Why Amazon Should Buy Kroger: A Historical, Strategic, and Brand-Centric Case for Grocery Domination

 

The Historical Pattern: Scale Wins in Grocery

Retail history reveals a stark truth: scale in grocery equals dominance—until it doesn’t.

Take A&P, the once-great American grocer that in the 1930s operated over 16,000 stores, pioneering vertical integration and private label branding. A&P commanded nearly 10% of all U.S. grocery sales, a feat unmatched even today. But as consumer preferences shifted and competitive dynamics evolved, A&P failed to modernize, falling into irrelevance before filing for bankruptcy in 2010.

Now, Kroger, with over 2,700 stores across 19 regional banners (including Ralphs, King Soopers, Fred Meyer, and others), risks becoming a 21st-century A&P. Despite $150+ billion in annual revenue and the country’s largest supermarket footprint, Kroger is fragmented in brand identity and lacks cohesive national consumer resonance.

Amazon, on the other hand, doesn’t need to be the next Kroger. It needs to own it.

 

Amazon + Whole Foods ≠ Grocery Scale

In 2017, Amazon’s $13.7 billion acquisition of Whole Foods was hailed as the beginning of a grocery revolution. However, nearly a decade later, Whole Foods has only ~530 locations—a rounding error compared to Walmart’s ~4,600 U.S. stores, or even Aldi’s 2,300.

Amazon's grocery sales still represent less than 3% of the total U.S. grocery market, which surpassed $1.5 trillion in 2024. Compare that to Walmart’s commanding 25% market share. The simple truth: Amazon can’t win in grocery without vastly more physical locations.

Kroger’s thousands of stores offer Amazon the national footprint Whole Foods never could.

 

Whole Foods: Still Fighting the ‘Whole Paycheck’ Legacy

Whole Foods has fought valiantly to shed its “Whole Paycheck” reputation. But even with Amazon’s technology, pricing tweaks, and Prime integration, perceptions have barely budged.

·       A 2024 Ipsos study found 72% of consumers still consider Whole Foods “expensive”, compared to just 18% for Walmart and 34% for Kroger.

·       Internal Amazon grocery data suggests that basket sizes at Whole Foods remain flat, especially among value-conscious consumers aged 25–45—a crucial demographic for grocery growth.

The premium image is both a blessing and a curse: great for niche organic buyers, terrible for price-sensitive families that drive volume.

 

The Kroger Conundrum: 19 Banners, No Unified Identity

Kroger’s decentralized approach—operating under 19 separate regional banners—hinders its ability to compete in the era of omnichannel brand loyalty and algorithmic shopping behaviors.

·       Consumer research shows 65% of shoppers under 40 do not realize Ralphs or Fry’s is owned by Kroger.

·       In the age of app-driven shopping, voice ordering, and subscription-based replenishment, consistency matters.

Kroger’s brand fragmentation makes it invisible in national conversations, even while it leads in transactions. It lacks the unified narrative that drives modern consumer touchpoints—a must-have for relevance in an Amazon-shaped retail world.

 

Enter the Grocerant Guru®: The Power of the One Amazon Grocery Vision

Foodservice analyst and industry thought leader Grocerant Guru® Steven Johnson emphasizes that the future of grocery isn’t just about price or convenience—it’s about integrated experience.

According to Johnson, rebranding the combined Kroger–Whole Foods network under "Amazon Grocery" could fundamentally reshape consumer expectations:

“Amazon has the tech, the logistics, the pricing algorithm, the brand trust. What it lacks is touchpoints—physical, emotional, culinary. Buying Kroger and unifying under one brand gives it all.”

Imagine:

·       One Amazon Grocery app, merging Whole Foods' organics, Kroger’s mass appeal, and Amazon’s backend efficiency.

·       Automated dynamic pricing, with Prime perks personalized in real-time.

·       Grocery meets grocerant: prepared meals, micro-kitchens, AI-driven product mix.

·       Same-day delivery not in 30 cities, but 400+ metro areas.

In a consumer environment where 66% of shoppers blend online and in-store experiences, a unified Amazon Grocery brand could become the most trusted name in food retail—period.

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Amazon’s Core Advantage: Price + Trust + Convenience

Amazon built its empire on price competitiveness, supply chain mastery, and customer-centricity. The acquisition of Kroger allows Amazon to bring these superpowers to the last frontier of mass retail: the weekly grocery trip.

·       Amazon can immediately scale grocery presence to over 40 states.

·       It gains over 400 million monthly transactions across Kroger stores.

·       It inherits logistics infrastructure, labor contracts, and local brand familiarity—then rebrands it into a unified powerhouse.

With scale and data, Amazon Grocery can undercut Walmart, local grocers, and even Aldi, while offering a better digital and in-store experience.

 

Think About This: The Time Is Now

Kroger is a legacy titan, increasingly trapped by its own decentralized structure.

Whole Foods is a premium player with strong niche appeal but limited growth runway.

Amazon is the tech and logistics giant missing only one thing: a national grocery presence.

The solution? Rebrand all as one Amazon Grocery. Reinvent the experience. Own the future.

History shows that grocery dominance doesn’t last forever—but with the right move, Amazon could define the next era.

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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

Costco is Golden in Consumers Eyes

 

Living in the Pacific Northwest is one of the rewards of life. Being introduced to Costco years ago was an adventure of fresh food discovery and much more according to the team at Tacoma, WA based Foodservice Solutions®. 

Now for those of you who might not know Costco is in food industry speak, considered a ‘mass retailer’ selling large quantities for less.  Here is want is important about the ‘mass retailer’ sector; during November 2023, “Mass retailers surpassed Supermarkets to become the primary retail format that most household relied on for their grocery purchases during the month whether online or in-store.  That was a quote from our friend David Bishop, of Bricks Meets Click.

Regular readers of this blog understand that Gen Z and Millennials both seek discovery when shopping for food, meals, menu, or simply dinner.  That discovery includes both Ready-2-Eat and Heat-N-Eat fresh prepared meals and more.  They were conditioned for this experience at and early age as their parents more likely than not took them to McDonalds. 

How so? Simple consider that the “Happy Meal” was one of the first mix and match bundled grocerant offerings within the food industry.  Inside that ‘happy meal’ was a tory, a book, a gift.  Ah discovery! Excitement, educational, positive, and brand reinforcing according to our Grocerant Guru® Steven Johnson.   

Now those Gen Z and Millennials are growing up and like so many of us find comfort in continuity is our daily life. The team at Foodservice Solutions® believes that Costco is one of the best companies in the U.S. to understand that while leveraging it edify its base.  Now if you are wondering why we say the consumer think Costco is golden, get a load of this!

Costco is selling gold! Costco sold more than $100 million worth of gold bars during its first quarter. Costco Wholesale Corp. wowed analysts during its quarterly earnings call with the announcement that it sold more than $100 million worth of gold bars during its first quarter, ending Nov. 26.

In case you did not know, they started selling 1-ounce gold PAMP Suisse Lady Fortuna Veriscan bars to its members back in September. The gold bars were listed at a price of $2,069.99 an ounce on Dec. 15 on the Costco website. As reported by CNBC, the bars have been so successful that they typically sell out within a few hours after they’re uploaded to Costco’s website. Customers are limited to two bars per membership.

CNBC reported back in September that selling the precious metal is an effective promotion for Costco, one that could appeal to a certain sector of Costco’s shopping clientele. Jonathan Rose, co-founder of Genesis Gold Group, noted that the warehouse club seems to have accelerated its offerings of dried foods and other survivalist goods at a time when worries about the future are running high. For example, the company markets a 150-serving emergency food preparedness kit. Gold meshes with that type of product.

“They’ve done their market research. I think it’s a very clever way to get their name in the news and have some great publicity,” said Rose. “There is definitely a crossover of people living off the land, being self-sufficient, believing in your own currency. That’s the appeal [of] gold as a safe haven as people lose faith in the U.S. dollar.”

Now then, gold bars weren’t the only “wow” items discussed during the Q1 earnings call. “We sold a Babe Ruth autographed index card for $20,000,” noted Galanti, adding that there's a Mickey Mantle autographed 1951 rookie card in nearly perfect condition for last-minute holiday shoppers – available online for $250,000.  Now let me ask, what are you bundling, selling, with discovery for your customers?

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us  With extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking he educate and elevate everyone while providing success clues for all.  www.FoodserviceSolutions.us or www.GrocerantGuru.com

Costco Fresh Food that is Flavorful Wins Customers

Costco has become a destination for consumer looking for Ready-2-Eat or Heat-N-Eat fresh prepared food according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Regular readers of this blog understand that within the fresh food sector the Price, Value, Service Equilibrium is evolving and Costco is one company that is driving change, while garnering incremental customers.

Most consumers think of Costco as a place to buy a rotisserie chicken that is more flavorful, fresher, and larger than other companies sell.  Most important is Costco’s rotisserie chicken is only $4.99.  According to Johnson move over chicken as consumers continue to migration to Costco’s Take-N-Bake or Ready-2-Eat fresh made and fresh baked pizza.

In fact according to its most recent Pizza Consumer Trend Report,  found that 43% of consumers eat pizza at least once a week.  The report found that Costco foodservice consumers surveyed, called the pizza “affordable,” “delicious,” “reasonably priced,” and “cheap,” along with being craveable and unique.

What is important to note is that both the rotisserie chicken and pizza have consumer definable differentiated flavor profiles that separates, elevates, and distinguishes them from many legacy competitors.

The report found that 49% of shoppers want more authentic pizza offerings, and 44% of shoppers choose pizza operators who use high-quality/fresh toppings and ingredients. Clearly Costco has differentiated authentic full-flavored fresh food according to Johnson. 

Business Insider recently reported that Costco “sells generous pizza slices for $1.99 and whole 18-inch pies for $9.95, is now the 14th largest pizza retail chain in the country”.  That’s right Costco is the 14^th largest pizza chain in the US.  It’s clear Costco is driving change within fresh food retail specifically the Price, Value, Service Equilibrium.

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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:  www.FoodserviceSolutions.us for more information.

Walmart’s Achilles Heel Grocerant niche Fresh Food Prepared Food

Time and time again the team at Tacoma, WA based Foodservice Solutions® while conducting Grocerant ScoreCards see examples of great Ready-2-Eat and Heat-N-Eat fresh prepared food and time and time again we report most of them here are this blog as regular readers know.

However when it comes to asking What’s for Dinner, regular readers also know that tour own Grocerant Guru® has never said you will find it at Walmart.  The reasons are clear. Walmart tries to make fresh prepared food a CPG product with a shelf-life closer to a can of Campbell’s Soup than too fresh prepared food. 

If Walmart’s new meal kit program rollout is anything like what it did with rotisserie chicken competitors need not worry that’s according to our Grocerant Guru®.  With ten different meals now available in 250 stores, and the program will expand to 2,000 locations by year's end, the program looks more like a category manager’s ideation rather than a customer focused fresh food program according to the team at Foodservice Solutions®.

According to Nielsen only 9% of Americans have tried Meal Kits during the past six months. So, Walmart as is introducing four $15 meal-kit options in stores and we believe that will drive trial.  However that trial will not be the solution to either customer relevance or incremental customer food sales or frequency.

Fresh prepared food with the longest shelf-life is not the solution, answer, or even the proper question when it comes to fresh prepared food.  Making fresh prepared food a CPG product is a step backwards and today’s consumers are moving forward. 

If success leave clues and it does Walmart’s progress with fresh food will have to continue.  There is no doubt that Walmart has a great team now working on fresh meal solutions for consumers and that they will drive incremental top line sales and bottom line profits as they move forward evolving with today’s consumer.

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.