Crowd Listens Intently at Foodservice Fundamentals

A crowd of AWMA distributors listen intently during Foodservice Fundamentals.

Ira Blumenthal Speaks at the AWMA Foodservice Fundamentals Meeting

Ira Blumenthal speaks to AWMA distributor members on foodservice at the AWMA Foodservice Fundamentals meeting.

Distributors at Foodservice Fundamentals

A large crowd of distributors attended AWMA's Foodservice Fundamentals at the Dot Food Show.

Foodservice Meeting Draws Distributors to St. Louis

St. Louis drew an interested crowd to learn more about foodservice on May 6.

Convenience distributors and retailers are positioned at the vortex of a number of emerging trends that make them a formidable force, foodservice consultant Ira Blumenthal told an audience of more than 65 convenience distributors at AWMA’s May 6 “Foodservice Fundamentals” workshop in St. Louis.

Blumenthal is helping NACS develop programs for convenience store operators and has accomplishments that run the gamut from launching food courts inside supermarkets to helping Home Depot test food programs.  He said that while c-store foodservice represents only 2 percent of the whole foodservice market, that percentage has doubled from one percent five years ago, and could double again to four percent in the next few years.

AWMA’s “Foodservice Fundamentals” workshop took place at the Dot Foods Show in St. Louis, Missouri.

Quick serve restaurants (QSRs), or fast food outlets, know how to compete with each other, but are unsure how to compete with convenience retailers.  “Their biggest fear is not another QSR, it is the convenience retailer,” Blumenthal said. “Convenience stores typically have prime locations, understand convenience, and are at the center of the convenience trend.”

However, “there are some convenience retailers doing it (foodservice) right, but most are not,” he said, adding that there is tremendous opportunity for convenience distributors to bring their retail customers ideas, products, and programs.

Learning From the Fast Food Industry

He urged the distributors in the room to take a hard look at what successful quick serve restaurants are doing and to bring tried-and-true fast food concepts into the convenience store arena – no matter what level of sophistication the c-store is operating at.

One key QSR take-away is the idea of creating meals out of several items.  “It can be as simple as bundling a hot dog, a bag of chips and a beverage, or a sandwich, bag of chips, and a beverage.”

Other basics include making sure that retailers understand the importance of having clean food areas, and restrooms, and offering great service.  Research has shown time and time again that “you will return to a restaurant with average food and excellent service, but you won’t return to a restaurant with great food and lousy service.”

Other QSR takeaways include understanding day parts and occasion-focused offerings, being myopically focused on systems, and embracing a hospitality culture. 

Distributors also need to help their customers properly merchandise their food offerings, with attractive back-lit color photos and signage.

The Importance of Branding

Branding is extremely important in convenience foodservice.  If the store has an in-house brand, it needs to look like a real foodservice brand.  “You can’t just have “Joe’s Pizza” written on a paper plate that is glued to the wall.”
And well-known recognized branded food ingredients, such as hot dogs, lunch meat, bacon, etc., should be called out in marketing.

As an example he cited one fast food chain that was adding a well-known brand of bacon to its bacon cheeseburger and anticipating an 18 to 25 percent lift in sales because of the change and accompanying marketing.
 

Understanding Day Parts and On-the-Go Eating

Blumenthal said that understanding the customers at each retail location should drive product offerings.  A location where business people are stopping on the way to work should feature different offerings than a c-store right next to a college campus.

But one trend that crosses a wide range of demographics is the tendency of consumers to eat fewer smaller meals –- something for breakfast, a midmorning snack, lunch, and afternoon snack, dinner, and evening snacking.  Another such trend is the increase in on-the-go eating in the car.

“If people are eating most of what they are buying from you in the car, chili, while it may seem attractive at first, is probably not a great idea.”
 

Taking a Shot When Paradigms Shift

No one ever makes a basket unless they shoot, Blumenthal noted.   He urged participants to take one idea from the workshop back home and put it into practice.  
When paradigms shift, as they are currently in the world of convenience foodservice, everyone has opportunity, he said. 

“Many get paralyzed by their existing paradigms.”  That creates opportunity for those willing to jump into the fray and innovate.

As an example he cited Burger King’s dominance over McDonalds in college food courts.  When the first colleges began adding branded food courts to their campuses, Burger King – the number two overall to McDonalds by a long shot – jumped quickly into the market.  “Burger King now has 600 college campuses, McDonalds has 50.”