The Price-Value-Service Equilibrium: The Strategic Framework Driving Foodservice Growth

 

The Price-Value-Service Equilibrium is a proprietary, data-informed framework pioneered by Steven Johnson, the Grocerant Guru®, of Tacoma, WA-based Foodservice Solutions®. Designed to align with fast-changing consumer expectations, this dynamic formula equips foodservice brands with the tools to optimize pricing, product quality, convenience, and experiential engagement—all critical levers in today’s hyper-competitive food retail landscape. Johnson's framework has become a foundational model for growth in sectors such as convenience stores, service delis, grocery prepared foods, and non-traditional foodservice channels.

 

Historical Evolution of the Formula

Originally structured as:

Price + Quality + Service + Portability = Value

this version helped brands focus on the foundational attributes that fueled the early rise of convenience-driven, ready-to-eat meals—balancing cost with quality, service efficiency, and grab-and-go accessibility. This was critical in the early 2000s, when prepared food sales in C-stores grew at double the rate of other in-store categories (NACS, 2008–2014).

As younger demographics began to shape food culture, Johnson evolved the formula to reflect the rising importance of brand experience and digital integration:

Price + Quality + Social + Portability = Value

This updated formulation mirrors Millennial and Gen Z preferences for social currency, transparency, lifestyle alignment, and omnichannel convenience—a shift confirmed by Deloitte’s 2023 Food & Beverage Consumer Survey, which found that 62% of Gen Z consumers prefer brands with active social and digital identities.

 

The Core Components of the Formula

1.       Price – Value-conscious consumers don’t just want low prices—they seek transparency and fairness, with 73% of consumers willing to pay more for better quality if the overall experience delivers (Technomic, 2024).

2.       Quality – Ingredient integrity, freshness, and consistency drive trust. According to Datassential, “fresh” remains the #1 attribute influencing foodservice choice across all demographics.

3.       Social – This encompasses digital engagement, brand personality, community interaction, and user-generated content. 84% of Gen Z consumers say a brand’s online engagement influences their food choices (Ypulse, 2023).

4.       Portability – With 70% of foodservice growth now off-premise, packaging innovation, mobile ordering, and delivery integration are essential (NPD, 2024).

 

Why Johnson’s Formula Matters More Than Ever

As menu inflation and labor pressures strain operators, traditional pricing strategies no longer suffice. Johnson’s equilibrium offers a multi-variable decision model that aligns with the evolving emotional and functional drivers of consumer choice. Importantly, his framework shifts the narrative from cost-cutting to value optimization—a concept that elevates customer satisfaction while safeguarding margins.

This formula is now widely adopted by:

·       Top-performing C-stores like Wawa, Casey’s, and Sheetz

·       Service delis in grocery chains including H-E-B, Hy-Vee, and Wegmans

·       Retail foodservice hybrids such as Amazon Go and Walgreens Fresh Eats

These brands have integrated Johnson’s approach into their menu strategy, promotional design, customer journey mapping, and digital engagement tactics.

 

Five Ways the Formula Drives Growth

Top-Line Revenue Growth

1.       Menu Innovation Aligned with Trends – Drives higher transaction frequency via LTOs and influencer-approved formats.

2.       Digital Integration and Loyalty Activation – Increases repeat visits and basket size.

3.       Higher Customer Perceived Value – Supports premium pricing while maintaining strong unit sales.

4.       Cross-Channel Sales Expansion – Enables growth via mobile, kiosk, and third-party delivery.

5.       Enhanced Brand Relevance – Attracts younger, high-frequency users by aligning with cultural and lifestyle values.

Bottom-Line Profitability

1.       Price Elasticity Leverage – Allows strategic premium pricing where experiential value is high.

2.       Reduced Marketing Waste – Hyper-targeted messaging via digital and social channels.

3.       Operational Efficiency via Portability – Streamlined prep and reduced dine-in overhead.

4.       Minimized Churn – Stronger brand loyalty and fewer lost sales due to unmet expectations.

5.       Improved Product Mix – Optimized margin through data-backed value bundling and pricing strategies.

 

Think About This

Steven Johnson’s Price-Value-Service Equilibrium is more than a theoretical model—it’s a revenue-generating framework proven across real-world channels. In an industry increasingly shaped by emotional brand connections and on-demand convenience, Johnson’s foresight continues to empower operators to remain agile, relevant, and profitable in the face of disruptive change.

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Small Businesses Aren’t Just Supporting Roles — They’re the Stars of the Modern Marketplace

 

We’ve cheered for Cheers, rooted for Rose Apothecary, and checked in at the Rosebud Motel. From sitcoms to social feeds, small businesses have long held center stage in pop culture — but what about in real life? According to a sweeping new global study led by Rank Vella, CEO of Constant Contact, it turns out the true impact of small businesses isn’t fully appreciated by the audiences who rely on them daily. And that’s a missed opportunity — especially when it comes to connecting with younger consumers.

As The Grocerant Guru®, I’ve seen firsthand how small businesses — especially those in foodservice, retail, and local experiences — are evolving to meet the lifestyle demands of Millennials and Gen Z. These younger demographics aren’t just shopping; they’re voting with their wallets. They crave authenticity, values-driven messaging, and real human connection — all of which small businesses are uniquely positioned to deliver.

But here’s the twist revealed in Vella’s research: while 82% of global consumers say small businesses positively impact their lives, a shocking 80% dramatically underestimate just how many small businesses exist in their country. In the U.S. alone, small businesses make up 99.9% of all enterprises and generate over 43% of the nation’s GDP. That’s not a side hustle — that’s the engine of the economy.

And yet, consumers often don’t recognize the scope of what qualifies as a small business. They think of their local coffee shop or yoga studio (and yes, maybe that viral food truck from TikTok), but overlook the insurance agent down the street, the online artisan bakery, or the grocerant blending retail with restaurant flair. Small businesses are everywhere — but too often, hiding in plain sight.

This disconnect is especially crucial when speaking to younger audiences. Today’s consumers — especially Gen Z — want brands that reflect their values. They care about impact, inclusion, and intimacy. They want to shop where the staff knows their name, their usual order, and maybe even their dog’s name. Small businesses already deliver on this front — but they need to tell that story better and louder.

Vella’s study also found that 40% of global consumers would feel devastated if their favorite small business shut down. And that’s not just nostalgia talking — it’s loyalty, trust, and emotional connection at work. These aren’t just places to shop; they’re spaces to belong.

So what’s the takeaway for small business owners — and those who market them? If you want to win hearts, especially among younger consumers, you have to show up with more than just a great product. You need messaging that reflects your purpose, community roots, and personal touch. Because when your story aligns with their values, they don’t just buy from you — they believe in you.

As we’ve long said in the grocerant space, the future of food, retail, and service lies in the hybrid experience: where convenience meets connection. Small businesses aren’t just part of our routines — they define them. Whether it's your weekly stop at a local bakery, the barista who remembers your name, or that neighborhood market serving up both meals and meaning — this is where loyalty lives.

In the words of one of TV’s most iconic theme songs, people want to go “where everybody knows your name.” And thanks to insights from Rank Vella’s latest research, we now have the data to back up what we’ve all felt intuitively: small businesses matter — economically, emotionally, and especially to the next generation of consumers.

Let’s give them more than a cameo. Let’s make sure they stay the stars. 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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McDonald’s Elevating Consumer Touchpoints

 

Un-Masking Consumer Touchpoints from the Eyes of Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

McDonald’s, the global fast-food titan, has long been at the forefront of consumer convenience, affordability, and brand consistency. Yet, in a dynamic foodservice landscape increasingly shaped by grocerant trends — that hybrid space between grocery and restaurant — McDonald’s has stumbled more than once. From digital confusion to misaligned brand experiments, the Golden Arches have faced crucial missteps over the past decade.

Drawing insights from the seasoned lens of the Grocerant Guru® — an advocate for frictionless, consumer-focused foodservice experiences — this article unpacks six major blunders, offers five repositioning strategies, and outlines four vital consumer touchpoints that could elevate McDonald’s into its next era of success.

 

Six McDonald’s Missteps Over the Past Decade

1.       Failure to Fully Embrace Fresh
While competitors like Wendy’s leaned hard into "fresh, never frozen," McDonald’s lagged in making fresh beef standard — and did so slowly, confusing customers.

2.       McWrap Debacle
The introduction and eventual discontinuation of McWraps highlighted McDonald’s failure to understand fast-casual health-focused appeal — they didn’t support it operationally or message it effectively.

3.       Menu Creep and Confusion
The menu ballooned with too many items, which overwhelmed both consumers and kitchens, leading to slower service and inconsistent product quality.

4.       Overlooking All-Day Breakfast’s Brand Value
McDonald’s pulled back on All-Day Breakfast during the pandemic and has been slow to bring it back fully — despite its widespread consumer popularity.

5.       Inconsistent Experience Across Digital Platforms
The mobile app and self-service kiosks often deliver varying promotions, availability, and user experiences, eroding trust in digital ordering as a reliable tool.

6.       Lagging in Plant-Based Innovation
The half-hearted McPlant rollout was eclipsed by competitors who fully embraced flexitarian trends with scalable, taste-first options.

 

Five Repositionings to Reclaim Relevance

1.       Reignite the All-Day Breakfast with a Grocerant Flair
Add “grab-n-go” breakfast snack packs or breakfast bowls available all day, merging the convenience of a grocerant-style meal kit with the familiarity of McDonald’s flavors.

2.       Shrink and Smarten the Menu
Trim redundant SKUs while layering in regional favorites via seasonal LTOs — creating both operational clarity and customer excitement.

3.       Digital Experience Unification
A seamless, uniform app and kiosk experience that rewards repeat usage and adapts to local preferences could rebuild digital trust and re-engage mobile-first consumers.

4.       Plant-Based That Sells (and Tastes)
Collaborate with a trusted plant-based brand (e.g., Beyond Meat 2.0 or NotCo) and fully commit to rollout with flavor-forward advertising — focus on taste, not tech.

5.       The “McMarket” Concept Store
Pilot hybrid stores with a curated menu of pre-packed meals, branded grocery staples (like McD sauces), and order-ahead tech — the next evolution of QSR meets grocerant.

In a Battle for Share of Stomach

 

Four Consumer Touchpoints for Future Success

1.       Frictionless Pickup Portals
Drive-thru lanes for mobile-only orders and smart lockers inside for app-based pickups — blending speed and tech for busy consumers.

2.       Meal Bundles That Mimic Home Kits
Family bundles styled like a meal kit — mix & match mains, sides, and drinks, available for both immediate consumption and reheating at home.

3.       Sustainability Storytelling at the Point of Sale
Incorporate QR codes on packaging linking to transparent sourcing stories, sustainability efforts, and local initiatives — building emotional brand loyalty.

4.       Grocerant Partnerships in Retail Aisles
Launch co-branded retail items (think McNugget Dipping Sauce variety packs or Egg McMuffin DIY kits at Walmart or Target), creating omnichannel presence and expanding brand reach.

 

Think About The Grocerant Guru’s Final Bite

The evolution of consumer touchpoints is no longer optional — it’s foundational. McDonald’s must pivot from a static fast-food framework to a flexible, grocerant-informed platform. Elevating the consumer experience across all touchpoints, from app to aisle, will be the defining challenge and opportunity for McDonald’s in the next decade.

Because in the grocerant era, it’s not just about what's on the tray — it’s about where, how, and why the consumer chooses you at every turn.

Drive Sales. Boost Profits. Stay a Step Ahead.

The Foodservice Solutions® team is dedicated to helping you grow your top-line sales and bottom-line profits.

Are you looking a customer ahead? We have the strategies to get you there.

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Private Label Food Drives Growth, Profits, and Branding for Restaurants and Convenience Stores: A Grocerant Perspective

 

In the evolving landscape of food retail and service, private label (also known as store brand) food is rapidly reshaping the playbook for restaurants and convenience stores (c-stores). What was once relegated to discount or no-name options has now become a dynamic engine of growth, brand differentiation, and consumer loyalty. According to Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, private label food isn’t just a product strategy—it’s a branding revolution.

The Rise of Private Label in the Grocerant Space

The grocerant—a term coined to describe foodservice offerings within grocery stores, c-stores, and non-traditional food retail locations—has become a hotbed for culinary innovation. Chains like Wawa, Sheetz, and 7-Eleven are no longer just fuel stops; they’re destinations for made-to-order meals, artisan coffee, and proprietary snacks. Private label food plays a pivotal role in this transformation.

Johnson explains, “Private label food gives grocerants control over both the culinary narrative and the customer experience. It’s not just about saving costs—it’s about crafting unique, craveable, branded experiences that drive repeat visits.”

Why Private Label Wins

1.       Margin Expansion: Private label items typically generate 25–30% higher profit margins compared to national brands. This is due to reduced supply chain complexity, fewer marketing intermediaries, and volume-based production.

2.       Brand Differentiation: Unlike national brands, private label SKUs are exclusive, allowing retailers to build brand identity and customer loyalty. From the name and packaging to the flavor and origin story, every element can reflect the parent brand’s ethos.

3.       Consumer Trust and Quality: Over 65% of U.S. consumers now believe that store-brand food is just as good—if not better—than name brands (FMI: The Food Industry Association, 2024).

4.       Speed to Market: Restaurants and c-stores can rapidly prototype and launch private label items, capitalizing on seasonal trends, viral ingredients, and niche diets (e.g., keto, gluten-free, plant-based) faster than large CPG companies.

5.       Loyalty Loop Creation: With private label exclusivity, consumers are incentivized to return for items they can't get anywhere else, enhancing loyalty program effectiveness.

 

Five Chains That are Mastering Private Label Food

1. Wawa – Branded Freshness in Every Bite

Wawa’s private label brand includes hoagies, snacks, and beverages. Their proprietary iced teas and smoothies generate millions in revenue annually. By branding its food as fresh, local, and customizable, Wawa has cultivated a cult-like following.

Insight: Wawa has turned its “Built-to-Order” sandwiches into a brand pillar. Their private label hoagies outsell many fast food equivalents in regional markets.

 

2. Sheetz – Made-to-Order Meets MTO Labeling

Sheetz has pioneered private label MTO (Made-To-Order) food that includes everything from mac & cheese bites to milkshakes. Their internal branding, quirky product names, and 24/7 availability have created a fiercely loyal customer base.

Fact: Over 60% of food purchases at Sheetz are private label, making it a major driver of unit economics.

 

3. 7-Eleven – From Slurpees to Gourmet Sandwiches

Long known for the Slurpee (a private label icon), 7-Eleven has scaled its food offerings with items like 7-Select sandwiches, snacks, and cold-pressed juices. Their in-house product development labs test and roll out global flavors, including Korean BBQ and Japanese onigiri.

Stat: In 2023, 7-Select products accounted for nearly $4 billion in global sales, growing faster than national brands in many c-store categories.

4. Sweetgreen – Branded Dressings and Bowls

Sweetgreen isn’t a c-store, but it's a fast-casual chain mastering private label. With bottled salad dressings, meal kits, and soon-to-launch frozen bowls under its brand, it’s extending its reach beyond the store.

Consumer Value: Customers associate Sweetgreen’s private label dressings with clean eating and transparency, making it a trusted brand extension into home kitchens.

 

5. Casey’s General Store – Breakfast Pizza as Brand DNA

Casey’s built its reputation in rural America with its now-iconic private label breakfast pizza. It’s not just a food item; it’s part of regional food culture.

Result: Private label food accounts for 61% of Casey’s prepared food sales, with breakfast pizza generating loyal morning traffic.

 

Brand Value for the Chain

From a branding perspective, private label food:

·       Elevates Perceived Quality: Consumers see branded, proprietary food as a sign the retailer takes pride in their offerings.

·       Supports Cross-Promotion: Chains can bundle food items with fuel rewards, digital loyalty programs, or app-exclusive deals.

·       Builds Emotional Connection: Private label foods can evoke nostalgia, indulgence, or health consciousness based on how they're crafted and marketed.

·       Reduces Competitive Exposure: Without third-party products, there’s less risk of price matching or cross-shopping.

Brand Value for the Consumer

Consumers benefit in five key ways:

1.       Cost Savings: Private label often comes at a lower price without sacrificing quality.

2.       Product Discovery: Unique flavor profiles and limited-time offerings make meals feel like an experience.

3.       Consistency: Private label guarantees product uniformity across all locations.

4.       Transparency: With clean labels and fewer artificial ingredients, consumers feel more in control of their health.

5.       Convenience & Trust: Familiar branding makes decision-making easier, especially in grab-and-go situations.

 

Think About This: Private Label is the New Signature Dish

As grocerants continue to blur the lines between restaurant, grocery, and convenience, private label food emerges as a cornerstone of strategy—not just a supplement. For chains, it’s a brand-building tool. For consumers, it’s a trusted source of value and innovation. According to the Grocerant Guru, “Private label food isn’t just about selling a product—it’s about telling a story that keeps customers coming back.”

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