PHOENIX -- Paneranoia. Many convenience retailers have it, and that's not necessarily a bad thing, according to Lee Peterson, executive director of design and branding for research, design and development firm WD Partners. That was one of the many messages he and a co-presenter had for attendees of the Outlook Leadership 2006 general session Looks Good; Makes Money.
[From a design standpoint] everyone for a time wanted to look like Panera, said Peterson. The lighting is right, they play classical musicand these guys do a great job attracting females. [image-nocss] Their logo is of a woman coddling loaves of bread. That says to the female, This is your place'.
Panera Bread Co. is what Peterson describes as an emulator, one of the many quick-serve restaurant chains whose in-store design convenience retailers and other QSRs have mimickedand deservedly so. In 12 years' time, Panera has grown to more than 11,000 locations, each doing approximately $2 million apiece in annual sales.
With fuel margins ever threatened by competition and volatility, foodservice is becoming a de facto savior. But retailers outside of the c-store channel have recognized this and are targeting day-parts that traditionally have been the domain of convenience retailers.
McDonald's, for instance, is pushing heavily into premium-roasted and iced coffees, while Wendy's plans to launch a full breakfast menu, most likely in 2007. Starbucks, already a leading coffee retailer, is early into the rollout of a breakfast-sandwich program with amazingly good quality, according to WD Partners executive vice president of foodservice strategies Dennis Lombardi, who co-presented the session with Peterson. Even pizza chain Papa John's is getting into the a.m. drive business.
While few convenience retailers have cracked the code in terms of defining their stores as dinnertime destinations, that may soon change thanks to moves made by prominent QSR chains. Because of their fast, convenient nature, Quiznos' Prime Rib Sandwich, Subway's hot-sandwich ad program and Panera's Crispani flat-bread pizzas, for instance, all bring credibility to the convenience channel as a viable alternative for dinner.
Supermarket retailer Safeway, with a renewed focus on freshness in store design, also fits the bill of emulator. Three or four years ago, the chain surveyed customers about their impressions of its stores. Customers essentially said I don't like the environment, which pushed the company to upgrade its stores and move away from the Wal-Mart-style design it had adopted. Its focus has since changed to one of variety and fresh foods. In [Safeway's] deli cold cases, they use mirrors to illuminate salads, Lombardi said.
Wawa Inc., the Wawa, Pa.-based convenience retailer, stands among the few emulators in the c-store channel. Its presentation is clean, its advertisements promote specific products in a humorous fashion rather than focusing on the box, and its stores have spacious, distinctive interiors that are easy to navigate.
While it's not a food marketer, youthful apparel retailer Abercrombie & Fitch is among the best retailers in the nation at communicating its brand to its customer base through effective design, according to Peterson. They have brand models with their shirts off in front of the store, he said. They're so centered on youthful exuberance.
Peterson and Lombardi offered a few examples of how retailers can make their stores more attractive and more foodservice-friendly. Fix the lighting, said Lombardi, adding that the standard fluorescent overheads are not pleasing to the consumer's eye. He also suggested wood as a trim material because people love wood and the way it feels.
The presenters concluded by discussing an often-overlooked element of design: the role of employees. Retailers must create and keep a service culture, according to Peterson, and that often means designing stores and systems to make the workflow more efficient. The happier and more efficient the employee, the better the serviceand that, according to Lombardi, is a retailer's only remaining strategic advantage.
We often look at employees as a cost rather than a resource, he said. Good service is almost a certain way to make money.
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