"These are my takeover or take-out targets for 2010," said Steven Johnson, founder of Foodservice Solutions, Tacoma, Wash.
"Ridiculous!" responded an incredulous Howard Stoeckel, CEO of Wawa Inc., which is 28% owned by the company's associates. "We've been in business for over 100 yearsand we have a long-term plan to maintain our current status. [image-nocss] We have no plans to go public and no plans to change our current ownership."
An executive from Altoona, Pa.-based Sheetz offered "no comment" to Johnson's blog report (http://www.grocerants.blogspot.com), which noted, "[The companies] seem stifled in their ability to grow outside their current operating borders. Each would be a plum for companies searching for volume, highly skilled management teams and [a] premade template for success. If they don't begin a strong push for growth, they may be inadvertently and unintentionally marginalized by an industry on the move."
Johnson said the fast-growing niche of on-the-go foodservice makes regional chains such as Sheetz and Wawa vulnerable to acquisition, while their private ownership limits their growth potential.
Stoeckel said that is not the case.
"We've taken on Virginia, which is a relatively new market that goes back to 1998, and we're very pleased there," Stoeckel told CSP Daily News. He also said the slower growth pace "is by choice. We don't like to spread ourselves thin. We like to be important to our consumers.... We like a close proximity. That's our strategy: high-volume critical mass in a defined geographic area. That's why we're able to have a distribution center, run by McLane, to serve our stores."
He added, "We don't make acquisitions. We don't look to sell off pieces of the business or anything of that nature. We believe in critical mass. We believe in building one store at a time. And our culture is best served as a privately held company, where the employees have a major stake in the business.... This is their livelihood. There's a financial connection, as well as an emotional connection."
Meanwhile, Johnson, who told CSP Daily News an acquisition of Sheetz or Wawa would certainly "shake up" the industry, wrote that other chains, such as Kum & Go, Casey's General Stores and QuikTrip are using the success of on-the-go foodservice to drive company growth, while 7-Eleven is repositioning its stores to take advantage of the trend by rolling out more fresh food products.
"From coast to coast [7-Eleven is] are soliciting locations, operators and regional players," he said. "This will be a success for them as they roll out newprepared food offerings."
CSP is actively tracking how market domination is driving some retailers to grow in key cities and states. Watch for an in-depth report in the February issue of CSP magazine.
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