When mulling food packaging options, label appeal and on-the-go performance are important considerations.
By David Bennett, Senior Editor
At a time when consumers increasingly perceive private label, food retail brands as competitive with big-name brands in terms of cost and quality, innovative packaging solutions can add value to a convenience store’s take out food program.
At its simplest, packaging transports food and beverages safely and conveniently for the customer. If it were that uncomplicated, however, all food and beverage items would be vacuum-wrapped or poured into a plastic bottle.
Today, food packaging can serve multiple purposes beyond the practical aspect—to include helping a c-store sell its brand and communicating key concepts to consumers.
“Packaging is so important,” said Nancy Caldarola, education director of the NACS Center for Achieving Foodservice Excellence (CAFÉ). “Unless you’re showing the food, really showing the food as fresh—like you just made it—you’re missing the point, and that’s what I find many people doing.”
How a retailer handles its food packaging decisions can convey much to customers, in fact. “Packaging is about your brand; it’s all about your brand,” Caldarola said.
Prepared foods are popular options for divergent populations and genders, especially Millennial-age customers, whose food, beverage and foodservice segment preferences and behaviors seemingly evolve over a short span . Not surprisingly, retailer find that packaging comes into play as Millennials more frequently chose c-stores as their preferred provider of prepared foods.
When it comes to prepared food offerings and takeout items, how the item is packaged and how it’s presented is important element of a successful sale—especially when it comes to younger consumers.
IN SO MANY WORDS
According to research, there’s a clear opportunity for c-stores to grow patron visits and compete more effectively against grocery stores and quick-serve restaurants (QSR), including various age groups.
Study Hall Research, a quantitative research firm based in Tampa, Fla. that specializes in foodservice areas, recently polled more than 1,000 consumers of prepared food. According to the Study Hall survey, more than 64% of respondents purchased their snacks from a c-store, outshining both grocery stores and QSR by a wide margin. The study also showed that c-stores are holding their own in terms of foodservice during breakfast.
However, for prepared and take-out food items, packaging—labels included—are effective means of enticing customers, especially if the labels uses wording that conveys a message that you’re trying to send.
“We know from work in QSR that certain terms can impact how consumers respond to a product concept, to advertising messaging about a product, and so on,” said Rob Iles, partner and managing director of Study Hall. “And we know from our work in casual dining that language can impact trial interest and potential sales of food items. Some of this may be related to ingredients (which, if the customer doesn’t know them, can be a problem. An example: putting red quinoa on a menu may present a challenge. But in casual dining it may also menu placement and imagery.”
In terms of labeling on the package, the right phrase or a vivid description can go far in creating consumer expectations—almost as much as the food item itself, depending on preparation and presentation.
Iles said he routinely finds good and bad examples.
“Recently, one of our food clients taste-tested a sandwich item that included ingredients described as ‘roast turkey with creamy smoked gouda and garlic aioli on rustic multi-grain bread.’” Iles said. “Not long after that, I picked up a shrink-wrapped sandwich in a major c-store outlet and the label said ‘turkey and smoked cheese on wheat.’ Now which of those two is a customer more likely to be engaged by, or want to purchase and eat?”
More c-store customers are also looking for information on the packaging, Caldarola said. Such information might include date codes, length of shelf life and nutritional content. She explained that how such information is presented can be important in how customers perceive the freshness of the item. For example, instead of listing an expiration date, substituting a date informing a patron of when a food item was prepared might generate more appeal.
With consumers increasingly seeking healthier food options, the demand for nutrition information on labeling is becoming popular, according to Donna Hood Crecca, senior director at Technomic Inc., a research and consulting firm servicing the food and foodservice industry.
“Our research shows consumers are interested in transparency when it comes to foods purchased at restaurants, so the more information that can be provided, the better. We’re just working on an update to our “2012 Healthy Eating Consumer Trend Report,” but the 2012 report showed that 53% of consumers indicate that they would like restaurants provide more information about what’s in their menu items.”
ON THE GO
More studies show that off-premise food consumption has grown at twice the rate of on-premise consumption over the past five years. Commuters are continually looking for prepared food options that are enticing, affordable and can be immediately consumed.
According to Crecca, understanding packaging dynamics can assist c-store retailers deliver food offerings to better fit modern consumer preferences, especially when customers often take their meals inside a vehicle.
“Packaging that is easy to carry, maintains the quality and freshness of items and provides easy access to the items, which allows for eating on the go, can meet the needs of today’s time-crunched consumer,” Crecca said. “As many consumers may be driving, car-friendly packaging can also be appealing. From quick-service segment, an example is KFC’s Go Cups which are designed to fit in vehicle drink holders. A c-store example is the snack cups that Stewart’s Shops offer, filled with nuts mix and they’re able to be placed in a car cup holder.”
While packaging options vary, developing innovative solutions can pay off in sales.
“This is generally a bit easier for packaged goods and more difficult for prepared foods because the range of packaging shapes, sizes and options are fewer,” Ilse said. “And yet, we are amazed how different packaging can impact customer reactions and affinity for foods. And bigger or more expensive is not always better.”
Packaging and Suppliers
Often an effective packaging program doesn’t just include innovative retailers, but also trustworthy suppliers. If you are looking at packaging options, you might ponder these items before signing an agreement:
• Stock options that may fit your specs;
• New products in development that may work for c-stores;
• Minimum order size;
• Pack sizes and counts (case and inner), and how items are packaged/shipped (palletized, sleeved, boxed, etc.);
• Lead time for development of new packaging;
• How similar products are used by competitors in fast food chain restaurants, supermarkets, etc.;
• Confirmation that package meets appropriate compliance requirements (regulatory, insurance, etc.);
• Confirmation that only U.S. Food and Drug Administration-compliant materials are used; and
• Confirmation of what audits (food safety, etc.) have been performed and what scores were achieved.
Sources: Foodservice Packaging Institute and NACS CAFÉ