Foodservice

Chevron Does ExtraGood

Company launches $6-million foodservice efforts targeting "heavy c-store users"
Editor's Note: This is the second in a series of CSP Daily News features about the fifth-annual CSP-Service Intelligence Mystery Shop. For a complete report, see the August issue of CSP magazine.

SAN RAMON, Calif. -- In last year's CSP-Service Intelligence Mystery Shop, Chevron's ExtraMile scored in the middle of the pack for foodservice, leading Danny Roden, marketing vice president for the Americas, to concede that it is one area where the company could do more. (The company came in first place overall.)

True to his word, the company launched a new foodservice [image-nocss] program at its 410 ExtraMile locations this summer, completing the rollout July 30. And although the launch occurred just after the 2009 CSP-Service Intelligence Mystery Shop was conducted (and scores were again in the middle for foodservice), the company's extensive training and $6 million investment for both company-operated and franchised ExtraMiles is definitely a reason for the company to say, "Wait 'til next year."

"We've had foodservice in our stores for a while, but it hasn't really had a very strong presence. It hasn't felt like a destination category," according to Nancy Cabell, ExtraMile consumer value proposition consultant. Cabell told CSP Daily News that the company wanted to "add some theater around the foodservice area" to achieve that destination identityformally called ExtraGood to Go. "So it's a pretty dramatic change to the look for the area and the way we're presenting the food. And those two things in combination are what we think will really make it a true customer destination."

Components of the ExtraGood to Go program include a new graphics package, new foodservice equipment, some updated products and new packaging. "And our goal is to really deliver a very consistent hot-food program to our customers across all of our sites," Cabell said.

Don Tovar, U.S. foodservice category manager, explained about the new equipment's evolution from merchandising in a steamer. "The customer literally had to open a steamer door to get in position to inspect the products and make their product selection. And in many cases, product in the rear of the bin may have been still cooking, while 'ready' product in the front may have either been unavailable or not ideally positioned for sale."

He added, "What we've done now is taken all link products completely out of that environment, put them onto a roller grill where a customer can, using multiple senses, make their selection of the item or product of their choosing."

Tovar said that in most cases, there will be at least five products on the grill at any given time, including a "great selection of flavor varieties." He added that a couple of Johnsonville breakfast sausage items were introduced earlier this year, taking advantage of an important emerging daypart for the company.

Prior to the new program, the company also had used a reconfigured pizza warmer, where the turntable was removed and shelves were placed inside. That is now being replaced by a professional food warmer, designed to Chevron's specifications. Tovar said the new case has a "beautiful European design," featuring lots of glass and lighting for every shelf level. "We think it does a superior job of presenting the products in a way that really showcases the appetizing appeal of the products themselves," he said, adding that non-sausage products, such as monster taquitos, corn dogs and tornados are merchandised in this warmer.

Meanwhile, product selection will change and grow as the program gains traction.

"We're already looking at several new products in the pipeline, one that will likely be developed for an October rollout," Tovar said. "The intent is for the program, the products and the presentation to continue evolving to meet the changing needs of our customers."

He continued, "We're targeting heavy c-store users. These are folks who are in convenience stores all the time. They're in and out, they want something fresh and they want it quickly. And so all of these items are things that meet that need."

Cabell said Chevron will be promoting the foodservice offerings from September through December, with hot price points on various items. The company will also run radio advertising from September through November "to help get the message out to customers that we have something new at ExtraMile."

For more on Chevron's new foodservice program, watch for Monday's CSP Daily News. And for more about the mystery-shop resultsChevron tied for second place this yearsee the August issue of CSP magazine.

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