Grocerant Guru Perspective: Stop Paying for Shelf Space—Start Selling What Consumers Actually Want

 

From the Grocerant Guru’s vantage point, PepsiCo’s December announcement is less about activist pressure and more about an overdue market correction. Reducing prices, eliminating roughly 20 percent of SKUs by early 2026, and refocusing on core brands signals a recognition of a fundamental truth shaping food retail today: paying for shelf space does not build loyalty—delivering relevance, value, and choice clarity does.

For decades, large CPGs competed by flooding shelves. More facings, more line extensions, more marginal SKUs, and more trade spend bought visibility but diluted velocity. The result is what behavioral economists call the paradox of choice—too many options create confusion, slow decision-making, reduce satisfaction, and ultimately suppress sales. Consumers do not want infinite beverage choices; they want the right beverage, at the right price, in the right moment.

PepsiCo’s acknowledgment that years of double-digit price increases weakened demand is critical. Value perception matters more today than brand ubiquity. Shoppers are not rejecting brands; they are rejecting friction—friction at the shelf, friction at the register, and friction in deciding what to buy. Cutting SKUs is not retrenchment; it is strategic focus.

The company’s stated moves—sharper everyday value pricing, innovation around cleaner labels and functional benefits, and aggressive cost reduction—align with what the Grocerant Guru® has long advocated: sell beverages and snacks consumers want, priced competitively, without forcing retailers to subsidize inefficiency through shelf fees and excess assortment.

Importantly, PepsiCo’s shift away from artificial ingredients, toward protein-forward and functionally relevant offerings, is not about chasing trends—it is about restoring trust and usage frequency. Fewer, better products outperform bloated portfolios every time when execution is disciplined.

However, the real opportunity is not simply SKU reduction. The real unlock is how products are merchandised and bundled.

Grocerant Guru® Insight: Mix-and-Match Is the Growth Engine

Within the Grocerant niche, growth does not come from buying more shelf space; it comes from building solutions. Consumers think in occasions, not categories. A beverage is not a standalone decision—it is part of a meal, a snack, a routine, or a reward.

Mix-and-match product building—pairing beverages with fresh food, protein-forward snacks, or permissible indulgences—simplifies choice while increasing basket size. It transforms the shopping experience from selection to solution. This approach creates happier consumers because it reduces cognitive load and delivers value. It creates happier stakeholders because it increases velocity, margin, and loyalty without incremental trade spend.

The future is not more SKUs.
The future is curated choice, competitive pricing, and occasion-based solutions.

PepsiCo’s reset suggests the company is beginning to internalize this reality. Those who stop paying for shelf space and start paying attention to how consumers actually eat and drink will win—at retail, in convenience, and across the entire Grocerant ecosystem.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

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.

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In 2025, Why Do Some C-Stores Struggle with Foodservice?

 

The convenience store (C-store) industry has evolved far beyond gas pumps and candy bars. In 2025, foodservice is not just an option — it's a growth engine. Yet, despite its potential, many C-stores still struggle to get foodservice right. Why, lets see what Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks.

The answer lies in a mix of operational complexity, shifting consumer expectations, and fierce competition — even as the data points to strong opportunities.

Foodservice: A Key Profit Driver That’s Hard to Master

According to the 2025 Convenience Store News (CSNews) Foodservice Report, prepared food remains the undisputed cornerstone of C-store foodservice programs. A whopping 92% of retailers surveyed offer prepared food, and it accounts for an average of 48% of total foodservice sales.

However, simply offering food isn't enough. Many stores fail to deliver consistency, quality, or variety at a level that meets customer expectations. Inconsistent execution, undertrained staff, and lackluster product offerings can all turn a high-potential category into a weak link.

Beverage Breakdown: Who’s Winning?

Dispensed beverages also play a vital role in C-store foodservice. According to CSNews:

·       Hot dispensed beverages (like coffee) and cold dispensed beverages (like fountain sodas) each account for 24% of total foodservice sales.

·       Frozen dispensed beverages, such as slushies, make up 16% of foodservice sales, with popularity surging among large operators. In fact, 97% of larger chains now offer frozen beverages, up from 77% the previous year.

This data reflects how larger, better-capitalized operators continue to adapt and invest in high-margin offerings — while smaller or independent C-stores often struggle to keep up with innovation or customer experience enhancements.

Five Insights from the Grocerant Guru®: Handheld Foods & Mix-and-Match Meals

1. Handhelds Fuel ‘Immediate Consumption’ Cravings

Consumers on the go want Ready-2-Eat options that require no utensils and no wait. Handheld foods — like breakfast burritos, empanadas, chicken tenders, and pizza slices — meet the needs of time-starved consumers. They’re convenient, portion-controlled, and often impulse purchases that boost check averages.

2. Handhelds Bridge Dayparts for Incremental Sales

Items that can be enjoyed anytime, like sausage rolls or soft tacos, are ideal for C-stores. The Grocerant Guru notes that “handhelds are the only food format that fluidly crosses dayparts — from morning coffee runs to late-night snack trips.” That versatility makes them a must-have.

3. Mix-and-Match Bundling Drives Customization and Loyalty

Consumers want personalized meals, not one-size-fits-all combos. Offering mix-and-match components — like a protein (hot wings or BBQ pork), a side (mac and cheese or salad), and a beverage — empowers customers to build meals to their taste, dietary preferences, and budget.

4. Bundling Increases Dwell Time and Basket Size

Well-merchandised component-based meals draw customers in and encourage exploration. A shopper who came for coffee may grab a hot sandwich and chips if offered a smartly priced combo deal. As the Grocerant Guru says, “Bundling is a silent upsell — when done right, it speaks louder than signage.”

5. Handhelds + Bundles Extend the Brand to Home and Office

Smart C-stores are selling more than snacks — they’re selling dinner solutions. Mix-and-match meal bundles let customers grab a meal now and take another home, extending the brand experience beyond the store. It’s food that fits real-life rhythms, and it’s where real margin lies.

 

Why Are Some Stores Still Falling Short?

Here are the top reasons some C-stores continue to struggle with foodservice despite its profit potential:

1. Operational Challenges

Running a foodservice operation requires skills outside the traditional C-store model. From inventory management to food safety compliance and employee training, it's a full-service restaurant compressed into a convenience format.

2. Failure to Differentiate

Consumers today expect more than basic offerings. Successful C-stores offer unique items, regional flavors, fresh options, and even healthier alternatives. Chains like Wawa, Sheetz, and QuikTrip have invested heavily in signature food items that build customer loyalty — while struggling stores often rely on generic, uninspired menus.

3. Poor Marketing and Merchandising

Even the best product won’t sell if customers don’t know about it. Many stores fail to effectively market their food offerings, both in-store and digitally. Eye-catching signage, strategic promotions, and mobile ordering platforms can dramatically improve sales — but require upfront investment and a solid marketing plan.

4. Inconsistent Customer Experience

The most successful operators have nailed down consistency: the food is hot, fresh, and prepared the same way every time. Struggling stores often suffer from high employee turnover and a lack of standardized procedures, leading to customer disappointment.

 

Industry Outlook: Room to Grow — Carefully

Despite these challenges, foodservice remains one of the most profitable and fast-growing segments of the convenience industry. But the margin for error is shrinking. In 2025, success in foodservice requires more than just putting a microwave next to a roller grill.

Retailers must think like restaurateurs, act like marketers, and operate with the efficiency of fast-casual chains. For smaller operators, that might mean narrowing focus, perfecting fewer offerings, and leveraging third-party partners for logistics and menu design.

As CSNews data and the Grocerant Guru’s insights suggest, the potential is there — but execution is everything.

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

PepsiCo: The Grocerant Guru® Perspective on a Legacy of Innovation and Consumer-Focused Leadership

 

PepsiCo Inc. is not just a food and beverage powerhouse; it is a leader in the grocerant niche, driving convenience, innovation, and consumer engagement. With a legacy of transforming snacking and beverage categories to meet evolving customer needs, PepsiCo has mastered bundling strategies that align with Gen Z and Millennials’ preferences for mix-and-match meals, mini-meals, and snacks. Its ability to look a customer ahead and anticipate trends ensures retailer and consumer loyalty alike according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

A Historical Journey in Consumer-Centric Growth

PepsiCo's innovative portfolio exemplifies its unparalleled understanding of consumer needs. From its origins with flagship beverages like Pepsi-Cola and Mountain Dew to its bold expansion into snack foods, the company consistently aligned its offerings with the on-the-go lifestyle of modern consumers. PepsiCo’s acquisition of brands like Bare, Sabra, and most recently Siete Foods, underscores its focus on delivering better-for-you options without sacrificing taste or authenticity.

The success story of Siete Foods, which started with an almond flour tortilla in 2014, echoes PepsiCo’s dedication to expanding consumer choice. With products such as grain-free tortillas, Mexican cookies, and taco seasonings, Siete has transformed from a small family business to a nationwide favorite. By acquiring this culturally authentic brand, PepsiCo preserves Siete's heritage while broadening its accessibility to over 40,000 retailers.

Emphasizing Mix-and-Match Meal Solutions

The grocerant niche thrives on bundling — the art of combining components to deliver meal solutions that are fast, fresh, and flavorful. PepsiCo has perfected this strategy across breakfast, lunch, dinner, and the all-important snacking category. By integrating beverages such as Gatorade and SodaStream with versatile snacks like Stacy’s Pita Chips and PopCorners, PepsiCo creates flexible, mix-and-match offerings that cater to younger generations' desire for personalization.

This bundling aligns seamlessly with Gen Z and Millennials, who prioritize convenience, authenticity, and variety. By enabling consumers to assemble meals from diverse components, PepsiCo enhances the at-home dining experience while maintaining the convenience of grab-and-go options.

Meeting Consumer Demand Through Strategic Acquisitions

PepsiCo's ability to acquire culturally and nutritionally relevant brands positions it as an industry disruptor. The acquisition of Siete Foods for $1.2 billion demonstrates its commitment to diversity, inclusion, and better-for-you product innovation. The move strengthens PepsiCo's portfolio of nutritious, simple, and culturally authentic foods, all while honoring Siete’s mission of sharing Latino heritage with a broader audience.

PepsiCo's other strategic acquisitions further this mission:

·         PopCorners: Enhancing snack-time options with bold flavors and innovative formats.

·         Sabra: Leading the hummus and dip category by introducing plant-based versatility.

·         Stacy’s Pita Chips: A longtime favorite in pairing snacks with meal components.

Loyalty Through Consumer-Centricity

PepsiCo not only expands consumer choice but also drives loyalty through innovation. Products like Gatorade Propel, Quaker Oats, and Mountain Dew Spark target specific lifestyle needs, from hydration to indulgence. This wide-reaching approach builds trust, ensuring that whether at home, at work, or on the go, PepsiCo delivers the right product at the right time.

The Grocerant Guru® Recommends PepsiCo’s Approach

1.       Authenticity Through Acquisitions: Expanding cultural heritage brands like Siete captures untapped markets while maintaining authenticity.

2.       Customization as a Core Principle: Flexible bundles spanning snacks and beverages resonate with the modern consumer’s need for choice.

3.       Future-Focused Vision: By consistently looking a customer ahead, PepsiCo ensures its offerings align with lifestyle shifts, including the rise of mini-meals and healthy snacking.

Building a Loyal Future

As PepsiCo leverages innovation and acquisitions to expand its influence in the grocerant space, its strategic bundling and consumer-centric approach ensure relevance for years to come. The company’s mastery in integrating meals and snacks with beverages highlights its leadership in empowering consumers to customize their dining experiences, reinforcing the Grocerant Guru® belief: when it comes to convenience and customer connection, PepsiCo stands unmatched.

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

Why Will Walmart's ‘Pay by Bank’ Program Drive Customer Adoption and Save Millions in Service Fees?

 

Walmart's newly introduced "Pay by Bank" payment option is poised to make a significant impact on both consumer behavior and the company’s bottom line. As the retail giant seeks to streamline transactions and lower costs, this innovative payment method could lead to widespread customer adoption while helping Walmart save millions in service fees.

Now according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the success of the program will hinge on just how well Walmart can explain the benefits to consumers.  Let’s see what our Grocerant Guru® thinks. Success does leave clues and Walmart has a clear record of success.

1. Convenience for Customers

The "Pay by Bank" program allows customers to link their bank accounts directly for transactions, bypassing traditional payment networks like Visa and Mastercard. This eliminates the need for credit or debit cards and offers a simplified checkout experience. As consumers become more accustomed to digital wallets and mobile payments, this frictionless payment option is expected to resonate, especially with younger demographics like Millennials and Gen Z who value convenience and efficiency.

2. Cost Savings for Walmart

Payment processing fees, which can range from 1% to 3% per transaction, have long been a significant cost for retailers. By offering a direct bank payment option, Walmart can avoid these card network fees entirely. Walmart handles billions of transactions annually, and even a small reduction in fees can result in substantial savings. Industry estimates suggest that Walmart could save hundreds of millions of dollars each year as more customers opt for this method.

3. Enhanced Security

Direct bank payments come with heightened security protocols, reducing the risk of fraud. By utilizing tokenization and secure bank-to-bank transfers, Walmart can protect customer data more effectively than traditional card-based transactions. This added layer of security is likely to attract cautious consumers concerned about data breaches and identity theft.

4. Building Customer Loyalty

Walmart has long focused on offering customers lower prices and value. By providing a fee-free payment option, the company strengthens its image as a consumer-first brand. Additionally, Walmart could incentivize adoption of the "Pay by Bank" program through exclusive discounts, rewards, or cash-back offers, encouraging customers to use this method regularly. This creates a cycle of loyalty, driving return visits and higher spending.

5. Appealing to Unbanked and Underbanked Consumers

Approximately 5.9 million U.S. households remain unbanked, and many more are underbanked. By enabling direct bank transfers without the need for credit, Walmart opens the door to millions of customers who rely on alternative financial services. This aligns with Walmart’s mission to serve every segment of society, making the "Pay by Bank" program an inclusive solution that could significantly broaden its customer base.

Think About This: A Win-Win Strategy

Walmart’s "Pay by Bank" program is a forward-thinking move that will likely drive customer adoption through increased convenience, security, and accessibility. By cutting down on transaction fees, Walmart stands to save millions annually, a move that could help fund further investments in technology, pricing strategies, or in-store improvements. In essence, this program benefits both Walmart and its customers, positioning the retailer to remain competitive in an evolving digital marketplace.

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 Couche-Tard’s New Significant M&A Moves May or May Not Turn Out

 

In the world of convenience retail, Alimentation Couche-Tard Inc. has never shied away from making bold moves since Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been following the sector. The recent announcement of acquiring GetGo Café+Markets from Giant Eagle Inc., combined with a nonbinding proposal to acquire Seven & i Holdings Co. Ltd., the parent company of 7-Eleven, signals Couche-Tard's aggressive expansion strategy. With 7-Eleven now valued at $38.7 billion, this could be a defining moment for Couche-Tard's global success. But what could these moves mean for the future?

Here are five possible outcomes:

1. Global Market Domination

If Couche-Tard successfully acquires 7-Eleven, it would solidify its position as a dominant force in the global convenience store market. With over 16,700 stores already, adding 7-Eleven’s vast network could catapult Couche-Tard into the number one spot globally. This would provide significant leverage in negotiations with suppliers and allow the company to standardize operations across markets, driving efficiencies and profits.

2. Enhanced Consumer Loyalty Programs

The integration of GetGo into Couche-Tard’s portfolio, along with the partnership on Giant Eagle’s myPerks loyalty program, could lead to a powerful, unified loyalty program across all Couche-Tard brands. This could drive customer retention and increase cross-promotion between the various stores under the Couche-Tard umbrella, leading to greater customer lifetime value.

3. Expansion into New Markets

Couche-Tard’s pursuit of Seven & i Holdings signals its intent to expand further into Asia, a region with immense growth potential. With its established presence in the U.S., Europe, and other parts of the world, this move could open up new revenue streams and diversify the company’s market presence, reducing reliance on any single region.

4. Innovation in Store Formats

The acquisition of GetGo, known for its innovative open-concept stores and made-to-order food offerings, could inspire Couche-Tard to revamp its existing stores. Combining GetGo’s fresh food focus with Couche-Tard’s scale could create a new standard for convenience stores, blending quick service with quality and variety.

5. Increased Market Valuation

Successfully integrating 7-Eleven into its portfolio could significantly boost Couche-Tard’s market valuation, potentially surpassing the $50 billion mark. This would make it a more attractive investment for shareholders and give the company the financial muscle to continue pursuing strategic acquisitions in the future.

However, not all outcomes may be positive. Here are three reasons why Couche-Tard's ambitious plans might not pan out:

1. Regulatory Hurdles

Mergers of this scale often face significant scrutiny from regulatory bodies. The acquisition of 7-Eleven could be challenged by antitrust regulators in multiple countries, potentially delaying or even blocking the deal. Couche-Tard would need to navigate these complexities carefully to avoid jeopardizing the acquisition.

2. Cultural and Operational Integration Challenges

Integrating two massive organizations like Couche-Tard and 7-Eleven is no small feat. Differences in corporate culture, operational practices, and customer expectations across regions could lead to friction. If not managed effectively, this could impact employee morale, customer satisfaction, and ultimately, the bottom line.

3. Market Saturation Risks

With such a vast network of stores, Couche-Tard could face the challenge of market saturation, especially in regions where its brands overlap with 7-Eleven. This could lead to cannibalization of sales and a dilution of brand identity, weakening the overall impact of the acquisition.

Think about this, while Couche-Tard’s recent M&A moves could position it as a global convenience store leader, the path forward is fraught with challenges. Success will depend on the company’s ability to navigate regulatory hurdles, integrate diverse operations, and avoid market saturation. If executed well, however, Couche-Tard could redefine the convenience store landscape for years to come.

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