Showing posts with label CNBC. Show all posts
Showing posts with label CNBC. Show all posts

Tuesday, December 2, 2025

The Great Stay-at-Home Shift: How the New HDTV Lifestyle Is Reshaping Retail Foodservice

 


Retail foodservice continues to be transformed by a powerful force I first identified more than a decade ago, by Steven Johnson, Grocerant Guru®, at Tacoma, WA based Foodservice Solutions®, Tacoma, WA.  Back in 2012, I called it “The 65-Inch HDTV Syndrome.” Today, with the average U.S. household TV now measuring 72 inches and home streaming consumption up 34% year over year, that syndrome has amplified — and it’s rewriting the rules of food marketing, mealtime behavior, and retail competition.

The Home Has Become the New Foodservice Hub

Foodservice Solutions® Grocerant ScoreCards reveal that 87.6% of meals served at home now include at least one Ready-2-Eat or Heat-N-Eat fresh prepared meal component, up from 83.2% just five years ago.
This confirms a simple truth: the grocerant niche is no longer emerging — it is the dominant growth driver in retail foodservice.

Consumers are building meals the same way they build streaming playlists:
mix-and-match, personalized, convenient, and frictionless.


The blurring of the lines between restaurants, grocery stores, convenience stores, dollar stores, and drug stores continues at record speed. Each is now fighting for the same customer, selling the same core product: fresh prepared food that is portioned, portable, and positioned as “better for you.”

The Modern 72-Inch HDTV Syndrome

Today’s consumer isn’t just looking for dinner —
they’re looking for a dinner experience that pairs perfectly with binge watching, sports, gaming, or simply cocooning at home.

New 2025 grocerant research highlights:

·       71% of consumers say they now plan at least three nights per week of “home-centric entertainment” (up from 54% pre-pandemic).

·       62% say they are replacing restaurant occasions with “fresh meal combos” from grocery and C-store delis.

·       48% of Gen Z say they build entire meals from two or more different retail channels (ex: C-store entrée + grocery deli sides).

Where the Battle Is Being Won: The Five P’s of Food Marketing

At the intersection of the consumer, technology, and The Five P’s of Food Marketing —
Product, Packaging, Placement, Portability, and Price
the competitive landscape is intensifying.

Consumers rank time and convenience above price for the first time in 20 years.

·       Product: “Better for you,” fresh, clean-label is driving adoption.

·       Packaging: Self-heating, recyclable, and tamper-evident formats are the new baseline.

·       Placement: In-app visibility now rivals end-cap visibility.

·       Portability: 63% of meals are now consumed off-premise.

·       Price: Value is judged by time saved, not dollars spent.


The Digital Delivery Effect Is Still Growing

Grubhub, DoorDash, and Uber Eats report consistent double-digit growth in scheduled orders, especially tied to entertainment.
During Q3 2024, pre-game football orders spiked 41%, surpassing early 2010s trends.

“When the best seat in the house is at home, the best meal in the house must show up effortlessly,” a recent Grubhub brand memo stated — confirming what the Grocerant ScoreCards have shown all year.

Frozen Foods Continue to Decline as Fresh Wins

Packaged Facts and Circana data show:

·       The $48 billion frozen foods category grew only 0.7% in units in 2024.

·       59% of consumers say they now purchase fewer frozen items due to a preference for fresh meal components.

·       44% of Millennials say frozen meals feel “less real” compared to deli-prepared equivalents.

Fresh prepared Ready-2-Eat and Heat-N-Eat foods in nontraditional outlets pose the largest threat to restaurant traffic since 2008.

 


Three New Insights from the Grocerant Guru®

1. The “Home Meal Experience Economy” Is Here

People aren’t buying food — they’re buying an experience tailored to a screen, a moment, and a mood. Retailers who package meals by occasion (Movie Night, Rivalry Game Day, Cozy Sunday Bundles) will win.

2. The New Value Equation Is “Time × Personalization”

Consumers want meals that reduce friction, not budgets. A $14 deli meal beats a $9 frozen meal if it saves 20 minutes of prep and cleanup.

3. Meal Components Are the New Currency of Retail Foodservice

Retailers must think like Spotify: offer components, remix options, and customizable bundles. The more modular the menu, the higher the frequency and the greater the basket size.

 


Want to Lead in the 72-Inch HDTV Era?

Fresh prepared food is the battlefield.
Meal components are the ammunition.
Convenience is the currency.

For international corporate presentations, keynotes, or executive strategy sessions, contact:

Steven Johnson, Grocerant Guru®
Foodservice Solutions®, Tacoma, WA
www.GrocerantGuru.com | www.FoodserviceSolutions.us
1-253-759-7869



Friday, November 14, 2025

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



Monday, September 15, 2025

After the Failed Kroger–Albertsons Merger: Looking Ahead Amid Store Closures, Market Pressures, and Strategic Reorientation

 


The collapse of the proposed $24.6 billion merger between Kroger and Albertsons exposed deep vulnerabilities in both companies’ strategies. But today, they’re shifting focus—pivoting toward cost discipline, digital transformation, and customer-centric innovation. Here’s how they intend to move forward.

 


Forward-Looking Strategy: Kroger

1. Reinvesting Closure Savings into Customer Experience
Kroger is closing 60 underperforming stores (~5% of its locations) and has taken a $100 million impairment charge. The company expects a “modest financial benefit” and is channeling these savings toward competitive pricing, targeted store remodels, new openings, and enhanced customer service—including private label and pharmacy growth.

2. Radical Store Transformation: The Marketplace Concept
Starting in 2025, Kroger is rolling out “Marketplace” stores—featuring diversified offerings like clothing, home goods, specialty foods, and drive-thru pharmacies. These modernized formats, tailored to local demographics, are designed to elevate in-store engagement and growth.

3. Corporate Restructuring and Operational Efficiency
Kroger is laying off fewer than 1,000 corporate staff to streamline operations. These savings are being reinvested into new openings, price improvement, and enhancing the customer experience, while investor sentiment remains stable.

4. Building Leadership and Digital Capabilities
New leadership is being installed Kroger brought in a new CFO and established a unified e-commerce business unit led by a chief digital officer. The company also accelerated private label expansion and optimized its analytics subsidiary (84.51°) to sharpen efficiency.

5. Refocusing Strategy from Within
With its big-ticket merger off the table, Kroger is recalibrating toward core competencies: operational stability, cost discipline, and customer loyalty. The board is steering the company through this pivot, while leadership remains in flux.


You Can't Build 

Share of Stomach

Looking Like Yesterdays Business 

 


Forward-Looking Strategy: Albertsons

1. New CEO and Reinforced Strategy
Susan Morris took over as CEO on May 1, 2025, succeeding Vivek Sankaran. She brings deep institutional experience. Her "Customers for Life" strategy emphasizes loyalty, personalized digital experiences, and private-label strength to build sustainable growth.

2. Loyalty Program Enhancement
Albertsons expanded its “Albertsons for U” loyalty program across 380 stores. Key features—like personalized deals, auto cash-off, and extended redemptions—aim to drive retention and basket growth. The company also highlighted that 90% of goods are sourced domestically, reinforcing price and supply stability.

3. Significant Productivity and Tech Investments
Albertsons announced a $1.5 billion productivity savings goal between FY2025–2027, fueled by technology modernization and automation (including automating 30% of distribution volume and upgrading warehouse management systems by end of 2025).

4. Digital, Media & Omnichannel Acceleration
Digital sales surged 25% in Q1; Albertsons is rolling out omnichannel, in-store digital tools, and the Albertsons Media Collective (retail media)—mirroring industry peers’ moves to monetize digital touchpoints.

5. Balanced Investment-Year Outlook & Long-Term Growth
Fiscal 2025 is positioned as an intensive investment phase—starting 2026, the company expects ≥2% annual same-store sales growth and Adjusted EBITDA to outpace sales, signaling a return to disciplined growth execution.

 


Summary Table: Strategic Pathways Forward

Kroger

Albertsons

Reinvests store closure savings into remodels, pricing, new formats (Marketplace)

Champions digital, loyalty-based customer personalization (“Customers for Life”)

Cuts ~1,000 corporate roles; focuses on internal efficiency

Targets $1.5B in cost savings via automation, tech, and logistics

Builds leadership in digital and operations post-merger disruption

Launches retail media and omnichannel tools to deepen engagement

Enhances private-label portfolio; centralizes e-commerce

Expanding loyalty program perks and promoting domestic sourcing

Refocused core strategy after failed merger for stability

Transitioning from investment phase to accelerated growth in 2026+

 


Bottom Line

While both Kroger and Albertsons continue to battle the aftermath of their failed merger, they are charting divergent but proactive futures. Kroger is closing underperforming assets and refocusing on operational core strengths, customer experience, and private-label leadership. Albertsons is doubling down on technology, loyalty, digital channels, and cost transformation—all under fresh leadership.

These forward-looking strategies could determine whether each player can reclaim footing amid accelerating competition from e-commerce giants, discounters, and digitally-native grocers.

 


Gain a Competitive Edge with a Grocerant ScoreCard

Unlock new opportunities with a Grocerant ScoreCard, designed to optimize product positioning, placement, and consumer engagement.

Since 1991, Foodservice Solutions® has been the global leader in the Grocerant niche—helping brands identify high-growth strategies that resonate with modern consumers.

📞 Call 253-759-7869 or 📩 Email Steve@FoodserviceSolutions.us



Thursday, March 23, 2023

All Food Retailers Need to Focus on or Pay Attention to SNAP



At the intersection of What’s for Dinner and Food Sales is the United States Department of Agriculture SNAP Program.  So just what is SNAP: SNAP provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency. Focus o

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, stated, “all food retailers need to understand how the SNAP program can or could help them drive top-line sales and bottom-line profits. That includes Restaurants, Convenience Stores, Grocery Stores, Dollar Stores, and Bodegas.”

First did you know that overall, SNAP consumers account for nearly one-quarter (24%) of total CPG spend, and are more likely to have children, live in urban areas and be in the bottom 30th percentile in purchasing power compared to non-SNAP consumers. 

In case you did not know, Numerator, a data and tech company serving the market research space, has released its latest report—Helping SNAP Consumers During Economic Headwinds—which examines the full impact of the Supplemental Nutrition Assistance Program (SNAP) on modern consumers through the analysis of verified purchases by SNAP recipients. Overall, SNAP consumers account for nearly one-quarter (24%) of total CPG spend, and are more likely to have children, live in urban areas and be in the bottom 30th percentile in purchasing power compared to non-SNAP consumers. Here are more findings:

Consumer Behavior & Sentiment Findings:

·         SNAP recipients represent a diverse group of consumers. 61% of SNAP recipients are in the bottom 30th percentile in terms of purchasing power, 45% have children (compared to 28% of non-SNAP households), 29% have 5+ members in their household, and 37% are Gen Z or Millennial. Compared to non-SNAP households, SNAP households are twice as likely to be Black/African-American or Hispanic/Latino. 

·         Economic uncertainty affects SNAP households more severely. 79% say their financial situation is the same or better compared to the prior year, but 1 in 5 SNAP households say they are overwhelmed with financial burdens and 56% are concerned about job stability (compared to 31% of non-SNAP recipients). 

·         Even with government assistance, SNAP recipients feel food insecurity. Over 1 in 4 SNAP consumers (26%) say they are unable to buy enough food to feed their family. 

·         Health issues and healthcare costs are significant concerns. SNAP consumers are 3.8x more likely to be disabled, and they are 56% more likely to be not actively managing their health, compared to non-SNAP consumers.


·         Utilization of SNAP during a shopping trip results in larger purchases. When SNAP consumers utilize their benefits during a shopping trip, basket size is $15 more, spend per trip on groceries is almost $18 more, and units per trip double (from 5.2 to 10.4).

·         SNAP recipients are disproportionately spending more per unit. In the latest quarter ending 12/31/2022 compared to YA, SNAP consumers are paying 13% more per unit, compared to 11% more for non-SNAP consumers – driven by increased inflation on baby and health & beauty products that SNAP consumers over-index on, as well as in the Dollar channel.

·         To save money, SNAP recipients are pulling back on snacks. Units purchased per household are down significantly in snack categories such as popcorn (-23.6% vs YA), meat snacks (-18%), and snack seeds, nuts & trail mixes (-15.9%).


·         Trading down to private label helps to reduce the sting of inflation.  Although unit sales are down, Walmart, Aldi and Kirkland private labels are outperforming branded CPG. For example, Great Value unit sales are down 4% vs YA, compared to branded unit sales dropping 20%.

·         Affordable luxuries like personal care items have not seen a pullback on spending. Categories such as toothbrushes (+6.3% units per household vs YA), beer (+4.6%) and face makeup (-0.5%) are holding their own or growing with SNAP consumers.

·         SNAP consumers vary their shopping locations. SNAP consumers are 56% more likely to spend their CPG dollars at Dollar stores, 24% more likely at Convenience stores, and 12% more likely at Mass retailers (compared to non-SNAP consumers). 

·         Regional and ethnic grocery stores are winning SNAP household trips because of their lower price increases. Among the retailers growing trips with SNAP households are H-Mart (42% of projected trips), Market Basket (42%), Whole Foods Market (36%), 99 Ranch Market (35%), and Wegmans (31%). 


·         SNAP consumers are 37% more likely to eat out four or more times per week, but they are moving food trips back to stores. As SNAP recipients pull back on dining out, Starbucks, KFC, Burger King and Little Caesars are seeing the most lost trips.

·         More inclusive grocery delivery services would benefit consumers and retailers. 20% of SNAP recipients say they wish that grocery delivery services made it easier to utilize their program benefits. Currently, 12.9% of SNAP consumers use Walmart+, followed by DoorDash DashPass (5%), and Albertsons Freshpass (4.3%). 

About Numerator:

Numerator is a data and tech company bringing speed and scale to market research.  Numerator blends first-party data from over 1 million US households with advanced technology to provide 360-degree consumer understanding for the market research industry that has been slow to change. Headquartered in Chicago, IL, Numerator has 2,000 employees worldwide; 80 of the top 100 CPG brands’ manufacturers are Numerator clients.

Who are you selling to today?  Where can you be selling food tomorrow and to whom?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® 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 the following links: FacebookLinkedIn, or Twitter