Time for SNAP to Evolve: Let Low-Income Americans Eat Like It’s 2025, Not 1975

 

America’s largest food-assistance program, SNAP, feeds more than 41 million people each month,  a remarkable feat by any measure. It’s a lifeline for millions and a $100 billion federal investment in food security. Yet for all its success, SNAP remains stuck in a decades-old mindset: it assumes everyone has time, space, and tools to cook from scratch according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

That assumption was shaky 30 years ago. Today, it’s absurd.

 

The Cost of Cooking for One

Food policy experts love to claim that cooking from scratch is always cheaper. In theory, yes — if you’ve got a family of four, a working stove, and time. But for millions of SNAP recipients — especially single adults, seniors, or working parents juggling multiple jobs — cooking from scratch can be more expensive per meal, not less.

Think about it. A pound of chicken, a few fresh vegetables, rice, and seasonings might cost $12 to $15 in total. But for one person, that means multiple leftovers, wasted produce, and higher energy and time costs. The “cheap” home-cooked meal can easily exceed $7–8 per serving once waste and utilities are counted.

Meanwhile, a quick-service restaurant like McDonald’s or Subway can serve a balanced $6 combo meal that’s hot, portioned, and ready to eat — no shopping, no dishes, no spoilage.

The irony? Under current SNAP rules, that $6 meal is illegal to buy with benefits — but a cart full of frozen pizza, soda, and chips is fine.

 

Fast Food, Smart Policy

It’s time to evolve SNAP for the real world — and that means letting beneficiaries buy selected fast-food specials that meet health and price standards.

This isn’t about subsidizing burgers and fries. It’s about dignity, access, and efficiency. Let’s face it — the food industry has optimized affordability and convenience in ways the government can’t. If a low-income worker can grab a $5 healthy special on the way to a night shift instead of skipping dinner, that’s not wasteful — that’s practical.

The USDA already runs the Restaurant Meals Program (RMP) in a few states, allowing elderly, disabled, and homeless participants to buy hot meals at approved vendors. It works. Expanding that concept nationwide, with stricter nutritional standards and transparent pricing, would modernize SNAP without increasing fraud or cost.

 

Why This Would Save Money — Not Waste It

SNAP benefits currently average about $187 per person per month, or roughly $6 a day. That’s not much. But many recipients still end up wasting food or supplementing benefits with cash to cover real living costs.

Allowing select low-cost, ready-to-eat options could:

·       Reduce food waste (household waste is up to 20% of SNAP grocery purchases, per USDA data).

·       Cut utility costs — cooking and refrigeration aren’t free.

·       Increase meal consistency — fewer skipped meals means better long-term health outcomes.

·       Support local jobs — small chains and regional quick-service outlets could participate under transparent guidelines.

If done right, it could save taxpayers money over time by lowering food waste and related healthcare costs tied to food insecurity and malnutrition.

 

Four Other Out-of-the-Box SNAP Reforms

Let’s stop pretending SNAP can’t evolve. Here are four more ideas that would save consumers time, money — and federal dollars.

1. “Meal-Kit SNAP” Partnerships

Partner with meal-kit services like Everytable, Blue Apron, or local commissaries to deliver pre-prepped, single-portion kits to SNAP users in food deserts. With negotiated government rates, these kits could deliver healthy meals faster, fresher, and cheaper than scattered grocery runs.

2. Tiered Benefits by Household Type

A family of four with a full kitchen and a single parent living in a studio apartment shouldn’t have the same restrictions. Adjust benefits so individuals or seniors can use a portion for prepared meals, while larger families keep the raw-ingredient focus.

It’s common sense — equity doesn’t mean identical treatment.

3. Time-Value Credits for Working Households

Reward SNAP recipients who complete budgeting, cooking, or nutrition courses with bonus “Time Credits” they can spend on ready-to-eat items. The government gets better outcomes; recipients get flexible options that reflect their reality.

4. “SNAP Smart Packs” in Grocery Stores

Retailers could offer curated meal packs — think “3 days of dinners for one” — that meet nutritional and cost thresholds. Less decision fatigue, less waste, and lower overall spend per meal. It’s private-sector innovation solving a public problem.

 

Food Industry, Meet Policy Reform

The food industry already understands what SNAP bureaucrats don’t: time is currency. Americans — rich or poor — are buying meals, not ingredients. Grocery stores are transforming into hybrid “grocerants,” while convenience stores like Buc-ee’s and Casey’s are becoming fresh-meal destinations.

If SNAP doesn’t adapt, it risks becoming irrelevant to the very people it’s supposed to help.

And if policymakers are worried about nutrition, let’s be clear: fast-casual and quick-serve chains today can produce balanced meals under 600 calories that meet USDA guidelines. Just look at Panera’s “Pick 2,” Subway’s 6-inch Fresh Fit sandwiches, or Chick-fil-A’s grilled-chicken options. The technology, supply chain, and menu control exist. What’s missing is the political will.

 

The New Social Contract

We need to stop treating poverty as a moral failing expressed through food choice. If someone on SNAP buys a hot burrito instead of a sack of beans, that’s not evidence of irresponsibility — it’s a reflection of modern life.

The goal of SNAP isn’t to force cooking — it’s to prevent hunger.

By permitting limited, regulated fast-food and meal-kit options, SNAP could modernize its reach, support local economies, and give recipients back something too often denied: time. Time to work, care for family, or simply live.

 

Think About This

SNAP works — but it’s outdated. Allowing low-income Americans to buy approved fast-food specials or ready-made meal kits isn’t controversial, it’s logical modernization. The food industry has evolved. Consumers have evolved. It’s time for SNAP to evolve, too.

Because in 2025, no one should have to cook every meal from scratch to prove they deserve to eat.

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.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter

The SNAP shift toward nutrition Could be Problematic for Many Food Retailers

 

To understand the implications, we must first review what’s changing (or proposed) in SNAP policy and how that shifts in retail incentives. Steven Johnson the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes all food retailers need to be looking a customer ahead on this topic.

What’s changing in SNAP rules

·       The USDA has begun approving state waivers that allow states to exclude certain “unhealthy” foods—such as sugar-sweetened beverages, candy, and certain snack foods—from eligibility under SNAP.

·       For example, Indiana’s waiver (starting Jan 2026) will exclude soft drinks and candy. Iowa’s waiver excludes all “taxable food items” besides food-producing plants and seeds.

·       Arkansas will ban soda, low-/no-calorie soda, fruit and vegetable drinks with < 50% real juice, “other unhealthy drinks,” candy, effective 7/1/26.

·       Texas will ban candy and sweetened drinks (including artificially sweetened) from SNAP starting April 1, 2026.

·       In total, waivers have been approved in ~12 states so far.

·       The rationale: shift SNAP from simply “food access” toward alignment with nutrition goals, redirecting benefit dollars toward less-processed, more nutritious items.

·       Critics caution, however, that restriction-only approaches may not reliably improve diet quality and that incentive programs (subsidizing fruits/vegetables) may yield more consistent outcomes.

Thus, SNAP is undergoing a pivot: fewer “junk food” purchases, more emphasis on wholesome items like produce, whole grains, dairy, lean proteins.

That pivot has profound downstream implications for food retailers—especially those operating in low-income and underserved areas.

 

How these SNAP changes shift the playing field

Let’s think through the retail impacts, focusing on the contrast between Dollar General (and similar dollar/discount formats) and legacy grocery chains (Kroger, Albertsons, Safeway, Publix, regional chains, etc.).

Advantages and challenges for legacy grocers

Strengths:

1.       Scale and assortment breadth
Legacy grocers already carry wide assortments across produce, meat, deli, bakery, natural/organic, and fresh categories. They have infrastructure (cold chain, procurement, category management) to handle perishable and “better-for-you” SKUs efficiently.

2.       Supplier relationships and private label strength
Their scale gives negotiating leverage with brands and better placement in “better-for-you” lines and clean-label brands. They also can scale private-label “healthy” offerings with margin control.

3.       Store format depth and experience
Their stores are designed for full grocery trips, with back-of-store capacity, distribution centers, fresh departments, etc.

4.       Promotions, loyalty, and marketing muscle
They have loyalty programs, weekly sales flyers, data analytics, and the marketing muscle to push “healthy choice” campaigns.

5.       Ability to absorb mix shift
Because they carry a full base of products (including non-eligible snack lines, frozen, general groceries), they can smooth out transitions in demand. If SNAP restricts certain items, they can redirect to other product lines.

Challenges:

1.       Legacy cost structure
Their cost base (labor, real estate, complexity) is higher. Shifting to more fresh/filled assortments demands tighter waste control, spoilage mitigation, and operational agility—a challenge for many traditional grocers.

2.       Cannibalization risk
If SNAP disallows snack lines, a portion of sales volume drops. Grocers relying heavily on high-margin snack/beverage SKUs will need to pivot. Legacy chains may face margin pressure in transitioning.

3.       Declining traffic and share erosion
Many legacy grocers have already seen pressure from value discounters, dollar stores, online, and shifting consumer behaviors. Some are stretched financially and may lag in reinvestment in fresh or modernization.

4.       Complex supply chain flex
Responding quickly to new “better-for-you” trends requires supply chain agility—shifting shelf allocations, sourcing, merchandising. Some grocers with rigid procurement may struggle to pivot rapidly.

In summary: legacy grocers have the equipment, muscle, and experience for “better-for-you,” but must overcome structural inertia, cost, and agility constraints.

Strengths and weaknesses for Dollar General (and dollar/discount formats)

Strengths:

1.       Proximity and access in underserved markets
Dollar General has more than 19,000 stores nationwide, many in rural or food desert areas where legacy grocers are limited.
This gives DG a logistical advantage: consumers can shop closer, with lower travel/time costs.

2.       “Incremental” or shortcut trip positioning
A growing share of Dollar General visits are for quick in-and-out trips (less than 10 minutes) for staples like milk, eggs, bread. Many shoppers see DG as a convenient grab-and-go supplement to their main grocery run.
That aligns with SNAP’s new direction: shoppers may increasingly use their benefit funds for essentials (produce, staples) and shop these at the closest retailer.

3.       Low price / value perception
DG has built its brand as a value retailer. If SNAP directs more volume to essential “better-for-you” items, DG’s value pricing can appeal to budget-constrained SNAP households.

4.       Agility / lean model
Compared to legacy grocers, DG’s simpler store model, smaller footprint, and lower overhead may give it greater agility in experimenting with fresh or better-for-you assortments, especially if scaled gradually.

5.       Expansion of fresh / grocery formats
DG already offers “DG Market” and “Dollar General Market” formats with expanded produce, refrigerated and frozen foods.
Some DGs already carry fresh produce and perishable items in many stores.
The “Food First” strategy of DG signals its intent to become more of a grocery competitor.
DG’s ability to build a “healthy aisle” or more space for better-for-you SKUs could accelerate under the SNAP shift.

Weaknesses / hurdles:

1.       Limited fresh scale and experience
Many DG stores lack robust cold chain, produce replenishment, spoilage infrastructure, and the category management practices of grocers. Producing high-fill, high-turnover fresh assortments is operationally demanding.

2.       Smaller footprint, limited basket size
DG’s average store is small. They may not be able to support a full-blown fresh grocery layout everywhere. Their typical basket size is lower—less room for consumers to pick a variety of fresh or higher-end produce.

3.       Consumer perception / brand credibility
Some consumers may not view DG as a credible destination for high-quality produce, fresh meat, or premium healthy brands. Legacy grocers may still hold trust in fresh-perceived quality.

4.       Margin pressure / risk of shrink
Fresh and perishable categories tend to be riskier (spoilage, shrink, waste). DG will need to master inventory management, logistics, and vendor relationships to mitigate losses.

5.       Transition risk
Shifting too aggressively without mastering new categories risks stockouts, customer disappointment, lower trial, or turning consumers away.

 

Who is better positioned to win consumer SNAP dollars — DG or legacy grocery?

When SNAP benefits become more constrained toward healthier, less processed items, who will gain market share in consumer spend?

Likely short- to mid-term winners

·       Dollar General has a strong shot to win incremental SNAP dollars, especially in low-income, rural, or underserved markets. Because it’s already widespread in areas with weak grocery access, DG stands to benefit from smaller, more frequent trips driven by essential purchases.

·       In many cases, consumers may not want to travel farther to conventional supermarkets for their staple produce or dairy products. They’ll prefer the nearby DG whose fresh assortments are viable.

·       Legacy grocers, in contrast, will try to defend their share by leaning hard into their fresh and specialty departments, but may struggle to flex quickly enough or re-capture trips already lost to DG. They may retain advantage in full basket shopping, specialty/organic/ethnic selection, and loyalty relationships.

·       Over the medium term, market share might realign: DG may lock in more of the “staples + healthier basics” segment, while legacy grocers focus more on differentiation (local, premium, experience) and higher-ticket categories.

Key factors determining who wins

1.       Speed of adaptation
Whichever competitor more quickly and precisely aligns its assortment, supply chain, merchandising, and operations to the new SNAP-eligible “better-for-you” items will capture first-mover advantage.

2.       Consumer trust in freshness
If DG can overcome the quality perception hurdle (i.e., that its produce or perishable goods are good enough), it can win steady repeat business. If its fresh assortments disappoint, consumers will revert to legacy grocers.

3.       Marketing and education
Helping SNAP recipients understand which items remain eligible under new rules, promoting healthier combos, and communicating value will matter heavily.

4.       Inventory and waste control
Fresh / produce categories are high risk. Retailers need to manage shrink, spoilage, and logistics carefully to avoid financial drag.

5.       Margins and cross-sell
The healthier items may have lower margins or require more supply chain cost. Stores need to balance volume and margin, and cross-sell adjacent categories (e.g. wholesome snacks, cooking staples) to recapture margin.

6.       Footprint and last-mile proximity
DG’s penetration in many underserved markets is a structural advantage. For many consumers, the closest store is DG — heritage grocers may not physically serve those markets.

In many states adopting SNAP restrictions, DG is very well positioned to win increased SNAP share for essentials. But that doesn’t mean legacy grocers are doomed; they will fight with differentiation, customer loyalty, scale, and premium services.

 

How Dollar General may evolve under SNAP regulation pressures

To succeed in this new environment, DG will need to evolve — strategically, operationally, and culturally. Here’s how I would expect (or hope) DG transforms:

1.       “Healthy Core” rebalancing
DG will likely re-engineer its core grocery assortment, allocating more shelf space to fresh produce, whole grains, legumes, lean proteins, and better-for-you snacks. They might de-emphasize or eliminate lower-turn processed snack items that become ineligible under SNAP in many states.

2.       Upgraded formats / micro-grocery hybrids
More DG Market / Dollar General Market stores (or hybrid formats) with better refrigeration, backstock, and improved merchandising. Some stores might adopt micro-grocery formats with fresh aisles, grab-and-go, and even small prepared healthier meals.

3.       Localized assortments / modular flexibility
DG may adopt modular shelf plans where each store adjusts its “healthy mix” according to local demographics, demand, and SNAP eligibility enforcement. For example, in waiver states, snack-candy shelves decrease; in non-waiver states, they remain.

4.       Supply chain investment
Strengthening cold-chain infrastructure, distribution centers specialized for fresh, vendor partnerships for speedy replenishment, and logistics improvements (smaller, frequent deliveries) will be critical.

5.       Shrink / loss control systems
Implement better forecasting tools, waste tracking, inventory management, and dynamic markdowns to manage perishables.

6.       Consumer education & marketing
DG will likely promote “DG Healthy Picks,” shelf signage, in-app or in-store digital guides, SNAP-eligible lists, recipe bundles, and loyalty incentives targeted at healthier SKUs.

7.       Cross-channel integration
DG may integrate online, app-based shopping, click-and-collect, or micro-fulfillment to support fresh orders (especially for higher-dollar healthy items). Its distribution superiority in underserved areas gives advantage.

8.       Partnerships & local sourcing
To reduce logistics cost and improve freshness, DG may partner with regional farmers or co-ops. Promoting “local produce at DG” can improve credibility.

9.       Phased fade-out or reengineering of less-eligible SKUs
In states with strict SNAP bans on junk food, DG may gradually reduce those SKUs, redeploy shelf space to better-for-you goods, reducing friction in compliance and inventory complexity.

10.   Data-driven product performance feedback loops
Use real-time data to track which healthier SKUs are being bought by SNAP households, dropping weak performers and scaling winners.

If DG executes well, it could morph from a “discount generalist plus some food” to a lean, value-driven grocery hybrid with healthy slant—especially strong in markets underserved by traditional grocers.

 

Three Grocerant Guru® insights

Here are three strategic insights from the perspective of the Grocerant Guru®:

Dollar General’s ascendance is in fresh relevance, not just discounting
According to the Grocerant Guru®, DG’s growth in grocery isn’t just about price — it’s about becoming “relevant in fresh,” offering fresh produce and essential perishable goods in places where legacy grocers have withdrawn.
In other words: DG is not winning purely by undercutting price, but by filling a fresh access void. That is exactly the kind of gap SNAP’s nutrition push is creating. As legacy chains struggle with fresh in low-density markets, DG can move in.

1.       Legacy grocers are losing consumer relevance — DG aims to be the “daily pivot”
The Guru warns that many legacy chains are battling structural headwinds — aging stores, slower adoption of new formats, complexity, and cost burdens. In this environment, DG’s nimbleness and “fresh convenience” positioning threaten to erode the traditional grocery stronghold.
He suggests DG is looking to become the consumer’s daily pivot point — not replacing full grocery trips, but becoming the go-to small basket pick-up with relevant fresh items. Under stricter SNAP rules, that role becomes more strategically important.

2.       The Grocerant hybrid is winning — foodservice meets retail, and DG must embrace it
In various commentary, the Grocerant Guru® emphasizes that the future of food retail lies in hybrid grocerant models (a fusion of grocery + foodservice). Retailers who integrate prepared food, ready-to-eat healthy bowls, grab-and-go meals, cross-merchandising of perishables and complementary meal items, will lead.
For DG, that means moving beyond cold produce and packaged better-for-you SKUs into mini-prepared or partially prepared healthy meals — especially in underserved areas. As SNAP restricts junk purchases, consumers may lean more into buying a balanced meal component, not just snacks. DG would be wise to integrate grocerant elements into its evolving format.

These insights reinforce that DG’s future success hinges not merely on price or expansion, but on a strategic redefinition of fresh relevance and hybrid foodservice capabilities.

Elevate Your Brand with Expert Insights

For corporate presentations, regional chain strategies, educational forums, or keynote speaking, Steven Johnson, the Grocerant Guru®, delivers actionable insights that fuel success.

With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

💡 Visit GrocerantGuru.com or FoodserviceSolutions.US
📞 Call 1-253-759-7869