Innovation Roadmap: Foodservice Innovation
NATIONAL REPORT — While the stigma of "gas station food" still affects the industry, there are many convenience store operators who are putting in the work to change that stereotype once and for all.
The best retailers are focused on quality ingredients and made-to-order options that always give the customer just what they want, according to Jessica Williams, founder and CEO of Food Forward Thinking LLC, who previously led fresh food product development at Thorntons Inc.
When thinking about those in the convenience channel that do foodservice well, images of Media, Pa.-based Wawa Inc.'s hoagies, Ankeny, Iowa-based Casey's General Stores Inc.'s pizza, and Irving, Texas-based 7-Eleven Inc.'s dispensed beverage program spring to mind. However, successful foodservice programs are not exclusive to larger chains.
[Read more: Charting an Innovation Roadmap]
"Strong foodservice is perhaps more attainable for a chain with fewer stores than larger chains, actually. My advice is to pick one thing — whether it's burritos, pizza, chicken, pies, cookies, a local favorite — but just one. And do it very, very well," Williams said.
Case in point is Marcy, N.Y.-based Clifford Fuel Co. and the company's Cliff's Local Market chain. With 22 convenience stores, the small operator thinks big when it comes to its food offer.
"We have a robust, full-scale foodservice program," Derek Thurston, director of foodservice operations, told Convenience Store News, explaining that the category breaks out into three main segments. "Our beverage bar offers a variety of fresh brewed coffees, teas, lemonades, cold brew and slushies. We also offer our full-service deli, which has made-to-order subs, wraps and melts, and we have our pizza areas where we do pizza slices as well as whole pies."
Cliff's Local Market traces its roots back to Nice N Easy Grocery Shoppes, which went through a series of changes when it was acquired by San Antonio-based CST Brands Inc. in 2014 and again when Laval, Quebec-based Alimentation Couche-Tard Inc. acquired CST three years later.
"When I joined the company nine years ago, we branched out to become Cliff's Local Market," Thurston recalled. "I feel like we still have some of that Nice N Easy DNA in our brand. We're doing our own thing now, but Nice N Easy had such a great program to build off. We've established such a strong brand on our own, but occasionally you'll hear someone go, 'Oh, my God, they've got Nice N Easy food.'"
Not only is foodservice part of the chain's roots, but it also plays a key role in its future.
"When we build a new store, it is very food-focused. Our design is to really have a strong foodservice presence, so we build out our pizza area, our deli area and our beverage bar," Thurston added. "I work closely with the design team, and we set it up to be operationally efficient. Everything flows perfectly through right up to the front register where customers get cashed out."
Serving Up Opportunities
Innovation in foodservice comes in many forms, from dayparts to flavors to limited-time items. Limited-time offers (LTOs) are proving to be a big hit with customers at Cliff's Local Market stores in upstate New York. Currently, the c-store chain is embracing all things pumpkin with pumpkin parfait, pumpkin muffins, pumpkin coffee and pumpkin cappuccino among its seasonal offers.
"We're very LTO-focused, and we do them once a quarter," Thurston said. "Most of them work, but at times you have things that fall flat. ... You're going to have misses if you try it."
For instance, the retailer paired a stuffed churro with a chorizo burrito with mixed results. The chorizo burrito did great, but the stuffed churro did "just OK," he said.
On the other hand, its Three-Meat French Stack, which consisted of two slices of French toast, American cheese and ham, bacon and sausage, performed extremely well. "We did awesome. ... That was one of my best LTOs," Thurston reported.
Cliff's Local Market brings back LTOs that resonate with its customers. For example, the chain last year tested a summer salad with spinach, goat cheese, candied walnuts, blueberries and strawberries that did well. This year, it performed great, so it will return next year.
In 2025, Thurston plans to bring brisket-style smoked turkey to the menu — a product he is very excited about given the popularity of turkey in the chain's operating area.
"We're in the Northeast and probably 30% of every sandwich that goes out the door has turkey in it," he shared. "Turkey is very, very popular in our region and this was probably the first time I've seen some kind of innovation in turkey."
With the rise of made-to-order food, made-to-order beverages are also coming along at the same time, Williams pointed out. This is a new platform for many convenience retailers.
"Beverages, in fact, primarily drive the decision to purchase food in many cases, so wherever there is made-to-order food, watch for made-to-order espresso and energy beverages," she said.
Additionally, when made-to-order is not the best fit for a retailer, self-service beverage areas can offer some of the same customizable ingredients and upsell opportunities, such as cold brew, flavored syrups and creamers, she advised.
Some other foodservice innovation recommendations from Williams are:
- Brainstorm ways to make your unique platform stand apart.
- Look for cooking and holding equipment that results in the very best version of your unique item.
- Be sure to consider how to make the packaging work well for your product and for the customer carrying it away.
- As the majority of dispensed beverages are now sold cold, look for iced and frozen options to dominate when it comes to beverages.