In March of 2020, the COVID-19 pandemic changed the way we all approached our lives. In conjunction with that, consumers adapted their way of life and operators of convenience stores had to adjust with it.
Over the last four years, convenience store foodservice has evolved and continued to be tweaked. We are now finally moving into the “Next Normal,” which is very different from the old normal of 2020 and before. There are numerous big adjustments that are part of the “Next Normal.”
Here are six adjustments c-store foodservice operators should consider making in 2024.
From Kinetic12’s Q1 Emergence Restaurant Foodservice Group Report
1. Driving and Maintaining Traffic
It is a common theme to mention traffic as the No. 1 issue facing foodservice today. Consumers have numerous options on where to spend their money.
Multiple factors affect their decision, and it is up to operators to find a way to get them to their stores, but also to keep them coming back. Clearly convenience is a factor, but that is not about loyalty and meeting consumer expectations. Consistency remains at the top of what a consumer wants. If you can’t execute consistently, consumers will choose to go elsewhere.
A major factor for 2024 is now team engagement, a happier staff and improved hospitality. If consumers are going to pay for foodservice, they want to be treated well and in an upbeat environment.
From Kinetic12’s Q1 Emergence Restaurant Foodservice Group Report
2. Creating Differentiation
Convenience store foodservice operators must re-evaluate the value proposition at their companies. There is so much more to value than price.
Consumers are looking for many different things when it comes to value, and what makes you different is at the top of their list. Consumer needs are very different when it comes to value. Price is definitely a factor, but so is portion, quality, service and the overall experience. What makes an operator’s pizza or burgers different than the competition up the street? Saying you are better is not the answer. Identifying the differences and being consistent with those differences will be what entices consumers.
3 Leveraging Suppliers
The relationship between foodservice operators and suppliers has changed, or at least it should have. There may still be some transactional relationships, but overall operators and suppliers have truly become partners. It benefits both parties.
Great communication and total transparency are a must. The consumer will not support inconsistency in the quality of a product or coming to get product and it is not available. Products must be kept in stock and if there is an issue, suppliers must communicate the issue and have a suitable back-up in place. Suppliers must also support product innovation and supply current data to support operators as they grow.
From Kinetic12’s Q1 Emergence Restaurant Foodservice Group Report
4. Embarking on Menu Innovation with a Focus on Profitability
Foodservice operators have always looked at loss leaders to drive traffic. Operators have now learned that more thought has to be put into this mindset.
Profitability must be the major component of menu innovation and limited-time offers (LTOs). This requires a more creative approach as menu items must taste and look great and be priced competitively. There is no need to give away products to entice consumers. They will come if an operator is innovative, and the bottom line can be there.
5. Creating an Effective Workplace Model
There is a tendency to talk about culture very loosely, but a great culture is earned, and it starts with a company’s leadership.
An effective workplace in 2024 is comprised of a team of employees who are happy and enjoy coming to work. They are trained well and given the opportunity to work multiple stations and be rewarded for being more valuable. They are encouraged to provide input to their bosses and have a direct bearing on the interaction with customers. They care about consistency of product and the overall guest experience.
From Kinetic12’s Q1 Emergence Restaurant Foodservice Group Report
6. Developing a Mindset of Efficiency and Cost Control
So much time has been spent dwelling on problems such as labor shortages, lack of innovation, excess competition, consumer needs for better value and so much more. These are all issues that have solutions, but there is no solution if profitability is not top of mind.
In 2024, convenience store foodservice operators must become more productive and efficient. It is not about the number of employees working, but the quality of employees. They can do more with better training and easier ways of doing things.
Consumers also can share in making that happen. Consumers can place their orders and pay via an app or kiosk. This creates efficiency and ultimately better cost control. Profitability is what leads to success and growth. The results come from being efficient and not by raising prices.
Bruce Reinstein is a partner with Kinetic12 Consulting, a Chicago-based foodservice and general management consulting firm. The firm works with leading foodservice operators, suppliers and organizations on customized strategic initiatives as well as guiding multiple collaborative forums and best practice projects. Join the Emergence Convenience Foodservice Group and get two detailed reports per year and the potential to attend Kinetic12’s April and November foodservice forums. For more information: Kinetic12.com or [email protected].
