Applebee’s Winning Fast-Food Customers

 

As inflation continues to squeeze household budgets, Applebee’s is making strategic moves to capture fast-food customers looking for comfort, value, and a real dining experience according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In the face of rising competition, the casual dining chain is doubling down on the price-value relationship in consumers' minds. With its new $9.99 Really Big Meal Deal featuring all-you-can-eat fries and bottomless beverages, Applebee’s is blending affordability with generosity, taking on the fast-food giants at their own game while emphasizing the unique advantages of sit-down dining.

The Price-Value Relationship

Applebee’s leadership has smartly recognized that the value proposition is central to the modern consumer. Amid an environment where a fast-food burger combo can easily exceed $12, the $9.99 price point of the Really Big Meal Deal stands out. Customers can choose a hearty burger or chicken sandwich paired with all-you-can-eat fries and endless soft drinks—a level of abundance that outstrips standard fast-food offers.

Applebee’s President, Tony Moralejo, underscored this during a recent interview on Yahoo Finance’s Asking for a Trend:

“The best value meal in America just got even better.”

Indeed, the shift from transactional drive-thru dining to the value-laden sit-down meal strikes a chord with families balancing budgets while wanting a more meaningful experience. Unlike most fast-food restaurants, Applebee’s provides an environment where families can relax, sit together, and enjoy a meal served by a real person instead of a robotic ordering screen or an app.

Success Clue

Understand Who is Your Customer 

Comfort Dining Meets Affordable Indulgence

While fast-food chains compete on speed and convenience, Applebee’s offers something distinct: a comfortable dining experience with perks that enhance perceived value. The Really Big Meal Deal builds on this advantage:

·         Family Dining: Applebee’s cozy booths and inviting atmosphere create a setting for families to connect over a meal without feeling rushed.

·         All-You-Can-Eat Perks: Endless fries and free drink refills add an element of indulgence that’s hard to find at quick-service outlets.

·         Customer-Centric Service: A friendly server, attentive to diners’ needs, delivers a personal touch absent from the fast-food assembly line.

This combination resonates particularly well in challenging economic times, where consumers are seeking more than just calories for their dollar—they want value that feels abundant and personal.

Value Wars Heating Up

Applebee’s $9.99 offering arrives in the midst of a fierce value battle with rival Chili’s, whose $10.99 3 for Me menu has been making waves. Chili’s offers bottomless chips and salsa as part of its bundle, but Applebee’s counter is clear:

“Salsa and chips, it’s filler, right?” said Moralejo, highlighting the substantiality of the fries-and-drink combination.

Applebee’s value-forward initiative aligns well with trends seen in the restaurant industry, where brands capitalizing on perceived abundance are winning. Consumers are comparing not just price tags, but also portion sizes, perceived quality, and the total dining experience.

Navigating Risks of Value Promotions

While free food promotions like Red Lobster’s infamous “Endless Shrimp” promotion have proven disastrous for profit margins, Applebee’s approach appears more calculated. Fries and soft drinks have low food costs compared to proteins, allowing the chain to balance profitability with perceived value. Franchisees, too, have reportedly supported the program’s extension past its initial month-long run, signaling operational confidence.

By providing satisfying portions with its new deal, Applebee’s also keeps diners longer, potentially boosting appetizer and dessert sales and, in turn, increasing the check average.

Think About this: Strength in Real Connections

Applebee’s is winning over fast-food customers by emphasizing the unique advantages of casual dining—comfort, quality service, and abundant value. The Really Big Meal Deal taps into price-conscious consumers’ need for indulgence without guilt and families’ desire for connection. In a world where fast food is dominated by convenience and automation, Applebee’s has carved out a niche: affordable meals served with human warmth in an inviting atmosphere.

This effort is more than a tactical promotion. It’s a strategy that repositions Applebee’s as a competitive option in both the casual-dining and fast-food categories, appealing to diners who don’t just want to eat—they want to belong.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success

The Power of Chicken: A Historical Perspective on Fast Food's Unlikely King

 

In the fast-food world, chicken has emerged as a quiet yet formidable force, steadily reclaiming its place at the center of the plate, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Once a top contender in the industry, chicken's appeal surged through the efforts of KFC (Kentucky Fried Chicken), which pioneered the idea of chicken as a convenient, crave-worthy meal option. Though it was temporarily overshadowed by the explosive rise of burgers and pizza, chicken is back with a vengeance. Now, as exemplified by McDonald’s recent launch of the Chicken Big Mac, chicken is once again a powerful driver of sales and profits in the fast-food sector.

The Early Dominance of KFC

The rise of fast-food chicken began with KFC, founded by Colonel Harland Sanders in 1952. Sanders, known for his secret blend of 11 herbs and spices, revolutionized the way people perceived fried chicken. With a mix of flavor, speed, and convenience, KFC became a juggernaut in the American food scene, quickly expanding into a global brand. By the 1960s, KFC’s success cemented fried chicken as a staple, elevating it from a traditional home-cooked meal to a fast-food phenomenon. KFC dominated the fast-food landscape by offering a unique product in a market that was rapidly becoming saturated with hamburgers.

However, as fast-food chains expanded and evolved, KFC’s dominance would be challenged. The 1970s and 1980s saw the rise of the "burger wars" led by McDonald's and Burger King, with pizza chains like Pizza Hut joining the fray to capture the hearts (and stomachs) of a rapidly growing fast-food customer base. Chicken, while still popular, took a back seat as burgers became synonymous with fast food.

The Rise of Burgers and Pizza

The late 20th century marked the golden era for burgers and pizza. McDonald’s, which had launched its iconic Big Mac in 1968, soon became the dominant player in the fast-food industry. With its focus on burgers, fries, and an efficient assembly-line kitchen, McDonald’s redefined what fast food could be. Burger King, Wendy’s, and other burger chains followed suit, capitalizing on the appeal of beef-based meals that could be produced quickly and consistently.

At the same time, pizza chains like Pizza Hut and Domino’s gained ground by focusing on delivery and family-sized offerings. Pizza became a beloved fast-food option, particularly in the growing suburban markets, and chicken was somewhat left behind. Even KFC began to struggle, as it failed to innovate at the same rate as its competitors. As a result, KFC's market share stagnated, and chicken—once a staple of the fast-food landscape—was sidelined.

Chicken’s Comeback: Fast, Flavorful, and Profitable

But chicken wasn’t destined to remain in the shadows. In the 21st century, consumer preferences began shifting toward healthier, lighter protein options, and chicken made a comeback. Unlike beef, which was often associated with higher fat content, chicken became perceived as a healthier alternative. As dietary trends shifted and consumers sought more diverse and flexible meal options, fast-food chains began reintroducing chicken with a new twist.

A pivotal moment came in 2019, when Popeyes launched its chicken sandwich, sparking the so-called "chicken sandwich wars." The sandwich was so popular that it sold out within weeks, generating an unprecedented frenzy on social media. Popeyes’ success signaled that chicken had reestablished its place as a centerpiece in fast food. Other chains, including Chick-fil-A and Wendy's, quickly jumped on the bandwagon, launching their own versions of chicken sandwiches to capitalize on the demand.

McDonald’s Embraces the Chicken Boom

McDonald’s has been particularly strategic in leveraging the resurgence of chicken. Following the success of its McCrispy Chicken sandwich, which was launched in 2022 and has since become a $1 billion brand across multiple markets, McDonald's has doubled down on its chicken offerings. Now, with the introduction of the Chicken Big Mac, the global burger giant is signaling that chicken may well be the new centerpiece of fast food.

The Chicken Big Mac, debuting in the U.S. in October 2024 after successful tests overseas, is a direct reflection of this shift. Featuring two tempura-battered chicken patties, the Chicken Big Mac retains all the familiar elements of the original Big Mac—lettuce, special sauce, pickles, and cheese—yet replaces the beef patties with chicken. Its introduction in the U.K. was so successful that it sold out within 10 days, earning it the title of “the most successful food promotion ever” according to McDonald's CEO Chris Kempczinski.

In a remarkable turn of events, Kempczinski revealed that McDonald’s chicken sales are now on par with its beef sales. This balance between chicken and beef signals a clear shift in consumer preferences. Chicken’s global appeal, coupled with its perceived health benefits, has positioned it as a category that is “twice the size of beef globally and growing at a faster rate,” according to Kempczinski.

Chicken: Once Again King of the Plate

Today, chicken's versatility and broad appeal make it a critical component of fast-food menus. Its ability to be grilled, fried, baked, or even spiced in unique ways gives fast-food chains endless possibilities to innovate. Chains like Chick-fil-A, Popeyes, and KFC have proven that customers will flock to chicken, particularly when it is positioned as both flavorful and convenient. As McDonald's prepares to launch the Chicken Big Mac nationwide, the message is clear: chicken is once again king.

Fast food’s love affair with chicken isn’t just about taste—it’s about profitability. Chicken is cheaper to produce than beef, allowing chains to offer it at competitive prices while maintaining healthy margins. McDonald's sees “significant opportunity for growth in chicken,” and with campaigns that tap into youth culture and viral marketing, such as its pop-up dining experiences and collaborations with influencers like Kai Cenat, the brand is pushing chicken to the forefront of its strategy.

As chicken continues to dominate, one thing is certain: it has earned its place not just as a fast-food alternative, but as the star of the show. From its early days with KFC to the modern-day Chicken Big Mac, chicken’s journey is a testament to its staying power, adaptability, and profitability in the fast-paced world of fast food.

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.

C-Stores Finding Success by Luring Fast-Food Customers to Boost Sales and Profits

 

Over the last decade, convenience stores (C-stores) have evolved into formidable competitors for fast-food restaurants. From KFC’s fried chicken to McDonald’s burgers, traditional fast-food chains are now facing stiff competition as C-stores leverage their strategic locations, evolving menus, and technology-driven operations to attract hungry consumers.

According to Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, one stellar example is Kwik Trip, a family-owned C-store chain that has successfully used its fried chicken program to lure customers from fast-food giants, drive top-line sales, and significantly boost bottom-line profits, but that’s not the only example.

The 10-Year Trend: From Gas and Snacks to Full Meals

The shift in consumer preferences over the past decade has created fertile ground for C-stores to expand into the quick-service restaurant (QSR) arena. As early as 2013, C-stores began testing the waters of hot food service, seeing success with grab-and-go options like pizza and sandwiches. Over time, this evolved into comprehensive hot meal offerings that directly compete with fast-food chains. According to a report from NACS (National Association of Convenience Stores), prepared food sales at C-stores have grown steadily, becoming one of the top drivers of revenue, with hot food accounting for over 22% of in-store sales.

What distinguishes C-stores from traditional fast-food restaurants is the blend of convenience, speed, and variety. C-stores typically offer diverse meal options, from fresh salads to hearty comfort food, all in one location. The growth in this sector has led chains like Kwik Trip to aggressively expand their hot food offerings, including its now-famous fried chicken program, to tap into the demand for fresh, quality meals.

Kwik Trip's Fried Chicken Program: A C-Store Game Changer

In 2019, Kwik Trip launched its fried chicken program, offering a variety of options including tenders, crispy fried sandwiches, and whole roasted chickens. But it wasn’t just the menu that made the program a hit. Kwik Trip’s use of automation and technology, such as the Total Oil Management (TOM) system provided by Restaurant Technologies, has been crucial to ensuring product consistency and operational efficiency across its 725 locations that feature fried chicken.

One of the critical factors in Kwik Trip’s success has been its ability to manage the quality of its cooking oil. While fast-food giants like KFC and Popeyes rely on traditional oil management methods, Kwik Trip's TOM system fully automates oil filtration, recycling, and monitoring. By doing so, the company has managed to improve food quality while cutting costs on labor and oil usage. Not only does the TOM system increase the lifespan of the oil, but it also ensures that customers consistently receive a product that is never greasy or overcooked. These improvements, largely invisible to the customer, have been key to the program’s rapid growth.

Why Customers Are Flocking to C-Stores Over Fast Food

Several factors are contributing to the migration of fast-food customers to C-stores like Kwik Trip:

1.       Convenience and Speed: C-stores are designed for quick in-and-out service, a critical advantage over fast-food chains that often require drive-thru waits or dining-in experiences. Kwik Trip’s layout encourages a seamless experience where customers can quickly grab a hot meal, fuel, and essentials all in one stop.

2.       Quality and Freshness: Fresh, never frozen chicken has become a hallmark of Kwik Trip’s offering, distinguishing it from many fast-food competitors. This focus on freshness and quality resonates with health-conscious consumers who seek better alternatives to traditional fast-food fare.

3.       Technology and Efficiency: As seen with the TOM system, Kwik Trip has invested heavily in automation and training to ensure a superior product while keeping operational costs in check. This focus on tech-driven efficiencies has allowed C-stores to offer competitive pricing while maintaining high-quality standards.

Three Examples of C-Store Success in the Hot Food Arena

1.       Kwik Trip’s Fried Chicken: In just five years, Kwik Trip’s fried chicken program has become a cornerstone of its foodservice offerings. By expanding to 725 stores and leveraging oil automation technology, the company has managed to build a reputation for high-quality fried food while simultaneously reducing operational costs and increasing employee satisfaction. This has driven both top-line sales and bottom-line profits.

2.       Wawa’s Hoagie Expansion: Another C-store giant, Wawa, has seen massive success with its made-to-order hoagies. Wawa has invested in touch-screen ordering systems, allowing customers to customize their meals. Over the past decade, Wawa has reported that its foodservice sales, driven in large part by hoagies, have grown to account for more than 40% of its revenue.

3.       Casey’s General Store’s Pizza Program: Casey’s, another major player in the C-store market, has built a loyal following for its pizza, which is made fresh in-store. It’s now one of the top 10 pizza chains in the U.S. by number of locations. Casey’s success with pizza has been largely driven by its ability to replicate restaurant-quality food at C-store speed, contributing significantly to its profitability.

The Grocerant Guru’s Recommendations for Incremental Success

To sustain their competitive edge over fast-food chains, C-stores need to continue innovating and expanding their foodservice offerings. Here are three recommendations from the Grocerant Guru:

1.       Expand Meal Customization Options: C-stores should look to mirror the customization options seen at fast-food chains. Offering customizable meals via digital kiosks can enhance the customer experience and cater to individual preferences.

2.       Leverage Data Analytics: Data is critical in identifying trends and optimizing operations. As Kwik Trip has done with its TOM system, C-stores should continue to use data analytics to fine-tune recipes, track product quality, and manage costs.

3.       Focus on Sustainability: Consumers are increasingly concerned about sustainability. Kwik Trip’s oil recycling efforts are an excellent example of how C-stores can integrate eco-friendly practices into their operations. By embracing sustainable practices, C-stores can appeal to environmentally conscious customers and differentiate themselves from fast-food competitors.

Think About This: A Recipe for Continued Growth

The C-store landscape has changed dramatically over the past decade. With technology, operational efficiency, and a focus on quality, chains like Kwik Trip are successfully attracting customers who would otherwise visit fast-food restaurants. By capitalizing on the convenience factor, improving food quality, and using automation, C-stores are not just competing with but outperforming many traditional fast-food chains. The shift toward fresher, faster, and more tech-savvy operations is driving both top-line revenue and bottom-line profits, positioning C-stores as powerful players in the fast-casual food industry.

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

Chicken's Undercover Growth Leader: Krispy Krunchy Chicken

 

In the bustling world of quick-service chicken, a quiet yet powerful player is emerging as a growth leader. While legacy chains scramble to retain market share amidst a highly competitive landscape, Krispy Krunchy Chicken (KKC) is stealthily carving out its niche, capturing the attention of savvy consumers and industry insiders alike. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, is ready to dive into the under-the-radar success story of KKC and explore why its growth is set to continue.

The Quiet Evolution of the Chicken Market

Legacy chicken chains, long considered stalwarts in the industry, are facing significant challenges. Brands that once dominated the market are now witnessing a decline in customer loyalty and market share. Factors such as menu fatigue, pricing wars, and a lack of innovation have left these giants vulnerable. Meanwhile, smaller, more agile players like Krispy Krunchy Chicken are seizing the opportunity to differentiate themselves and attract a new wave of consumers.

KKC's growth is particularly remarkable when considering the brand's unique positioning. Founded in Louisiana in 1989, KKC has quietly expanded its footprint to nearly 3,000 locations across 47 states. Unlike traditional standalone QSRs, KKC operates primarily through a "store-in-store" model, partnering with convenience stores, truck stops, universities, casinos, and big-box retailers. This strategy allows KKC to offer its signature hand-breaded, mild Cajun-spiced fried chicken and tenders in convenient, accessible locations, enhancing profitability for its partners and driving customer traffic.

5 Reasons Why Krispy Krunchy Chicken's Growth Will Continue

1.       Value Proposition: In an era where consumers are more budget-conscious than ever, KKC's introduction of the $4 Value Meal is a masterstroke. This offering provides customers with a choice of two pieces of dark meat bone-in fried chicken or two hand-breaded Cajun tenders, served with crispy potato wedges. As CEO Jim Norberg aptly puts it, "We represent quality, cravability, and value." This balance of affordability and quality ensures that KKC continues to attract a broad customer base, particularly during economically challenging times.

2.       Strategic Location Partnerships: KKC's store-in-store model is a game-changer. By partnering with high-traffic locations like convenience stores and big-box retailers, KKC ensures consistent visibility and accessibility. This model reduces overhead costs and provides KKC with a steady stream of customers who are already shopping at these locations. The result is a mutually beneficial relationship that boosts sales and enhances the customer experience.

3.       Product Quality and Uniqueness: KKC distinguishes itself with its mildly Cajun-spiced offerings, a nod to its Louisiana roots. The chicken is marinated and breaded in small batches, ensuring freshness and a superior taste. This commitment to quality and unique flavor profile sets KKC apart from competitors and keeps customers coming back for more.

4.       Flexibility and Innovation: Unlike many legacy brands, KKC is not bogged down by a rigid corporate structure. This flexibility allows the brand to quickly adapt to market trends and consumer preferences. For instance, the launch of the $4 Value Meal demonstrates KKC's ability to respond to demand for affordable, high-quality meals. This nimbleness is a key factor in the brand's sustained growth.

5.       Focused Marketing and Brand Positioning: KKC's brand messaging is clear and consistent. The emphasis on value, quality, and a distinctly Cajun culinary experience resonates with a diverse consumer base. Furthermore, the brand's limited availability on delivery platforms such as DoorDash, UberEats, and GrubHub creates an exclusive, must-visit appeal, encouraging customers to visit in person and potentially increase impulse purchases.

Think About This

Krispy Krunchy Chicken's rise as a growth leader in the chicken QSR segment is no accident. The brand's strategic focus on value, quality, and convenience, combined with its innovative store-in-store model, has positioned it as a formidable player in the industry. As legacy chains struggle to retain relevance, KKC continues to thrive, offering a compelling alternative for consumers seeking delicious, affordable chicken options.

In a market ripe for disruption, Krispy Krunchy Chicken's formula for success is clear: stay adaptable, prioritize value, and never compromise on quality. As the Grocerant Guru®, I foresee continued growth for this undercover powerhouse, as it quietly but confidently claims its rightful share of the chicken QSR market. The next time you crave a satisfying meal, keep an eye out for KKC—you might just discover your new favorite chicken spot.

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