C-store Operators Tap Into the Benefits of Branded Foodservice Programs
Two facts are converging to create an environment ripe for growing the category, according to Karam. The industry is moving away from a reliance on just fuel, and c-stores' footprint and operating structure create opportunity to build sales beyond the pump.
Why Choose Branded?
There are several benefits c-stores can realize by adding a branded foodservice program. The biggest advantage overall: A recognizable brand can get customers seeking a quick foodservice fix to stop at your store — and drive incremental sales in the process, Karam said.
"Operators have the opportunity to get a return on investment not only on the restaurant itself, but also at the c-store — [things like] fuel revenue, additional in-store sales — from customers drawn there by the branded concept," he explained. "It offers a way for operators to differentiate themselves, and to gain higher visibility and higher ticket on additional spend."
Results of Sbarro's quantitative research conducted in three cities with c-stores with Sbarro foodservice programs show branded concepts' profit potential: Customers visited the store one more time per week, 84% said they were coming because of the pizza program, and the stores realized $1.12 of additional revenue in-store for every $1 spent at the Sbarro, Karam cited.
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Benefits extend beyond the bottom line, too. Among them, the immediate credibility and trust that branded foodservice programs provide, according to Dee Cleveland, director of marketing for Hunt Brothers Pizza, headquartered in Nashville, Tenn.
"There is an ease of purchase when a consumer is already familiar with a brand," Cleveland said.
Branded programs also enable smaller stores to tap into the extensive knowledge and resources that larger brands have, said Katie Klaus, senior marketing manager at Beloit, Wis.-based Broaster Co.
"C-stores don't have to work through menu development, defining food safety practices and procedures, sourcing just the right equipment, or keep up-to-date on trends for LTOs [limited-time offers]. When aligning themselves with an established and reputable branded program, all these pieces should come packaged nicely together in a plug-and-play style format," explained Klaus.
"A branded program has done all the work a retailer does not have the time or resources to invest," Krispy Krunchy's representative echoed. "They understand what the customer wants and how to construct a menu that works as hard as possible for the c-stores in which it operates. It has vetted the best equipment, developed the best training programs and invested in building the brand's relationship with the public. ... Perhaps most importantly, better brands generate loyalty, which translates into greater traffic and increased take rates for the program."