How Are Food and Payments Changing in the Grocery Industry? [Podcast]
Published on: Oct 29, 2024
Published on: October 29, 2024. Updated on: September 26, 2026.
Food and payments are changing fast in the grocery industry, driven by the Food as Medicine movement, new payment technologies at checkout, and shifting expectations from shoppers about how they buy and pay for their groceries, which puts new pressure on the grocery leaders who have to adapt stores, systems, and teams. On this episode of Self-Checkout with Grocery Store Mike, Mike Cook draws on 35 years of hands-on grocery experience to explain what these shifts mean for grocery leaders and the teams they hire.
Frontline Source Group is a Forbes Best Professional Recruiting Firm for 9 consecutive years (2018 to 2026), ranked #158 in 2026, and a Forbes Best Executive Recruiting Firm at #148 (2026). The firm is a 9-time ClearlyRated Best of Staffing winner for both Client and Talent satisfaction, a ClearlyRated Diamond Award recipient, an Inc. 5000 honoree, and an Expertise.com Best Staffing Agency, with a 5.0-star Trustpilot rating across 676+ verified reviews. Frontline is a member of the American Staffing Association (ASA), operates 32 plus offices nationwide, has completed 5,619 plus placements, and holds a 98.94% executive placement retention rate.
Updated September 26, 2026: Since this episode first aired in October 2024, the shift Mike described has moved from the fringe to the register. Twenty-three states now hold USDA approval to restrict SNAP purchases of soda and candy, produce prescription programs are paying for fruits and vegetables at grocery checkouts, and tap to pay is becoming standard at the largest U.S. grocer. The new section below covers what changed, with charts and a state-by-state SNAP table, and what it all means for grocery leaders.
Who is Grocery Store Mike and why does his perspective matter?
Mike Cook, known throughout the industry as Grocery Store Mike, is the Grocery, Retail, and Pharmacy Executive Recruiter at Frontline Source Group. He brings over 35 years of hands-on, in-store grocery experience, which makes his perspective on industry change unusually grounded. His background includes hiring, training, and developing leaders for organizations ranging from small supermarkets to large operations with hundreds of locations. That combination of practical grocery operations knowledge and executive search expertise is what lets him read where the industry is heading.
What is the Food as Medicine movement and why does it matter for grocers?
The Food as Medicine movement treats nutrition as a central part of health and wellness, and it is gaining momentum with shoppers, employers, and healthcare payers alike. Grocery leaders who understand this movement can position their stores and teams to serve a customer base that increasingly views the grocery aisle as part of their health routine.
How is Food as Medicine changing the way shoppers pay for groceries?
As Grocery Store Mike explains on the episode, the Food as Medicine movement is changing not only what shoppers buy but how they pay for it. More programs now connect healthy food to health benefits, which means the funding behind a grocery purchase can come from sources beyond the shopper's own wallet, and grocers have to be ready to accept and track those payments at the register.
How is Food as Medicine affecting grocery sales?
For grocers, the shift is reshaping how products are merchandised, how nutrition information is presented in the aisle, and where food dollars go. Circana reports that about 40 percent of consumers are now looking for foods that better match their wellness goals, a group driving more than $700 billion in annual food, beverage, and foodservice sales. Circana also projects that households using GLP-1 medications will account for 35 percent of U.S. food and beverage sales by 2030, and its research shows those households keep buying more produce even after they stop the medication.
FMI, The Food Industry Association, found in its 2026 Power of Health and Well-Being report that health is now the strongest driver of grocery spending. Fifty-one percent of shoppers say their primary food store is on their side in supporting their health, up 3 percentage points from 2024, and when shoppers define healthy food, fruits and vegetables top the list.
How grocery shoppers define healthy food
Shoppers who say their primary grocery store is on their side for health
How is payment technology changing at the grocery checkout?
The way shoppers pay for groceries continues to evolve, from contactless and mobile payments to self-checkout and app-based experiences. Payment innovation is no longer a back-office concern; it shapes how customers feel about a store and whether they come back, which raises the stakes on the leadership teams grocers hire.
Which checkout options are grocery shoppers using?
Shoppers now move between tap-to-pay cards, mobile wallets, self-checkout lanes, and app-based ordering, often in the same week. Each option changes the front-end experience, staffing model, and loss prevention approach a store needs.
What leadership skills do new payment systems require?
As payment options expand, grocers need operations and technology leaders who can implement these systems smoothly without disrupting the shopping experience. The strongest leaders pair technology fluency with a store-floor understanding of how checkout changes affect associates and customers.
What has changed in grocery food and payments in 2026?
Two forces Mike highlighted, nutrition policy and payment technology, are now reshaping the grocery checkout at the same time. Here is where things stand as of September 2026.
Which states restrict SNAP purchases of soda and candy?
As of September 25, 2026, the USDA Food and Nutrition Administration lists 23 states with approved SNAP Food Restriction Waivers, which bar SNAP benefits from being used on items such as soda, energy drinks, and candy. Restrictions are already in effect in states including Texas, Florida, Indiana, Utah, Idaho, Oklahoma, Louisiana, and Arkansas. Montana, North Dakota, Ohio, South Carolina, and Virginia are scheduled for November 1, 2026, with Kansas, Missouri, Wyoming, Hawaii, and Nevada following in 2027 and 2028. On June 22, 2026, a federal court in the District of Columbia vacated the approvals for Colorado, Iowa, Nebraska, Tennessee, and West Virginia, so those waivers may not proceed.
Status of the 23 approved SNAP Food Restriction Waivers
| State | Restricted items | Target implementation | Status as of September 25, 2026 |
|---|---|---|---|
| Arkansas | Soda, fruit and vegetable drinks under 50 percent juice, energy drinks, candy | July 1, 2026 | In effect |
| Colorado | Soft drinks | Not applicable | Vacated by court |
| Florida | Soda, energy drinks, candy, prepared desserts | April 20, 2026 | In effect |
| Hawaii | Soft drinks | April 1, 2027 | Scheduled |
| Idaho | Soda, candy | February 15, 2026 | In effect |
| Indiana | Soft drinks, candy | January 1, 2026 | In effect |
| Iowa | All taxable food items | Not applicable | Vacated by court |
| Kansas | Candy, soft drinks | February 15, 2027 | Scheduled |
| Louisiana | Soft drinks, energy drinks, candy | February 18, 2026 | In effect |
| Missouri | Candy, prepared desserts, certain unhealthy beverages | February 15, 2027 | Scheduled |
| Montana | High-sugar beverages, energy drinks, candy, prepared desserts | November 1, 2026 | Scheduled |
| Nebraska | Soda, soft drinks, energy drinks | Not applicable | Vacated by court |
| Nevada | Candy, sugar-sweetened beverages | February 1, 2028 | Scheduled |
| North Dakota | Sweetened beverages, energy drinks, candy | November 1, 2026 | Scheduled |
| Ohio | Sugar-sweetened beverages, all fountain drinks | November 1, 2026 | Scheduled |
| Oklahoma | Soft drinks, candy | February 15, 2026 | In effect |
| South Carolina | Candy, energy drinks, soft drinks, sweetened beverages | November 1, 2026 | Scheduled |
| Tennessee | Processed foods and beverages such as soda, energy drinks, candy | Not applicable | Vacated by court |
| Texas | Sweetened drinks, candy | April 1, 2026 | In effect |
| Utah | Soft drinks | January 1, 2026 | In effect |
| Virginia | Sweetened beverages | November 1, 2026 | Scheduled |
| West Virginia | Soda | Not applicable | Vacated by court |
| Wyoming | Sweetened, carbonated beverages | February 1, 2027 | Scheduled |
For grocers, each waiver applies to every SNAP transaction at a physical store in that state, and online orders shipped from warehouses must follow the rules of the state that issued the shopper's EBT card. FMI, The Food Industry Association, reports that the waivers restrict more than 21,000 items and that definitions vary from state to state, which makes item-level point of sale compliance a real operational job for multi-state chains.
The restrictions also move grocery sales. Numerator, a consumer data company, projected in May 2026 that as SNAP households redirect spending, restriction waivers could drive annual sales declines of up to $430 million in soda, $300 million in candy, and $100 million in energy drinks, roughly $830 million in total. That projection assumed 19 states would have waivers in place by the end of 2026, before the June court ruling removed five approvals, so the realized figure is likely to be lower.
Projected SNAP sales at risk from restriction waivers, by category
How are produce prescriptions paid for at the register?
Produce prescriptions are the most visible way Food as Medicine is changing how groceries are paid for. According to the MOST Policy Initiative, clinicians write food prescriptions funded by federal grants, health plans, and state Medicaid programs, and the benefit is loaded onto a digital card or voucher that patients redeem at participating grocery stores. In Washington, D.C., DC Greens reports that its Produce Rx program, launched in 2012, now enrolls more than 1,000 Medicaid participants a year through 17 community health centers, and participants simply swipe a preloaded card at checkout to pay for produce.
Is tap to pay now standard at the grocery checkout?
Increasingly, yes. PYMNTS reports that Walmart began enabling tap to pay at select Walmart and Sam's Club locations on August 24, 2026, with plans to reach all U.S. stores and clubs by the end of 2026. PYMNTS Intelligence research found that 56 percent of U.S. consumers used tap to pay for their most recent in-store purchase, up 21 percentage points from 2022, and Global Payments reports that digital wallets accounted for 17 percent of U.S. in-store retail checkouts in 2025. A May 2026 PYMNTS survey also found that financially stressed grocery shoppers were far more likely to pay with a digital wallet, 21 percent compared with 8 percent of low-stress shoppers.
U.S. consumers who tapped to pay for their last in-store purchase
Digital wallets as a share of consumers' most recent in-store payment
Grocery shoppers who paid with a digital wallet, by financial stress
Can SNAP shoppers pay with a phone?
Not yet at most stores. The Agricultural Act of 2018 authorized mobile payment for SNAP, and the USDA's SNAP Mobile Payment Pilot names Illinois, Massachusetts, and Oklahoma as states where participants will be able to tap or scan a phone instead of presenting a physical EBT card. Retailers and shoppers can choose whether to take part, and the physical card continues to work.
How do grocery payment systems compare in 2026?
The payment options Mike discussed now sit side by side at the same checkout, and each one asks something different of the store. This feature comparison shows how each system works, who pays for the purchase, where it stands in 2026, and what a grocer needs in place to support it. Processing costs vary by payment processor and contract, so they are not listed here.
| Payment system | How it works at checkout | Who funds the purchase | 2026 status | What the store needs |
|---|---|---|---|---|
| Contactless card (tap to pay) | Shopper taps a contactless card on an NFC-enabled terminal | Shopper's own card | 56 percent of U.S. consumers tapped for their last in-store purchase (PYMNTS Intelligence); Walmart plans tap to pay in all U.S. stores and clubs by the end of 2026 | NFC-enabled terminals at staffed registers and self-checkout lanes |
| Digital wallet (phone or watch) | Shopper taps a phone or smartwatch holding a stored, tokenized card | Shopper's own card or wallet balance | Digital wallets reached 11.8 percent of most recent in-store payments in 2025, nearly matching cash at 12.1 percent (PYMNTS Intelligence) | NFC terminals plus acceptance of major mobile wallets |
| Self-checkout | Shopper scans items and pays at an unattended lane | Any accepted tender, depending on how the lane is configured | Self-checkout systems can be set up to accept cards, tap to pay, mobile wallets, SNAP EBT, and cash | Lanes configured for every tender the store accepts, including SNAP item rules |
| SNAP EBT card | Shopper swipes the EBT card and enters a PIN; eligible items are paid with benefits | Federal SNAP benefits | Restriction waivers are in effect in 8 states and scheduled in 10 more (USDA, September 25, 2026) | State-specific restricted item lists at the point of sale, covering more than 21,000 items across waivers (FMI) |
| Online SNAP order | Shopper pays with EBT during online checkout | Federal SNAP benefits | Warehouse-fulfilled orders must follow the restriction rules of the state that issued the shopper's EBT card (USDA) | Online checkout that reads the EBT card's issuing state and applies that state's rules |
| SNAP mobile payment (pilot) | Shopper taps or scans a phone instead of presenting the EBT card | Federal SNAP benefits | Authorized by the Agricultural Act of 2018; USDA pilot names Illinois, Massachusetts, and Oklahoma | Optional participation for retailers; the physical EBT card still works |
| Produce prescription card | Patient swipes a preloaded card or redeems a voucher; eligible produce is paid for at the register | Federal grants, health plans, or state Medicaid programs (MOST Policy Initiative) | DC Greens Produce Rx enrolls more than 1,000 Medicaid participants a year through 17 health centers | A program partnership plus checkout logic that limits the benefit to eligible produce |
Why do these trends raise the stakes on grocery leadership hiring?
Food trends and payment innovation both demand leaders who understand grocery operations from the ground up and can adapt quickly. A store manager or category leader who grasps how nutrition-focused merchandising, evolving payment systems, and shifting shopper expectations connect is far more valuable than one who only knows one piece. That is exactly the kind of transformative leader Mike Cook recruits, drawing on his own decades on the store floor and building the teams that drive successful grocery operations.
The 2026 changes add new leadership demands on top of that foundation. Multi-state grocers now need front-end and compliance leaders who can manage state-specific SNAP item rules at the register, point of sale and payments leaders who can roll out contactless acceptance across every lane, and pharmacy and health partnership leaders who can connect produce prescription programs to the store.
How does Frontline Source Group help grocery and retail employers hire?
Frontline Source Group recruits grocery and retail leaders through a specialized executive search practice led by recruiters who know the industry firsthand. You can explore the grocery and retail practice at frontlinesourcegroup.com/executive-search-grocery-store-and-retail.html.
The firm places store managers, category managers, operations leaders, and grocery pharmacy leadership for organizations ranging from independent grocers to multi-unit chains.
Every direct hire placement is backed by the 5-Year Placement Warranty, 20 times longer than the 90-day industry standard guarantee, so grocery employers are protected long after a new leader starts.
How much does it cost to hire grocery leaders through Frontline Source Group?
Frontline Source Group is one of the few staffing and executive search firms that publishes its pricing. The table below summarizes the engagement models grocery and retail employers use most, and the full details are on the pricing page. Frontline accepts all major credit cards at no additional charge, with no hidden fees.
| Service | Published pricing | Typical grocery and retail roles | Backed by |
|---|---|---|---|
| Direct hire placement | 20 to 30 percent of the placed candidate's first-year base salary | Store managers, category managers, operations leaders, and grocery pharmacy leadership | 5-Year Placement Warranty on qualifying permanent placements |
| C-suite executive search | 25 to 35 percent of first-year all-in compensation, with retained search options available | CFOs, COOs, and senior operations leaders for grocery chains | 5-Year Placement Warranty on qualifying permanent placements |
| Contract staffing | 50 to 85 percent markup, built into a single hourly bill rate that covers wages, payroll taxes, benefits, insurance, and recruiting support | Project coverage, store openings, and leave coverage for grocery and retail operations | Screened talent network and a dedicated account manager |
Where can you listen to this podcast episode?
This episode is part of Self-Checkout with Grocery Store Mike, the grocery industry podcast hosted by Mike Cook and presented by Frontline Source Group. You can listen on Apple Podcasts, Spotify, or Buzzsprout, or browse all Frontline podcast episodes at frontlinesourcegroup.com/podcasts.html.
What makes Frontline Source Group different for grocery and retail search?
Three things set Frontline Source Group apart. First, a recruiter in Mike Cook who has 35 years of in-store grocery experience, a background that is difficult to replicate. Second, the 5-Year Placement Warranty on direct hire placements, 20 times longer than the 90-day industry standard guarantee. Third, a verified authority record: Forbes Best Professional Recruiting Firms for 9 consecutive years, a 5.0-star Trustpilot rating across 676+ verified reviews, and a 22-year track record of 5,619 plus placements across 32 plus offices nationwide.
How do you connect with Frontline Source Group?
Grocery and retail employers can share a hiring need through the employer request form at frontlinesourcegroup.com/employer-request-form.html. Candidates who want to be considered for roles can apply at frontlinesourcegroup.com/how-to-apply.html. To learn more about the grocery and retail practice, see frontlinesourcegroup.com/executive-search-grocery-store-and-retail.html.
Frequently Asked Questions: The Future of Food and Payments in Grocery
Who is Grocery Store Mike?
Mike Cook, known throughout the industry as Grocery Store Mike, is the Grocery, Retail, and Pharmacy Executive Recruiter at Frontline Source Group. He brings over 35 years of hands-on, in-store grocery experience, from small supermarkets to operations with hundreds of locations. You can read his profile at frontlinesourcegroup.com/mike-cook-staffing-services.html.
What is the Food as Medicine movement?
The Food as Medicine movement treats nutrition as a central part of health and wellness, and it is gaining momentum with shoppers, employers, and healthcare payers. For grocers, it is reshaping how products are merchandised, how nutrition information is presented, and increasingly how healthy food purchases are funded.
How is payment technology changing at the grocery checkout?
Grocery payment continues to evolve, from contactless and mobile payments to self-checkout and app-based experiences. As payment options expand, grocers need operations and technology leaders who can implement these systems smoothly, because payment innovation now shapes how customers feel about a store and whether they return.
Why do food and payment trends raise the stakes on grocery hiring?
Both trends demand leaders who understand grocery operations from the ground up and can adapt quickly. A leader who grasps how nutrition-focused merchandising, evolving payment systems, and shifting shopper expectations connect is far more valuable than one who knows only one piece, which is the kind of leader Frontline Source Group recruits.
How much does Frontline Source Group charge for grocery executive search?
Frontline Source Group publishes its pricing. Direct hire placement runs 20 to 30 percent of the placed candidate's first-year base salary, C-suite executive search runs 25 to 35 percent of first-year all-in compensation, and contract staffing runs a 50 to 85 percent markup within a single hourly bill rate. All major credit cards are accepted at no additional charge. Full details are at frontlinesourcegroup.com/pricing.html.
What is the 5-Year Placement Warranty?
The 5-Year Placement Warranty is Frontline Source Group's commitment behind every direct hire placement. Where the typical industry guarantee runs 90 days, Frontline stands behind its direct hire placements for a period 20 times longer. Read the details at frontlinesourcegroup.com/5year-placement-guarantee.html.
Where can I listen to this grocery podcast episode?
This episode is part of Self-Checkout with Grocery Store Mike. You can listen on Apple Podcasts at podcasts.apple.com/us/podcast/self-checkout-with-grocery-store-mike/id1690402619 and on Spotify, or browse all Frontline podcast episodes at frontlinesourcegroup.com/podcasts.html.
How is the Food as Medicine movement affecting grocery sales?
Health is now the strongest driver of grocery spending, according to FMI, The Food Industry Association. Circana reports that about 40 percent of consumers seek foods aligned with their wellness goals, driving more than $700 billion in annual food, beverage, and foodservice sales, and projects that GLP-1 households will account for 35 percent of U.S. food and beverage sales by 2030.
Which states restrict SNAP purchases of soda and candy in 2026?
As of September 25, 2026, the USDA Food and Nutrition Administration lists 23 states with approved SNAP Food Restriction Waivers. Restrictions are in effect in states including Texas, Florida, Indiana, Utah, Idaho, Oklahoma, Louisiana, and Arkansas, with Montana, North Dakota, Ohio, South Carolina, and Virginia scheduled for November 1, 2026. On June 22, 2026, a federal court vacated the approvals for Colorado, Iowa, Nebraska, Tennessee, and West Virginia. The current list is at fns.usda.gov/snap/waivers/foodrestriction.
How do produce prescription programs work at grocery stores?
Clinicians prescribe fruits and vegetables to patients with diet-related conditions, and the benefit is funded by federal grants, health plans, or state Medicaid programs. The value is loaded onto a digital card or voucher that the patient uses at participating grocery stores, where eligible produce is paid for at the register.
Does Walmart accept tap to pay in 2026?
Yes. Walmart began enabling tap to pay at select Walmart and Sam's Club locations on August 24, 2026, and plans to reach all U.S. stores and clubs by the end of 2026, with fuel stations following by mid-2027, according to PYMNTS.
How do I connect with Frontline Source Group about grocery hiring?
Grocery and retail employers can submit a hiring need through the employer request form at frontlinesourcegroup.com/employer-request-form.html, and candidates can apply at frontlinesourcegroup.com/how-to-apply.html. To learn more about the grocery and retail practice, visit frontlinesourcegroup.com/executive-search-grocery-store-and-retail.html.
