Putting Foodservice in Front

At the July Convenience Leader Vision Group meeting, NACS Global Director Mark Wohltmann talked about current global trends in convenience and fuel retailing. One of his important points was that to be competitive in the future, convenience retailing must be about hospitality — how the business is presented and how the customer is treated. 

Mark talked about several important hospitality factors, ranging from décor and customer service to ambiance and presentation. The key takeaway was: If you are going to be in the foodservice business, you must look like you're in the foodservice business.

[Check out the Vision Report containing Wohltmann's presentation and the forum discussion.]

The big-budget examples were companies like YPF in Argentina, which has developed a convenience store café and restaurant program at a fuel site that has workspaces for remote workers; Shell's European division and its Shell Café creation, which they are opening in standalone facilities without fuel; and PTT, the national company of Thailand, which has created a coffee shop program called Café Amazon (not related to the online delivery company) that has become the sixth largest coffee shop chain in the world.

These are examples of companies putting their food where their mouth is.

One of the insightful comments during our meeting was from Joe Sheetz, executive vice chairman of Altoona, Pa.-based Sheetz Inc., who said they will never build another convenience store that does not have restaurant seating inside. Joe said the seating arrangement is not about having a place for people to "hang out." Rather, it tells customers that Sheetz is serious about being a food provider and reinforces Sheetz's commitment to high-level professional foodservice instead of having a food program that is an afterthought or an add-on to a traditional c-store offer.

Even more fascinating was Joe's observation that having a lot of restaurant seating, similar to what you would find in a quick-service or fast-casual restaurant, has created a quality food "halo" over the entire business and helped customers understand and appreciate that Sheetz is a "food first" location.

Annie Gautier, co-CEO of Mansura, La.-based St. Romain Oil/Y Not Stop, said the same thing: that they are building their stores with 30 to 40 seats for diners. This feature has helped them grow their foodservice program to where it is doing annual six-figure sales per store.

As the competition for customers continues to get more difficult and the battle to attract people into our stores heats up, foodservice is going to be a critical component of your store becoming a destination rather than just an emergency or convenience stop. If you want foodservice to be successful, you've got to prove to your customers that you are serious about it.

So, what do you do if you don't have the capital budget of Shell? Here are some starting points:

• First, and foremost, you have to have a quality food product that is consistently served. It doesn't matter if it's sandwiches, pizza, fried chicken or barbeque, if your food is bad, nothing else is going to help. Use the best ingredients you can afford, create standard recipes that can be easily followed, manage portion control, and train your staff not only on how to make the item but that every item must be perfect every time.
   
• Your location must be spotless. This doesn't apply only to your foodservice prep and serving areas, but to every place on the property. Start at the street and work your way in: the fuel islands, the parking lot, the sidewalk in front of the store, the floor, the sales counter, the cooler doors and shelves and, most importantly, the toilets. A dirty restroom is the same thing as telling your customers that your cooks don't wash their hands.
   
• Speaking of which, be obvious about your food safety precautions. Make sure prep counters and cooking areas are clear and clean, uncooked food is stored properly, and pots and pans are cleaned as quickly as possible. All employees must wear gloves and have hair covers. All surfaces, including countertops, dining tables and fountain drink stations, should be continuously wiped clean. Tables should be cleared as soon as they are empty, floors swept every 15 minutes, and trash cans emptied when they are 75% full. Clearly display all the required food safety certificates so that the customer has no doubts.
   
• Create a space in the store that screams "we are a professional restaurant!" Paint or tile the walls to create a visually separate area, make sure the overhead lighting is sufficient, have menuboards that are up to date and easy to read, and if possible, provide a uniform for employees to help them look professional. Each employee should have several shirts and/or a daily apron so that their clothes stay clean.
   
• Finally, create an additional reason, other than the quality of your food, for the customer to come back. Train and reinforce outstanding customer service so that each person ordering feels welcome. Create daily or weekly specials to vary up your menu, giving your patrons a chance to experiment. Install a loyalty program to encourage frequent visits, and constantly develop menu combinations that are value priced but increase your total gross profit dollars.

These actions will get the customers in your store and create the revenue. However, you still need to ensure that you are operating cost effectively. So, keep an eye on your spoilage and waste, track your inventory and product costs, and make sure that your staffing is appropriate for the amount of business you anticipate.

Like everything else, in foodservice, you have to look successful to be successful. Be bold about what you are doing and convey the message that you are in the food business.

If you do this, what they see will be what they get.

Editor's note: The opinions expressed in this article are the author's and do not necessarily reflect the views of Convenience Store News.