Are Your Customers Happy? Price and Branding Insights for Success

 

Consider this, digital guests are less satisfied than dine-in guests. In today's competitive foodservice landscape, ensuring happy customers is more critical than ever for success. New data underscores a critical disparity—customers who dine in are often happier than those who experience a restaurant digitally through delivery, mobile apps, or takeout. According to updated insights shared by Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, there's significant room for improvement when it comes to the digital experience.

Johnson reflects on recent findings from Merchant Centric's Happy Customer Index, a robust tool that analyzes millions of online reviews across platforms like Google, Yelp, and TripAdvisor. The data highlights where customer satisfaction lags—and where forward-thinking brands can take action.

 

The Happy Customer Index: Digital Gaps Exposed

Merchant Centric’s study examined over 1.25 million reviews from September 2022 to August 2023, evaluating critical satisfaction metrics such as food quality, order accuracy, and digital ease of use. The key findings?

·         Delivery Services improved notably in satisfaction but still trail dine-in ratings.

·         Mobile App Reviews remain the lowest rated among digital channels.

·         To-Go Orders perform best in comparison but lag behind traditional dine-in service.

Consider these standout insights:

·         The average rating for reviews mentioning "mobile apps" is 2.33 stars out of 5, indicating frustration with glitches, usability issues, and order accuracy.

·         Delivery service mentions average 3.02 stars, a slight improvement year over year, largely attributed to better operational strategies such as digital makelines and location-based tech.

·         To-go orders fare best at 3.40 stars but still fall short of the industry dine-in average of 4.11 stars.

"Guests tell us that the digital experience is not nearly as good as dining in,” said Adam Leff, Co-Founder of Merchant Centric. “However, delivery experiences are improving faster than to-go, thanks to heightened operator attention."

 

Mobile App Challenges: Customer Frustration on the Rise

Many foodservice brands have doubled down on mobile apps to build loyalty, offer exclusive promotions, and personalize messaging. However, when apps underperform, customer frustration skyrockets.

Taco Bell, for example, dominates Reddit conversations among QSR brands (32% of mentions among the top 10) but for all the wrong reasons—consumers consistently voice dissatisfaction with order inaccuracies, app glitches, and overall poor usability.

Even as ratings for mobile apps rose by a modest 10 basis points, the gap remains stark. Brands must recognize that a poor digital experience is no longer an option as digitally-dependent customers expect ease, speed, and accuracy.

 

Price: The New Consumer Hot Button

While digital satisfaction is one concern, price sensitivity has become a decisive hot button for today’s customers. Inflation-driven price hikes across restaurants, grocery stores, and c-stores are pushing consumers to rethink where and how they purchase food. Recent data reveals:

·         70% of consumers believe restaurant prices have outpaced the quality and experience offered (Foodservice Solutions®, 2024).

·         Grocery retailers are increasingly capitalizing on this dissatisfaction—Ready-2-Eat and Heat-N-Eat fresh food offerings have seen double-digit growth year-over-year.

At every price point, value is the key—whether a convenient meal, bundle deal, or exclusive savings through digital loyalty programs. For restaurants, the question is: Are you communicating value while ensuring customers feel happy and satisfied?

 

Branding for Happy Customers = Success

A brand’s ability to deliver Happy Customers is the linchpin of long-term success. Whether dine-in or digital, customers expect consistency, value, and relevance at every touchpoint.

The team at Foodservice Solutions® recommends focusing on:

1.       Elevated Customer Service: Ensure satisfaction through accurate, seamless experiences that eliminate friction in the ordering process.

2.       Transparent Pricing & Value Deals: Bundle deals that offer mix-and-match components empower choice while reinforcing affordability and convenience.

3.       Digital Refinement: Optimize app performance, improve delivery systems, and test to-go packaging solutions to guarantee satisfaction.

Consumer "happiness" drives brand loyalty and profitability. If your digital channels, price points, and in-store touchpoints aren't aligned with customer expectations, it’s time for a strategic refresh.

 

Is your brand still following outdated methods? Want to learn how Foodservice Solutions® Five P’s of Food Marketing can amplify meal differentiation and create a customer-friendly retail experience? Contact us now: Steve@FoodserviceSolutions.us.

Final Thought

As pricing remains top of mind and digital experiences evolve, there’s no substitute for happy customers. Brands that can close the gap between price, value, and convenience will lead the future of foodservice. Are your customers happy?

Follow the Grocerant Guru® for the latest on food industry trends. #Restaurants #Grocery #GrocerantGuru #FoodService #ConvenienceStores

Full article archive at: Grocerant.blogspot.com

Walmart: Creating Consumer Relevance Through Cutting-Edge Tech Innovation

 

For decades, Walmart has driven change by meeting consumers’ evolving needs in affordability and convenience. In 2024, the retailer’s embrace of automation, AI, and immersive technologies underscores one vital truth: staying consumer-relevant requires constant innovation. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks it’s time to examine Walmart's tech-driven initiatives through the lens of consumer-focused solutions.

1. Personalization Through AI and Generative Platforms

Walmart’s investment in AI, including tools like Wallaby, AI search engines, and the GenAI-powered support assistant, directly enhances consumer experience:

·         Why It Matters: Shoppers crave hyper-personalized experiences similar to online giants like Amazon. Walmart’s AI initiatives predict preferences, resolve issues faster, and reduce friction in both discovery and support—critical for customer loyalty.

·         The Grocerant Guru’s Insight: Walmart knows that time-starved consumers prize simplicity and speed. Making relevant, intuitive product suggestions removes the guesswork for busy shoppers, enhancing convenience.

2. Automation at Scale: Faster Fulfillment, Fresher Products

Walmart’s rapid rollout of automated fulfillment centers and high-tech perishable distribution centers delivers fresher, efficiently handled goods to stores and, ultimately, into consumers’ hands. Key efforts include:

·         Temperature-controlled automation minimizing damage and maintaining quality.

·         A 100-strong network of small, automated fulfillment hubs—blurring the lines between in-store and online shopping experiences.

·         Why It Matters: Consumers expect speed, accuracy, and quality. These innovations ensure Walmart delivers on all three while scaling operations to meet increased demand.

·         The Grocerant Guru’s Insight: This is crucial for food shoppers, particularly when it comes to perishables. Walmart’s use of automation ensures fresh, reliable availability—whether purchased online, curbside, or in-store—heightening the relevance of its grocery operations.

3. A Consumer-Centric Payment Revolution

Walmart’s pay-by-bank solution with Fiserv represents a bold attempt to change payment habits by bypassing credit card fees. While still facing challenges against reward-based credit cards, Walmart is:

·         Removing intermediaries to drive cost savings—a win for consumers if Walmart reinvests those savings in price reductions.

·         Offering payment clarity: Real-time transactions create confidence and transparency around purchases.

·         Why It Matters: Today’s consumers are financially mindful. Finding alternatives to fee-heavy systems signals Walmart's commitment to delivering better value long-term.

·         The Grocerant Guru’s Insight: For consumer buy-in, Walmart must incentivize this payment method (e.g., cash-back offers or grocery credits). If done right, it creates a true win-win: consumers save money, and Walmart reduces operational costs.

4. Immersive Commerce: Appealing to Digital-First Consumers

From virtual avatars purchasing real-world products to 3D assets and augmented reality shopping, Walmart's strides into immersive commerce reflect an understanding of where younger, digital-savvy consumers interact.

·         Why It Matters: Gen Z and millennial shoppers see brands as ecosystems. Offering virtual-to-physical integrations appeals to these cohorts while bridging future shopping habits with today's purchases.

·         The Grocerant Guru’s Insight: Consumers no longer see a separation between digital and physical shopping—they expect consistency across all experiences. Walmart positions itself ahead of its competitors by fostering integrated, future-focused connections.

5. Sustainability: Addressing Eco-Conscious Consumers

Walmart’s food waste recycling collaboration with Denali and ventures into agricultural crop intelligence signal an alignment with consumers’ growing sustainability concerns.

·         Why It Matters: Younger generations demand sustainable business practices that deliver value and eco-impact without sacrifice.

·         The Grocerant Guru’s Insight: Leveraging tech to reduce waste, boost agricultural yields, and build transparency sets Walmart apart as both forward-thinking and responsible—values increasingly relevant to shoppers.

 

Key Takeaways: Walmart’s Relevance Playbook

Walmart’s rapid tech evolution boils down to addressing core consumer needs:

1.       Faster fulfillment and fresher grocery options through automation.

2.       Personalized shopping experiences powered by AI to reduce decision fatigue.

3.       Financial relief through payment innovations like pay-by-bank.

4.       Immersive commerce appealing to digital-first demographics.

5.       Actionable sustainability practices showing Walmart’s alignment with future-focused consumer priorities.

 

In essence, Walmart remains laser-focused on consumer relevance by blending technology with real-world solutions. For grocers seeking to thrive, the lesson is clear: technology isn't just innovation—it’s the pathway to providing relevant convenience, savings, and quality that today’s consumers demand.

Grocerant Guru’s Three Recommendations for Others:

1.       Hyper-Personalized Grocery Solutions: Leverage AI to customize meals, offer real-time suggestions, and align promotions to shopper preferences.

2.       Seamless Digital-to-Physical Integration: Make the online and offline shopping experience identical, accessible, and frictionless.

3.       Tech-Enhanced Sustainability Messaging: Use tech to reinforce your sustainability actions, showing tangible results that consumers trust.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

 

Why McDonalds Customers Earning Under $45,000 a Year Would Rather Eat at McDonald's Than Cook at Home

 

Regular readers of this blog know that Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been proving industry leading insights at the intersection of cooking from home and eating out since 1991.  You also know that McDonald's is one of the most popular fast-food chains in the world, serving millions of customers every day. But not everyone who visits McDonald's is happy with their choice. According to the company's CEO, Chris Kempczinski, McDonald's has seen a decline in traffic from lower-income customers who make less than $45,000 a year. Why is that? And why do some of these customers still prefer McDonald's over cooking at home?

 

One of the main reasons is the price. McDonald's has raised its menu prices by about 10% this year, on top of a 10% increase last year. This is partly due to the rising costs of ingredients, labor, and transportation. But it is also a strategic move to attract more middle- and higher-income customers, who are trading down to McDonald's from more expensive restaurants. These customers are looking for quality, convenience, and variety, and McDonald's has been investing in improving its products, services, and digital platforms to meet their expectations.

However, this strategy has also alienated some of the lower-income customers, who are more sensitive to price changes and have less disposable income. These customers are feeling the pressure of inflation and interest rates, which have reduced their purchasing power and increased their debt. They are also facing more competition for jobs and housing, as well as higher health care and education costs. As a result, they have cut back on their spending, especially on non-essential items like eating out.

But that does not mean they have stopped eating at McDonald's altogether. Some of them still choose McDonald's over cooking at home for various reasons. One of them is convenience. Cooking at home requires time, effort, and skills, which not everyone has or wants to invest. It also requires access to a kitchen, appliances, utensils, and ingredients, which not everyone can afford or find. For some people, going to McDonald's is easier, faster, and more satisfying than preparing their own meals.

Another reason is habit. Some people have grown up eating at McDonald's and have developed a preference and loyalty for its food. They enjoy the taste, the variety, and the familiarity of the menu. They also associate McDonald's with positive memories, emotions, and social interactions. For some people, eating at McDonald's is a way of rewarding themselves, relaxing, or having fun with their friends and family.

A third reason is value. Despite the price increases, McDonald's still offers some of the cheapest and most filling options in the market. It also offers deals and discounts, such as the free fry’s promotion every Friday, to entice customers and maintain its value leadership. For some people, eating at McDonald's is a way of saving money, getting more for less, or indulging in a treat without breaking the bank.

McDonald's customers earning under $45,000 a year have different reasons for choosing McDonald's over cooking at home. Some of them are driven by convenience, habit, or value, while others are deterred by price, inflation, or interest rates. McDonald's faces the challenge of balancing its pricing strategy, product quality, and customer loyalty, while also competing with other fast-food chains, grocery stores, and meal delivery services. The future of McDonald's depends on how well it can adapt to the changing needs and preferences of its customers, especially the lower-income ones who have been its core supporters for decades.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Think Amazon & Whole Foods as Food + Price will Drive Customer Adoption

Success does leave clues and as traditional chain grocery stores struggle to keep stores open and chain restaurants continue to capitulate customer counts and top line sales and bottom line profits to the convenience store sector it appears that the grocery store sector is picking up some of the C-store success clues according to our Grocerant Guru®.

Yes, regular readers of this blog know that Steven Johnson Foodservice Solutions® Grocerant Guru® coined the term "grocerant" back in 1996 and trademarked it. The term grocerant refers to any fresh prepared food item sold in any channel for takeout, to-go, delivery, or sold in a drive thru.  Grocerant food is about Ready-2-Eat and Heat-N-Eat fresh prepared food according to Johnson.  Simply put grocerant food at non-traditional fresh food outlets is driving customer adoption. 

Foodservice industry icon Bonnie Riggs of The NPD Group recently pointed out that grocery stores selling grocerant niche fresh food “generated 2.4 billion visits and $10 billion in sales in 2016 by promoting restaurant-quality freshly prepared foods. Now that’s a lot of grocerant niche Ready-2-Eat to eat fresh prepared food.

Riggs explained that grocerant offering “represent an extension of what's known in the supermarket trade as the service deli, those staffed counters in many upscale stores that have long offered salads, fresh bakery items and rotisserie chickens. Grocerants, however, take these delis to the next level with niceties that can include sit-down service with waiters, full bars and even sushi chefs.”

Consumers are not confused by the offering of restaurant quality offerings at C-stores, Club stores, furniture stores, or drug stores but retailers seem bewildered at all of the new avenues of fresh food distribution and must reevaluate just who is the competition.

Riggs continued “more than 40% of Americans buy freshly prepared foods from grocery stores. Besides being fast, it can be cheaper than traditional takeout. A grocerant meal costs $4.22 on average, according to NPD, compared to $7.96 at a fast-casual restaurant, a 53% difference.”

The Price Value Service equilibrium in retail foodservice has changed according to the team at Tacoma, WA Foodservice Solutions®.  Restaurants, Grocery stores, furniture stores, club stores, drug stores and dollar stores are all selling grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared meal components?

Since 1996 the continued expansion of the grocerant niche has driven change within the retail foodservice industry including increasing awareness of fresh food, food safety, food packaging, most important it met consumer demand and filled a void that traditional restaurants, grocery stores and other retailers did not. Amazon and Whole Foods will elevate the competitive undercurrents within retail foodservice today.  Does your brand look more like yesterday than tomorrow?

www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us