How Can Independent C-Stores Compete on Foodservice?
In todays marketplace, small independent stores must step up to the plate on food to take their business to the next level. For small and independent convenience store chains, todays competition is steeper than ever. These stores often find themselves competing against large chains with greater resources to implement the latest and greatest programs, especially when it comes to foodservice. But despite the competition, small chains have a big opportunity to grow food sales, if theyre willing to make the leap into foodservice. To become a strong player in todays convenience store industry, its imperative that chains feature a strong foodservice program. That doesnt mean the program has to be costly or difficult to operate, but it does need to feature a quality food offering with a strong execution. Step one: do not consider additional foodservice for your store(s) unless and until youre willing and able to maintain your restrooms in a manner that would pass the look and sniff test of the most discriminating customers. Even the best foodservice program cant achieve its full potential, if its sold at a location lacking super clean restrooms. With so many options today, customers wont look twice at a food offering sold from a dirty store or a store with questionable restroom cleanliness. To sell foodservice effectively your stores must possess friendly, smiling and caring employees that your existing customers and new customers can relate to. This comes down to hiring well, setting expectations with staff and training well. Again, beginning a foodservice program does not have to be costly. Start by considering the various types of programs. Set a meeting with your grocery supplier and have them explain all available foodservice programs. Consider a Stouffers/Marie Callenders-type frozen program whereby you might have daily specials that might include soup, lasagna, stew, chicken and biscuits, etc. as well as dessert offerings. If going this route, put on a free lunch for your employees and managers to get them excited about the launch of the program. Find out costs of equipment, leasing/purchasing rates, food costs and potential profits, margins, waste, rebates, ad money, free goods training support, and so on. NOTE: When making equipment decisions regarding roller grills or frying equipment, consider two medium-sized pieces rather than one large (that way when one breaks down youre not out of that business for days or weeks. Co-branded programs, for example Hunt Brothers Pizza, should also be considered. Todays co-branded programs are much simpler and more effective compared to earlier programs. These programs offer a recognizable name and food program that you can plug-and-play into your store. Make sure again, that you understand all the ins and outs of each program. When selecting the type for food you will sell, make sure to evaluate your market area. If theres a pizza restaurant down the street, you may want consider chicken. Make sure you know your customer demographic and the type of food they most want to buy. Make sure you have an updated premium coffee and cappuccino program in place months before the foodservice program rolls out. Quality coffee is the No. 1 draw for foodservice. With any food program, freshness is key. While you might save the cost of a few roller-grill items or two or three pizzas by selling them past peak, you risk losing your customers. And, if customers have a negative experience with your food, theyre likely to share that information with friends and family. Include the cost of waste in your calculations and ensure food is fresh. There can be no shortcuts in establishing a great foodservice program. Respect but do not fear this major upgrade to your store(s) and to your future.