As c-stores look to grow their foodservice offerings, pizza and chicken programs are helping retailers to drive sales and expand into new dayparts.
When Pak-A-Sak convenience stores added a Hunt Brothers Pizza program, the change to its foodservice program was like night and day — literally. While the majority of the chain’s foodservice sales come at lunchtime, the pies have allowed the Texas Panhandle chain to successfully break into the dinner daypart, according to Russell Barber, district manager for Pak-A-Sak.
Sixteen of the 23 Pak-A-Sak locations offer the Hunt Brothers program. Two additional stores, which will also feature the pizza, are set to open next year.
Breakfast has also greatly benefited from the addition of the Hunt Brothers program.
“We see customers not only purchasing our breakfast pizza, but regular and pepperoni pies, and (a Cheeseburger Pizza limited-time offer) as well,” he said.
Barber pointed out that customers are eager to try the limited-time-offer (LTO) selections every quarter. The LTOs also create a buzz among the stores’ employees.
“Our staff couldn’t stop talking about the chicken ranch or alfredo pizzas,” Barber said.
Growing Sales
The recipes for the marinade and coating may be secret, but it’s clear that chicken is a driving force behind High’s of Baltimore’s foodservice program.
“Fried chicken is one of the three cornerstones of our foodservice category, along with pizza and our own ice cream,” said Sherryn Diamond, director of foodservice for High’s. “Our chicken sales have increased between 20-25% year over year for the past five years.”
Currently, 17 of High’s 59 stores in Maryland, Delaware and Pennsylvania offer chicken. Every year, one to four additional stores get the chicken program, and it is set to be installed in remodels and new stores, stated Brad Chivington, senior vice president for High’s.
“When we roll the program out in existing and remodeled stores, we see a dollar-per-dollar gain in sales in fountain, groceries and other categories,” Chivington said. “It also generates a higher earnings before interest, taxes, depreciation and amortization (EBITDA).”
High’s fresh, never-frozen chickens are injected with a flavorful marinade then hand breaded with “a secret blend of herbs and spices,” explained Dallas Wells, vice president of foodservice, branding and employee development at High’s. “It is cooked in small batches in a pressure cooker for maximum juiciness.”
Fresh pizza sales have been increasing upwards of 40% year over year at High’s, reported Chivington. Forty of the chain’s stores offer seven- and 14-inch proprietary pies from front-and-center open preparation areas.
Despite the rise in food costs leading to an increase in consumer prices, pizza and chicken are holding their own at Kwik Stop Convenience Stores, which operates 26 stores in Nebraska and one in Colorado. While item sales in both categories are down 9% over a year and a half ago, dollar sales have risen 10%, said M. David May, director of food services for Kwik Stop.
“The price of fuel has a tremendous impact on our foot traffic in the stores,” May explained. “Customers weren’t coming in as much or buying as much when gas was approaching $5 per gallon, but now that gas prices are retreating, we’re seeing our store sales go up.”
To attract cost-conscious consumers, May always tries to have some type of meal deal combining chicken and a small side for a value price of between $5 and $8.
“We used to waste a lot of sides so even though I’m making less profit on the meal, at least those sides are not going to waste,” he noted. “At the same time, we’re getting customers to try something new besides the usual french fries, and sales of our specialty sides have increased.”
May noted that Kwik Stop is big on producing new items in its test kitchens for monthly LTOs. One that has just been introduced is a buffalo, pepperoni and bacon pizza with Frank’s Redhot Sauce.
Another original product is a pizza bite for which the proofed crust is cut into eight sections, topped and rolled up. The popularity of an original Buffalo Bite with cheese and Frank’s Redhot Sauce led to the addition of garlic bites with garlic and butter to the menu.
“We look at our existing SKUs and think about what we can make out of them that would be exciting,” May said.