Fast Food Restaurants: The Race to Attract Customers Back

 

Today convenience stores, grocery delis, and virtual restaurants are eating into legacy restaurant market share according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.The fast-food industry, once the go-to for affordability, speed, and convenience, is facing formidable competition from unexpected corners.

Convenience stores (C-stores), grocery deli departments, and virtual restaurants are pulling customers away from traditional quick-service restaurants (QSRs), signaling a fundamental shift in how and where consumers choose to purchase meals. Today, fast food brands find themselves in a race to lure customers back, but the competitive field is steep.

The Convenience Store Takeover

Convenience stores have spent the last decade evolving into legitimate Ready-2-Eat (R2E) and Heat-N-Eat (H2E) destinations, with foodservice contributing nearly 23% of C-store sales revenue in the U.S. in 2023. Once known primarily for roller grill items and packaged snacks, chains like Casey’s, Wawa, Sheetz, and 7-Eleven are offering full meal solutions that satisfy consumer demands for speed, flavor, and value.

According to NACS (National Association of Convenience Stores), C-store prepared food sales grew 21% year-over-year in 2023, far outpacing QSR growth. Why?

·         Customer Touchpoints: C-stores provide immediacy. With customers already fueling up, buying tobacco, or grabbing drinks, adding dinner or lunch becomes a natural next step.

·         Expanded Offerings: C-stores sell fresh, portable food at prices often lower than fast food chains, like Wawa’s sandwiches and customizable hoagies or 7-Eleven’s heat-and-eat pizzas.

·         Modern Environments: Many stores have invested in upgraded interior designs, dining spaces, and kitchen technologies to rival QSR experiences.

C-store dominance taps into consumer need for "location convenience" — leveraging hyper-local options for quick meal solutions. Brands like McDonald’s and Burger King may still drive traffic at core meal times, but as gas stations upgrade their game, they pose a continuous, snacking-friendly challenge for QSR relevance.

Grocery Deli Departments—Affordable and Fresh

Once overlooked, grocery store delis are redefining their place in the meal solution hierarchy. Today’s consumers are constantly hunting for meals that strike a balance between value, convenience, and freshness. Enter deli departments from retailers like Publix, Kroger, Whole Foods, and H-E-B, which capitalize on the demand for grab-and-go foods with restaurant-quality offerings.

Food industry data reveals that retail foodservice—led by grocery deli operations—now accounts for $15 billion in sales annually. Shoppers looking for fast and affordable family-sized meal bundles find what they need here. For example:

·         Publix offers mix-and-match meal components like rotisserie chicken, salads, and sides that rival many fast-food combos.

·         H-E-B focuses on regional flavors, featuring items like fresh tacos and BBQ to differentiate their fresh-food aisle.

·         Kroger’s Simple Truth line taps into consumers’ desire for clean-label and healthier meal choices without requiring prep time.

Grocery delis also benefit from their perception as offering “fresh, healthier options” compared to fried, heavily processed fast-food meals. Today, 62% of consumers believe grocery stores provide a healthier, more value-driven meal alternative.

Virtual Restaurants: The Delivery Disruptors

Virtual restaurants, also known as ghost kitchens, present the most existential threat to the fast-food industry’s delivery game. These brands thrive on their ability to prioritize delivery-only operations, free of expensive real estate or front-of-house staff. Data indicates that the global ghost kitchen market could reach $71.4 billion by 2027. Companies like MrBeast Burger, Wow Bao, and C3 by SBE have seized this opportunity to serve fresh, delivery-ready meals at scale.

Why are virtual brands winning?

1.       Focus on Fresh Delivery: Consumers now expect fast, hot, and high-quality food delivered in 30 minutes or less. Apps like Uber Eats and DoorDash support frictionless transactions.

2.       Cost-Efficiency for Brands: Without dine-in spaces or legacy overhead costs, ghost kitchens can experiment with pricing and quality while remaining agile.

3.       Hyper-Specialization: Ghost kitchens hone in on trending foods—whether it’s Nashville hot chicken, premium burgers, or ramen—to gain relevance among specific consumer segments.

This agility challenges legacy QSRs, which struggle to pivot both pricing structures and menu specialization. Moreover, virtual kitchens play directly into the growing reliance on meal delivery platforms, a habit born during the pandemic and solidified as a dining convenience today.

The Fast-Food Conundrum

QSRs face a perfect storm: pricing hikes and value challenges on one end and diverse competitors satisfying customer cravings on the other. While fast food chains like McDonald’s, Taco Bell, and Wendy’s still drive huge sales, consumer loyalty is increasingly fluid. Customers opting for C-store, grocery deli, or virtual meals value three things above all:

1.       Time-Saving Convenience

2.       Competitive Pricing

3.       Fresh, Higher-Quality Options

Recommendations from the Grocerant Guru for Fast Food Success

1.       Expand Grab-and-Go Formats: Introducing modular, ready-to-eat meals in smaller formats—akin to grocery deli solutions—could reignite lost QSR momentum. McDonald’s modular Happy Meals for adults show early success.

2.       Menu Component Bundling: Follow C-store leads in offering customizable bundles (e.g., rotisserie chicken equivalents) and experiment with flavors to cater to regional demand.

3.       Delivery Innovation: Invest in ghost kitchen offshoots or dedicated delivery-focused options. Fast food brands must optimize operations to retain a competitive edge on delivery freshness and speed.

The Race Isn’t Over

The evolution of fast food’s competitors—C-stores, grocery delis, and virtual restaurants—highlights a key lesson: convenience, quality, and affordability can no longer exist in silos. Consumers have moved beyond old dining paradigms, demanding foodservice providers adapt to their terms. Fast food operators still hold a global advantage with familiarity and reach, but without embracing mix-and-match modularity, bold flavor offerings, and faster, fresher delivery solutions, they risk permanently falling behind.

In the end, this is not about eliminating competition—it is about keeping customer convenience top of mind every step of the way.

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 McDonald’s Mobile App Continues to Set the Restaurant Industry Standard

 

Success does leave clues, and in the minds-eye of the team at Tacoma, WA-based Foodservice Solutions® and its Grocerant Guru® Steven Johnson, “McDonald’s digital app is not just the industry standard today—it’s a benchmark getting better every day.”

Jim Collins’ legendary book Good to Great laid out what separates top-performing businesses, and nowhere is that clarity more evident than McDonald’s accelerated leadership in digital transformation and mobile convenience. The “Accelerating the Arches” strategy continues to propel McDonald’s above competitors in mobile ordering, global scalability, customer engagement, and digital innovation.

Unmatched Consumer Adoption and Digital Dominance McDonald's mobile app has shown significant digital dominance:

·         As of 2024, it boasts 150 million active app users worldwide, making it the most downloaded food app globally.

·         Over 40% of orders in major markets are now placed digitally, reflecting consumer preferences for convenience.

·         The McDonald’s Rewards loyalty program, introduced in 2021, has surged to over 150 million 90-day active users, with projections to reach 250 million by 2027, generating $45 billion annually in loyalty-driven sales.

Global Growth: Delivery, AI, and Best-in-Class Service McDonald’s continues to expand its reach and innovation:

·         By 2027, 30% of delivery orders are expected to come from its mobile app.

·         The "Ready On Arrival" initiative ensures faster fulfillment of app orders, enhancing customer and staff efficiency.

·         A strategic partnership with Google Cloud aims to drive restaurant automation using generative AI solutions to improve order accuracy, crew training, and personalization.

Growth Through Marketing and Menu Strength McDonald's combines technology with strong branding and menu offerings:

·         Emotional marketing campaigns, such as "Raise Your Arches," have built universal appeal across 35+ countries.

·         The "Best Burger" initiative will ensure consistent product quality across all markets by 2026.

·         The global expansion of chicken menu items, like the McCrispy, is planned by 2025.

Results that Matter The "Accelerating the Arches" strategy, implemented in 2019, has driven:

·         30% growth in comparable sales, indicating the success of digital and strategic innovations in driving top-line growth, operational efficiency, and customer satisfaction.

Food Marketing, Technology, Media, and Restaurant Sales Numbers

McDonald's success is supported by its strong food marketing, technological advancements, media presence, and impressive sales figures:

·         Food Marketing: Focuses on emotional connections and relevant menu offerings.

·         Technology: Continuous digital transformation and AI integration enhance customer experience and operational efficiency.

·         Media: Effective campaigns build global brand appeal and customer loyalty.

·         Restaurant Sales: Significant growth in digital and loyalty-driven sales underscores the impact of strategic innovation.

If you're inspired to enhance your food retail approach, reach out to Foodservice Solutions' Steven Johnson at Steve@FoodserviceSolutions.usfor insights on leveraging modern marketing strategies and technology for your business.

Feel free to ask if you'd like more details or assistance with any other topic!

Are Your Customers Happy? Price and Branding Insights for Success

 

Consider this, digital guests are less satisfied than dine-in guests. In today's competitive foodservice landscape, ensuring happy customers is more critical than ever for success. New data underscores a critical disparity—customers who dine in are often happier than those who experience a restaurant digitally through delivery, mobile apps, or takeout. According to updated insights shared by Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, there's significant room for improvement when it comes to the digital experience.

Johnson reflects on recent findings from Merchant Centric's Happy Customer Index, a robust tool that analyzes millions of online reviews across platforms like Google, Yelp, and TripAdvisor. The data highlights where customer satisfaction lags—and where forward-thinking brands can take action.

 

The Happy Customer Index: Digital Gaps Exposed

Merchant Centric’s study examined over 1.25 million reviews from September 2022 to August 2023, evaluating critical satisfaction metrics such as food quality, order accuracy, and digital ease of use. The key findings?

·         Delivery Services improved notably in satisfaction but still trail dine-in ratings.

·         Mobile App Reviews remain the lowest rated among digital channels.

·         To-Go Orders perform best in comparison but lag behind traditional dine-in service.

Consider these standout insights:

·         The average rating for reviews mentioning "mobile apps" is 2.33 stars out of 5, indicating frustration with glitches, usability issues, and order accuracy.

·         Delivery service mentions average 3.02 stars, a slight improvement year over year, largely attributed to better operational strategies such as digital makelines and location-based tech.

·         To-go orders fare best at 3.40 stars but still fall short of the industry dine-in average of 4.11 stars.

"Guests tell us that the digital experience is not nearly as good as dining in,” said Adam Leff, Co-Founder of Merchant Centric. “However, delivery experiences are improving faster than to-go, thanks to heightened operator attention."

 

Mobile App Challenges: Customer Frustration on the Rise

Many foodservice brands have doubled down on mobile apps to build loyalty, offer exclusive promotions, and personalize messaging. However, when apps underperform, customer frustration skyrockets.

Taco Bell, for example, dominates Reddit conversations among QSR brands (32% of mentions among the top 10) but for all the wrong reasons—consumers consistently voice dissatisfaction with order inaccuracies, app glitches, and overall poor usability.

Even as ratings for mobile apps rose by a modest 10 basis points, the gap remains stark. Brands must recognize that a poor digital experience is no longer an option as digitally-dependent customers expect ease, speed, and accuracy.

 

Price: The New Consumer Hot Button

While digital satisfaction is one concern, price sensitivity has become a decisive hot button for today’s customers. Inflation-driven price hikes across restaurants, grocery stores, and c-stores are pushing consumers to rethink where and how they purchase food. Recent data reveals:

·         70% of consumers believe restaurant prices have outpaced the quality and experience offered (Foodservice Solutions®, 2024).

·         Grocery retailers are increasingly capitalizing on this dissatisfaction—Ready-2-Eat and Heat-N-Eat fresh food offerings have seen double-digit growth year-over-year.

At every price point, value is the key—whether a convenient meal, bundle deal, or exclusive savings through digital loyalty programs. For restaurants, the question is: Are you communicating value while ensuring customers feel happy and satisfied?

 

Branding for Happy Customers = Success

A brand’s ability to deliver Happy Customers is the linchpin of long-term success. Whether dine-in or digital, customers expect consistency, value, and relevance at every touchpoint.

The team at Foodservice Solutions® recommends focusing on:

1.       Elevated Customer Service: Ensure satisfaction through accurate, seamless experiences that eliminate friction in the ordering process.

2.       Transparent Pricing & Value Deals: Bundle deals that offer mix-and-match components empower choice while reinforcing affordability and convenience.

3.       Digital Refinement: Optimize app performance, improve delivery systems, and test to-go packaging solutions to guarantee satisfaction.

Consumer "happiness" drives brand loyalty and profitability. If your digital channels, price points, and in-store touchpoints aren't aligned with customer expectations, it’s time for a strategic refresh.

 

Is your brand still following outdated methods? Want to learn how Foodservice Solutions® Five P’s of Food Marketing can amplify meal differentiation and create a customer-friendly retail experience? Contact us now: Steve@FoodserviceSolutions.us.

Final Thought

As pricing remains top of mind and digital experiences evolve, there’s no substitute for happy customers. Brands that can close the gap between price, value, and convenience will lead the future of foodservice. Are your customers happy?

Follow the Grocerant Guru® for the latest on food industry trends. #Restaurants #Grocery #GrocerantGuru #FoodService #ConvenienceStores

Full article archive at: Grocerant.blogspot.com

The Rise of Fish Balls: A Versatile Snack with a Better-for-You Halo

 

Once considered a humble delicacy, fish balls are emerging as a global food trend, making their way from street vendors and traditional kitchens into grocery stores, quick-serve restaurants, and trendy takeout menus, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Fish balls are no longer just a regional comfort food; instead, they are riding the wave of the "better-for-you" protein movement as consumers increasingly seek healthier, more sustainable alternatives for meals and snacks.

A Snack and Meal on the Rise

Fish balls, typically made by blending minced white fish with starch and seasoning, have a light, savory flavor and springy texture that makes them an irresistible component of Asian cuisine. Historically, fish balls are popular throughout Southeast Asia, especially in countries such as China, Hong Kong, Thailand, and the Philippines, where they are enjoyed in soups, noodle dishes, or as skewered street snacks.

Today, this culinary staple has migrated across oceans, finding homes in diverse markets globally. Fish balls are popping up in international grocery aisles, featured prominently in frozen sections as a convenient Ready-2-Eat solution. Chains in North America, Europe, and Australia now offer pre-packaged fish balls that can be boiled, grilled, or deep-fried at home. Specialty grocers like H Mart and 99 Ranch Market report a significant uptick in sales of these protein-packed bites as curious food enthusiasts and time-strapped consumers experiment with global flavors in their kitchens.

From Grocery to Restaurants and Takeout

The demand for fish balls has quickly extended beyond grocery stores. Innovative restaurants are now including them on their menus, adding both authentic and creative takes to their offerings. They appear in soups, stir-fry dishes, and even sushi-style platters. Modern interpretations include fish balls marinated in chili oil, served with fragrant curry sauce, or stuffed into bao buns, creating a cross-cultural eating experience.

Notably, fast-casual restaurants and takeout-focused foodservice concepts have helped elevate fish balls as a snackable option. Brands tapping into on-the-go dining habits offer skewered fish balls, packaged like kebabs, often paired with trendy dipping sauces like sweet sriracha, garlic aioli, or tamarind glaze. Snack boxes featuring fish balls with vegetable sides have also emerged, aligning perfectly with consumers who want quick, nutritious meals without compromising on flavor.

Even convenience stores have jumped on board. Retailers like 7-Eleven in Asia sell warm, broth-soaked fish balls as part of their foodservice menus—an affordable, grab-and-go solution for busy customers. Now, this success model is extending to North American and European c-stores, where introducing low-calorie protein snacks addresses a growing interest in healthier eating.

Better-for-You Halo Attracts Consumers

A major contributor to the fish ball’s growing popularity is the "better-for-you" halo surrounding fish as a protein choice. Fish is widely recognized as a lean, nutrient-dense protein packed with omega-3 fatty acids and essential vitamins. As health-conscious consumers migrate away from traditional snack foods that are high in carbohydrates and saturated fats, they increasingly view options like fish balls as healthier, more satisfying alternatives.

Global culinary trends, coupled with the rising popularity of pescatarian and flexitarian diets, are propelling this protein-forward snack into the mainstream. According to research from the National Fisheries Institute, seafood consumption has risen steadily over the past five years, as consumers recognize fish not only for its health benefits but also for its versatility. Fish balls represent an approachable way for people to include seafood in their diets without the complexities of preparation.

The Future of Fish Balls

As the Ready-2-Eat and Heat-N-Eat trends dominate foodservice, the fish ball’s convenience, taste, and nutritional appeal position it for further expansion. Grocers will likely see growing demand for fresh and frozen fish ball products, particularly among millennial and Gen Z consumers eager to recreate street-food experiences at home. Restaurants and takeout services have already realized fish balls' profit-driving potential, crafting unique dishes that reflect regional and international flavor trends.

For c-stores, snack-sized fish ball packs could redefine the protein snack category, catering to health-conscious commuters looking for something beyond the standard chips and candy offerings. Skewers and snack boxes featuring fish balls can fulfill both meal and snacking occasions, offering a clean protein fix at affordable price points.

In a food landscape where convenience and health increasingly converge, the humble fish ball has undergone a transformation. Once relegated to soups and street carts, it now finds itself at the intersection of global flavor exploration and healthful eating trends—a winning combination that resonates with modern consumers.

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

Happy Holiday Meals: Last-Minute Meal Planners Embrace Grocerant Niche Mix & Match Bundling for Customization and Convenience

 

The holiday season continues to witness an evolving cultural shift as family traditions adjust to accommodate modern priorities. Steven Johnson, Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, states, "More families are placing value on experiences over hours spent cooking, cleaning, and doing dishes." Whether it's skiing, shopping, binge-watching the latest holiday shows, or simply spending quality time together, cooking from scratch is no longer the centerpiece of holiday gatherings.

Cooking from scratch has become a distant memory for most Americans. According to the latest Grocerant ScoreCard, an impressive 83.8% of all home-prepared holiday meals now include at least one Ready-2-Eat or Heat-N-Eat fresh-prepared item from the grocerant niche. This surge underscores the demand for convenient meal solutions, particularly among last-minute planners who prioritize speed, simplicity, and customization.

The Rise of Mix & Match Holiday Customization

Today's consumers are gravitating toward Mix & Match meal bundling as the ideal solution to their busy holiday schedules. By allowing families to combine multiple fresh-prepared meal components, grocerant niche providers like grocery stores, restaurants, and meal delivery services empower customers to create personalized holiday spreads. Notably, custom bundling satisfies the following:

1.       Time-Conscious Shoppers – Last-minute planners appreciate the flexibility of selecting individual meal items and sides without the stress of cooking entire feasts from scratch.

2.       Diverse Tastes – Mix & Match options allow families to cater to multiple dietary preferences and cravings while ensuring everyone gets their favorite dish.

3.       Stress-Free Convenience – Meal bundling delivers fresh, high-quality components that streamline meal preparation, providing a holiday table that looks homemade without the effort.

The National Restaurant Association reinforces this trend. Recent findings indicate that 11% of Americans opt to eat holiday meals in restaurants, while 8% now purchase complete holiday meals prepared locally. However, even more revealing is the hybrid approach: the majority of holiday tables now showcase a blend of homemade and grocerant niche items. This further emphasizes the growing reliance on Ready-2-Eat and Heat-N-Eat options as the backbone of holiday meals.

Where Holiday Consumers Are Going for Meals

As holiday dining habits continue to evolve, restaurant and grocery segments alike are well-positioned to meet these changing demands. According to updated NRA findings:

·         34% of consumers dining out choose a local restaurant for their holiday meal.

·         31% prefer a familiar restaurant known for special occasions.

·         20% use the opportunity to try a new restaurant for the first time.

These trends highlight the importance of strategic offerings that include fresh-prepared components and value-driven options for both dine-in and takeout consumers. Bundling meals with mix-and-match solutions resonates deeply with last-minute planners who seek quality, convenience, and customization on a tight schedule.

Key to Happy Holiday Meals: Ready-2-Eat Fresh Prepared Bundling

Whether your family is hitting the slopes, browsing shopping malls, or gathering to enjoy sports and entertainment, holiday meals no longer have to involve hours in the kitchen. Fresh-prepared holiday components are helping families reclaim time without sacrificing taste or tradition. Grocerant niche mix-and-match options have effectively become the solution of choice for families balancing busy holiday priorities.

Success Leaves Clues

Foodservice Solutions® is the global leader in Grocerant Niche business development. Are you ready to tap into this lucrative holiday opportunity with a customized Grocerant ScoreCard, Grocerant Program Assessment, or fresh ideation for Ready-2-Eat meal solutions? Success does leave clues!

Contact Foodservice Solutions® Today

·         Phone: 253-759-7869

·         Email: Steve@FoodserviceSolutions.us

Happy holidays to all, whether you're cooking from scratch, enjoying fresh-prepared meals, or gathering around a 65-inch HDTV with family and friends!