JASPER, Ind. -- With its current foodservice program contributing more than 20% of inside sales, Fastop Inc., dba Circle A Food Mart, hopes to grow the category as a way to kick-start overall growth.
"We're not looking to be satisfied with flat," Paul Grammer, president of the eight-store chain based in Jasper, Ind., told CSP Daily News as part of its 2011 Outlook Survey.
Fastop's Sunny's proprietary foodservice program includes deep-fried chicken tenders with a choice of standard and limited-time-only sauces, fresh-made sandwiches and breakfast sandwiches, which have been providing steady growth.
The category's 2011 growth paced 9% (compared to 2% for overall in-store sales) and contributes more than 20% of inside sales at Fastop's Circle A sites, compared to the industry average of 12.9%, according to the NACS State of the Industry Report of 2010 Data.
In October, the company was starting to make 2012 plans for foodservice, "getting our store managers together to brainstorm, and see what problems we can try to fix with food, cut down on waste and build promotions," Grammer said. Fastop adopted a yearly calendar to identify eight to nine windows for promotions, including combo meals tying foodservice to coffee and fountain.
For the coming year, more than 45% of respondents to CSP's 2011 Outlook Survey said they plan to add or change their foodservice program. More than 37% said they plan to expand their current proprietary foodservice program, and about 35% said they plan to expand their coffee bar. Of retailers planning to launch or expand a proprietary foodservice program, about 36% said the addition will be of a prepared-on-site program.
Click here to read the complete 2011 CSP Outlook Survey report from the December issue of CSP magazine.
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