Why Business Models Break and Brands Break Through (2025 Edition)
The Aldi Anomaly
The grocery industry’s most compelling success story belongs to Aldi, which continues to be one of the cheapest and fastest-growing grocery stores in the U.S.
This anomaly is no accident; it is the result of a meticulously efficient business model. Aldi strips away expensive layers—shunning brand variety for private labels (up to 90% of its inventory), displaying products directly in shipping boxes to save on labor, and even relying on the quarter-deposit cart system to keep staff costs low. This low-friction, no-frills approach allows the German retailer to consistently undercut competitors like Walmart and Kroger, fueling its aggressive expansion and capturing the loyalty of price-conscious American consumers.
The 7-Eleven Japanese Redefinition
Across the convenience landscape, 7-Eleven is embarking on a dramatic reinvention, specifically targeting the Japanese model that has made its sister stores globally famous.
For decades, U.S. 7-Elevens have relied on high-margin sales of gasoline and cigarettes. However, with those revenues declining, the parent company, Seven & i Holdings, is pivoting to a food-first strategy. The goal is to elevate the quality of prepared foods—introducing Japanese cult favorites like the egg salad sandwich and fresh onigiri—to replicate the success where fresh food accounts for over 30% of total sales in Japan. This ambitious makeover requires establishing new supply chains to ensure daily fresh deliveries, shifting the U.S. stores from a pit stop mentality to a destination for high-quality, affordable meals.
The Meal Kit Churn Crisis
While some companies soar, others face structural crises. Major meal kit companies like HelloFresh, Home Chef, and Blue Apron famously lose about 90% of their customers within a year.
This high churn rate is rooted in a weak business model centered on heavy discounts and high marketing spend to acquire new users. Once the introductory offers expire, the product’s premium cost, which can be significantly more expensive than supermarket shopping, combined with what analysts call “weak product-market fit,” causes a massive exodus. Meal kit profitability is perpetually challenged by this cycle, forcing them to spend continuously on acquiring customers they struggle to keep.
Maverick Leadership: The Strategy Decoders
The stark contrasts between these operational models—Aldi’s surgical efficiency, 7-Eleven’s pivot, and the meal kit churn—underscore the importance of unique, long-term strategies.
The most successful companies, from stalwarts like McDonald’s and Shake Shack to disruptors like the audaciously branded Liquid Death and the category-defining Athletic Brewing, thrive because their leaders have decoded the deeper economics of their industries. WSJ’s interviews with these CEOs and business leaders uncover the maverick strategies they use to not just compete, but to create and own their respective markets.
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