SCHAUMBURG, Ill. -- It's amazing how much insight one can share about foodservice in 15 minutes. Three speakers at the 2012 Foodservice at Retail Exchange, held this week in Schaumburg, Ill., were tasked to do just that: Share a big idea in that small time frame.
Judging by the results, attendees had plenty to take back to the office.
Bill Reilly, GPM Investments/Fas Mart
Bill Reilly, senior vice president of marketing for GPM Investments' Fas Mart chain, Richmond, Va., drew on his experience at The Walt Disney World Co., Marriott Hotels, MAPCO Express and Sheetz Inc. to share big ideas on the future of retail foodservice. The main thrust: Retailers need to develop a strong foodservice brand that "screams" fresh in its approach, presentation and design. He urged attendees to first conduct a S.W.O.T. (strengths, weaknesses, opportunities and threats) analysis on their current offer, and use all five senses in designing a new brand and menu, harnessing technology wherever possible to maximize the development and delivery.
Of course, getting fresh offers to the consumer has been a struggle for this industry, Reilly acknowledged, for reasons beyond branding.
"Logistics is holding the c-store channel back, especially with deliveries, critical control points and handling product safely," he said.
In addition, many retailers are moving from a culture of controlling expenses to indulging the senses, which can be a tough mental barrier. But as Reilly sees it, this is a transition that must happen for the channel to progress, and it can't be done half-heartedly.
"At some point, you have to go all in," said Reilly. "Don't do it timidly. Be aggressive with your approach to foodservice."
Lon Southerland, Marriott/The Courtyard
For Lon Southerland, senior director of global food and beverage for Marriott International Inc., Bethesda, Md., and his team, the big idea was to get guests to consider The Courtyard hotel brand as a place for food. Customers shared that they often went on expeditions to find the nearest Starbucks while staying at The Courtyard for a quick and reliable coffee and muffin; the team's goal was to give them an alternative inside the hotel, without having to offer the ubiquitous free breakfast buffet.
Over 18 months, the group ran focus groups to determine guests' key needs, and eventually constructed a test lobby from foam core to test run customers on the different layouts. Influenced by the "third place" feel of Starbucks and Panera Bread, the new Bistro concept was designed as "a coffeehouse meets an open kitchen," with ready-to-go food for breakfast, lunch and after hours.
The foodservice and lobby area was designed around the laptop user, with features such as a communal table lined with outlets. On the menu, guests have a choice of breakfast, lunch and specialty and alcoholic beverages, all with a fresh and healthy bent. To this end, Marriott added calorie counts to the Bistro menu to help customers make healthy choices.
"Anywhere we've made a decision that's right for the customer, it's always right for us," said Southerland.
The Bistro also offers seasonal promotions of soup, salad, sandwiches, coffee beverages from Starbucks, breakfast and happy-hour items. A recent success story has been a flatbread program, which is not only visually appealing and popular with customers, but also low cost. At the same time, The Courtyard's foodservice profits have grown by triple digits.
For Southerland, the key "a-ha" moment happened when his team realized that, despite all of the possible last-minute tweaks, it is best to launch the concept once it is at least 80% finished so that it can be finalized in the real-world environment. As of this week, more than 530 Bistros have been opened, with the plan to install one in 92% of Courtyard properties by 2013.
Sharon Olson, Culinary Visions Panel
Foodies were the big idea for Sharon Olson, executive director of the Culinary Visions Panel, a Chicago-based research firm that provides insights into new products, menu development and emerging trends. The group surveyed 2,000 foodservice consumers over the past year to determine what makes a foodie tick compared to the mainstream customer.
As Olson explained, foodies have a "zest for culinary adventure" and can be defined best by their behavior: always or often wanting to try something new. It's a valuable demographic for retailers to attract, she argued, because foodies are the first to try new items and love to talk about their experience.
Some of the more interesting findings: While the mainstream consumer may be drawn to sweet and salty comfort foods, the foodie consumer is drawn to ethnic foods and those with bitter, sour and umami (savory) characteristics. They value quality, brand names and healthy items on the menu, whereas mainstream eaters tend to place a greater emphasis on price.
At convenience stores, the foodie judges items by quality, past experience as well as a combination of price and convenience. More of these consumers rate healthfulness as an important attribute to see on a menu, but like the mainstream eater, they want it on their own terms, reserving the option to indulge.
What is a way to offer both mainstream and foodie customers an attractive item? Take dark chocolate as an option, said Olson, pointing out that it offers not only the sweet for mainstream eaters but also a bitter edge for those with foodie tastes.
FARE 2013 will be held June 18-20 at the Renaissance Schaumburg. Stay tuned to www.foodserviceatretail.com for details.
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