Why Grocerants Are Winning: How Retail Food is Redefining the Battle for America’s Stomach

 

The Grocerant Revolution is here. See how Walmart, Costco, and Wawa are stealing food dollars from restaurants with Ready-2-Eat and Heat-N-Eat fresh foods — and why traditional brands like Campbell’s and Heinz are struggling to keep up according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The line between restaurants and retailers has never been blurrier — or more competitive. The battle for America’s food dollar has become a fight for share of stomach, and it’s being won by those who blend fresh food, convenience, and value.

From Wawa and Costco to Walgreens and Walmart, retailers are capitalizing on the Ready-2-Eat and Heat-N-Eat revolution that continues to reshape consumer behavior.

The Data Behind the Shift

·       62% of consumers now purchase prepared meals from grocery or convenience stores at least once a week (Technomic, 2025).

·       Retail fresh food sales hit $58.7 billion in 2024, up 14% year-over-year (IRI/NielsenIQ).

·       Convenience stores grew foodservice revenue by 19% in 2024, driven by fresh breakfast and lunch options (NACS State of the Industry Report).

·       Meanwhile, restaurant traffic grew just 2.3%, signaling a migration of meal occasions away from traditional dining (Circana, 2025).

“The battle isn’t restaurant vs. grocery — it’s about who owns the next meal occasion.”
— The Grocerant Guru®

 

Consumer Migration: From Dining Out to Dining Anywhere

The modern food consumer doesn’t think in channels — they think in occasions. They’ll grab a fresh sandwich from Wawa, a rotisserie chicken from Costco, or a Heat-N-Eat bowl from Trader Joe’s without hesitation.

Legacy brands like Campbell’s, Heinz, and Folgers were built for a pantry-based world. Today’s shoppers live in a portability and immediacy world — they’re hungry now, and they’re mobile.

Food marketing is evolving fast:

·       Walmart’s “Fresh, Fast, Affordable” in-store campaign boosted deli meal sales by 23%.

·       Trader Joe’s seasonal innovation cadence (40+ new SKUs per quarter) keeps their audience emotionally engaged and curious.

·       Wawa’s fresh handheld menu expansion drove a 12% increase in breakfast sales YOY.

 

Non-Traditional Food Distribution is Now the Norm

From Dollar General’s DG Fresh to Walgreens’ refrigerated grab-and-go, consumers have expanded their definition of where a “meal” can come from.

New food packaging innovations — microwave-safe paperboard bowls, smart shelf-life tech, and compostable heat trays — have enabled this migration. The result: the grocery store, the gas station, and even the drugstore are now mini-restaurants in disguise.

“If you sell food and you’re not selling meals, you’re missing the fastest-growing category in retail.”
— The Grocerant Guru®

 

The Grocerant Guru’s Three Insights for 2025 and Beyond

1.       Meal Occasion Integration Will Outpace Category Growth
Retailers that think like restaurants — with menu cycles, bundle pricing, and flavor innovation — will capture more meal occasions, not just product sales.

2.       AI-Personalized Meal Solutions Will Drive Loyalty
Smart retail apps will soon suggest meal pairings and portioning based on purchase history and dietary habits, creating a new level of personalization.

3.       Portability Is the New Brand Currency
Consumers reward brands that make eating easy without compromise. Expect packaged freshness and hand-held convenience to redefine premium perception.

 

Final Thought

The grocerant movement isn’t a fad — it’s the new architecture of retail food success. As legacy food brands struggle to modernize and restaurant chains battle for traffic, retailers who sell meals, not just products, are winning.

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.

Stay Ahead of the Competition with Fresh Ideas

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.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter