In today’s marketplace, a carefully crafted, well-executed fresh foodservice program can transform your store from a pit-stop to a destination. In years past, fuel was everything, but that’s not the case today, according to Richard Hunt, corporate director of fresh/foodservice at Core-Mark International. “People left the fuel island to come inside, possibly for tobacco or a newspaper, but today food service plays a much more important role in getting people inside the store.”
Here’s a few ways retailers can take full advantage of this growing opportunity.
Customization
Hunt believes that when approaching fresh foodservice, retailers shouldn’t rely on broad research to appeal to different demographics, at least not without first considering the customers already walking in the door. “For instance, if there’s a store in close proximity to a major university or business center, that c-store’s customers may look different than an inner-city store’s customers,” Hunt says. “Foodservice in general will attract people into the store, but retailers need to create offerings that will attract their local demographics.”
He also recommends not overcomplicating what you offer. “A lot of times I’ll have an operator say to me, ‘I only have 12 stores. I can’t hire a chef.’ But you don’t need a chef,” Hunt says. “You just need conscientious employees who understand the basics.” With modern preparation and packaging technology, coupled with marketing support from distributors, foodservice doesn’t have to be overcomplicated.
Take produce as an example. Whole, as well as ready-to-eat, fresh cut fruits and vegetables are popular snacking items in the convenience channel. “The great thing about fresh produce is that most of the Del Monte® fresh fruits and vegetables naturally lend themselves to portability and snacking such as bananas, fresh cut pineapple, apples, fresh cut celery and carrots sticks”, says Dionysios Christou, vice president marketing, Del Monte Fresh Produce, Coral Gables, Fla.
Organizational Support
“C-stores that make a commitment to fresh offerings are more likely to elevate their image in the eyes of the consumer by re-engineering themselves into a food destination”, says Christou.
A common mistake retailers make is failing to designate someone at the store level to be accountable for foodservice. That person should be concerned with product rotation, shrink and spoilage management, food safety and presentation. “Last week, I walked into a major chain at 12:50 p.m., and the pizza warmer was empty and the roller grill had just two hot dogs on it, even though it’s probably the most profitable category in the store,” says Hunt. That’s less likely to happen if a specific person is given responsibility for these categories.
From the Outside In
It’s cliché, but people do eat with their eyes first, so retailers should focus on effective merchandising for fresh foodservice items. “If the store image does not portray freshness, customers will steer clear of foodservice,” says Hunt.
What’s more, perception starts the second customers pull into the parking lot. Are the pump islands clean and in good repair? Is the outside of the building in good condition and well lit? Is the refuse area clearly visible or fenced in? “More than 40% of decisions to purchase fresh food in stores are impacted by the state of the restrooms,” says Hunt.
John Koch, owner and operator of Rusty Lantern, a growing chain of convenience stores in the Portland Maine market, had this to say about fresh foods and foodservice in his operation: “By focusing on fresh foods and hot food to-go, we have seen a significant increase of in-store visits from customers who may had otherwise stopped in just for fuel. With the support of the Core-Mark sales and foodservice team, we are able to offer fresh food prepared to order as well as an upscale hot beverage offering. Customers are clearly receptive to a clean well lit, open environment, with modest space for seating and modern, digital menus. We are developing into a destination rather than a ‘stop-off’ point”
All of those seemingly unrelated factors can have a big effect on the success of a foodservice program. Hunt also says that as the industry evolves, c-store operators would do well to view their facilities as restaurants with fuel pumps in front of them. “With shrinking margins in tobacco and price pressure on fuel,” he said, “foodservice plays a critical role to the profitability of the store.”
This post is sponsored by Core-Mark