With rising inflation resulting in higher prices for ingredients and the need to pass those higher prices on to consumers, c-store retailers are concerned about how these factors will affect their foodservice sales. In fact, research shows that inflation is the No. 1 concern for many retailers.
Some retailers are reporting that as gas prices rise, foodservice sales decline because customers have less discretionary money to spend on food. Inversely, when gas prices go down foodservice sales rise.
To maintain customer interest, retailers must constantly provide new and interesting menu items and promotions. Despite keeping a close eye on every dollar, customer expectations for continued innovation in foodservice offerings remain high.
One way retailers can meet those demands without expanding their inventory is to find creative ways to utilize ingredients they already have in stock. For example, chicken tenders can be used as a pizza topping. Retailers can stuff pizza dough with cheeses, meats and condiments already being used for sandwiches.
Multi-purposing ingredients, especially lower cost ones, allows retailers to come up with tempting new ideas while staying within their price point parameters.
Ingredient suppliers can also be excellent sources of ideas for seasonal limited-time offers (LTOs) to keep foodservice menus fresh and exciting. Some LTOs are likely to be so popular that they may earn a permanent place on the menu.
Many consumers are most concerned about value rather than just price. They are willing to pay a little more for high quality and will accept smaller portions such as grab-and-go sliders and individual decadent desserts if the value incentive is there.
Inflation can also make loyalty programs even more attractive to customers, making this an excellent time to promote them. Cents off and buy one, get one offers for loyalty members appeal to their thrifty side. Also popular with customers are promotions to buy a set number of an item to earn one free — for example, buy six cups of coffee and get the seventh one free.