Larry Miller and Foodservice Panel

Larry Miller, Miller Management & Consulting Services Inc. moderated a panel of retailers, Jack Parker, Richard Oil Co./Popingo Stores, and Brent Taylor, Tetco Stores, Inc., in a candid discussion of how to build a foodservice program.

Photo © 2011 Gary Michael www.exposuresltd.com

A panel of retailers discussed foodservice success in the session Foodservice—What’s So Difficult?, moderated by Larry Miller, president, Miller Management & Consulting Services Inc.

Jack Parker, director of operations and marketing at Richard Oil Company’s Popingo Stores, told distributors they must provide a wide range of foodservice products and services if they are to meet the needs of retail operations such as Popingo’s 11 store chain, four of which offer inside prepared food.

They began with pizza and wings and have grown in scale and now offer hamburgers and breakfast. In effect, they are a restaurant, Parker said. By moving to a proprietary program, they’ve been able to lower costs while increasing the quality of the food.

Parker said for Popingo Stores, $2.2 million in food sales translates into $1.1 million in distributor sales, with a margin of nearly 50 percent. He discussed competitive forces that make getting into foodservice worthwhile, but cautioned that a successful operation requires commitment. You can’t just be a little bit into foodservice, Parker explained, and just carry chicken. Distributors, he advised, may need to be seen as “a Sysco” by their customers.

Brent Taylor, director of marketing and merchandising at Tetco Stores Inc. described some of the challenges that must be overcome to create a successful foodservice program, noting that the culture of the company is paramount and there must be a willingness of all departments to work through the change. Some may be out-of-the-box thinkers, while others are more old school, so you must find a way to marry the two, he advised.

Externally, vendors need to be on board with change as well, Taylor said. If that’s not possible, then create a smooth separation and find vendors that are good at what they do. In the case of Tetco, the company turned to a distributor that would think out-of-the-box, said Taylor. “Partners with the same vision are essential,” he stressed.

Retailers need to differentiate their brand and show how they’re different in the marketplace, Taylor emphasized. Tetco went with Americana for their store look, color pallet, brand names and logos. They have training manuals for each store and each product.

“Our success in the future is based on the success of food,”  Taylor said.

Miller wrapped up the discussion by giving examples of successful and some failed attempts at foodservice programs. But, he said, “If you’re not making mistakes, you’re not doing enough.”