Until now, many convenience-store retailers have wondered how to get into foodservice and take advantage of the growing opportunity the category affords.
Prepared foodservice has been a large and growing part of convenience store profitability. In the past year, according to 2014 NACS SOI data, it has seen a 7.2% increase in growth and a 34% contribution to in-store gross-profit dollars.
But let’s face it: Prepared foodservice presents some unique challenges for c-stores, because it isn’t traditional retail. It has required a significant investment in equipment, space and dedicated labor. However, these roadblocks also reveal an opportunity for companies to create new products to solve low-labor and space-constraint issues.
One idea is the recently debuted 7-inch microwave pizza by Orion Food Systems, offered in both pepperoni and breakfast varieties to capture multiple dayparts. The personal-size pizza can be prepared in less than three minutes and has a crispy crust that tastes like it was baked in an oven. The product requires no additional labor, and it offers the flexibility to have a store cashier microwave several pizzas and put them in a warming unit for an easy new revenue stream.
For an even simpler solution, keep the product frozen and allow customers to microwave it themselves. This product also allows for stricter management of expired food costs because it’s controlled solely by customer demand.
With significant year-over-year growth in foodservice, it’s an area few operators can ignore. Pizza is a great way to test the foodservice waters thanks to its steady growth at 8.6% and 17.0% contribution to sales, according to NACS. Orion’s new 7-inch Papa Primo’s personal pizza is one solution that gives retailers a small leap into that world.
For more information on microwave pizza, contact Orion Food Systems at (877) 841-1431, or visit orionfoods.com.
This post is sponsored by Orion Land Mark