Dollar General Food Focused Forward

 

In periods of economic uncertainty, consumers traditionally tighten their belts, seeking affordable solutions for everyday needs according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Dollar General, long recognized as a discount retail powerhouse, is emerging as a key player in the grocery and food retailing sector—a remarkable evolution that has been decades in the making. With price-sensitive shoppers flocking to its aisles in search of value, the chain’s strategic food focus highlights a pivotal shift in consumer behavior and market dynamics.

A Historical Lens: From General Goods to Food Staples

Dollar General was founded in 1939 as a family-owned business, emphasizing discounted pricing for household essentials. Initially stocked with nonperishable items and general goods, food offerings were minimal. However, as economic turbulence began reshaping consumer spending—most notably during the Great Recession of 2008—2009—the company gradually pivoted toward food. Recognizing a growing demand for convenient and affordable groceries, Dollar General expanded its footprint to include cooler and freezer sections, along with an increasing array of shelf-stable and fresh food items.

Between 2010 and 2020, the company accelerated this focus, introducing Dollar General Market stores—a concept that combined general merchandise with a robust selection of groceries. This evolution positioned the retailer to meet consumer needs for both affordability and convenience, critical drivers for success during challenging times.

Political and Economic Instability Fuels Change

Periods of political upheaval and economic instability often result in heightened consumer caution. Historically, these conditions have driven shoppers to discount retailers like Dollar General. The uncertainties surrounding government shutdowns, inflation surges, and geopolitical conflicts exacerbate concerns about personal finances. As a result, consumers pull back from premium-priced brands and gravitate toward retailers that promise savings without sacrificing essential goods.

In the current climate, Dollar General’s food-forward strategy resonates deeply with consumers struggling with rising grocery prices. Its ability to offer grocerant niche Ready-2-Eat and Heat-n-Eat fresh food solutions meets evolving consumer preferences, particularly as many lack the time or skills to prepare meals from scratch. This trend has also been fueled by the lingering impact of the COVID-19 pandemic, which reshaped food habits across all income brackets.

Key Drivers of Market Share Growth

As Dollar General intensifies its focus on food, several factors position it to capture market share from legacy grocery chains:

1. Aggressive Store Expansion

Dollar General operates over 19,000 locations nationwide, often in rural and underserved areas where traditional grocery stores are scarce. By increasing its presence and adapting store layouts to accommodate more fresh and frozen food items, the retailer broadens its appeal to shoppers seeking one-stop convenience.

2. Private Label Success

The chain’s private-label brands, such as Clover Valley, deliver value-priced alternatives that compete directly with higher-priced national brands. These products—ranging from pantry staples to frozen entrees—drive customer loyalty and higher margins.

3. Targeted Innovation

Investments in store modernization and digital innovation, including mobile coupons and DG’s "Pickup" services, streamline the shopping experience. For food shoppers, time efficiency has become as crucial as cost savings, and Dollar General’s initiatives cater to this demand.

4. Appealing to Younger Demographics

The company’s focus on snack-sized, Ready-2-Eat products has particular resonance with younger consumers and single-person households, segments historically underrepresented in traditional grocery.

5. Holiday & Seasonal Trends

Dollar General leans heavily on seasonal promotions, offering budget-conscious solutions for everything from Thanksgiving spreads to back-to-school snacks. These tie-ins enhance relevance and cater to shoppers looking to economize without sacrificing tradition.

Looking Ahead: A Food-Focused Future

With a proven ability to adapt to shifting consumer needs, Dollar General’s food-forward approach sets it on a trajectory to outpace many traditional grocery competitors. By 2030, the retailer could expand its grocery market share to rival that of mid-tier supermarkets. Its commitment to affordability, coupled with its accessibility in underserved areas, ensures enduring relevance.

As consumers navigate uncertain economic and political landscapes, Dollar General’s blend of low prices, convenience, and expanding food offerings guarantees its place as a crucial resource. For legacy grocers, the rise of Dollar General should serve as a call to innovate, recalibrate pricing, and reevaluate distribution strategies to stay competitive. For Dollar General, the future of food is not just a pivot but a powerhouse opportunity.

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 participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Asda Finding Success After Walmart

Stuck in a rut of their own making, Walmart, while owning and operating Asda stifled its growth with a supply chain mentality from a bygone era according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson continued, “within the foodservice world, the supply chain is important, however never more important than customers, the food, and service. There is not a country in the world where consumers want to hike through 24 aisles looking for three items for dinner or breakfast.”

The world is seeing the flaws with ‘JUST IN TIME INVENTORY’, in every sector of retail or manufacturing.  That is a short-term problem that will be resolved with proactive solutions within a year.  In the case of Asda the new owners have looked at the undercurrents of consumers want’s and needs and they are setting a new direction.  Let’s first look at some of the relevance facts driving consumers choice for what’s for dinner, and where and how they want a solution:

1.       Recent Grocerant ScoreCards found 82.3% of consumers don’t know what’s for dinner at Noon, and 61.1 don’t know what’ s for dinner at 4PM %.

2.       83.1% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 68.4% have two meal components.

3.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 90.4 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 82.7% chose meal components.

4.       Seventy-three percent of retail prepared food purchases are taken to go

5.       Prepared food purchases are frequently a planned purchase among 59% of shoppers, while 41% of shoppers said they buy prepared foods on impulse. Dinner has the highest amount of prepared food buys with 79% of respondents making purchases for that meal, while lunch comes in at 77% and breakfast at 62%.

6.       55% of consumers would like to try autonomous EV delivery

So, the new owners of the retail group, Mohsin Issa and Zuber Issa, stated, "Our plans to rollout Asda On the Move will bring Asda to new customers, enabling them to pick up food-to-go, essentials for an evening meal, or treat themselves to premium Extra Special products from a range of convenient locations.

"We continue to see significant opportunities to drive innovation across the business, and we look forward to working with the Asda team to execute our growth strategy."

The 3,000 square-feet 'Asda on the Move' stores offer up to 2,500 products, including a selection of premium 'Extra Special' range and a more extensive range of fresh produce and chilled items than other fuel forecourts.

The outlets will also offer foodservice facilities from EG Group and their partner brands, such as Greggs and Subway.

Chief finance officer at Asda, John Fallon, added, "Looking ahead to the rest of the year, the first phase of the rollout of 'Asda On the Move' is an exciting next step for the business, enabling us to supply a new convenience store offer, complementing our other store formats."

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive growth and innovation in every sector of food retail today according to Johnson.  Is your company still running ‘grocery’ stores that look more like 1950 that 2021?  Are your customer required to walk un and down 24 aisles to find three or four items for breakfast, lunch or dinner? Why?

No, UK retailer Asda will launch 28 new 'Asda on the Move' convenience stores on EG Group forecourts this year, following the success of a trial project launched in October 2020. So, the rollout will begin next month in Knowsley, Crewe, Skelmersdale and Holtspur.

How successful is the new Grab-N-Go? Well, Asda will supply products to these outlets under a wholesale agreement with EG Group, which will own and operate each store. The company aims to expand to 200 'Asda on the Move' stores by the end of next year and roll out more stores in 2023.

Maybe even more disappointing is the need for management changes at Asda.  So, the company also announced that chief operating officer Anthony Hemmerdinger, and strategy officer Preyash Thakrar have both left the business. Now we all knew that in August, chief executive Roger Burnley stepped down ahead of his scheduled departure next year.  Don’t you think if the BOD had given them permission to ‘follow the customer, or sell the consumer what they want and how they want it.  Those changes would not have been needed?  Why can’t your company find a way to move forward rather than ‘SPIN’ missteps into a more familiar prologue.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869 

Zippin’s Cashierless Hotel C-Store is a Winning Growth Solution

 

The San Francisco-based technology driven Zippin announced the launch of its latest retail format: a hotel convenience store. Its new store is in the Yokohama Techno Tower Hotel is also the first store in Japan open to the general public to use biometric authentication technology to verify customers’ identities.

Ok, so you think that it sounds easy? Well according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® its not easy.  However, it works, elevates cashierless stores once again and just may be a break-through technology edifying restaurants, grocery stores, C-store, and dollar stores soon.  

So, Zippin’s partner, Fujitsu, the leading systems integrator in Japan, has worked with Koyo Group to implement the world’s first checkout-free store within a hotel at the Yokohama Techno Tower Hotel. It is also the first store in Japan open to the general public to use biometric authentication technology to verify customers’ identities. Johnson stated, in the U.S. some may object to this but not him.  It’s faster, more reliable, and seamless.

Now with this partnership, the store operator is keeping shoppers and workers safe during the pandemic with a cashierless checkout, eliminates stress of lines and wait times, and raises customer satisfaction by optimizing the product lineup. It’s going to be much more important after the pandemic when the hotel is full and customers are time-starve once again.

The new grab-and-go Green Leaves Plus unit which sells pre-packaged food and beverages as well as fresh bento box meals, opened early this year as a pilot and customers are able to enter the store via smartphone app. Here is how it works:

“Customers must register their credit card information, and then enter the store with the QR code displayed on the app. Customers can also use the multi-biometric authentication technology that links their palm vein and facial recognition information with the smartphone application. After registering this in advance, a smart phone is no longer required for entry, just a simple swipe of the palm.”

Koyo will start full-scale operation at the store in April 2021. Early analytics suggest Koyo has relatively high traffic during the nine hours it’s open every day. Shoppers are spending an average of 113 seconds in the store, which is considerably fast considering the size of the store and variety of items furthering Zippin’s “zip in and out” approach.

said Zippin Co-Founder and CEO Krishna Motukuri stated, “Zippin is excited to work with Fujitsu to power the checkout-free technology for this new Koyo hotel store. We believe that there is big growth potential for checkout-free retail in Japan. The Green Leaves Plus store at Yokohama Techno Tower Hotel is helping to lead the way to a better retail experience at hotels, hospitals, and other places where people need convenient access to food and drinks,”.

Koyo is looking a customer ahead as it also operates convenience stores and restaurants in more than 500 hospitals. This first hotel convenience store will also be a model for how checkout-free technology could work in a hospital setting — where people need 24 hour access to food and drink — without having to require a constant staffing presence. The new store is part of a multi-phase expansion plan by Koyo to ultimately create new convenient foodservice concepts for hospitals.

Motukuri continued “Any store that provides all-hours access is an ideal location for checkout-free technology because the stores can be kept open without having to maintain staffing levels, especially in off-peak periods. The opportunities are endless,”.

So, Zippin has developed the next generation of checkout-free technology enabling retailers to quickly deploy frictionless shopping in their stores. Zippin’s patent-pending approach uses AI, machine learning and sensor fusion technology to create the best consumer experience: banishing checkout lines and self-scanners for good and letting shoppers zip in and out with their purchases.

Zippin‘s platform leverages product and shopper tracking through overhead cameras, as well as smart shelf sensors, for the highest level of accuracy even in crowded stores. Founded by industry veterans from Amazon and SRI with deep backgrounds in retail technology, AI and computer vision. Are you ready to get-Zippin?

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

C-Stores Sappy Soapy ‘Tunnel of Love’

 

Who does not like a story about a ‘Tunnel of Love’ any time of year, let alone in February, the month that has Valentine’s Day? Convenience store and car wash operator Soapy Joe’s has the marketing chops of a large chain restaurant according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Soapy Joe’s focusing on customer relevance and the calendar decided to pull the trigger on consumer focus interactive participatory marketing.  So, couples who submit videos of car wash proposals get a year of free sudsings and chance to win big cash and engagement rings. Not bad, what do you think?

This year, Soapy Joe’s is inviting couples to “Propose at Soapy Joe’s,” share the video of popping the question and earn a chance to win big. Simple, straight forward and a solid interactive participatory customer relevant promotion according to Johnson.

Anne Mauler, vice president of marketing for Soapy Joe’s stated, “It was incredibly rewarding to bring together 10 couples to wed last year at our Imperial Beach location,” .. “We know COVID-19 has derailed a lot of wedding plans – one survey by Lending Tree even reported that 63% of engaged couples put off their wedding in 2020 and it’s likely that many more delayed engagement”

Mauler continued, “Soapy Joe’s believes that nothing should stand in the way of true love,…. “So we’re encouraging everyone who’s in love to come to Soapy Joe’s and ‘drive-thru on their way to I-do’. Plus, they could win wedding rings from San Diego’s own Honey Jewelry Co. and $10,000,” explained Mauler. “Not a bad way to start an engagement!”

Here is how it works” Videos will be accepted Sunday, February 14-Sunday, Feb. 28. Voting will go from Tuesday through Monday, March 2-8, at 11:59 p.m. PST. The winning couple will be announced on Wednesday, March 10.

To participate, couples can visit any Soapy Joe’s location, record their proposal from inside the car wash “Tunnel of Love.” Then, share on Instagram tagging @soapyjoes and @honeyjewelryco, and submit their video to Soapy Joe’s at www.soapyjoescarwash.com/tunnel-of-love .

There is no cost and no purchase necessary to enter. The only requirement is for entrants to be sure to flash their signature Soapy Joe’s air freshener on camera to qualify. It gets even better as all participating couples who share qualifying proposals at the Soapy Joe’s website will receive a year of free washes. One lucky couple, as voted by fans through Soapy Joe’s dedicated web page, will win wedding rings from San Diego-based Honey Jewelry Co. valued at $3,500 plus $10,000 cash.

Mauler went on to say, “Sharing your engagement story is a time-honored tradition, and we’re ‘bubbling up the ante’ by creating a unique experience that is the perfect backdrop for couples to express their individualism and love,” ... “We’re eager to see how San Diego’s fun-loving couples express themselves starting on Valentine’s Day.”

Soapy Joe’s operates 13 car wash locations, including two 7-Eleven franchises and an unbranded convenience store, each co-located with a car wash. One car wash location also performs auto service.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Schnuck Markets too Out-Restaurant Restaurant-Meals

 

Schnuck Markets new Restaurant Selections Meal Program “Eat Good to Feel Great" is on target and positioned to be a game changer ratcheting up competitive meal messaging between the grocery and restaurant sectors according to Steven Johnson, Grocerant Guru® at Tacoma, WA base Foodservice Solutions®. The simple fast is in Q2, Q3, and Q4 2021 the Battle for Share of Stomach will become intense.

Grocery store service deli departments for the most part look more like yesterday that today’s grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food according to Johnson. Now, Schnuck Markets is bolstering its service deli prepared foods offering with a new quick-made meal program dubbed “Restaurant Selections by Schnucks.”

The battle for Share of Stomach under the Schnuck Market Restaurant Selections concept, “meals in minutes” entrees will be rotated meals according to a bi-monthly theme. Starting off with a January/February theme of “Eat Good to Feel Great,” including such dishes as roasted salmon fillets, smokehouse rotisserie pork roast, turkey stuffed peppers, Mediterranean turkey meatloaf and airline chicken breast. Time starved, price strapped, without a cook from scratch skill-set consumers will migrate from restaurant sit down meals into the Schnucks Restaurant Selections in order to expand family menu variety, reduce cost, and save time according to Johnson.  

Battle for Share of Stomach

Then in March/April with a Restaurant Selections menu of Mediterranean and Italian dishes, including linguine carbonara, sausage and peppers, pork osso bucco and chicken scallopini, The themes are slated to run throughout the year, with barbecue in May/June, Southwest cuisine in July/August, Pan-Asian options in September/October and comfort food in November/December. I guess you see how Schnucks is planning to stay fresh, stay relevant, and stay top of mind with consumers.

Now all of the Restaurant Selections meals are displayed in the deli department case. All entrees come with a selection of side dishes, such as mashed cauliflower, wild rice pilaf, and roasted beets with feta, driving grocerant niche adoption and Hallmark mix and match meal component bundling according to Johnson.

Geoff Wexler, vice president of deli and prepared foods at Schnuck Markets, stated, “Our goal is to provide our customers with restaurant-quality meals that focus on healthier and, at the same time, high-quality, delicious dining options,”… “These new selections will make Schnucks’ delis a destination for time-sensitive customers seeking tasty and popular meals that they are proud to serve to their families.” 

Technology does matter at the service deli, so special digital coupons will be offered to Schnucks Rewards customers each week via the Schnucks loyalty program app. So, how do you plan on garnering a larger share of stomach in 2021?

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 participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Macy’s New Retail Foodservice Concept

Can grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food help save Macy’s? Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes it is a step in the right direction, and with a formal grocerant niche focus it very well could drive customer frequency while looking a customer ahead.

Consider that Macy’s has announced that it going to close 125 stores, it is at the crossroad, where the intersection of the consumer and food when I want it, where I want it is top of mind. That said, customer relevance can be driven with a great selection of eat in or take out mix & meal component selections.

Regular readers of the blog know that Millennials are focused on food discovery, and convenience.  So, the new Market by Macy’s with in-store Herald cafe and event center hopes to be more than a retail shopping space it aims to be an experience that foodies will migrate too.

Market by Macy’s, has created what it called a “20,000-square-foot immersive shopping experience that includes Herald, Market by Macy’s cafe that serves breakfast, lunch and snacks daily along with craft cocktails, beer and wine.”

So get this, the food is presented and served on merchandise that is available for purchase within the cafe, featuring brands such as Macy’s Hotel Collection. Areas of Herald are accented by exclusive home favorites, including Martha Stewart Collection copper bakeware and handmade discoveries like Katie Kimmel’s ceramics. Johnson, likes the idea as it is both interactive and participatory.

Lauren Vocelle, manager of media relations for Macy’s Inc. South Region stated “Shoppers can dine in at Herald or grab and go,” …Market by Macy’s is also hoping to lure shoppers with the increasingly popular sip-while-you-shop trend. “Food items are sold within Herald at Market by Macy’s, but shoppers are welcome to bring their coffee or cocktail with them as they shop throughout the store,” Vocelle said.

Are you looking a customer ahead? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us 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.

Consolidation within the Grocerant Niche to Drive Incremental Growth

Success does leave clues and recent news that UK’s Yo! Sushi restaurant chain was going to merge with Snowfox Sushi a US based restaurant chain edifies the fact that ‘better-for-you’ grocerant niche fresh prepared food sales continue to drive food industry success according Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Snowfox Sushi  mission is to lead and exemplify fresh food fast with Grab-N-Go sushi in all retail locations by placing our customers first, exchanging value with our partners, and dedication to offering innovative menu selections that are affordable, served fresh, in an attractive setting.

The combination of Snowfox and Yo! Sushi will help Redefin the retail sushi narrative through branding a newer flexible setting for fresh fast food aka Grab-N-Go Snowfox Sushi. Serving fresher sushi where our quantity meets customer demands, yet quality never sacrificed. Establishing unparalleled synergy between us, our partners, and each individual franchisee respectively.

This merger, creates one of the largest Japanese food companies outside of Japan, according to YO!, aimes to capitalize on the USD 1 billion (EUR 885 million) sushi market.

When complete this merger, the expanded group, made up of SnowFox, YO!, Bento Sushi, and Taiko Foods, will consist of four fast-growing businesses with USD 425 million (EUR 376 million) of sales, including franchisees’ sales, YO! said in a press release. Nearly two-thirds of the sales originate in North America. 

JFE Franchising, Inc. (operating as SnowFox), a wholly-owned subsidiary of Jim Kim Holdings, is the third-largest sushi kiosk business in the U.S., managing more than 700 full-service sushi kiosks across 25 U.S. states, primarily in supermarkets. 

Our Grocerant Guru® calls 2019 the year of partnerships and with the merger, the expanded group will have partnerships will many leading retailers across North America and the U.K. including Kroger, Loblaws, Walmart, Sobeys, Waitrose, Sam’s Club, and Tesco, as well as operating 1,400 kiosks, seven central kitchens and 89 restaurants.

“YO! Suchi CEO Richard Hodgson  stated “We are delighted to be partnering with SnowFox given its high brand penetration, recognized product and service quality, as well as excellent industry relationships. …“By expanding its geographical presence and offering, the expanded group will meet the untapped demand of consumers around the world,”

Grocerant Growth is great, the U.S. grocery sushi market has more than USD 1 billion (EUR 885 million) in annual sales and is growing around 13 percent year-on-year, with Japanese cuisine seen as one of the fastest-growing food types across the globe, according to YO!.

Note: SnowFox Chairman Jim Kim will join the board of the combined group, as well as remaining a significant shareholder. SnowFox President Stacy Kwon and Bento Sushi CEO Glenn Brown will become co-presidents of the group’s North American operations, responsible for driving growth and executing the group’s strategy. They will both report to CEO Richard Hodgson. 

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/  or www.twitter.com/grocerant