain customer loyalty.

Why Subway Franchisees Must Get on Board

The franchisee group’s reluctance to support the $6.99 Footlong deal is shortsighted. Here’s why they should reconsider:

1.       Consumers Demand Value – In today’s economic climate, customers are hyper-aware of pricing. Fast food competitors, including McDonald’s, Wendy’s, and Taco Bell, are leaning into value deals to win back customers. If Subway refuses to compete, customers will simply go elsewhere.

2.       Overpricing Is Already Hurting Sales – Many former Subway loyalists have abandoned the brand due to rising prices. Offering strategic value-driven promotions is the only way to bring them back.

3.       The Data Backs It Up – Last year’s $6.99 Footlong promotion increased profitable sales. This isn’t a gamble; it’s a proven strategy that works when implemented correctly.

4.       Franchisees Benefit from the Incentive – Subway is subsidizing the deal with a $1-per-sandwich incentive. That means franchisees aren’t shouldering the full burden, making this a risk-free way to drive traffic and improve profitability.

5.       Adapting Now Prevents Further Store Closures – Subway has already closed 7,000 U.S. locations since 2015. A refusal to listen to what customers want will only accelerate this trend. To remain relevant, franchisees must embrace strategies that rebuild consumer trust and drive foot traffic.

The reality is clear: resisting a value-driven approach is a losing battle. Subway must focus on regaining old customers and attracting new ones with competitive pricing. The franchisee group’s resistance only serves to further isolate the brand from cost-conscious consumers. If Subway is to thrive in an increasingly price-sensitive market, all stakeholders must align with what customers actually want—affordable, high-quality food at a fair price.

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Is Publix Be Losing Its Mojo?

 

For decades, Publix has been a dominant force in the grocery industry, particularly in the Southeastern United States. Known for its clean stores, friendly customer service, and high-quality products, the chain has built a loyal following. However, as competition intensifies, Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that Publix may be losing its grip on core customers to brands like Aldi, Lidl, Kroger, and Walmart. Below are seven reasons why shoppers may be jumping ship and three ways competitors are attracting new consumers.

7 Reasons Publix Could Be Losing Core Customers

1.       Pricing Concerns – Publix has long been perceived as a premium grocer, but with inflation driving up prices, budget-conscious consumers are turning to Aldi and Walmart for lower-cost groceries. Shoppers who used to be willing to pay a premium for Publix’s experience are now prioritizing affordability over service.

2.       Lack of Storewide Discounts – Unlike Kroger, which offers extensive digital coupons and a robust loyalty program, Publix’s savings opportunities are limited primarily to BOGO deals. Savvy shoppers seeking deeper discounts may find better deals elsewhere.

3.       Limited Private Label Bargains – While Publix has its own store-brand products, Aldi and Lidl have mastered the art of offering high-quality private label goods at unbeatable prices. These stores provide an alternative to name-brand products without compromising on quality, which is attracting more cost-sensitive shoppers.

4.       Less Variety in Organic and Specialty Products – Kroger and Walmart have significantly expanded their organic, gluten-free, and specialty diet selections at competitive prices. While Publix has an organic GreenWise brand, it may not be as affordable or extensive as what competitors offer, drawing health-conscious consumers away.

5.       Aldi and Lidl’s Streamlined Shopping Experience – Many shoppers appreciate the efficiency and simplicity of Aldi and Lidl, where smaller stores and limited selections make grocery shopping quick and budget-friendly. Some customers, tired of navigating larger Publix stores, may prefer these no-frills options.

6.       The Walmart One-Stop-Shop Advantage – Walmart continues to attract customers with its ability to offer groceries, household goods, and general merchandise all under one roof. The added convenience factor can make it difficult for Publix to compete, especially for families looking to consolidate their errands.

7.       Kroger’s Online and Delivery Strength – Kroger has invested heavily in its online shopping experience and delivery capabilities, making it easier for customers to order groceries from home. While Publix has partnered with Instacart, the fees associated with third-party delivery services can be a deterrent for cost-conscious shoppers.

3 Ways Aldi and Walmart Are Winning New Consumers

1.       Unbeatable Prices (Aldi & Walmart) – Aldi’s strategy of offering consistently low prices on high-quality private label goods continues to draw in cost-conscious shoppers. Walmart, known for its price-matching and rollbacks, remains a go-to option for those seeking affordability in a tight economy.

2.       Improved Quality and Selection (Aldi & Walmart) – Aldi has expanded its product offerings, including organic and specialty items, making it a more attractive option for a wider range of consumers. Walmart has also stepped up its game, offering a larger selection of fresh produce and specialty foods to cater to shifting consumer preferences.

3.       Technological and Shopping Innovations (Walmart) – Walmart has embraced technological advancements, offering a seamless online shopping experience, curbside pickup, and fast delivery services. These innovations provide added convenience, making it easier for busy shoppers to get what they need without setting foot in a store.

While Publix remains a beloved brand, it faces stiff competition from retailers offering lower prices, greater convenience, and a wider range of products. If Publix wants to maintain its market dominance, it may need to rethink its pricing strategy, loyalty programs, and online shopping experience to keep up with the changing retail landscape.

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7-Eleven: The Grocerant Guru’s Masterclass in Hand-Held, Immediate Consumption Success

 

The grocerant niche—where convenience meets fresh, ready-to-eat meals—is redefining the way consumers engage with food. No brand exemplifies this better than 7-Eleven. Through strategic branding, an emphasis on handheld food for immediate consumption, and a deep understanding of consumer migration toward meal bundling, 7-Eleven has positioned itself as the leader in this evolving space.

Unlike Subway’s lack of branded sandwich names or Burger King’s limited product identifiers, 7-Eleven has mastered the power of instant brand recognition according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. McDonald's, with its Big Mac—of which an estimated 550 million are sold annually—has seen immense success but has also had its fair share of missteps. In contrast, 7-Eleven continues to dominate through mix-and-match meal bundling, leveraging its iconic Slurpee (14 million sold each month), Big Gulp (45% of all fountain drinks sold at 7-Eleven), and Big Bite (over 100 million hot dogs sold annually) to drive global engagement.

The Power of Handheld Food & Immediate Consumption

The modern consumer is on the move, demanding food that is portable, satisfying, and instantly available. 7-Eleven has capitalized on this shift by offering a portfolio of handheld items—from Big Bite hot dogs to fresh sandwiches—that align with the grocerant niche. Unlike Subway, which fails to create strong, branded sandwich identities, 7-Eleven’s food items are instantly recognizable and easily consumed on the go. Consider that Americans consume over 3 billion pizzas annually, and 7-Eleven’s fresh pizza-by-the-slice program taps into this massive demand while offering immediate, on-the-go convenience. McDonald's and Burger King, while successful in their own right, often struggle with food items that require additional packaging or assembly, reducing the immediacy factor that today’s consumer desires.

Global Success: Coffee, Slurpee, and the Power of Branding

When it comes to branded beverage programs, 7-Eleven stands unmatched. The Slurpee is a global phenomenon, selling over 7.2 billion cups since its introduction in 1966, driving foot traffic and reinforcing brand identity. Its coffee program, with affordable, self-serve customization, rivals McDonald’s McCafé and Starbucks in both accessibility and consumer loyalty. With over 80 million cups of coffee sold annually, 7-Eleven has proven its ability to cater to caffeine-driven consumers seeking speed and affordability. Meanwhile, Big Gulp changed the way people consume soft drinks, solidifying 7-Eleven’s position as a beverage powerhouse. Compare this to Subway, which lacks a strong coffee or beverage program, or Burger King, which has failed to establish a signature drink offering. Even McDonald's, despite its success with McCafé, has struggled with consistency in beverage execution across markets.

Branding Success vs. Missed Opportunities

7-Eleven: Strong, iconic branding (Big Bite, Slurpee, Big Gulp), immediate consumption appeal, and global beverage dominance.

McDonald’s: Success with the Big Mac and McCafé, but inconsistency in product adaptations and missed opportunities in grab-and-go items.

Subway: Lacks branded sandwich names, making it harder to drive loyalty and immediate recognition.

Burger King: Limited branded offerings beyond the Whopper, restricting its ability to expand within the grocerant space.

7-Eleven’s Grocerant Advantage: Meal Bundling & Consumer Migration

As consumers shift toward mix-and-match meal bundling, 7-Eleven is perfectly positioned to capture this demand. By offering grab-and-go meal deals that pair fresh sandwiches, hot foods, and beverages, 7-Eleven seamlessly integrates into the daily eating habits of busy consumers. With over 3,000 fresh food items in its stores globally, 7-Eleven caters to the evolving need for variety and customization. Unlike traditional QSRs, which often require drive-thru waits or sit-down meals, 7-Eleven delivers on-demand satisfaction with minimal friction. The ability to bundle a Big Bite with a Slurpee or a fresh sandwich with a self-serve coffee makes 7-Eleven the go-to grocerant for modern, convenience-driven consumers.

Think About This

7-Eleven’s food branding success is a masterclass in the grocerant model, leveraging the power of handheld, immediate-consumption food while excelling in branded beverage dominance. Compared to Subway’s lack of branded sandwich names, Burger King’s limited product identity, and McDonald’s occasional missteps, 7-Eleven remains the frontrunner in convenience-driven foodservice. As consumers continue migrating toward mix-and-match meal bundling, 7-Eleven’s strategic positioning ensures it will remain the ultimate destination for the 40% of Americans who consume fast food on any given day, seeking fast, fresh, and familiar food experiences.

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