Foodservice stats, trends and takeaways dominate the closing sessions of the 2015 NAG Conference.
By Erin Rigik, Senior Editor
The fourth and final day of the National Advisory Group (NAG) 2015 conference kicked off yesterday with a presentation by Tampa, Fla.-based Study Hall Research.
The session focused on Study Hall Research’s “2015 Foodservice Perception Study” and was conducted by Josh Tahan, the group’s associate research consultant.
Among the many statistics and findings presented, some key takeaways included:
- Breakfast continues to be a target growth area because breakfast is an easier opportunity to stand out given that other dayparts are currently saturated. Snacking and late night are the new opportunity. One reason snacking is in demand is due to the rise of the Millennial generation, who are grazers, i.e., they eat small meals through-out the day instead of three sit down meals. Therefore dayparts are happening all the time.
- Transparency is a big need and it involves telling a story to customers. “Your customers are not going to research it, but they want to know what you’re doing and what’s in it and that you’re giving back to the community,” Tahan said.
- C-stores need to get customers excited about their brand.
- Customization and control are trends that are expected simultaneously with value.
- Portability is key. Customers are eating in cars and on foot and need something that fits with one-handed dining. They will choose foods based on how easy they are to eat. Things to consider are foods with logical, intuitive packaging that eliminate mess. “Why are French fry containers square? They don’t fit well in cup holders,” Tahan said. When it comes to eliminating mess, consider condiments: avoid shredded lettuce and runny condiments that can cause a mess.
- Sharability is also a big trend.
- The quality of sandwiches at c-stores is actually trending positively. It’s almost on par with what customers get in terms of quality from a grocery store and value from a QSR.
- Some 36% of respondents purchased food from a QSR and a drink from a c-store in the past 60 days. So people are piecing meals together from multiple locations.
Ideas Boot Camp
In a special session for NAG members, NAG Executive Director and Editor-in-Chief of Convenience Store Decisions John Lofstock and Randy Fulkerson, president and CEO of ABC Consulting Group, outlined 10 game changing ideas for retailers to use to boost profitability. Lofstock and Fulkerson traveled around Tennessee and New York earlier this year, visiting multiple chains, including Road Runner, Weigels, Twice Daily’s, Huck’s and Bolla Market, taking videos of their excursion in order to share tips with retailers.
Dr. Nancy Caldarola, general manager, The Food Training Group, concluded the boot camp program with important information about growing a foodservice program.
Caldarola noted that to improve foodservice sales take a look at the menu and determine what needs to go away; revisit the menu continuously. Consider doing a weekly foodservice inventory and (profit and loss) PnL on a four-week basis. “That puts you on the same playing field as other foodservice organizations so you can make comparative decisions,” she advised. “The sooner you start the sooner you get control.”
It’s crucial to consider what your foodservice program stands for, what signature products you have and why guests should remember you.
“When I came to this industry in 2010, I was asked to do a study for Wawa and they were asking for the latest trends. In 2010 ‘craveabilty.’ It’s the same five years later.
We have a real opportunity in the c-store industry to go back and ask, ‘Am I creating a craveable product? What’s my signature item? What’s the signature item of Burger King? Of McDonald’s? Of Wawa? What is yours? People need to know what it is. These trends we’ve been hearing about and they are only going to grow,” Caldarola added.
While c-stores are getting better with training, they have to continue to stay on top of training and development in order to keep Millennial employees, who typically don’t stay with a company longer than two years.
“By then they’ve learned all they can learn from you, so they’re going to go to the next company. There is a lot of information about that. They want to learn and grow. You need to think about ramping up your training and think about what you can do to keep that person there. You are not going to get any bigger unless you have a management development program,” she said.
Lastly, data will help you make decisions when it comes to foodservice. For those who are just getting into foodservice, remember that it can take a good 2-5 years to perfect and profit from a program. “What are you willing to do to get there?” Caldarola asked.
NAG 2016 is set for Savannah, Ga. Sept. 11-14.