Applebee’s Winning Fast-Food Customers

 

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

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

The Price-Value Relationship

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

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

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

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

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Understand Who is Your Customer 

Comfort Dining Meets Affordable Indulgence

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

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

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

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

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

Value Wars Heating Up

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

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

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

Navigating Risks of Value Promotions

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

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

Think About this: Strength in Real Connections

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

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

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

Restaurants: Can You Pay the Rent?

 

The restaurant industry has long been a barometer for economic trends, with its performance reflecting shifts in consumer behavior, cost structures, and labor availability, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Today, the question looms larger than ever: Can restaurants pay the rent? The answer hinges on a quartet of challenges — food costs, labor costs, rent costs, and the ever-escalating expenses associated with takeout packaging.

The Rising Tide of Costs

Food Costs

Food costs are often a restaurant’s largest variable expense. In 2000, the average cost of food as a percentage of sales hovered around 28%. By 2023, this figure had climbed to over 35%, driven by global supply chain disruptions, extreme weather impacting crop yields, and increased demand for sustainable and premium ingredients. Restaurants must now navigate higher procurement costs while grappling with razor-thin margins.

Labor Costs

Labor costs have also surged. The average hourly wage for restaurant workers in 2000 was $6.75; by 2023, it had risen to $16.50, reflecting both inflation and efforts to provide livable wages. With fewer workers willing to endure the challenges of restaurant jobs post-pandemic, labor shortages have compounded the issue. Consequently, many establishments are operating with skeleton crews or relying heavily on automation to fill gaps.

Rent Costs

Rent has been a perennial concern. In the early 2000s, rent costs for restaurants typically accounted for 6-8% of gross revenue. Today, urban locations often face rent burdens exceeding 10%, especially in prime dining areas. With landlords raising rents to recoup losses from commercial vacancies during the pandemic, the situation is particularly dire for independent operators.

Paper Costs for Takeout

The takeout boom has exacerbated another major expense: paper and packaging. Sustainable packaging is now a necessity due to consumer demand and regulatory mandates. In 2023, packaging costs had risen nearly 40% since 2010, eating further into profits.

Hours of Operation: A Historical Perspective

Operating hours have steadily declined over the decades due to evolving consumer habits, labor constraints, and profitability pressures. Here's a snapshot of how the average hours per day have shifted:

·         2000: 14 hours/day — Restaurants maximized dining room usage to cater to early birds and night owls.

·         2005: 13.5 hours/day — Rising labor costs and suburban growth led to slight reductions.

·         2010: 13 hours/day — The Great Recession forced some operators to trim hours to save costs.

·         2015: 12.5 hours/day — The rise of third-party delivery began to shift focus away from dine-in service.

·         2020: 10.5 hours/day — COVID-19 lockdowns and staffing shortages drastically reduced operating hours.

·         2025 (Projected): Many operators wonder if they will have enough workers to expand back to pre-pandemic hours or if they’ll remain locked into lean schedules of 11-12 hours/day.

The New Footprint of Restaurants

In response to these mounting pressures, new restaurants are embracing smaller footprints designed for efficiency and profitability:

·         Built for Takeout: Kitchens are now optimized for takeout and delivery, with minimal or no dine-in seating. Some brands operate exclusively as ghost kitchens.

·         Technology Over Touchpoints: Customer service is increasingly automated, with mobile apps, QR codes, and kiosks replacing traditional servers. While this appeals to tech-savvy consumers, it risks alienating those who value personal interactions.

Think About This: The Future of Restaurants

The restaurant of the future must answer hard questions. Will food costs stabilize, or will climate change and geopolitical strife push them even higher? Can labor-saving technology fully compensate for a diminished workforce? Will rent concessions from landlords become the norm, or will high rents force more closures?

The industry is at a crossroads. Restaurants that adapt to these realities with agility and innovation — embracing new operational models while maintaining the essence of hospitality — may thrive. Those that cannot will struggle to survive in this new economic landscape.

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. 

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Foodservice Packaging Evolving for Survival

 

Throughout history, foodservice packaging has played a critical role in shaping consumer behavior and the success of the food industry. From humble beginnings, where simplicity and function were the primary concerns, to the current demand for sustainability, convenience, and branding, packaging has evolved in response to societal needs, technological advances, and environmental pressures.

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that ‘packaging’s evolution’ has often been driven by crisis or opportunity, and its survival has mirrored the survival of the food industry itself. Here, we explore three dramatic examples where packaging innovation not only adapted but became essential for a brand's survival and growth.

Example 1: The Birth of Fast-Food Packaging – McDonald’s Transformation

In the early 1960s, fast food was experiencing explosive growth, yet McDonald’s faced a logistical nightmare—how to serve consistent meals quickly while maintaining quality. The solution lay in packaging. Their revolutionary switch to disposable packaging systems, including paper bags, wax-coated cartons, and paper cups, allowed them to streamline operations and reduce costs. This packaging pivot was crucial for McDonald’s ability to scale, eliminating the need for washing and reusing dishes. Beyond operational efficiency, the packaging itself became a branding tool, reinforcing the iconic golden arches and “speedee” service promise.

This transformation of fast-food packaging not only saved time and reduced overhead but also aligned with post-WWII American values of convenience and disposability. It became the blueprint for the industry and spurred the rapid rise of fast -food giants. Today, McDonald's packaging innovations of the 1960s are credited with enabling the birth of a global industry that thrives on speed and consistency.

Example 2: The Frozen Meal Revolution – Swanson’s TV Dinners

In the 1950s, Swanson introduced the now-famous TV dinner, which fundamentally changed the way Americans consumed meals. The packaging innovation was as critical as the frozen food itself. Swanson utilized compartmentalized aluminum trays to keep meal components separate while maintaining their flavor and texture during freezing and reheating. This move capitalized on the growing popularity of television and a culture increasingly driven by convenience and novelty.

The packaging's success wasn't just about keeping the food intact—it was about changing consumer habits. It created a new category of meals meant to be eaten quickly and with minimal cleanup. The compartmentalized tray became a symbol of modern domesticity, providing families with quick, balanced meals that mirrored the structure of home-cooked dinners but without the time investment. Without this innovation, the frozen food sector may never have achieved its pivotal role in American households.

Example 3: Eco-Friendly Push – Starbucks’ Shift to Sustainability

In more recent years, Starbucks has faced a different kind of packaging challenge, one driven by environmental sustainability. In response to growing consumer concerns over plastic waste and the company’s carbon footprint, Starbucks made a dramatic shift by introducing compostable straws, reusable cups, and recyclable packaging materials. While these changes may seem incremental, they represent a sea change in how a global brand with thousands of stores operates on a daily basis.

The shift, though essential, wasn’t without hurdles. Starbucks had to balance consumer convenience with environmental responsibility, all while maintaining the brand’s premium image. The introduction of reusable cups required changes to supply chains, store operations, and consumer education. While still evolving, this packaging initiative reflects the larger industry trend toward sustainability, a response to both consumer demand and regulatory pressures around the world. For Starbucks, the shift wasn't just about survival—it was about future-proofing the brand in an era where eco-consciousness defines consumer loyalty.

Packaging as a Lifeline

From McDonald’s disposable fast-food containers to Swanson’s aluminum TV dinner trays and Starbucks’ eco-conscious cups, packaging has consistently been at the forefront of foodservice innovation. These examples demonstrate that packaging isn’t just a peripheral concern; it is fundamental to foodservice survival. As we move further into the 21st century, foodservice packaging will continue to evolve, driven by technology, sustainability, and changing consumer demands. The next wave of packaging innovation will likely come from a similar mix of crisis and opportunity, as the industry adapts to new challenges.

For brands seeking to stay relevant, packaging must be viewed not just as a necessity, but as a tool for growth, customer engagement, and long-term survival.

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

A Ten-Year Journey of Grab n’ Go Adoption and Its Packaging Evolution

 

Over the past decade, the food industry has experienced a seismic shift toward convenience, and the rapid rise of takeout and grab n’ go options has been nothing short of remarkable. The team at Tacoma, WA based Foodservice Solutions® has been analyzing the increasing demand for quick, quality meals has been driven by busier schedules, shrinking disposable incomes, and an undeniable consumer desire to simplify daily life without sacrificing taste since 1991.  From sushi and sandwiches to salads and snacks, grab n’ go has evolved from a fringe offering into a cornerstone of modern food retail.

Ten years ago, few could have predicted the rapid growth of grab n' go, but as early as 2014, we began to see a clear trajectory. Back then, only about 25% of consumers regularly opted for ready-to-eat meals. Fast forward to 2024, and a recent study shows that 80% of consumers now prefer businesses with grab n’ go options. This reflects a cultural shift where convenience reigns supreme, and those in the food industry must evolve or risk irrelevance. As we look at today’s landscape, it’s clear that grocers, restaurants, and convenience stores have all had to rethink their service models to meet consumer demand.

Packaging: The Silent Driver Behind Grab n’ Go Success

As the Grocerant Guru® always says, "You can’t grab n’ go without the right packaging." The growth of takeout in the last decade has been fueled by innovations in food packaging. It’s no longer just about containing food—it's about presenting it in ways that preserve taste, enhance appeal, and align with sustainability goals. From the early days of basic plastic clamshells to today's eco-friendly, recyclable, and compostable packaging, the evolution has been swift and essential to the adoption of grab n’ go.

Here are three essential considerations for foodservice operators who want to ride the wave of grab n' go success:

1. Menu Diversity Matters More Than Ever

Over the past ten years, consumer preferences for grab n' go have expanded far beyond sandwiches and salads. Today, consumers are just as likely to grab sushi, protein-packed bowls, and globally inspired wraps as they are a traditional sub. The key to maintaining relevance in this competitive space is offering variety. A recent study revealed that lunch remains the leading grab n' go meal at 52%, followed closely by breakfast at 50%, with snacks and dinner also holding significant shares.

Foodservice operators must consider how packaging plays a role in this diversity. For example:

·         Will the packaging keep the meal fresh during transport?

·         Does it highlight the food's visual appeal?

·         Can it maintain the integrity of hot or cold items?

These questions are more critical than ever as consumer expectations continue to evolve alongside their busy lifestyles.

2. Sustainability: The Consumer-Driven Imperative

In the past decade, sustainability has moved from a nice-to-have to a must-have. Today's consumers are hyper-aware of environmental concerns, and a 2024 study found that 46% of U.S. consumers consider eco-friendly packaging essential when making food purchases. Ten years ago, the industry relied heavily on single-use plastics, but today we see everything from recyclable paper packaging to fully compostable containers dominating the grab n' go scene.

As sustainability continues to influence purchasing decisions, foodservice operators must work closely with packaging partners who can provide solutions aligned with consumer expectations and local environmental regulations. Packaging providers like Sabert are leading the charge by offering eco-friendly products that balance convenience, functionality, and sustainability.

3. Taste and Convenience Go Hand in Hand

While convenience has driven the rise of grab n’ go, it’s taste that keeps consumers coming back. Ten years ago, there was an assumption that quick meals sacrificed flavor. That mindset is long gone. According to a 2023 industry report, 59% of consumers still prioritize taste when selecting grab n' go meals, proving that no matter how fast the food is, it must deliver on flavor.

For providers, the challenge lies in crafting grab n’ go meals that are not only convenient but also creatively presented and delicious. Packaging once again plays a pivotal role, ensuring that the food remains fresh, visually appealing, and easy to consume on the go. It’s not just about offering a quick fix—it’s about offering a satisfying, high-quality meal experience.

Looking Forward: The Future of Grab n’ Go

The past decade has shown us that consumer habits and preferences are evolving quickly, and the demand for grab n’ go is far from plateauing. Whether it’s driven by the need for quick breakfasts, nutritious lunches, or convenient dinners, the grab n' go market is here to stay. For foodservice operators, the challenge is clear: adopt innovative packaging, offer diverse menu options, and ensure your offerings align with the sustainability values of today’s consumer.

As we look ahead, the future of grab n’ go will be defined by its ability to seamlessly blend taste, convenience, and environmental responsibility. And for foodservice operators, those who are slow to innovate will be left behind in an ever-growing market driven by the consumer’s quest for ease and efficiency.

Grab n’ Go in 2024: Where Taste Meets Convenience

For any foodservice operator or grocer, the time to enhance grab n’ go programs is now. The packaging provider you choose today could shape your future success, ensuring that your products remain relevant in a fast-moving market where convenience, sustainability, and taste converge. After all, as the Grocerant Guru® would say, the future of food is about more than just eating—it’s about making life easier, one grab n’ go meal at a time

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

Convenience Stores and Grocery Delis: Solving the "What's for Dinner?" Dilemma Through Grocerant Niche Mix-and-Match Bundling

 

The age-old question, "What's for dinner?" has perplexed families for generations, often leading to indecision and reliance on fast food or takeout. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes if your food marketing tactics look more like yesterday than tomorrow, you need to move forward.    

However, convenience stores (C-stores) and grocery delis are uniquely positioned to offer a solution through the grocerant niche mix-and-match bundling strategy. By empowering consumer choice and personalization, these retailers can transform fresh prepared meal components into a customizable dinner experience that meets the diverse needs of modern families.

The Grocerant Niche Opportunity

The grocerant niche—a blend of grocery and restaurant—has long been a disruptor in the foodservice industry. It taps into consumer demand for convenient, fresh, and ready-to-eat meals while offering flexibility and variety that traditional dining options often lack. By leveraging mix-and-match bundling, convenience stores and grocery delis can further enhance their appeal, offering consumers the ability to customize their meals with fresh prepared components that suit their preferences, dietary needs, and family dynamics. Those meal components can today be found at restaurants, grocery stores, dollar stores, and convenience stores.

The Power of Personalization and Customization

Today's consumers crave personalization, especially when it comes to food. The ability to choose specific components of a meal—whether it’s proteins, sides, or sauces—allows for a tailored dining experience that resonates with individual tastes. Convenience stores and grocery delis are already equipped with the necessary infrastructure to support this demand, with a variety of grab-and-go fresh prepared meal options that can be easily bundled into a cohesive dinner offering.

By positioning themselves as a solution to the "What's for dinner?" dilemma, C-stores and grocery delis can not only increase their share of the dinner market but also build stronger customer loyalty through the convenience and quality of their offerings.

Freshly Sliced Deli Grab-and-Go: A Growing Segment

According to recent industry insights, the freshly sliced deli grab-and-go segment is experiencing significant growth, with retailers working alongside manufacturer partners to develop new merchandising options that highlight these products. This growth is driven by several factors, including labor challenges at service counters and evolving consumer preferences for bold, new flavors and convenient meal solutions.

Heather Prach, VP of education and industry relations at the International Dairy Deli Bakery Association (IDDBA), notes that spicy and "swicy" (sweet and spicy) flavors are on the rise, with sauces playing a pivotal role in meal customization. These flavor trends present an opportunity for C-stores and grocery delis to introduce limited-edition products that cater to adventurous palates while offering familiar favorites for those seeking comfort food.

Examples of C-Stores and Grocery Delis Leading the Way

C-Stores:

1.       Wawa: Known for its fresh, made-to-order hoagies, Wawa also offers a variety of grab-and-go meal options, including freshly prepared salads, sandwiches, and protein-packed bowls. Customers can mix and match components to create a meal that suits their taste, whether it’s a spicy chicken wrap paired with a fresh fruit cup or a savory meatball sub complemented by a side of mac and cheese.

2.       7-Eleven: The global juggernaut has expanded its fresh food offerings with an array of prepared meal components, from sushi rolls to chicken wings. With the introduction of its 7-Select Fusion Energy and Rehydrate drinks, 7-Eleven is also tapping into the beverage segment, allowing customers to bundle meals with refreshing drinks that suit their on-the-go lifestyle.

3.       Sheetz: Sheetz’s Made-to-Order (MTO) menu allows customers to personalize their meals with a wide selection of proteins, toppings, and sauces. Whether opting for a spicy Southwest chicken salad or a hearty steak quesadilla, customers can build a meal that satisfies their cravings while enjoying the convenience of grab-and-go options.

Grocery Delis:

1.       Publix: Publix's deli department is a prime example of how grocery stores can capitalize on the grab-and-go trend. With freshly sliced deli meats, cheeses, and an array of sides, customers can assemble a meal that fits their family’s needs. The introduction of new flavor profiles, such as hot honey ham and spiced pineapple turkey breast, adds excitement to the mix-and-match experience.

2.       Whole Foods Market: Whole Foods' deli offers a range of prepared foods, including global-inspired dishes and plant-based options. Customers can build their own meals by selecting from a variety of proteins, grains, and vegetables, allowing for a personalized dinner that aligns with their dietary preferences. The store's commitment to clean-label and all-natural products further enhances its appeal to health-conscious consumers.

3.       Kroger: Kroger’s deli section features a robust selection of grab-and-go meal kits, including charcuterie boards, rotisserie chickens, and pre-packaged sides. By offering customizable meal solutions, Kroger empowers customers to create a dinner that’s both convenient and tailored to their tastes.

Think About This

As labor challenges continue to affect service counters, the grab-and-go segment presents a growing opportunity for C-stores and grocery delis to capture a larger share of the dinner market. By embracing the grocerant niche strategy of mix-and-match bundling, these retailers can empower consumers with the choice, personalization, and convenience they seek. With bold flavors, innovative merchandising, and a focus on fresh prepared meal components, convenience stores and grocery delis are well-positioned to answer the question, "What's for dinner?"—and in doing so, secure their place at the heart of the modern family meal.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.