Costco: Customer-Focused Solutions for Long Checkout Lines — A Good Problem to Have

 

Let’s be honest — when your biggest problem is too many customers, you’re doing something right. Walk into any Costco on a weekend and you’ll see the signs of success stacked high: full carts, long lines, and packed parking lots. But even success comes with challenges, and long lines at checkout are a friction point that Costco isn’t ignoring — because that’s not the Costco way according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In the ever-evolving world of retail, the retailers who win are the ones who stay laser-focused on customer experience. And Costco? They've made it an art form.

So, how does a company that's bursting at the seams with loyal customers stay true to its roots while solving for high demand? More importantly, why will Costco continue to be a retail giant for years to come? Let’s take a look.

 

The Long Lines: A Byproduct of Value and Loyalty

Costco's popularity is no accident. Their business model — low margins, limited selection, and high value — has created a fiercely loyal customer base. But that same loyalty can result in customer pain points, especially at checkout.

That said, Costco isn’t ignoring the issue. They’re leaning into customer feedback and deploying smart solutions:

·       Additional self-checkout stations

·       Mobile scanning and digital receipts pilots

·       More staffing during peak times

·       Streamlined packaging to speed up the checkout process

They’re not perfect, but they’re adapting — and that’s key.

 

Why Costco Will Keep Winning: 5 Reasons They’re Built for Long-Term Success

1. Customer-First Culture

From free samples to generous return policies, Costco has built its brand on trust and value. When lines grow long, they don’t shrug it off — they fix it. They know the customer isn’t just always right — the customer is the reason.

2. Disciplined Pricing Strategy

In an era of price creep, Costco stands tall. Their famous $1.50 hot dog and soda combo hasn’t changed in decades. Why? Because it’s a symbol of their commitment to affordability — and customers notice.

3. Efficient, No-Frills Store Design

There’s a reason you don’t see fancy signage or flashy decor in Costco. Every element of their warehouse design is engineered for efficiency, cost savings, and ultimately, lower prices for the consumer.

4. Strategic Technology Investment

Costco isn’t flashy with tech — they’re strategic. Mobile app enhancements, digital membership cards, and future-facing checkout innovations show that they’re evolving with their customer’s expectations, not chasing trends for headlines.

5. Loyalty Built on Value, Not Gimmicks

Unlike many retailers who rely on deep discounting and rotating promotions, Costco’s model is simple: everyday value. That creates a different kind of loyalty — one that lasts. The lines at checkout are a direct result of this loyalty, and it’s the kind of problem most retailers would love to have.

 

Think About This

Yes, long lines at checkout can be frustrating. But when they’re a symptom of delivering unmatched value, they also tell a powerful story. Costco's response to those lines — rather than the lines themselves — is what sets them apart.

They listen. They adjust. And they never forget who they serve.

As the Grocerant Guru®, I’ve seen trends come and go — but customer obsession is always in style. And in that category, Costco remains king.

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Consumer Meal Spending Discontinuity Driving Customer Migration

 

America’s dinner table is shifting—and fast. The traditional grocery store is no longer the default destination for meal decisions. Instead, consumers are migrating across channels—convenience stores, restaurants, online aggregators—seeking better value, quality, and convenience in the face of rising grocery prices. This consumer migration isn’t just a trend—it’s a direct response to what I call the Consumer Meal Spending Discontinuity according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The Trigger: Government Policy + Tariffs = Consumer Frustration

According to a new survey by the Feedback Group, 61% of U.S. grocery shoppers report heightened stress over food prices, with Gen Xers feeling it most acutely at 70%. Across all generations, frustration is rising—especially at perceived policy failures. Government actions, including tariffs and trade restrictions, are now viewed as the top cause of food inflation. In fact, 82% of shoppers believe tariffs will lead to higher grocery prices, with nearly half expecting significant increases.

This perception has real consequences. The survey found that 34% of shoppers plan to cut grocery spending. But where are those dollars going?

Let’s break down the consumer migration story across four key battlegrounds:

 

1. Convenience Stores: The New Everyday Food Stop

What’s Happening:
C-stores are winning meal occasions with quick-serve options, aggressive pricing, and location convenience. According to NACS data, 59% of c-store foodservice sales now come from prepared foods, and 44% of Millennials buy meals or snacks from a c-store at least once a week.

What It Means:
With grocery prices surging and stress rising, consumers are increasingly viewing convenience stores as fast-food alternatives or even grocery substitutes for grab-and-go meals. Expect continued growth in made-to-order programs, fresh grab-n-go, and bundled meal deals (think: $5 lunch combos and hot food loyalty perks).

Grocerant Guru® Takeaway:
C-stores that behave like neighborhood restaurants—offering fresh, fast, and affordable—are siphoning off grocery and fast-casual dollars, particularly from Gen Z and working-class consumers.

 

2. Grocery Stores: Losing Share of Meal Mindshare

What’s Happening:
While grocers are still the backbone of American food supply, their role in meal decision dominance is eroding. Shoppers now overwhelmingly blame external forces (especially tariffs and government policy) for high prices—scoring policy blame at 4.11 out of 5, up from 3.86 last year.

Yet ironically, shoppers still believe grocers are raking in profits—estimating net margins at 30%, when the real figure is closer to 1–3%.

What It Means:
Grocers face a trust gap and a value gap. Although private-label sales are rising (82% of shoppers see them as more affordable and 80% say the quality is comparable), grocers need to lean harder into meal solution marketing, not just item-based promotions. This means ready-to-heat meals, recipe kits, and cross-merchandised "what’s for dinner tonight?" sets.

Grocerant Guru® Takeaway:
Retailers must shift from selling groceries to selling meals. Otherwise, expect continued erosion of loyalty—especially among value-focused households and younger consumers.

 

3. Restaurants: Gaining Ground via Off-Premise & Value Menus

What’s Happening:
Restaurants are capturing more share of the consumer food dollar with dynamic pricing, fixed-cost meal options, and expanding takeout. According to the National Restaurant Association, off-premise dining now accounts for 68% of total restaurant traffic.

Quick-service chains are responding with $4–$7 combo deals, family meal bundles, and digital loyalty offers that make meal math more predictable—and in some cases, cheaper—than grocery shopping.

What It Means:
Consumers aren’t just eating out—they’re opting out of high grocery prices. And they’re using restaurant value menus as grocery alternatives, particularly for lunch and dinner.

Grocerant Guru® Takeaway:
Restaurants that market themselves as meal solution providers—not indulgences—are pulling grocery dollars straight into the drive-thru. Expect more bundling, more meal kits, and smarter loyalty targeting.

 

4. Online Aggregators: Subscription Meets Substitution

What’s Happening:
Instacart, Uber Eats, DoorDash, and Amazon Fresh are evolving from delivery platforms to dinner deciders. With meal subscriptions, dynamic promos, and AI-generated weekly meal plans, they’re capturing grocery and restaurant intent simultaneously.

A 2025 eMarketer report shows that 47% of shoppers use at least one aggregator for weekly meal planning, and 31% say they use aggregators to compare pricing between grocery and restaurant options.

What It Means:
These digital ecosystems are removing friction in price comparison and expanding consumer choice—often pitting your meal aisle against someone else’s menu in real time.

Grocerant Guru® Takeaway:
Online aggregators are accelerating the Consumer Meal Spending Discontinuity by enabling hybrid habits: order your pantry staples, reheat a restaurant meal, and still feel like you “cooked dinner.”

 

Final Word from the Grocerant Guru®:

The American consumer is no longer loyal to a single channel. They're loyal to value, convenience, and solutions. As long as food inflation is perceived to be out of their control—and driven by factors like tariffs and policy—shoppers will continue to migrate, meal by meal, to whoever gives them a better deal and a faster answer to “What’s for dinner?”

If you're a food retailer in 2025, you're not just competing on price.
You're competing on perception, portability, and plate-ready convenience.

The discontinuity is here. The migration is real. Are you ready?

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Roller Grills: A Relic of Convenience Stores That Consumers Are Rejecting

 

Once the crown jewel of convenience store foodservice, roller grills are quickly becoming relics of the past. Once synonymous with grab-and-go ease, they are now viewed by a growing segment of consumers as outdated, unappetizing, and unsanitary. In an era where food quality and transparency drive purchasing decisions, roller grills are struggling to retain relevance.

Consumer Skepticism Toward Roller Grills

Despite their long-standing visibility behind the counter, roller grills today evoke more skepticism than appetite. A recent Technomic consumer trend report found that 53% of consumers under 35 actively avoid foods from roller grills, citing concerns about freshness and ingredient quality. These perceptions aren't unfounded. Roller grill foods—often ultra-processed and high in sodium and preservatives—clash with modern preferences for “clean label” eating.

Steven Johnson, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, emphasizes that “roller grills symbolize everything that today’s consumer is walking away from: one-size-fits-all, processed food with little transparency or customization.” Johnson notes that millennials and Gen Z, now the dominant drivers of foodservice growth, expect “restaurant-quality” offerings even from gas stations and corner stores.

Food Safety Concerns Undermine Trust

Food safety remains a key concern. Unlike made-to-order meals prepared in sanitized, controlled environments, roller grill items may sit unattended for hours, often beyond recommended safe holding times. According to an FDA study, self-serve hot foods rank among the top five retail food safety concerns, primarily due to inconsistent temperature monitoring and the risk of cross-contamination.

The COVID-19 pandemic further exposed these vulnerabilities. Many chains suspended roller grill operations, and a notable percentage never reinstated them. Retailers like Casey’s and Circle K pivoted to pre-packaged or fresh food solutions instead, citing consumer anxiety over shared surfaces and airborne contaminants.

Sales Declines and Industry Realignment

While convenience store foodservice overall has been booming—growing at 10.2% annually since 2020, according to NACS (National Association of Convenience Stores)—roller grills have notably lagged behind. In 2024, foodservice accounted for 22.58% of total in-store sales, yet roller grill items represented less than 4% of that revenue, according to CSP Daily News.

Retailers are reallocating floor space and budget toward made-to-order kitchens, smart vending, and chef-curated grab-and-go options. “The grocerant trend—blending grocery and restaurant quality—has obliterated tolerance for heat-lamped mystery meats,” says Johnson. “Consumers want control, flavor, and freshness. Roller grills offer none of that.”

The Rise of Fresh and Fast Alternatives

Major players in the c-store industry are responding. 7-Eleven has expanded its fresh food selection by over 30% since 2021, investing in premium sandwiches, salads, and protein bowls. Wawa has elevated its brand perception with customizable hoagies and barista-style beverages, while Sheetz continues to build its QSR-style made-to-order menu.

Even brands that once relied heavily on roller grills are now reimagining their offerings. Maverik and QuickTrip are piloting digital ordering kiosks and fresh food kitchens, betting on culinary innovation over spinning sausages.

The Future of Roller Grills

The writing on the wall is clear. As consumer expectations evolve, the roller grill has become less a symbol of convenience and more a warning sign of stale thinking. Legacy equipment and processed products no longer satisfy the standards of a food-savvy, health-conscious public.

Retailers clinging to roller grills risk falling behind in an industry increasingly driven by data, brand trust, and culinary credibility. “The convenience store of 2030 will have far fewer roller grills,” Johnson predicts. “It’ll have chefs, tech-driven customization, and food you’re proud to eat—not food you grab because you’re out of options.”

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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.

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The Seven Spoons of Struggle: Why Restaurants Struggle to Stay Profitable

 

The restaurant industry has always been a tightrope act. From medieval taverns to 1950s diners to today’s Instagram-driven bistros, restaurateurs have grappled with financial balancing acts. It’s not a new struggle—but one made more complex by rising costs and changing consumer behaviors according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Let’s explore seven key cost centers that chip away at profitability, backed by history and food facts.

1. Food Cost – A Recipe for Razor-Thin Margins

Historical note: In Ancient Rome, tavern owners were often forced to raise prices when the grain supply was disrupted by war or weather. Today’s equivalent? Global supply chain fluctuations and rising ingredient prices.

Modern fact: The ideal food cost percentage is between 28% and 35%. But inflation, spoilage, and over-ordering often push this much higher. Menu engineering and portion control are vital—yet even those can't always beat commodity volatility (think: the skyrocketing price of eggs in 2022).

2. Labor Cost – Staffing the Line

Historical note: In the 1800s, fine dining in Paris was made possible through cheap or even unpaid labor from apprentices. Today, those days are gone—rightfully so.

Modern fact: Labor can eat up 30–40% of a restaurant's monthly expenses. Between minimum wage increases, turnover, and training costs, staffing is often the second-largest expense. Throw in benefits, paid sick time, and training, and you’re walking a tight margin.

3. Overtime Pay – The Hidden Burner

Historical note: In post-WWII America, diners thrived on long hours and hard work—often by family members. But labor laws have since changed the game.

Modern fact: Federal and state regulations require time-and-a-half for hours over 40 per week. A single salaried manager pulling “just a few” 60-hour weeks can cost thousands in retroactive back pay if misclassified.

4. Utilities – The Cost of Comfort

Historical note: In the early 20th century, iceboxes and wood stoves dominated kitchens. Today's gas ovens, HVAC systems, and walk-in freezers, while more efficient, are far more expensive to run.

Modern fact: Utilities can range from 3% to 6% of gross sales. In high-volume kitchens, especially in warm climates, utility bills can exceed $5,000/month. Energy-efficient equipment helps, but upfront costs are often prohibitive for struggling operators.

5. Trash and Waste – The Silent Profit Eater

Historical note: During wartime rationing in the 1940s, kitchens were masters of scrap cooking and zero waste. Today, food waste can quietly hemorrhage cash.

Modern fact: Restaurants generate 25,000–75,000 pounds of waste annually. Dumpster fees, composting, recycling programs, and unused food all pile up—literally and financially. Smart operators track waste like inventory, but many still neglect it.

6. Slow Sales – Feast or Famine

Historical note: In Depression-era America, restaurants closed in droves due to vanishing discretionary income. Only establishments with deep community ties or novel concepts survived.

Modern fact: Even a 10% dip in weekly sales can decimate cash flow. Weather, construction, local events, or online reviews can shift the tide overnight. The rise of delivery apps has helped broaden reach—but they take 20–30% per order, eating into margins.

7. Debt – The Long Shadow

Historical note: Many post-war restaurants in the 1950s expanded too fast with bank loans and failed to keep up with the boom-and-bust suburban sprawl.

Modern fact: Opening a restaurant can cost $275,000 to $500,000 or more. Many owners start with loans, credit cards, or investors—and find themselves servicing debt instead of reinvesting in the business. Interest payments can eat up what little profit is left, especially during slow months.

 

Five Red Flags It’s Time to Sell, Close, or Walk Away

Running a restaurant demands passion—but also pragmatism. Here are five key indicators that it may be time to make a hard decision:

1.       Negative Cash Flow for 6+ Months

o   If you're consistently in the red despite attempts to cut costs or increase revenue, the business model may be broken.

2.       Can’t Pay Yourself

o   If you haven’t drawn a salary in months—or years—while still working 60-hour weeks, you're effectively a volunteer in a failing enterprise.

3.       Mounting Debt with No Paydown Plan

o   If you're using new credit to pay off old debt or missing loan payments, the financial tailspin may be irreversible.

4.       Team Turnover is Constant

o   A revolving door of staff hurts consistency, increases training costs, and signals internal dysfunction—both to customers and remaining team members.

5.       Declining Sales Despite Promotions

o   If happy hours, discounts, and events aren’t bringing in sustainable volume, the local market might not support your concept anymore.

 

Think About This

Restaurants are a labor of love—and history shows they’ve always danced on the edge of financial danger. Understanding where the money goes and when to call it quits isn’t just good business—it’s survival. If your kitchen is cooking up more stress than sales, it might be time to put down the ladle and reassess.

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