NACS SHOW REWIND: From Failure to Flourishing
LAS VEGAS — Many convenience retailers have launched new foodservice offerings they were sure would be a hit, and many have had their customers reject those offerings. Do those failures mean that c-store operators should play it safe and shy away from innovation that doesn't guarantee profit?
Not so, according to Ben Lucky, food industry veteran and senior director of fresh food development at Irving, Texas-based 7-Eleven Inc. Innovation is "evolutionary, not necessarily revolutionary," he said during a 2024 NACS Show education session entitled "Foodservice Failures That Lead to Innovation."
"If you haven't failed, you're not trying hard enough," Lucky said.
When taking stock of a foodservice failure, retailers can learn from it, pivot and eventually succeed. Lucky encouraged operators to think about what the foodservice landscape looks like to them, to their staff and to their guests.
[Read more: NACS SHOW REWIND: Fueling Customers' Expectations From the Pump to the Store]
"Why did they come to your store instead of somebody else's? And then when they're done, what's their satisfaction level? Are they thinking that that was a mistake?" he asked.
An individual product might fail, but c-store retailers should strive to maintain three key elements to long-term success: quality food, an inviting environment and stellar operations. Customers who believe they will have a good experience when ordering food from a particular c-store will feel lied to, and once trust is lost, it is not easily gained back.
"You have to deliver great foodservice consistently," Lucky said. "You can't lie to the customer."
An Eye for Quality
Ryan Blevins, director of food and beverage innovation at Powell, Tenn.-based Weigel's Stores Inc., shared a journey that the retailer took away from its "frozen, formed and flat" chicken tenders to its successful "fresh, farmed and flavorful" Dippin' Chicken program.
Weigel's operates 80 c-stores in eastern Tennessee, a dairy and a bakery.
An important first step was setting out a clear goal for the program: to improve Weigel's chicken tenders and be proud of the new product. To get there, the company decided to add in-store handbreaded chicken.
Safety factors related to raw chicken and the more complicated preparation brought a certain amount of anxiety, according to Blevins, but "we took the big approach and said 'let's go big or go home.'"
[Read more: Convenience Retailers Navigate the Ins & Outs of Menu Development]
He noted the importance of choosing the right supplier partner that would help Weigel's reach its goal. For chicken, the company chose the family-owned Springer Mountain Farms, which offered responsibly raised chickens with no antibiotics or hormones used, among other attributes. Most importantly, its chicken won blind tastings every time.
The success of Dippin' Chicken also depended on non-chicken factors such as oil quality, sauce flavors and packaging. Weigel's opted to shift to trays that are lidless while tenders are inside the warmer to ensure customers would see the quality of the new program.
"Customers eat with their eyes first," Blevins said.
This focus on visual appeal extend to Weigel's marketing. Blevins noted that Weigel's "really stepped up our game" to showcase food quality and advised working with agencies to better showcase the menu.
Making Bold ChangesAKING BOLD CHANGES
At York, Pa.-based Rutter's, which operates in Pennsylvania, Maryland and West Virginia, the shift away from typical c-store basic items designed for "emergency" food situations and toward fresh, higher-quality selections came as growing consumer dissatisfaction highlighted a need for change and c-stores faced increased pressure to compete with quick-service restaurants and offer real meal solutions, according to Philip Santini, senior director of advertising and foodservice.
C-stores in general "were not doing a great job of listening to our consumers. We were not doing a great job of understanding their needs," Santini said. "And that dissatisfaction highlighted the need for change."
According to Santini, drivers of change include increased health awareness and global exposure to new cuisines, which have shaped consumer preferences and pushed c-stores to evolve their menus. Personalized food experiences, which have been driven by global trends and cultural influences, are now essential.
"It's really about a personalized food experience," he said. "I want to eat what I want to eat."
Rutter's responded to this changing marketplace by taking bold steps to innovate and offering a menu that caters to modern preference with fresh, high-quality meals that are made to order. Instead of focusing on traditional c-store offerings, the company turned to customizable meals, gourmet sandwiches and healthier snacks.
Technology also played a role. Santini noted that Rutter's was one of the first c-store chains to embrace digital technology both inside and outside of stores, with in-store touchscreen ordering and a mobile app providing quick, personalized service that boosted customer convenience and satisfaction.
"We're definitely a destination now," he said.
The 2024 NACS Show took place Oct. 7-10 at the Las Vegas Convention Center. The 2025 NACS Show will take place Oct. 14-17 at Chicago's McCormick Place Convention Center.
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