I think the value proposition is very
subjective in both retailers' and consumers' minds. What is low
quality to one could be good quality to another. It all depends on
the base you are comparing something against. To me, value doesn't
mean low quality and price together -- that I would call a waste of
money -- it means decent or comparable quality that I can live with,
at a price that makes me feel better because I saved some money.
I think many Americans are thinking this way, given the increasing
and ongoing proliferation of private label brands.
And Ralph, I've never seen food in real life look as good as in TV
commercials. Have you?
If we are going to examine Cstore Food
Service we also need to consider the segmentation of the Market. Am
I trying to attract the budget, fast fix, low cost customer or am I
wanting to differentiate my offer with food that my customers can
buy as a viable every day alternative.
There is a market for both, however trying to be all things to all
people will lead to dilution of your brand and confusion for your
customers. Food items are one of those things most people will not
compromise on basic quality (freshness), they do struggle to believe
that C-Store food will be as good as a sandwich bar no matter the
quality.
How one overcomes this perception when the majority of the
marketplace reinforces it is a challenge.
Joachim, as a former bp guy, I agree with
your analysis of the different types of food customers. However,
what bp in the US found with their Connect stores, which had a high
end (for C-Stores) food offering, was that it was very difficult to
attract enough customers who were looking for quality. Thus, the
change to ampm, which appeals, in the words of Clark Griswold, to
people who are "so hungry they would eat a sandwich from a gas
station."
As a consumer, it is rare that I go into a
C-Store looking for something beyond a snack with regard to food.
Mostly coffee or soft drink and a package or two of chips or candy.
As fast food restaurants continue to venture into the C-Store/gas
station environment, travel stops have more to offer. Who doesn't
prefer a Wendy's single to a packaged/microwave alternative?
Never underestimating the power of
non-traditional marketing
I know in the Midwest c-stores have turned
a corner to provide fresh and healthy choices. Fresh made sandwiches
instead of prepackaged on the shelf for 4 days. Plus fresh fruit
choices along with more brewed iced tea choices. C-stores have to
take a new approach to their food choices. I would pick a fresh
turkey & swiss and apple than anything from Wendys.
Fresh is best and when you ask where is it
going. It's going to the grocerant niche filled with prepared fresh
foods. www.grocerants.blogspot.com Success does leave clues you will
find more there!
But from a consumer's perspective -- how
does he or she know whether that turkey and swiss sandwich has been
sitting there for four days, or was fresh made this morning -- how
can retailers push the concept of fresh?
I think all quality standards have gone
out the window as corporate c-store operators divest and sell sites
to jobbers...who in turn put in dealers in place interested only in
slinging gas. There are literally thousands of sites affected. Not
only foodservice...but anything requiring an opearating standard or
capital expediture. Look at the conditions of the car washs east of
the Mississippi...yikes. Those who own and operate their own sites
that are not "for sale" still have a decent quality standard...as
long as you like food drowned in mayonaise:) Sheetz and Wawa
maintain a high standard and get great traffic with the brand and
product offering the have created over time. People do not think of
those sites as a "gas station". Hess, Sunoco, Mobil, Circle K...not
so much. Pre-packaged goods with an occassional hot pizza offering
of something...their brand is "gas station".
Owner/ Business Broker, County South Business
Brokers, Winkie & Associates Realty, Inc
Over the last few years I have been amazed
at the lowered quality in some stores, but I must say that I am
equally amazed at the fantastic customer service and quality of
others. It seems to me that individuals still make all the
difference, whether it is the independent owner, a jobbers dealer,
or a employee Manager. Any of these can do a superb job in the
communites that they serve and the experience for the customer is
good. Give a manager who truly cares some authority and watch that
store be successful. It doesn't really matter what company or brand.
We have just done a huge study on this
issue looking at things from the perspective of the consumer. We
look at what people are going to the c-stores for, why they chose
one store over another, satisfaction, etc. Pulls out some really
intriguing findings.
The credibility issue tends to loom large.
Grocers and retailers had similar issues with instore foodservice
program. Many failed to realize much in the way of potential. The
ones who continue to do well share some common traits:
-commitment to the foodservice piece; culinary people on a corporate
level driving programs (not category managers who are easily wowed
by vendor promotions)
-clustering instore programs by demographics and volume, avoiding a
one size fits all approach but staying consistent to core signature
items
-effective merchandising, marketing and display characteristics
-Balance the fried offers out
I'm not sure the quality, flavor and focus
on consumer satisfaction has gone away. I would argue, has it ever
been there? I believe that if you looked at c-store foodservice from
a product lifecycle perspective, it is still in the growth stage -
largely based upon the profits that foodservice can command. It is
not easy for a c-store to get in the mindset of behaving like a
restaurant. I think once this happens, c-stores will be part of the
consideration set for infrequent users.
Billy is 100% correct in that who ever is
in charge of managing the food service program at a c-store location
is the key. Having spent the last five years selling high quality
branded concepts and foods to the c-store market, I can pretty much
tell in the first minute if the account will succeed and it all
comes back to people and execution. Those who care about their
customers and the quality of their food service experience will
become the destination point in their area. A clean store, clean hot
food case, a clean menu board, a clean kitchen and clean employees
give a customer confidence in their buying decision and generates
repeat business. Those factors are not unique to the c-store
vertical, QSR, Quick Casuals and other chain restaurants battle the
same issues, not every McDonald's is well run, clean operation.
I walked into a Thornton's QuickCafe and
was delighted by the layout of the coffees and isle cold case with
fresh sandwiches. I am in the industry, so it is my business to
record these changes. I am impressed. My wife? Three kids. Will not
go into a c-store because, well, the three kids will trash the
place. If the c-store had a drive-through OR (big thinking here)
staff would actually bring the food to her while she pumped gas THEN
she may consider returning. I think this is the real advantage that
a c-store (w/gas) can bring to the table when competing against a
QSR. It also would help convert non-users to "believers." Few
non-users will appreciate the Fast Casual-like Thornton's if you
can't deliver on the basics.
I happen to spend quite a bit of time in
C-Stores training managers and their staff on our Mexican Express (a
enchilada that is placed in a warmer as a grab-n-go item) and
introducing their customers to the new item. What I have found is
that the consumer does still appreciate a higher quality item when
it is at the right price point. The consumer grabbing lunch in a
C-Store is normally budget conscious and on the run however like all
of us, still wants the best value for their hard earned money. I
also know unless it’s a younger person on a very tight budget
without many choices they are not going to be back, at least for the
product that does not meet their quality expectation. This game is
going to be won by the C-Stores that have the higher quality items
and provides them at a price comparable or below the fast food joint
down the street.
This issue has been going on for years in
this sector, many ideas/brands have come and gone. biggest issue is
putting a square peg in a round hole. Retailers trying to be
Caterers and vice versa...we at Wrapped dot com, have designed a
product to fit the need for "no brainier" hot food to suit the
C-Store structure, with low risk to Health & Safety, Chill chain,
not frozen, packaging to allow longer holding times and very high
levels of spice/taste to allow for deterioration during cook off and
holding times. Abuse factors are built in, as staff have little real
time to present a branded product in it's intended launch state.
chilled product with 8 day shelf life is a starting point, with fast
re generations time. same issue world wide. even our Dubai locations
about to go into Forecourts suffer same old issues, guess this
proves one thing. Retailers will never understand Food service
brands!
