Speedway Seeks Synergies

Convenience chain looks to parlay its success in dispensed beverages to prepared foods

Consumers have long regarded Speedway SuperAmerica (SSA) as a destination for hot and cold dispensed beverages. This year, the Enon, Ohio-based convenience chain is making a huge commitment to reinvent itself as a destination for prepared foods as well.

“There are synergies between prepared foods and dispensed beverages. We think the two go hand-in-hand,” said Grant Heminger, the company’s vice president of marketing. “We’re trying to convince our [dispensed] beverage customers to buy prepared foods, and our food customers to buy [dispensed] beverages. We believe it is the perfect time for us to be unique, and to use foodservice as a differentiator.”

To be viewed as “a bona-fide food stop,” Speedway SuperAmerica is placing a larger emphasis on foodservice, particularly prepared foods. Three years since launching its “Fresh from the Oven” program, the retailer is adding the hot food offering to every store with the space to accommodate it, according to Foodservice Director Jim Humphrey.

To date, the rollout has been completed in Ohio, Michigan, Indiana and Illinois. The program is currently in 850 stores — about one-half of its locations — and an additional 50 stores will be added over the next few months, for a total of 900 by year-end.

“Right now, it is not a concept that can work in every store,” noted Humphrey. “But we’re looking for creative ways to get it into stores that have limited space.”

Introduced as a replacement for Speedway’s former microwave program, Fresh from the Oven features grab-and-go breakfast and lunch sandwiches that are assembled and cooked on site in Turbo Chef ovens, and then merchandised in a warm display unit. Because SSA is buying the components and assembling them at the store level, the program delivers much higher margins than the microwave program did.

While the selection and price points vary per store, the executives said most locations offer six breakfast-sandwich and five lunch-sandwich varieties at one time.

Beginning this year, the c-store operator expanded its hot foods menu by rolling out pizza by the slice to every Fresh from the Oven store. The pizza, which also comes to stores frozen and pre-topped, is cooked by store associates in the Turbo Chef ovens.

“We think Fresh from the Oven communicates top quality to the customer, and because it is a madeto-stock, grab-and-go foodservice concept, it is the ultimate in fast. Many of our customers don’t have the time to stop for lunch. With this, there is no waiting whatsoever,” Heminger said. “Customers love the speed — and that’s what SSA is all about.”

Mirroring the busiest times for the rest of the store, breakfast is the retailer’s leading daypart for foodservice sales, although lunch is coming on strong, said Heminger.

The chain is still looking for a better way to capitalize on the dinner and overnight dayparts. Speedway continues to offer a few items under its Speedy Snack program, and has seen some success featuring cookies in the warm display case throughout the afternoon. However, both Humphrey and Heminger acknowledged these attempts are not enough, given that the majority of the company’s stores are open 24 hours.

The executives are quick to note, though, that a balance must be maintained when refining the selection to ensure stores don’t end up with too many items. Humphrey said this is a constant challenge — one that Speedway addresses by maintaining a baseline stable of menu items, and then cycling other products in and out every six months.

The approach appears to be working, as foodservice sales so far this year are exceeding the expectations initially set forth by the retailer. As the Fresh from the Oven program is rolled out to more stores, Heminger said Speedway is following up with special offers to its Speedy Rewards loyalty card customers. “As we learn what [items] our Speedy Rewards customers buy [together], we’re able to better target them,” he explained.

While obviously pleased with these results, Speedway wants to wait before moving on.

“Right now, we’re focused on making sure we’re successful with these programs,” said Humphrey. “A common mistake — and we’ve made it before — is thinking that we should start on the next big thing before we’re successful with the current thing.”

Heminger agreed: “We want to make sure these new programs are being executed to the highest level. We don’t want to just limp along. We want to do extremely well.”

For comments, please contact Linda Lisanti, Senior Editor, at llisanti@ csnews.com

Bottom Line

• Speedway is trying to convince its dispensed beverage customers to buy its prepared foods, and vice versa.
• Earlier this year, the chain added pizza by the slice.
• SSA continues to look for a better way to capitalize on the dinner daypart.