Restaurants,
Grocery Stores, Convenience Stores, Dollar Stores, Costco, IKEA and even
fashion retailers are competing for more than food dollars. They are competing
for consumer occasions, loyalty and Share of Stomach according to Steven
Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
The
food fight is underway, and the battleground is bigger than ever. The
competition for food dollars has blurred traditional boundaries between
restaurants, grocery stores, convenience stores, dollar stores, warehouse clubs
and retailers once known primarily for selling nonfood merchandise.
Today,
the competitive set can include a neighborhood restaurant, a supermarket deli,
a convenience store selling freshly prepared food, a warehouse club offering
ready-to-eat meals, or IKEA serving a meal that makes a shopping trip more
appealing.
The
question is no longer simply, “Where will consumers shop for food?”
The
more important question is, “Who will earn the next meal occasion?”
That
is the essence of Share of Stomach.
At
Foodservice Solutions®, we have long championed the Grocerant Niche: the intersection of
fresh-prepared food, retail and foodservice, where Ready-to-Eat (RTE) and
Heat-and-Eat (HnE) offerings meet consumers' changing needs for convenience,
flavor, portability and value.
Consumers
do not necessarily organize their lives around industry classifications. They
organize their lives around hunger, schedules, budgets, cravings, family needs
and the time available to get a meal on the table.
Retailers
that understand this distinction can create new growth opportunities. Those
that remain trapped in traditional channel definitions risk losing occasions to
competitors they may not even recognize as competitors.
The Numbers Behind the Food Fight
Recent
industry research reinforces the importance of looking beyond traditional
retail categories.
·
56.3% of U.S. food expenditures went
to food away from home in 2025. The USDA Economic Research Service
reported that food-away-from-home spending exceeded food-at-home spending,
illustrating the substantial role of restaurants and other foodservice
occasions in the American food economy.
·
28% of consumers substituted grocery
deli-prepared foods for restaurant meals in 2025,
up from 12% in 2017. FMI's The Power of Foodservice at Retail 2025 also
found that 53% of Americans use a hybrid approach, combining deli-prepared
foods with items prepared in their own kitchens. Grocery retailers are not
merely selling ingredients; they are increasingly competing to help complete
the meal.
·
Nearly 75% of restaurant traffic
occurred off-premises in 2025. Takeout, drive-thru and delivery have
become central to the restaurant business, making portability, packaging,
ordering technology and speed critical parts of the consumer experience.
·
Convenience-store foodservice
continues to matter. NACS reported that foodservice and
merchandise sales inside U.S. convenience stores reached $341.2 billion in
2025. Foodservice accounted for 28.5% of in-store sales and 38.9% of in-store
gross profit dollars. Those figures show why convenience retailers increasingly
compete on prepared food, not simply fuel and packaged snacks.
·
Consumers continue to redefine value.
Circana reported that U.S. retail food and beverage prices had risen a
cumulative 34% over five years in its 2025–2026 outlook. For 2026, Circana
forecast continued dollar-sales growth but limited volume growth. That
environment makes it more important for brands to demonstrate why their food is
worth the price, rather than relying on price increases or promotional
discounts alone.
These
figures represent different parts of the food economy and should not be added
together as if they measure one market. Collectively, however, they demonstrate
a powerful competitive reality: consumers have more ways to satisfy the same
eating occasion, and retailers must continually earn their consideration.
Ten Clues to Building a Contemporized Food Brand
Legacy
food retailers and emerging fresh-food businesses share a common challenge:
remain relevant while consumer expectations evolve. A recognizable logo or a
long operating history is not enough. A brand must consistently give people a
reason to choose it again.
Here
are ten clues to building a contemporized food brand and winning a larger share
of stomach.
1. Purpose: Give Consumers a Reason to Choose You
Why
does your brand exist beyond selling food?
The
strongest food brands connect their products to a meaningful consumer need,
whether that means saving time, creating a family moment, delivering an
indulgent treat, providing dependable quality or making an ordinary day easier.
Purpose
must translate into the actual experience. A retailer cannot claim to simplify
dinner if the consumer must navigate a confusing ordering process, wait too
long or assemble a meal that fails to satisfy.
For
a grocer, purpose might mean making dinner easier to complete. For a
restaurant, it could mean delivering a dependable flavor experience. For a
convenience retailer, it might mean providing a fresh, satisfying meal when
time is limited.
The
test: Can consumers explain why your brand deserves a place in
their daily lives?
2. A Story: Make Your Brand Mean Something
Every
strong brand has a story, but food brands need more than a founder's biography
or an origin tale.
Their
story must connect with what consumers experience today.
A
brand story might center on a signature flavor, a regional food tradition, an
innovative preparation method, a commitment to convenience or a product that
solves a recurring meal problem.
Consider
the difference between telling consumers that a store sells sandwiches and
demonstrating how its freshly prepared sandwiches help people enjoy a
satisfying lunch without sacrificing their limited break time.
The
product becomes part of the story.
In
the Grocerant Niche, the story can be especially powerful because food crosses
channels. A recognizable flavor, meal solution or preparation style can create
continuity across grocery, restaurant, convenience and take-home occasions.
The
test: Is your story memorable enough that consumers will tell it
for you?
3. Consumer Interaction: Let the Experience Build the Brand
Advertising
can create awareness, but repeated consumer experiences determine whether that
awareness becomes preference and loyalty.
Every
interaction matters: the first product image seen online, the accuracy of a
digital menu, the ease of placing an order, the appearance of the food, the
packaging, the temperature, the flavor and the way a complaint is resolved.
The
National Restaurant Association's 2025 off-premises research identified speed,
customer service, intuitive ordering and payment technology, value offers and
loyalty programs as important elements of the takeout, drive-thru and delivery
experience.
For
retailers, this means the customer journey is part of the product.
A
great meal surrounded by a frustrating experience may lose to a competitor
offering a comparable meal with less friction.
Invite
feedback, monitor repeat purchases and study what consumers actually buy. Do
not assume that social media engagement, advertising impressions or a crowded
store automatically translate into lasting brand preference.
The
test: Does every touchpoint make the next purchase more likely?
4. Trust: Deliver on the Promise
Trust
is earned through repeated performance.
Consumers
want confidence that a familiar product will taste right, the price will be
clear, the food will be handled appropriately and the promised service will be
delivered.
Food
retailers face a particular challenge because the product is experiential. A
picture may attract the first purchase, but taste, freshness, consistency and
perceived value influence whether the customer returns.
Trust
also requires transparency. If a product is marketed as freshly prepared, the
description should accurately reflect the product and its preparation. If a
meal is designed for heating at home, the instructions should be clear and
practical.
A
promotion that creates confusion or a product that repeatedly disappoints can
undermine years of brand-building investment.
The
test: Can consumers purchase with confidence without needing to
second-guess your promise?
5. Consistency: Meet Expectations Every Time
When
consumers choose a brand, they buy an expectation.
That
expectation may involve portion size, flavor, food quality, speed, availability
or price. The brand earns its position when the actual experience repeatedly
meets the expectation.
Consistency
does not mean a brand must never change. It means changes should improve the
experience without destroying the attributes that made consumers loyal in the
first place.
For
multi-unit operators, consistency requires disciplined execution across
locations, employees, digital platforms and dayparts. For manufacturers and
retailers, it requires reliable quality, product availability and accurate
communication.
In
a world of mobile ordering and off-premises dining, consistency must extend
beyond the store. Food must remain appealing after packaging, transport and
reheating when those are part of the intended experience.
The
test: Would a customer receive the experience they expect
regardless of when, where or how they purchase?
6. Differentiation: Give Consumers a Reason to Switch
Food
is full of look-alike products, similar menus and competing promotions.
Differentiation gives consumers a reason to choose one offering over another.
It
can come from flavor, preparation, portion size, packaging, customization,
speed, convenience, service or the way products are combined into a complete
meal.
The
important distinction is that differentiation must matter to the consumer.
A
new label or an unfamiliar product name is not necessarily meaningful
differentiation. A portable breakfast that is easy to eat on the way to work, a
family meal bundle that reduces preparation time, or a fresh-prepared side dish
that complements a home-cooked entrée can solve a real problem.
The
2025 FMI finding that 53% of Americans combine deli-prepared foods with items
from their own kitchens illustrates an opportunity: consumers do not always
need an entirely prepared meal. They may need one or two components that make
dinner easier to finish.
The
test: What can consumers get from you that makes their day, meal
or experience meaningfully better?
7. Imitators: Lead Your Niche Instead of Following
Imitation
can be evidence that a concept has attracted attention, but being copied does
not guarantee leadership.
When
competitors introduce similar products, promotions or services, the original
brand must continue to innovate and execute.
That
is particularly important in the Grocerant Niche, where restaurant menu items
can inspire grocery deli offerings, convenience stores can develop
restaurant-style prepared foods, and branded packaged products can move into
foodservice or retail-prepared meal programs.
The
advantage belongs to businesses that understand the consumer problem behind the
trend and solve it better, not merely those that launch first.
Build
capabilities that are difficult to replicate: dependable sourcing, distinctive
recipes, strong execution, consumer insights, convenient packaging, effective
merchandising and trusted brand associations.
The
test: If competitors copy your latest idea tomorrow, what will
make consumers continue choosing you?
8. Market Leadership: Own a Meaningful Consumer Occasion
Market
leadership is not simply about having the largest footprint, the most
advertising or the most menu items.
A
brand can lead by owning a specific need in the consumer's mind.
Think
about breakfast on the go, afternoon snacks, a quick lunch, dinner for two,
family meal components or a late-night food occasion. Each represents an
opportunity to build a distinctive position.
The
opportunity is to understand not only what consumers eat, but when, why and
under what circumstances they make the choice.
A
grocery retailer might own the occasion of completing dinner with
fresh-prepared entrées and sides. A convenience store might become the
preferred stop for a satisfying breakfast. A restaurant might build loyalty
around a distinctive portable meal.
The
strategic objective is to become an easy answer when a particular need arises.
The
test: For which consumer occasion is your brand the first one
people think of?
9. Growth: Evolve Because Consumers Are Not Static
Consumers
change their routines, preferences, budgets and expectations. Brands must
change with them.
A
business that relies exclusively on yesterday's successful products can become
less relevant even when its historical performance looks strong.
The
challenge is to evolve without losing brand identity.
That
may mean developing smaller portions, more flexible meal bundles, new flavor
profiles, fresh-prepared options, Heat-and-Eat solutions or digital ordering.
It may mean extending a successful product into another daypart or creating new
ways for consumers to purchase it.
The
data supports continued attention to flexibility. FMI's 2025 research found
that consumers increasingly substitute deli-prepared food for restaurant meals
and combine prepared food with home-prepared items. These behaviors suggest
opportunities for retailers to serve consumers who want control over both the
effort and composition of a meal.
Growth
requires more than adding products. It requires identifying unmet needs,
testing solutions and learning which changes encourage repeat purchasing.
The
test: Is your brand evolving with consumers, or expecting
consumers to remain loyal to the past?
10. Marketing Presence: Follow the Consumer, Not the Old
Playbook
A
strong marketing presence is not simply about spending more. It is about being
visible, relevant and useful wherever consumers make decisions.
Today,
those decisions may begin with a mobile search, a loyalty-app offer, a digital
menu, a social post, an online grocery order or a product seen while shopping
for something entirely different.
Marketing
should connect discovery to purchase and purchase to repeat business.
That
requires more than posting content. Retailers need clear product descriptions,
appetizing and accurate imagery, easy ordering, understandable offers and a way
to measure results.
Promotions
should also reinforce the brand's positioning. A discount can generate trial,
but constant discounting may teach consumers to wait for a lower price. A
compelling meal bundle can communicate value more effectively when the
combination itself solves a consumer problem.
The
2025 National Restaurant Association research found that value offers matter to
many off-premises customers. Yet price is only one part of the decision:
convenience, service and the quality of the experience also affect whether
consumers return.
The
test: Does your marketing move consumers from awareness to
trial, from trial to satisfaction, and from satisfaction to loyalty?
The Grocerant Niche: Where the Battle for Share of Stomach
Becomes Visible
The
convergence of retail and foodservice is not simply a contest over which
business sells the most meals. It is a contest over who can deliver the right
food, at the right time, in the right format, at a price the consumer considers
worthwhile.
Restaurants
have strengths in flavor, menu development, culinary identity and foodservice
execution. Grocery stores have strengths in assortment, shopping frequency,
ingredients and the ability to combine prepared foods with products from across
the store. Convenience stores compete on accessibility, speed and immediate
consumption. Warehouse clubs compete through scale, assortment and perceived
value.
Other
retailers can also use food to enhance a broader shopping experience, extend
visits or create additional reasons to return.
No
single channel owns every occasion.
The
consumer can purchase a prepared entrée from a restaurant, add a grocery deli
side dish, pick up a beverage at a convenience store and finish the meal at
home. Tomorrow, the same consumer may choose an entirely different combination.
This
is why channel labels can obscure more than they reveal. Consumers are not
necessarily choosing between a grocery store and a restaurant in the abstract.
They are choosing between solutions to a specific need.
The
winners will be those that understand the occasion, recognize their real
competitive set and make the choice easy.
Three New Insights from the Grocerant Guru®
1.
Share of Stomach is earned one occasion at a time.
Stop
measuring competition only by traditional industry categories. Map the
consumer's breakfast, lunch, snack and dinner decisions. Identify where your
brand wins, where it loses and which competitors are solving the same need. The
next growth opportunity may come from a retailer you have never considered a
direct competitor.
2.
Convenience is not just speed; it is the removal of friction.
Consumers
value solutions that reduce the effort required to decide, purchase, transport,
assemble and enjoy a meal. A well-designed meal bundle, dependable ordering
process or complementary RTE and HnE offering can create value without relying
exclusively on a lower price. Make the entire eating occasion easier, not
merely the transaction faster.
3.
The strongest contemporary food brands own a promise, not a channel.
A
brand that consistently delivers distinctive flavor, dependable quality,
appropriate pricing and useful convenience can earn loyalty across changing
consumer routines. Build around the needs your brand serves, then adapt the
products, formats and distribution channels required to serve those needs.
The
bottom line: The battle for food dollars will
continue, but the more important contest is for Share of Stomach. Consumers are
dynamic, not static. Retailers and foodservice operators that adapt to those
consumers—and make every meal occasion count—will be better positioned to build
relevance, loyalty and profitable growth.
For
corporate presentations, confidential engagements, educational forums or
keynote opportunities, contact Steven Johnson, Grocerant Guru® at Tacoma,
Washington-based Foodservice Solutions®.
FoodserviceSolutions.us
LinkedIn: linkedin.com/in/grocerant
Steve@FoodserviceSolutions.us






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