In my past 20 years in the convenience-store industry, we have been screaming from the highest gas canopy, “Foodservice is the future!” And while many have ventured down the path of food, just as many are still uncertain on what to do and how to do it.
Most of the uncertainty comes from lack of true commitment or ability to turn the knob from petroleum c-store retailer to foodservice establishment. But the fact still remains that foodservice is your future. And for some of you, it’s the imminent present.
Foodservice continues to evolve. Ethnicity, authenticity, variety and cleaner labels are a few areas that are drawing attention these days, and lately I’ve been impressed with the commitment from several chains that are making the right next evolutionary steps.
I have spoken about the three levels of foodservice in the past several years, and I am seeing activity in each area. Level one, “Foundation Before Differentiation,” is still where a majority of the industry is playing. Level three, “Nurturing Greatness,” has been achieved by several chains that have earned the distinct position of doing just that: nurturing how great they want to be. But where I see notable growth and attention is in level two, “Creating a Culture of Simplicity.”
At this level, retailers are paying attention to what works and, more important, what does not. It’s a painful stage. As one c-store president who is transitioning from level one to two puts it, “It is like changing a flat tire going 70 miles per hour.”
A major decision for retailers at level two is establishing the right execution platform. Many companies believe the next step from what I call “made to grab” is made to order (MTO). For some of the larger, well-established super-regionals, it could take tons of capital, years of redesign and training and major shifts in company culture and operational paradigms to make MTO work.
Small to midsize chains, meanwhile, have the ability to go to MTO, especially if they are handling fresh programs such as chicken or making cold sandwiches for grab-and-go programs.
But there’s another approach, one that I have seen coming on as a viable option: heat to order (HTO). It fits all the variables and competencies of our channel—in some cases, better than MTO.
Heat, Then Eat
Many of you have heard my take on rapid-cook ovens. It’s a great piece of equipment often used for the wrong application.
Several years ago, I got myself into a bit of a tizzy at a high-level meeting at a previous place of employment (shocker) when I asked, “Why do you want to heat something in 45 seconds so that you can hold it for 2 hours? It defies the laws of food science, and you will be forever limited to certain items.”
That did not go over too well, but it is the truth. Many chains use these ovens at max microwave—meaning you’ve purchased a very expensive microwave. What’s more, these unbelievable pieces of equipment are finishing ovens; it should be the last thing food goes through before being handed to a customer for immediate consumption, crispy bread, melty cheese and all.
Just look at coffee shops and supermarkets, two of the most rapidly growing foodservice segments today: They’re not doing MTO; it’s HTO. Most start with a fully prepared sandwich, distributed fresh or frozen based on the chain. Regardless, you have a lot more shelf life—days vs. hours—with a slacked product in the refrigerator than you do the hot slide. So for all you margin managers and waste hounds: Jackpot!
Of course, you now have the task of conveying this new culture to your customer, but everything from sandwiches, burritos and bowls to entrees, soups and snacks can be merchandised on the sales floor or stored behind the counter while communicating to your customer, “Toast me! Heat me! Eat me!” Sure, finished packaging is now an issue, but waste is also mitigated by this method.
I often kid about this industry of people I love and who have supported me over the past 20 years. I have seen this industry grow around foodservice with amazing stories of success—as well as failures, but not for the lack trying. It just takes some longer than others.
As you question how your own foodservice program should proceed, consider HTO. There will be a list of new challenges along the way—including “margin watchers” turned “sales prevention team” who won’t fully stock shelves. But many will progress, as many before them have, and we will continue to scream from the highest gas canopy, “Foodservice is the future!”
Joe Chiovera is a former c-store retailer and current president of emerging channels and innovation for Buddy’s Kitchen Inc. Reach him at joe@buddyskitchen.com.
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