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!
