Wednesday, October 22, 2025

Gen Z and Millennials Redefine “What’s for Dinner”

 


Millennials are growing up and raising families of their own. Without question, they’ve adopted many of their parents’ habits—especially when it comes to answering that timeless question: “What’s for dinner?”

Only now, the answers are faster, fresher, and far more digital.

Today’s Millennials and Gen Z consumers are turning to Grocerant-niche Ready-2-Eat (R2E) and Heat-N-Eat (HNE) fresh prepared foods—because it’s what they grew up with, and it’s what fits their modern lives. According to Steven Johnson, Grocerant Guru® at Tacoma, WA–based Foodservice Solutions®,

“Memory is the bridge that builds trust in food. When consumers see a meal that connects to comfort or nostalgia, they’re far more likely to try, repurchase, and recommend it—especially when it’s convenient and fresh.”

 


The Data Behind the Dining Shift

The lines between restaurant, grocery, and convenience are blurring faster than ever. Fresh-prepared meals, deli service, and delivery-enabled grocery programs are no longer side categories—they’re the growth engines of modern food retail.

Here’s what the numbers show:

·       $1.52 trillion: U.S. food away from home sales in 2024—the highest share ever, at 58.9% of total food spending.
(USDA ERS, 2025)

·       31,795: Average number of SKUs in a supermarket—each competing for visibility against freshly prepared grab-and-go options.
(FMI, 2024)

·       60 %: Share of Millennial and Gen Z dinner transactions now occurring through drive-thru or delivery.
(Grocerants Blog, 2025)

·       70 %: Millennials who say they’re willing to pay more for high-quality or premium food.
(Grocerants Blog / YouGov, 2025)

·       50 %+: Consumers now open to AI-assisted or AI-suggested ordering experiences.
(DoorDash 2025 Delivery Trends Report)

·       67 %: Millennials and Gen Z consumers actively trying to eat healthier every day.
(IRI, 2024)

This is not a passing phase—it’s a structural realignment of how America eats.

 


Digital Menus, Hybrid Meals, and “At-Home” Dining 2.0

Hudson Riehle of the National Restaurant Association once reported that 69% of adults viewed a restaurant menu online and 44% ordered delivery in a year. Today, those figures are baseline. Menu browsing is a digital default, and delivery is a habit, not a luxury.

At the same time, the “hybrid meal” trend—mixing restaurant or grocerant items with homemade sides—is accelerating. According to NPD, nearly half of Millennial-family foodservice meals are eaten at home. It’s the new “family dinner,” built from multiple sources, blending convenience and control.

That’s precisely where the grocerant niche thrives.

Why Grocerant Wins: Familiarity Meets Flexibility

Johnson explains that grocerant success comes from striking the emotional and functional balance:

“Consumers want what feels familiar but fits their life now—fresh, fast, and flexible. Grocerant isn’t about competing with restaurants; it’s about owning the space where restaurants and retail meet.”

For grocers, convenience stores, and dollar stores, this means:

·       Offering restaurant-quality food with grocery-store accessibility

·       Providing AI-enhanced digital menus and online ordering

·       Designing meals that are modular and customizable (protein + sides + sauce)

·       Featuring limited-time or trending flavors that keep menus relevant

·       Building an omnichannel path—browse online, pick up in-store, or get delivery

 


Four Grocerant Guru® Insights for 2025 and Beyond

1. Memory Drives Trust

Food is emotional. Millennials and Gen Z consumers connect with meals that remind them of home. That emotional connection accelerates adoption—especially when brands pair comfort cues with a modern twist.

2. “Fresh, Convenient, and Upgradeable” Wins

Don’t just claim “restaurant quality.” Frame offerings as fresh, convenient, and customizable. A grilled salmon base that can be paired with rotating seasonal sides feels empowering, not pre-packaged.

3. Digital Discovery Equals Physical Purchase

From Google to TikTok, every meal decision begins online. QR menus, mobile ordering, and personalized suggestions now determine what ends up in a shopping basket—or on a dinner plate.

4. Gen Z Sets the Flavor Agenda

Gen Z diners crave novelty and social validation. Viral foods, global fusion, and visual plating trends move fast—and grocerants that can rotate flavors monthly will capture these taste-makers first.

 


The Future Belongs to the Grocerant

Consumers are redefining convenience through a hybrid lens: part home cooking, part professional preparation, all digitally connected. The “grocerant” is no longer a niche—it’s the new mainstream of mealtime.

Foodservice Solutions® has been helping retailers, restaurants, and convenience operators capture this growth since 1991. Whether through a Grocerant Program Assessment, Grocerant ScoreCard, or Product Positioning Strategy, the path forward begins with understanding today’s consumer—and the memories that still drive their meals.

Foodservice Solutions® – The Global Leader in the Grocerant Niche
📍 Tacoma, Washington
📞 253-759-7869
📧 Steve@FoodserviceSolutions.us
🌐 www.FoodserviceSolutions.us



Tuesday, October 21, 2025

Are Legacy Grocery Stores Slipping Away

 


When a high-credibility food industry study signals erosion in consumer loyalty to traditional supermarkets, we shouldn’t merely nod and move on — we should dig deeper. As Steven Johnson, Grocerant Guru®, often warns: what you see is often just the tip of the iceberg; what you don’t see is frequently worse.

The Traditional Grocery Stronghold Is Weakening

Supermarkets still dominate as a base for fresh produce shopping — but that dominance is under strain, especially with younger cohorts. The FMI “Power of Produce 2025 report reinforces this: while 94% of produce buyers use social media, 36% said they discover new fruits or vegetables via digital platforms. Meanwhile, produce sales reached a record $92.3 billion in 2024.

But the antennae of younger consumers are pointed elsewhere. According to Grocery Dive, “a third of produce shoppers recently surveyed said they discover new fruits and vegetables on social media” — meaning digital-first discovery is reshaping in-store behavior.

In short: the conversion path is migrating. Consumers are less bound to entrenched store loyalty, and more influenced by omnichannel, convenience, and “fresh-on-the-run” formats.


Consumer Migration: Where Are They Going?

Johnson has long argued that the “grocerant niche” — hybrid grocery + restaurant models — is where much of the migration is headed. And the market is validating that view. Consider these data points:

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

·       Retail fresh food sales in U.S. reached $58.7 billion in 2024, up ~14% year-over-year.

·       Convenience stores boosted foodservice revenues by ~19% in 2024, led by fresh breakfast and lunch options.

·       Traditional restaurant traffic is growing more slowly (~2.3%), indicating that some meal occasions are shifting to retail formats.

These shifts are consistent with Johnson’s long-standing thesis: the battleground is no longer “retail vs. restaurant” — it’s “who owns the next meal occasion?”

Other nontraditional outlets are also snatching share. Dollar stores, niche convenience grocers, and even feed-the-moment counters in non-grocery formats are encroaching on quiet meal dollars.

One more clue in the data: short trip missions are rising — especially under-10-minute shopping excursions — which tend to favor fresh, grab-&-go formats over full-store stock-up trips.

What's Needed to Build

Share of Stomach


Fresh Produce: Still Vital, But Reimagined

The “Power of Produce” report and associated industry commentary offer powerful insights into how the role of fresh is evolving:

·       Although consumers often plan certain produce purchases, 85% still make impulse produce buys in a shopping trip.

·       Quality, appearance, and ripeness are major influencers: 57% of fruit purchases are driven by what “looks good.”

·       Produce is increasingly crossing into every daypart—snacks, desserts, and nighttime munchies are growth occasions.

·       Seasonal and local assortments offer leverage to convert impulse buyers by signaling freshness, origin, and exclusivity.

·       Innovation at the edge is accelerating: single-serve snack packs, avocado toast kits, fresh-cut salads with dressings, and even vegetable “snackables” are gaining traction.

·       In the produce universe, berries, grapes, and avocados led dollar sales growth in recent periods.

By contrast, older supermarket habits — e.g. seasonal flat displays and low SKU turnover — will increasingly fail to excite or retain attention.



Why the Legacy Store Is Losing Ground

Here’s a sharpened list of structural forces pushing decline, with current industry context:

1.       Channel fragmentation & omnishopping
Consumers no longer confine themselves to one “primary store.” A high-payoff deal here, a fresh snack there, a delivery there — shopping is fragmented by design.
NielsenIQ finds that 50% of global respondents report buying more private label products than ever before.
In U.S. grocery, loyalty has frayed: only ~55% of consumers strongly stick to a primary grocery store.

2.       Inflation & value skepticism
Price consciousness is baked in. Many shoppers are migrating to value formats or trading down on discretionary items — making it harder for traditional grocers to justify margin-rich fresh or grocerant experiments without strategic clarity.

3.       Digital influences & social media discovery
Younger consumers often see produce ideas on TikTok, Instagram, or YouTube — then expect in-store execution.
94% of produce shoppers use social media; 36% discover new produce via those platforms.

4.       Rising cost of maintaining legacy density
Shrink, labor, aging infrastructure — the overheads of big-box, high-SKU supermarkets remain steep. Especially when many trips are shifting to fresh, small-format, low-frills missions.

5.       Blurring of boundaries
Traditional grocers are no longer just “grocers.” Walmart, Costco, Walgreens, and others are investing heavily in fresh, ready-to-eat, and heat-n-eat formats. The competitive set is broader than ever.


Trends to Watch

·       Grocerant niche growth: Expect a further acceleration of hybrid grocer/restaurant models — kitchens in backrooms, meal kits combined with produce, “pop-up chef corners” inside grocers, and more “retail + dine” mashups. On this, Johnson has been ahead of the curve.

·       Micro-formats, micro-fulfillment, ghost kitchens: Small foot-print formats near dense neighborhoods, with dark kitchens or micro-fulfillment hubs to support ultra-fresh, fast delivery or pick-up.

·       Tech-driven freshness and supply optimization: AI/demand forecasting, dynamic pricing, real-time shelf-life management, and waste-minimizing replenishment systems will differentiate high-performers. For perishable SKUs, models that combine attention-enhanced LSTM and optimization algorithms are being developed.

·       Hyperlocal & transparency storytelling: Consumers increasingly demand provenance, sustainability, and ethical attributes. Retailers that surface origin stories, regenerative agriculture attributes, carbon footprints, or animal welfare signals (with credibly sourced data) will win trust.

·       “Occasion expansion” in produce: The biggest gains will come from pushing produce into nontraditional dayparts — dessert, nighttime snacks, beverage infusion, salads as sides in prepared meals.

·       Personalization & digital nudges: In-store plus app-level targeting, content (recipes, videos), push notifications, and social commerce tie-ins will deepen engagement and guide impulse buys.

·       Subscription & D2C produce as a traffic driver: Some grocers will experiment with farm-to-door or curated produce boxes to acquire consumer relationships outside the store trip.



Action Imperatives for Grocery Chains & Legacy Stores

1.       Strategically embed grocerant elements
Don’t bolt on a hot bar or meal kit section as an afterthought — integrate menu, SKU flow, staffing, procurement, marketing, and positioning so it becomes a natural extension of your model.

2.       Reimagine the fresh perimeter as a strategic growth engine
Turn produce, deli, ready-to-eat, and meal-assembly into destination zones, not loss-leaders. Use product innovation (e.g. fresh-cut, snackable formats, value-add bundles) to boost basket size and share-of-stomach.

3.       Invest in digital-metallic presence
Sync online, social, and in-store experiences. Use shoppable recipes on social media, live promotions (e.g. “this week’s berry special”), and digital-to-instore triggers (e-coupons, QR recipes).

4.       Optimize assortment around mission-based missions
Understand short-trip missions: what do people shop on their way home from work, near transit nodes, or during lunch windows? Tailor formats, SKUs, pack sizes, and price architecture accordingly.

5.       Leverage loyalty, data, and AI
Use behavioral segmentation, predictive analytics, and dynamic offers to personalize incentives — e.g. push a grab-n-go salad coupon to a midday commuter via the app.

6.       Embrace partnerships and co-creation
Partner with local producers, chefs, or ghost kitchens to pilot new formats. Use limited-edition SKUs, chef drop-ins, or guest menu launches to test what sticks without full-scale rollouts.

7.       Aggressively track and close performance loops
Measure trip uplift, incremental margin, and consumer retention from your grocerant experiments — and refine or kill underperforming pilots early.

Think About This: Legacy supermarkets are being outflanked, not by one competitor, but by converging pressures: social-media discovery, convenience-seeking consumers, hybrid formats, rising costs, and fractured loyalty. The ones that survive won’t merely be “groceries that do foodservice” — they will become foodservice that happens to retail — owning more of the daily meal occasions, rooted in fresh convenience, seamlessly integrated across digital and physical touchpoints.

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 participationdifferentiation 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



Monday, October 20, 2025

Dinner Meal Kits Can Elevate Family Meal Time

 


Meal kits have evolved far beyond novelty: they now offer a genuine framework for shared culinary experiences, tapping into consumers’ desire for both convenience and connection. From the moment a household selects a kit, the involvement begins — and that sense of participation is a powerful differentiator.

As Steven Johnson of Foodservice Solutions® / Grocerant Guru® put it, “Meal kits are training wheels for both Gen Z and Millennials.” But nowadays, they also serve as platforms for couples and families to bond, explore new cuisines, and rediscover the joy of cooking together.

 


Recent Growth & Market Dynamics

Market Size & Growth Projections

·       The global meal-kit market was estimated at USD 18.1 billion in 2024, and is forecast to grow at a CAGR exceeding 12.4% through 2034.

·       Some forecasts are more aggressive: e.g. the global meal-kit delivery market is projected to reach USD 67.4 billion by 2034, growing at a CAGR of ~14.5% from 2024 onward.

·       Others project that the market will grow from US$ 20.6 billion in 2025 to US$ 50.3 billion by 2032, reflecting a CAGR of ~13.6%.

·       In the U.S. alone, the meal-kit delivery services market is forecast to grow from ~$10.4 billion in 2023 to ~$23.7 billion by 2030, at a CAGR of 12.5%.

These projections underscore that meal kits are no longer a niche; they’re a significant and growing slice of the food ecosystem.

Drivers of Adoption

·       Convenience & time savings remain core value propositions, especially for dual-income households and busy professionals.

·       Customization & diet alignment are strong pulls: consumers seek options like keto, plant-based, gluten-free, or globally inspired cuisines.

·       Sustainability, circular packaging, and minimal waste are increasingly important differentiators. Some brands report that customers generate ~24% less food waste when using kits vs. traditional shopping.

·       Omnichannel expansion & partnerships are fueling growth — meal-kit providers are collaborating with brick-and-mortar grocers, CPG brands, and even restaurant chains.

Still, it’s not all smooth sailing. Inflation, supply chain pressures, and rising logistics costs are squeezing margins. For example, HelloFresh recently reported that while its total revenue grew, its core meal-kit business saw declines, even as its ready-to-eat segment surged 56%.

 

From Selection to Table: How Meal Kits Power Engagement

1.       Pre-mealtime participation
Consumers now expect more control: selecting meals, customizing protein or sides, and scheduling deliveries. This sense of ownership primes engagement even before cooking begins.

2.       In-kitchen experience & social connection
Meal kits can transform meal prep into a collective activity: parents teach kids, couples collaborate, and families talk while chopping, stirring, or plating. That participatory dynamic is part of the emotional ROI of kits.

3.       Discovery & brand affinity
Because kits introduce new cuisines, ingredients, and recipe styles, they become platforms for culinary exploration. As consumers succeed and enjoy, loyalty to the kit brand often grows (and transfers to adjacent product lines).

4.       Upsell & extension opportunities
Once a customer is in the mindset of “meal kit,” they’re more receptive to add-ons: premium proteins, wine pairings (where allowed), gourmet sauces, and branded cookware or appliances.

 


Why Food Retailers & CPG Brands Should Care

·       Attract desirable consumers: Meal-kit buyers tend to skew younger, more affluent, and digitally engaged — a valuable segment for upsell and cross-sell. (Historically, kit purchasers were in households with incomes > $100,000, and ages 35–44 were especially strong adopters.)

·       Reinvigorate in-store formats: Combining subscription kits with in-store pickup or shelf-ready “kit packs” enables retailers to recapture sales that might otherwise go to pure-play digital kit providers.

·       Build relevance through innovation: Johnson’s notion of “new electricity” — combining product innovation with new distribution — still holds. Emerging technologies (autonomous delivery, smart packaging, cashier-less retail) paired with fresh-food messaging and value-add formats can power brand differentiation.

·       Bridge to new revenue streams: Meal kits can be springboards to subscription models, value-added prepared meals, chef-curated collections, co-branded offerings, or white-label kits for retailers.

To stay competitive, retailers and brands must simultaneously lean into digital tools (AI, personalization, predictive analytics) and maintain excellence in fresh, portable, differentiated food solutions.

 

Think About This


·       Profit pressure & unit economics: Margins remain tight, especially after factoring in logistics, fulfillment, and returns.

·       Retention vs. acquisition: Many kit players are shifting emphasis toward customer retention and lifetime value rather than just adding new customers.

·       Channel cannibalization: In-store kits may draw sales from prepared foods or deli lines; balancing cannibalization against incremental margins is key.

·       Consumer fatigue: Some households may tire of kits over time — kit providers must continuously refresh menus, flavors, or formats to retain interest.

 


If your brand is seeking new electricity to propel growth, meal kits remain one of the most promising platforms for marrying innovation, consumer engagement, and omni-channel distribution.

Let’s Build a Partnership for Growth

Looking for the right partner to drive sales and amplify your marketing impact? Success leaves clues—and we may have the exact insight you need to propel your business forward.

Explore innovative food marketing and business development strategies with Foodservice Solutions®.

Contact us at Steve@FoodserviceSolutions.us
Learn more at
GrocerantGuru.com