Before about 400 retailer and supplier attendees, Terry Marks, CEO of Cary, N.C.-based The Pantry Inc., spoke of his company's intent to remake the chain's image, uniting its network of 1,642 stores under the Kangaroo Express brand and anchoring its inside offer with its new Bean Street [image-nocss] coffee program.
In an effort to increase the value of assets it already owns, the chain known in the past as an aggressive acquirer is intent on improving its internal profitability.
One of the issues facing The Pantry is the task of getting customers to "reconsider" its new offer as it rolls out through the chain. He said that despite competition from other c-stores and retail channels, his chain has the ability to offer a quality product with service and speed. The Pantry undertook extensive research to pick the right product and presentation to make coffee "the hero" of its new campaign.
"We must create the environment where [new assets can become] accretive," he said, "And will introduce a model that will improve performance."
Profitability was a key focus for The Parker Cos., Savannah, Ga. Greg Parker, president of the 23-store chain said focusing on gross profit dollars was critical to assessing the success of his operations, especially with foodservice.
"I don't think people are as honest with their numbers when it comes to foodservice," Parker said. "They say they're doing well, but when you factor in costs like utilities and occupancy expenses, that might not be the case."
Parker said profitability is all about identifying what customers want and noted that his locations tailor offerings to urban, suburban and rural environments. He also said he targets busy mothers, one of the tougher demographics to please. He does so in part because many other demographics also want what time-starved moms find appealing including cleanliness, freshness and safety.
Darren Rebelez, COO and executive vice president for Dallas-based 7-Eleven Inc., talked about his company's focus, that of growth but with the continuing intent on becoming a fully franchised company. Growth was definitely part of its game plan, with a goal of adding 2,000 stores globally by the end of 2010. Rebelez noted the potential existed, with its current base of 39,400 locations in only 16 countries. It currently has no operations in Brazil, India, Russia and many areas of China. The company has 7,000 stores in the United States and Canada.
In the past 7-Eleven's growth model has involved the parent company building locations and then finding a franchisee to run them. That's expanding. Rebelez described a new paradigm called "business conversions," where an existing operator would remodel and rebrand his or her c-stores to 7-Eleven. He said there are currently 200 of those in existence.
All three panelists spoke of using technology to identify both fast- and slow-moving products to better address customer demand. Rebelez said 7-Eleven's proprietary technology allows franchisees to "drill down" to identify what's selling, which helps optimize the local product assortment as well as leverages 7-Eleven's distribution system, keeping high-demand items in stock.
The three-day Outlook conference was held at the Grand America hotel in downtown Salt Lake City and ended this past Tuesday.[Pictured (left to right): Mitch Morrison, moderator, CSP; Terry Marks, CEO, The Pantry; Greg Parker, president, The Parker Cos.; Darren Rebelez, COO and executive vice president, 7-Eleven.]
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