By
the Grocerant Guru® (Steven Johnson) — a data-first look at where Publix stands
in 2025 and how grocerants and restaurant chains are stealing grocery share in
Florida.
Publix
is one of retail grocery’s most beloved brands — friendly cashiers, clean
stores, and that famously addictive deli sub. It’s also one of the largest U.S.
supermarket chains: retail sales hit roughly $59.7 billion in 2024 and
the company remains employee-owned and tightly focused on the Southeast.
But
affection doesn’t insulate a brand from shifting shopper priorities. Over the
last 18–30 months a consistent set of trends have combined to push some
shoppers away from Publix and toward value-focused grocers and meal-oriented
restaurant chains. Below I lay out the data, the drivers, and three Florida
restaurant chains that are nibbling at grocery’s “share of stomach.” Then —
from my Grocerant Guru chair — three clear moves Publix should make to re-win
everyday grocery occasions.
The perception problem: “Publix is overpriced” (and why
that matters)
Perception
matters as much as sticker-price. Local market studies and coverage in 2024–25
show Publix’s dominance in Florida markets — in some metros it controls roughly
~40–46% of grocery spend — which gives it pricing power but also makes
price comparisons stark for value-seeking shoppers.
At
the same time, industry analysts have flagged that Publix’s net margins and
premium positioning leave it exposed when consumers prioritize low price
and convenience. Reporters and consumer threads have pointed to item-by-item
comparisons (eg. milk, eggs, staples) where discount chains undercut
traditional supermarkets — feeding a narrative that Publix feels “expensive.”
Why
perception matters: when shoppers are tightening budgets or simply become more
value-driven, they move occasional trips to stores that deliver the lowest
basket price or the fastest ready-to-eat option. That behavioral shift chips
away at “top-of-mind” for everyday grocery runs even if the brand is beloved.
Macro shopping shifts helping Aldi, Lidl and other value
players
Across
the industry the story is consistent: value-oriented discounters have been growing
share and recruiting new shoppers by combining low everyday prices,
private-label penetration and streamlined stores. Aldi’s own 2025
pricing/expansion narrative claims millions of net-new shoppers in recent years
thanks to that model. Independent industry trend reports also show “value
shopping” and private-label adoption as two of the top structural forces
shaping grocery in 2025.
Key
shopper moves that favor discounters:
·
More price-sensitivity and active
price comparisons (post-inflation behaviors).
·
Increased private-label acceptance as
shoppers chase value.
·
Faster conversion of occasional trips
(pluck-and-go) away from full-service grocers when meal-inspiration or
ready-prep is not required.
Put
simply: Aldi et al. win the “everyday basket” and Publix risks being seen as
the store you visit when you want something special (deli, BOGO
specials, service), not when you want cheapest staples.
Publix may have over-extended “reach” without staying
top-of-mind for everyday trips
Expansion
and store growth can create market coverage — but it doesn’t guarantee frequent
mental recall for the most price-sensitive occasions. In many Florida markets
Publix’s market share is dominant; yet that dominance can mask gaps in
perception for value shoppers and for younger consumers who prize convenience
and low price above in-store service. Media coverage and analyst commentary in
2024–25 point to exactly that tension: strong results and margins, but growing
shopper movement toward lower-cost alternatives.
Three Florida-based (or Florida-strong) restaurant chains
winning grocery occasions
Restaurants
have learned to compete with grocery not just by dining room sales but by
owning ready-to-eat and heat-and-eat occasions — those exact
moments when consumers otherwise might cook or buy from the supermarket deli.
Here are three chains that have, in my view, taken meaningful share from
grocery shoppers in Florida:
1) First Watch — the daytime dining/ready-meal winner
First
Watch is a Florida-founded chain that has grown aggressively in recent years
and leaned into high-frequency daytime occasions: breakfast, brunch and lunch.
Its made-to-order positioning, strong digital ordering and takeout volumes mean
customers pick First Watch for convenient, fresher-than-grocery morning and
midday meals. The company’s systemwide sales and expansion (500+ locations and
growth into new states) show diners are choosing prepared restaurant meals in
place of grocery-cooked breakfasts and deli lunches.
2) Pollo Tropical — Caribbean quick-service that sells meal
convenience
Pollo
Tropical (Miami-rooted and long-embedded in Florida food culture) has driven
comparable-sales growth through compelling, heat-and-eat friendly menu items —
home-style sides, protein-forward plates and family meals that are easy
alternatives to a grocery run and home cooking. The brand’s recent revenue
momentum and strategic positioning make it a ready meal alternative for
shoppers who want ethnic flavors and no prep.
3) Chick-fil-A — convenience, speed and chicken that
displaces grocery protein occasions
Chick-fil-A’s
enormous systemwide sales and relentless traffic growth show how a focused menu
(high-quality chicken, efficient service, strong drive-thru) can displace quick
protein pick-ups that consumers might previously have filled with supermarket
rotisserie chicken or ready salads. When a shopper can buy a protein + side in
5–10 minutes, that’s a direct competitor to the grocery deli or prepared-meal
aisle.
Across
these three examples the common thread is simple: speed, single-minded menu
value, and consistent perceived value beat grocery for many everyday meal
occasions.
What the data implies for Publix’s “grocerant” strategy
Industry
trend reports for 2025 show three top forces: value shopping, growth of
prepared/meal solutions, and brand trust/purpose as tiebreakers. Shoppers want
low price when budget-conscious — and they want fast, delicious, prepared meals
when pressed for time. Publix sits in the middle: premium service plus prepared
offerings — but the brand must sharpen the edges of both to stop bleeding
occasions to discounters and restaurants.
Grocerant Guru® prescriptions: how Publix should evolve —
now
1. Double-down
on “value private kits” — curated meal kits under a strong private-label name
Launch a clear, everyday-value private-label meal kit line (breakfast bowls,
dinner-for-two, family heat-and-eat trays) priced competitively vs.
Aldi/TJ/discount staples. Position these as “Publix-assembled, chef-approved”
and available at multiple price tiers (value / mid / premium). This addresses
price perception AND the need for ready meals.
2. Operate
microsites of grocerant within stores — heat-and-eat hot bars + branded meal
stations
Turn a section of every store into a visible grocerant hub: hot-case
heat-and-eat proteins, rapid-heat microwavable kits with clear nutrition and
prep time labels, and a small branded seating or pick-up zone for to-go
customers. Promote these through targeted local marketing so “today’s lunch”
mental recall shifts back to Publix when consumers think “quick meal.” (The
restaurant chains winning share do this extraordinarily well.)
3. Fix
top-of-mind with transparent, frequent price/value messaging + loyalty nudges
Create a simple, repeated value message: a weekly “Essentials at $X” campaign
that compares a Publix value basket to competitors — but do it in a proud,
non-defensive voice. Pair this with loyalty offers that boost repeat visits for
prepared-meal occasions (eg. buy 3 heat-and-eat meals, get one free) and with
digital push notifications at peak meal times.
Think About This
Publix
is not broken — far from it. It has service DNA, high margins and massive
Florida market share. But the grocery battlefield in 2025 is defined by value
perception and prepared-meal convenience. Aldi and other discounters
are grabbing everyday baskets; fast-casual and quick-serve chains are winning
meal occasions. For Publix to keep (and grow) “share of stomach,” it needs to
be both the place you visit for a premium deli sub and the go-to for
fast, affordable heat-and-eat solutions — visible, competitively priced, and
aggressively marketed.
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.







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