Kroger’s Bulk Blind Spot: Why Overpricing and Outdated Thinking Are Driving Shoppers Away

 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has plenty of opinions, this article is one of them!  When 62% of U.S. households are one or two people, selling 10 pounds of pork chops is a business model built for yesterday. Fast food and modern grocers are eating Kroger’s lunch—literally.

For decades, Kroger stood tall as America’s grocery gold standard—trusted, reliable, and efficient. But in 2025, that same legacy scale is starting to look more like an anchor. Consumers are paying more, getting less, and noticing every price tag.

Let’s be clear: Kroger has a price problem, a portion problem, and a people problem.

 

1. The Price Problem: When “Loyalty” Costs You More

Recent basket comparisons show Kroger’s prices averaging 8–15% higher than Walmart, Aldi, and even Costco on everyday items—even after loyalty discounts (DataWeave, Q2 2025). That’s not just perception; it’s quantifiable.

In an era of stubborn food inflation, loyalty programs that don’t actually save money are alienating shoppers. What once felt like a reward now feels like a gimmick.

“When a ‘loyalty discount’ costs more than the competition’s shelf price, you don’t have a loyalty program—you have a leakage problem.”
— Steven Johnson, The Grocerant Guru®

Compounding the issue, Kroger’s high-profile share buybacks, dividend increases, and the still-controversial Albertsons merger have made headlines—not for creating customer value, but for enriching shareholders. The optics reinforce what consumers already suspect: they’re paying more so investors can profit.

 

2. The Portion Problem: Bulk in a Nation of Singles

Here’s a demographic reality: 62% of U.S. households now consist of one or two people (U.S. Census Bureau, 2024). That’s not a trend—it’s the new normal.

Yet Kroger’s meat and produce departments still look like they’re built for families of five. Shoppers see three-pound packs of hamburger, gallon-sized sauces, and 10-pound slabs of pork chops. For millions of Americans living alone or as couples, that’s not value—it’s waste.

Chains like H-E-B, Trader Joe’s, and Publix are thriving because they’ve recalibrated for smaller households—offering right-sized proteins, meal-for-one kits, and fresh ready-to-eat options.

“Selling family-sized portions to single households is like trying to stream VHS—wrong format, wrong decade.”
— Steven Johnson, The Grocerant Guru®

This isn’t nostalgia; it’s negligence. When 60+% of households don’t fit the “family pack” model, continuing to merchandise like it’s 1985 is a recipe for attrition.

 

3. Fast Food Is Winning the Grocery Fight

Kroger’s biggest competitor isn’t just Walmart anymore—it’s Wendy’s, 7-Eleven, and Wawa. Why? Because QSRs and c-stores are now serving meals that are cheaper, faster, and portion-perfect.

According to Technomic (2025), Americans visit QSRs 5.6 times per week, up 11% over three years. Meanwhile, grocery trip frequency has fallen 6% year-over-year (IRI 2025). Consumers aren’t cooking bulk—they’re eating ready-to-eat.

It’s no wonder prepared foods and grab-and-go sales in grocery are up 7.8% year-over-year, while traditional grocery baskets are flat (Circana, 2025). Shoppers are shifting dollars toward convenience.

Kroger’s deli and prepared meal sections, once category leaders, are now stale by comparison. While Whole Foods, Hy-Vee, and Publix GreenWise units innovate with fresh bowls and chef-inspired menus, Kroger’s offerings remain utilitarian.

“If grocery doesn’t feed time-pressed consumers fresh, fast, and portioned meals, fast food will—every single day.”
— Steven Johnson, The Grocerant Guru®

 

4. Five Reasons Consumers Are Migrating Away from Kroger

1.       Overpricing & Price Fatigue
Consumers know they’re paying more. In the age of price transparency apps, that’s lethal.

2.       Pack Size Mismatch
62% of households = one or two people. Kroger is still selling for a nuclear family that no longer exists.

3.       Convenience Gap
Walmart+ and Target Drive Up are faster, simpler, and cheaper than Kroger’s pickup options.

4.       Labor & Trust Issues
Store closures, worker disputes, and merger backlash erode the brand’s community connection.

5.       Failure to Evolve
Competitors like Aldi, Trader Joe’s, and Costco constantly reinvent. Kroger keeps re-tagging bulk displays.

 

5. Data Points That Tell the Story

·       62% of U.S. households: one or two residents (U.S. Census, 2024)

·       Prepared foods up 7.8% YoY (Circana, 2025)

·       Grocery trip frequency down 6% (IRI, 2025)

·       73% of consumers switched grocery brands due to cost in the last 12 months (IRI, 2025)

·       Fast-food visits up 11% since 2022 (Technomic, 2025)

These numbers are Kroger’s scoreboard—and they’re losing ground.

 

6. The Path Forward: From Bulk to Bite-Size

Kroger can still win, but not by doubling down on outdated strategies. Here’s what must change:

• Repack for Relevance.
Shift toward smaller SKUs and meal-for-one packaging. Offer “Fresh for One” bundles in proteins, sides, and fresh meals.

• Win Back Trust Through Transparent Pricing.
Scrap confusing loyalty math. Guarantee best prices on a basket of essentials—publicly.

• Become a Meal Destination.
Invest in high-quality, chef-crafted prepared foods. Think: “Dinner for Two” meal deals that rival fast-casual dining.

• Reinvest in People and Purpose.
Better pay, stronger local sourcing, and visible community impact rebuild the emotional bridge that price alone cannot.

“If Kroger wants to stop the consumer exodus, it needs to stop selling yesterday’s quantities and start selling today’s convenience.”
— Steven Johnson, The Grocerant Guru®

 

Think About This

Kroger’s size is still a competitive weapon—but only if wielded wisely. Scale should mean agility and accessibility, not complacency. America’s eating habits have shifted, and the competition—from Aldi to Chick-fil-A—is capturing those shifts faster.

Kroger must rediscover what it once understood: consumers lead, and retailers follow—or fail. The modern shopper isn’t stocking up; they’re snacking smart, portioning fresh, and shopping by the meal, not the month.

Until Kroger adapts, it’s not just losing customers—it’s losing cultural relevance.

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.

From Me to We: How Starbucks’ Sustainability Journey Lost Its Buzz—and How It Can Regain It

 

Starbucks once stood as the global beacon of “doing well by doing good.” In 2020, the brand boldly embraced the “Me to We” movement—shifting focus from individual convenience to collective sustainability according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. With strawless lids, recyclable materials, and an ambitious 2030 goal to cut waste sent to landfills by 50%, Starbucks positioned itself as a restaurant-sector sustainability leader.

Back then, it worked. Consumers applauded the move. Environmental advocates—from the Ocean Conservancy to local community leaders—praised Starbucks for creating scalable change in single-use plastics. The new lids, made from recyclable polypropylene, marked a genuine step toward a circular economy.

What They Got Right

Since 2020, Starbucks has continued to make progress—at least on paper. It expanded the strawless lid program globally, rolled out reusable cup trials in several markets, and pledged to make every store “resource positive” by 2030. Pilot programs in Japan, the U.K., and select U.S. cities allowed customers to borrow and return reusable cups—an innovative test of shared responsibility between company and customer.

The company has also invested in regenerative agriculture, helping coffee farmers adapt to climate change through its “Farmer Support Centers” and new low-carbon coffee initiatives. These moves align directly with the “Me to We” ethos—linking corporate purpose to environmental well-being.

Capitulating 

Share of Stomach

Where They’ve Gone Wrong

But good intentions don’t always translate into good execution. The brand’s progress has been uneven, and its sustainability message has grown fuzzy.

After COVID-19, Starbucks scaled back or paused some of its most promising reusable cup programs, citing “operational challenges.” Waste audits show single-use packaging still dominates its output. Meanwhile, the company’s shift to mobile ordering and drive-thru heavy formats—now responsible for over 70% of U.S. transactions—has increased packaging waste dramatically.

Even more damaging, Starbucks’ sustainability narrative has been overshadowed by internal controversies over employee treatment, unionization efforts, and cost-cutting measures. Consumers can’t embrace a “Me to We” mission if the “we” inside the company feels ignored.

In short, Starbucks led the sustainability conversation five years ago—but it’s no longer leading it today. Competitors like McDonald’s, Pret a Manger, and Panera have leapfrogged with stronger packaging solutions, carbon tracking transparency, and store-level waste reporting.

The Road Back to “We”

Sustainability and social responsibility aren’t side projects—they’re part of brand DNA. Starbucks has the global reach and cultural capital to make sustainable consumerism more than a buzzword again. But it must realign execution with its original vision.

 

Three Grocerant Guru® Insights for Starbucks’ Path Forward

1. Reconnect People and Purpose.
Starbucks’ “Me to We” promise must extend beyond packaging. Consumers now view sustainability as social as much as environmental. Empowering baristas, restoring community trust, and aligning employee well-being with brand mission will turn sustainability back into shared culture—not corporate rhetoric.

2. Make Sustainability Measurable and Visible.
Today’s customers expect data, not declarations. Starbucks should post waste-reduction, recycling, and energy efficiency metrics in-store and online—in real time. Sustainability must be as transparent as a calorie count if it’s to rebuild credibility.

3. Reimagine the Store Experience for the Low-Waste Era.
Digital convenience must evolve into digital responsibility. The brand’s future lies in low-waste convenience: mobile ordering with reusable cup integration, refill incentives tied to loyalty programs, and store designs that minimize waste flow. This is the new face of the grocerant niche—fresh, fast, and forward-thinking.

 

Starbucks taught the world how to personalize a cup of coffee. Now it must teach the world how to personalize sustainability. The future belongs to brands that make “Me to We” more than a slogan—it must become an operational standard and a cultural movement.

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

Wendy’s: When “Fresh” Isn’t Enough — Why Yesterday’s Fast-Food Model Is Cracking

 

Wendy’s was once the chain that made “fresh, never frozen” a national rallying cry. Today, the brand that gave us square burgers and sass is navigating one of the toughest stretches in its history — closing stores, trimming menus, and fighting to stay relevant in a quick-service world where convenience stores, not burger joints, are stealing the breakfast crowd according to Steven Johnson Grocerant Guru® At Tacoma, WA based Foodservice Solutions®.

Let’s face it: being a fast-food chain may no longer be the bulletproof business model it once was.

 

Salad Days — and Salad Slumps

Back in 1979, Wendy’s “Garden Spot” salad bar was revolutionary — a buffet of crisp greens and toppings that screamed fresh decades before “fast casual” existed. It became part of the brand’s identity, evolving into premium entrée salads in the 2000s that briefly reignited traffic among health-minded diners.

But like many things at Wendy’s, the salad strategy has been on-again, off-again. Each refresh has drawn positive buzz but never long-term loyalty. The self-serve era disappeared for good, replaced by prepped entrée salads that hit speed targets but lost the experiential draw that once set Wendy’s apart. The lesson? Consistency builds brand equity — stop-start programs don’t.

 

Breakfast: The Most Expensive Meal of the Day

Breakfast was supposed to be Wendy’s next frontier. A full menu rollout in the 2020s promised fresh eggs, croissants, and even a “Breakfast Baconator.” But in a market obsessed with value and speed, Wendy’s middle-tier pricing landed awkwardly.

While McDonald’s drives morning traffic through habitual routines, and Wawa and 7-Eleven win commuters with convenience and price, Wendy’s finds itself in the middle lane — good food, but not cheap enough or fast enough to change morning behavior. And with breakfast input costs (labor, eggs, and coffee) still rising, it’s a tough equation to fix.

 

The Competitive Gauntlet: Wawa, McDonald’s, 7-Eleven, Burger King

1.       Wawa owns regional loyalty and fresh, made-to-order appeal — it is breakfast for millions of East Coast commuters.

2.       McDonald’s built the morning habit decades ago, and its scale keeps prices brutally competitive.

3.       7-Eleven’s 24/7 accessibility and grab-and-go bundles make it the “everywhere” option.

4.       Burger King rides aggressive value pricing and a revitalized breakfast menu to lure back former Wendy’s guests.

That’s not just competition — that’s a wall of daily convenience. And cracking it will take more than a few breakfast LTOs.

 

Shrinking to Survive

Wendy’s closed more than 100 units in 2024 and plans to close hundreds more in 2025. The official line: underperforming stores, outdated facilities, and franchise optimization. The reality: fewer customers, higher operating costs, and an outdated traffic model.

Across the U.S., the classic fast-food business model — low-ticket, high-volume, labor-heavy — is under siege. Real estate costs are up. Labor is tight. Consumers are trading down, not up.

So the hard question becomes: Is the traditional fast-food chain yesterday’s business model — broken?

 

Three Fixes from the Grocerant Guru®

1. Micro-Formats with Local Flavor:
Convert underperforming stores into micro-Wendy’s units offering made-to-order breakfast rolls and regional bakery items. Think Wendy’s x Local Deli.

2. Subscription Breakfast Bundles:
Offer a commuter subscription — one sandwich and coffee every weekday for a flat weekly price. Predictable value. Habit-forming convenience.

3. Pop-Up Grocerant Partnerships:
Test Wendy’s kiosks inside convenience stores or transit hubs — meet the customer where they already are, not where you wish they’d drive to.

 

Think About This

Wendy’s has the DNA to thrive — fresh prep, menu credibility, and a legacy of innovation. But legacy won’t keep the drive-thru full. The next decade in foodservice belongs to brands that own occasions, not just menus. Breakfast, lunch, late-night — whoever wins those moments wins the consumer.

If Wendy’s wants to be part of tomorrow’s fast-food story, it has to stop chasing yesterday’s model — and start inventing the next one.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

The Future of Autonomous Retail: Smart Stores Reshape the Intersection of Food and Convenience

 

The future of retail is here, and it doesn’t have a cashier according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Autonomous retail stores, like VenHub’s new Smart Store at Los Angeles Union Station, are redefining convenience, efficiency, and the customer experience. What began as a futuristic idea born in the labs of Amazon Go and a handful of tech startups is now accelerating into mainstream adoption across the U.S. and beyond.

A Brief History: From Vending to Vision-Driven Retail

The autonomous retail journey began decades ago with vending machines — the first true “unmanned” retail outlets. Those machines sold snacks and sodas, but they hinted at something bigger: consumer comfort with frictionless, staff-free purchasing. Fast forward to 2016, when Amazon Go opened its first cashierless convenience store, proving that computer vision, AI, and mobile integration could eliminate lines and checkout counters entirely.

Today, companies like VenHub, AiFi, Grabango, and Zippin are expanding the ecosystem, enabling 24/7 access to food and essentials in spaces once thought too small, too remote, or too transient to justify traditional retail. VenHub’s rapid-install Smart Store at Union Station — serving 60,000+ daily passengers with more than 400 SKUs — underscores how automation and modular design can thrive even in the busiest environments.

8 Out-of-the-Box Locations Where Autonomous Retail Can Thrive

Autonomous stores are not just the future of convenience — they are the future of location strategy. Here are eight unconventional but high-potential venues:

1.       Hospital Campuses – 24/7 medical environments need food, hygiene, and comfort items at all hours. Staff, visitors, and patients all benefit from round-the-clock access.

2.       Residential High-Rise Lobbies – Smart Stores bring grocery and meal solutions directly to residents without requiring full grocery footprints.

3.       Highway Rest Stops – Ideal for travelers at off-hours, these outlets reduce labor costs and improve consistency.

4.       Corporate Campuses – Staffed cafeterias are costly; autonomous stores can replace or complement them with fresh, ready-to-eat options.

5.       University Dorm Clusters – Gen Z consumers expect mobile-first convenience; smart micro-markets fit perfectly.

6.       Sports & Entertainment Venues – During major events, autonomous units can handle crowd surges without staffing crises.

7.       Military Bases and Remote Work Sites – Secure, modular, and scalable autonomous units can operate where traditional logistics fall short.

8.       Cruise Ports and Airports – High security, high volume, and irregular hours make them prime for frictionless, unattended operations.

Each location highlights the scalability and adaptability of autonomous retail — plug, play, and sell.

5 Reasons Why Autonomous Retail Works

1.       Labor Efficiency – Automation reduces dependency on staffing during labor shortages and inflationary wage cycles.

2.       24/7 Accessibility – Always open, always stocked — ideal for today’s on-demand culture.

3.       Precision Data & Inventory Control – Real-time analytics eliminate waste and improve product availability.

4.       Speed of Deployment – VenHub’s Union Station store was delivered and operational in days, not months — a new industry benchmark.

5.       Consumer Trust in Technology – Mobile payments, facial recognition, and QR access are now everyday behaviors. Consumers are ready.

Insights from the Grocerant Guru®: The Evolving Face of Food Retail

1.       Foodservice is No Longer Bound by Walls – The grocerant model — blending restaurant quality with grocery convenience — aligns perfectly with autonomous retail. The next generation of outlets will offer Ready-2-Eat and Heat-N-Eat meals, not just snacks.

2.       Micro-Markets Meet Mobility – The rise of households of one or two means convenience is king. Mobile-first, small-format retail serves these customers better than big-box grocery ever could.

3.       Brand Expansion Through Footprint Flexibility – Expect national food brands to use autonomous modules to extend their presence — from gas stations to gym lobbies — with minimal capital investment.

4.       Experience Without Human Friction – Consumers want speed, safety, and satisfaction. Autonomous outlets deliver all three — redefining how food, retail, and technology converge in public spaces.

Think About This: The Convergence of Convenience and Connectivity

Autonomous retail is not a replacement for human service; it’s an evolution of consumer demand. As brands face labor volatility, rising costs, and shifting mobility patterns, autonomous stores like VenHub’s Smart Store model offer scalability and security without sacrificing convenience.

By 2030, experts predict autonomous formats could account for up to 15% of all convenience transactions in urban markets. Whether in a hospital corridor, a transit hub, or a corporate park, the autonomous revolution will continue to deliver what the Grocerant Guru® calls “Foodservice Anywhere.”

The future isn’t just contactless — it’s convenient, connected, and continuous.

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