Looking Once Again at the Intersection of Mobile Marketing, Virtual Retail, and Foodservice Brick-and-Mortar Retailers

 

In today’s dynamic food landscape, technology is reshaping the pathways of fresh food distribution. Mobile marketing and virtual retailing are challenging the traditional dominance of brick-and-mortar foodservice retailers as consumer expectations evolve around convenience, accessibility, and personalization according to Steven Johnson Grocerant Guru® Tacoma, WA based Foodservice Solutions®. This shift is most evident in where and how restaurant meals are purchased and consumed. Let’s explore these trends through the lens of historical foodservice practices, backed by data, to understand the winners and missteps within this evolving market.

Where Consumers Buy and Consume Restaurant Meals

Historically, dining out revolved around seated meals at traditional restaurants, with few options beyond carryout. In the late 20th century, the fast-food industry pioneered takeout and drive-thru services, accounting for nearly 70% of their total sales by the 1990s. Today, this trend has diversified exponentially. According to a 2024 foodservice study:

·         50% of restaurant meals are consumed at home thanks to the rapid adoption of food delivery services and mobile order-ahead apps.

·         23% are eaten in-store, indicating a shrinking but stable segment of dine-in customers.

·         27% are consumed in vehicles, reflecting the convenience of drive-thru, curbside pickup, and the rise of the “grab-and-go” culture.

This spatial consumption fragmentation highlights the growing demand for flexibility, accelerated by innovations in digital ordering and meal logistics.

The Rise of Convenience Stores in Meal Market Share

Convenience stores (c-stores) have emerged as formidable competitors in the meal market, driven by their ability to innovate with fresh food offerings and mix-and-match meal bundling. Historically relegated to snacks, coffee, and impulse purchases, c-stores began to transform in the early 2000s, aiming to capture share from fast-food and casual dining sectors. Today, their success is undeniable:

·         Breakfast: With made-to-order breakfast sandwiches, grab-and-go burritos, and premium coffee, c-stores now account for nearly 20% of all morning meal occasions.

·         Lunch: Modular lunch combinations like fresh sandwiches, soups, and salads have helped them capture 12% of the midday meal market.

·         Dinner: Ready-2-Eat and Heat-N-Eat items have propelled them to secure 8% of dinner occasions, appealing to time-starved consumers.

·         Snacks: C-stores hold a dominant 30% share in snack sales, benefiting from smaller packaging and impulse-friendly positioning.

These numbers underscore how c-stores’ emphasis on convenience, flexible bundling, and high-quality meal components resonates with today’s consumers.

Grocery Service Deli Missteps in the Grocerant Niche

While convenience stores thrive, the service deli departments within traditional grocery stores have consistently struggled to establish a meaningful presence in the grocerant niche, which caters to Ready-2-Eat and Heat-N-Eat fresh meals. Missteps include:

1.       Failure to Meet Real-Time Consumer Needs: Unlike c-stores’ agile product rotations, service delis often rely on preset menus and slower innovation cycles, making their offerings feel static.

2.       Packaging Problems: Poor packaging for freshness, reheat-ability, and portability undermines the consumer experience compared to the advanced formats offered by competitors.

3.       Underwhelming Value Propositions: Price points in service delis often align more with full-service restaurant meals than fast-casual or c-stores, lacking the perceived value needed for repeat purchases.

4.       Misaligned Marketing: Unlike c-stores that capitalize on digital tools for hyper-local promotions and meal customization, service delis rarely engage customers through robust mobile or loyalty platforms, further eroding market share.

Technological Drivers Reshaping Fresh Food Distribution

Technology sits at the heart of this evolution. Mobile marketing has enabled restaurants and virtual retailers to build personalized relationships with customers. For example:

·         Food Delivery Apps: Apps like DoorDash and Uber Eats now control 25% of the off-premise restaurant meal market, transforming consumer expectations for meal accessibility.

·         Virtual Brands: “Ghost kitchens” leverage existing kitchen space to produce multi-concept offerings, creating entirely digital-first dining options.

In parallel, c-stores lead in frictionless payment technologies and targeted digital promotions. From pre-order kiosks to exclusive app-based meal deals, their investment in mobile marketing keeps them competitive against fast-food rivals.

A Vision of the Future

As technology accelerates, the lines between mobile marketing, virtual retail, and brick-and-mortar foodservice will continue to blur. Retailers and restaurants seeking success must prioritize these strategies:

1.       Consumer-First Approaches: The ability to deliver high-quality, convenient, and value-oriented meals remains paramount.

2.       Data-Driven Customization: Personalizing meal experiences via mobile apps and leveraging analytics to anticipate consumer needs.

3.       Agility in Distribution: Restaurants and retailers alike must adapt to new points of meal consumption, ensuring they align with consumer habits.

C-stores’ current dominance in mix-and-match meal bundling and snacking illustrates how a laser focus on convenience and consumer touchpoints can reap significant rewards, while the grocery service deli’s struggles demonstrate the cost of misunderstanding consumer expectations in an age of disruption. The grocerant niche’s ongoing evolution offers valuable lessons for the future of fresh food distribution.

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

Consumers Want Value Meals Ready-2-Eat or Heat-N-Eat

 

For decades, grocerants food retailers blending grocery and restaurant conveniences—have redefined the way people eat, driven by evolving consumer needs according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Ready-2-Eat (RTE) and Heat-N-Eat (HNE) options have become core components of this revolution, offering consumers a way to enjoy quick, high-quality meals at home without compromising on flavor or variety. Significantly, restaurants and convenience stores have played a vital role in the widespread adoption of the grocerant niche, offering mix-and-match RTE and HNE meal options that expand choices and streamline dining.

In 2025, as food costs rise, a Harris Poll conducted for Flashfood reveals the pressing priorities of U.S. consumers: 83% prioritize saving money, and 81% aim to reduce food costs. While 89% believe cooking at home is cost-effective and healthier, time constraints and a lack of cooking skills push many toward the convenience of prepared foods from grocerants, restaurants, and convenience stores.

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A Historical View: Grocerant Evolution

The grocerant concept emerged in the 1990s when traditional grocery stores began offering prepared foods alongside standard aisles of ingredients. This evolution accelerated as restaurants and convenience stores entered the scene, using RTE and HNE meals to attract busy consumers. By providing mix-and-match meal components—like roasted chicken from grocery stores, sides from convenience stores, and sauces from restaurants—these sectors collectively elevated the appeal of grocerants.

Restaurants and C-Stores Fueling the Trend

Restaurants and convenience stores have been instrumental in shaping the grocerant experience, offering meal solutions that cater to consumer demands for both affordability and flexibility:

·         Restaurants: Quick-service and fast-casual restaurants have expanded into meal kits, heat-and-eat entrees, and prepared sides available in retail stores. Brands like Chick-fil-A and Panera Bread now offer signature menu items as ready-to-prepare meal kits, merging their dining expertise with at-home convenience.

·         Convenience Stores (C-Stores): Chains like 7-Eleven and Wawa have become leaders in mix-and-match meal components, with options such as pre-packaged salads, freshly made sandwiches, and microwavable sides, making it easy for consumers to assemble meals tailored to their tastes.

RTE/HNE vs. Cooking from Scratch

While cooking meals from scratch saves money, it often comes at the cost of time and effort. Preparing a meal can take 45 minutes to 1.5 hours, with added cleanup time, making RTE and HNE solutions the preferred choice for many. These options bridge the gap between convenience and quality, allowing consumers to enjoy home dining without the workload.

For instance:

·         A family dinner combining a rotisserie chicken from the grocery store, mashed potatoes from a convenience store, and a salad kit purchased at a restaurant makes meal preparation effortless.

·         Restaurant-branded HNE meal components allow consumers to recreate their favorite dishes without culinary expertise, expanding their repertoire without frustration.

Global Flavors at Home

As consumer tastes expand globally, grocerants, restaurants, and c-stores have become the gateways to international flavors without requiring extensive cooking knowledge. Heat-N-Eat dishes like Indian tikka masala, Mexican enchiladas, and Korean barbecue ribs offer diners authentic experiences in minutes.

Examples include:

·         Aldi: Bringing global discovery to consumers with affordable Ready-2-Eat meal kits featuring diverse cuisines.

·         7-Eleven: Offering international-inspired snack packs and microwavable meals tailored for busy individuals.

·         Wendy’s Grocery Partnerships: Expanding brand loyalty by introducing signature chili and dipping sauces into retail channels.

Value, Accessibility, and Sustainability

Mobile platforms like Flashfood further amplify the appeal of grocerants. By partnering with over 2,300 stores across North America, Flashfood offers discounts on fresh produce and Ready-2-Eat items, creating affordable options while reducing food waste. As the USDA projects food prices will increase by 1.9% in 2025, grocerants leveraging such technologies are well-positioned to capture consumer loyalty.

Why Grocerants Thrive

The integration of restaurants, convenience stores, and grocerants has cemented RTE and HNE meals as staples in modern dining. To maintain their trajectory, grocerants must continue to:

1.       Expand Mix-and-Match Options: Enable consumers to combine elements from various brands and categories to create customized meals.

2.       Embrace Value-Driven Offerings: Highlight cost savings compared to dining out while maintaining high-quality standards.

3.       Champion International Cuisine: Introduce more global flavors to broaden customer horizons.

4.       Partner Across Channels: Collaborate with restaurants and c-stores to co-brand meal kits, leveraging mutual consumer trust.

5.       Optimize Tech Integration: Use platforms like Flashfood to increase accessibility, foster sustainability, and drive traffic.

Think About This

In the battle to balance affordability, flavor, and time, the collaboration of grocerants, restaurants, and convenience stores has solidified RTE and HNE meals as transformative dining solutions. By offering mix-and-match meal components, these sectors provide consumers with flexibility and convenience while redefining what it means to "cook at home." As economic pressures continue to shape food choices, grocerants will remain central to the evolving dining landscape.

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

Wings and Rings Branded Partnerships Drive Sales

 

From a historical grocerant perspective, branded partnerships have long been a cornerstone for driving consumer interest and boosting sales in the foodservice industry. By combining iconic flavors, recognizable brands, and promotional synergies, successful partnerships have created memorable dining experiences that resonate with customers and spur repeat visits according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Wings and Rings’ latest collaboration with Sam Adams during football playoff season demonstrates they’re following a winning playbook, seamlessly blending innovation with nostalgia to engage their audience.

The Power of Food Marketing Partnerships

Historically, the grocerant sector has leveraged branded promotions to remarkable effect. Consider McDonald’s collaboration with Coca-Cola and collectible glassware in the 1970s and 1980s. These promotions drove both sales and customer loyalty, turning casual patrons into frequent visitors who eagerly sought exclusive items. Similarly, partnerships featuring items like Taco Bell’s Doritos Locos Tacos underscore the staying power of innovative, co-branded products that align with consumer tastes and cultural moments.

Wings and Rings’ partnership with Sam Adams exemplifies the enduring appeal of this strategy. By introducing house-made Sam Adams Beer Cheese as a centerpiece of their limited-time offerings (LTOs), they’ve tapped into the rich heritage of an iconic beer brand while delivering bold, comforting flavors ideal for the winter season.

Why Wings and Rings is Doing it Right This Season

As football fans gather for playoff season, Wings and Rings has executed a game-winning strategy to align its promotions with fan-favorite rituals. According to the Grocerant Guru, their approach hits all the right notes:

1.       Timing and Relevance: Launching their weekday half-price appetizer promotion on January 13 ensures they’re engaging customers during the early playoff rounds, a time when sports enthusiasm is high and consumers are seeking value-packed dining options.

2.       Menu Innovation with Comfort Appeal: The Sam’s Loaded Fry, Beer Cheese Chicken Sandwich, and Beer Cheese Jumbo Tenders deliver rich, indulgent flavors perfectly suited for cold-weather cravings. These dishes demonstrate culinary creativity while remaining accessible, a hallmark of successful grocerant partnerships.

3.       Dine-In Exclusivity: By offering the half-price appetizer deal exclusively for dine-in customers, Wings and Rings strengthens their positioning as a social hub, where friends and families can gather to share great food and exciting moments during the playoffs.

Lessons from the Past

Looking back, similar strategies have proven effective for other brands during key cultural moments. Buffalo Wild Wings leveraged football season by offering wing deals tied to game outcomes, creating a shared experience among fans. Meanwhile, brands like Olive Garden’s Never-Ending Pasta Bowl and Red Lobster’s Endless Shrimp capitalized on the “more for less” appeal, becoming seasonal staples that reinforced their brand identity.

Wings and Rings’ focus on beer cheese aligns with this legacy of tapping into beloved comfort foods while showcasing exclusivity. The in-house preparation of Sam Adams Beer Cheese highlights quality and attention to detail, enhancing the overall guest experience.

Incremental Success Through Brand Partnerships

To build on their momentum, the Grocerant Guru recommends three strategies for Wings and Rings:

1.       Extend Brand Partnerships: Consider seasonal cross-promotions with Sam Adams for take-home meal kits, featuring the beer cheese and other branded ingredients, extending the brand beyond the restaurant walls.

2.       Digital Integration: Utilize social media campaigns where customers share their “Game Day” setups featuring Wings and Rings’ beer cheese items for a chance to win exclusive prizes.

3.       Community Engagement: Host watch parties with special discounts and giveaways, cementing the restaurant’s place as a football playoff destination.

Think About This

Wings and Rings’ latest promotions during football playoff season encapsulate the best practices of the grocerant industry. By strategically timing their LTOs, showcasing branded partnerships, and embracing the warmth of comfort food, they’ve positioned themselves as the go-to destination for both sports fans and casual diners. As history shows, the marriage of innovative food marketing and strong brand alignment is a proven recipe for success — and Wings and Rings’ 2025 lineup is a prime example.

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

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The Rise of Digital Coupons: A Pathway to Brand Value in the Food Industry

 

As the food and beverage industry navigates the intersection of evolving consumer behaviors and digital innovation, one tool has surged in importance: digital coupons according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. These virtual savings mechanisms not only attract new customers but also drive loyalty, purchase frequency, and basket size. Yet, the path to success lies in seamless vertical integration. Here’s a look at how digital coupons work, why vertical integration is essential, and four compelling examples of success and failure in the industry.

How Digital Coupons Work in the Food Industry

Digital coupons leverage digital platforms—websites, apps, and emails—to provide discounts on specific products or services. Embedded with unique codes, they are activated at checkout, whether in-store or online. Their benefits extend beyond immediate cost savings:

1.       Data Collection: Digital coupons collect granular customer data, such as purchase history, preferences, and location.

2.       Dynamic Personalization: Retailers can tailor offers to individual customer profiles, driving higher redemption rates.

3.       Enhanced Targeting: Geofencing and app-based notifications ensure timely delivery of offers when customers are near a store or in the decision-making moment.

Food Industry Fact: According to Inmar Intelligence, over 80% of consumers prefer digital over paper coupons, citing convenience and sustainability. Additionally, digital coupons yield 40-50% higher redemption rates compared to their paper counterparts.

 

Why Vertical Integration Matters for Digital Coupons

To unlock full potential, digital coupons need to be vertically integrated into a retailer’s ecosystem, encompassing supply chain, marketing, POS (point-of-sale) systems, and loyalty programs. Vertical integration ensures:

1.       Real-Time Inventory Alignment: Avoid customer frustration by syncing offers with current stock levels.

2.       Operational Efficiency: Unified platforms reduce errors in applying discounts and prevent double redemptions.

3.       Customer Retention: Coupons tied to loyalty programs create a seamless experience that builds long-term brand equity.

Food Industry Fact: Retailers that integrate coupons into loyalty apps see customer retention rates soar by 15-20%, with average ticket size increasing by 30%.

 

Four Examples: Successes and Failures in Digital Couponing

1. Restaurants: Panera Bread’s Subscription Success

What’s Working: Panera introduced its Unlimited Sip Club subscription, which offers digital coupons for free coffee or tea daily. Integrated within their app, it drives return visits and larger orders.

Key Data: Panera reported a 70% increase in beverage category sales, with many Sip Club members purchasing additional items during their visits.

What Needs Improvement: While Panera excels at driving incremental visits, limited app adoption by older demographics highlights a need for broader usability and alternative access points.

2. Grocery Stores: Kroger’s Data-Powered Coupons

What’s Working: Kroger utilizes its loyalty card data to power digital coupons. Personalized offers are delivered via their app and website, with significant success in encouraging customers to try new products.

Key Data: Kroger’s customers who engage with their personalized digital coupons spend 35% more per visit and exhibit greater loyalty over time.

What’s Not Working: Despite its strong program, customers often complain of “clipped” coupons disappearing or not syncing properly at checkout, pointing to a need for better app integration and user experience refinement.

3. Convenience Stores: 7-Eleven’s Missed Integration

What’s Working: 7-Eleven offers digital coupons via its 7Rewards app for popular products like snacks and beverages, driving impulse purchases.

Key Data: Approximately 62% of app users redeem a digital offer within a week of receiving it.

What’s Not Working: Lack of real-time inventory management causes frequent out-of-stock situations, frustrating loyal customers. Additionally, limited coupons for fresh food items hamper their push into the Ready-2-Eat and Heat-N-Eat category.

4. QSR Chains: Burger King’s Mobile Offers Misstep

What’s Working: Burger King aggressively uses app-exclusive digital coupons to steal market share from rivals like McDonald’s and Wendy’s. These include steep discounts on combo meals.

Key Data: In select campaigns, Burger King saw app downloads spike by 63% after promoting app-only deals on social media.

What’s Not Working: Overreliance on steep discounts has eroded long-term profitability. Digital coupons intended to build app engagement end up training customers to wait for deals, diminishing brand value over time.

 

Key Takeaways for Digital Coupon Strategy

1.       Leverage Personalization: Harness customer data to provide tailored offers that resonate with individual purchasing habits.

2.       Integrate Loyalty Programs: Ensure digital coupons contribute to long-term retention rather than one-off purchases.

3.       Focus on Freshness: Retailers and restaurants need to tie discounts to high-margin fresh food categories to bolster brand differentiation and profitability.

4.       Mitigate Frustration: Properly align coupons with inventory and operational capabilities to avoid disappointing loyal customers.

Food Industry Fact: The NPD Group reports that retailers employing vertically integrated digital coupon strategies saw an average annual revenue lift of 8%, compared to 3% for those without vertical integration.

Digital coupons are no longer a “nice-to-have” but a crucial element for driving foot traffic, enhancing basket size, and building customer loyalty. By aligning operations, technology, and customer experience, brands can transform digital couponing into a powerful tool for growth. As the Grocerant Guru always says: "A digital deal well done brings customers back for more—and that’s the recipe for brand success."

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter