Most convenience stores that have embraced the foodservice category and have invested heavily in the operational side of the business, have also attempted branding.
By Steve Sandman
During the last 15 years or so we’ve heard the drum beat that the key to a successful c-store operation is foodservice.
There’s proof in the numbers. For example, foodservice in convenience stores accounted for 33.7% of gross profit dollars in 2015, according to the National Association of Convenience Stores (NACS). Essentially, there are a lot of customers buying prepared food within the c-store channel.
There’s also certainly been dramatic improvement in the quality of c-store food and service, and I have been thoroughly impressed by the innovations such as ordering at the pump, apps to order and actual preparation of fast food right in the c-store.
But where’s the branding already?
If I think of the thousands and thousands of c-stores I’ve walked into both as a supplier and as a consumer, I can only easily recall two brands: Big Gulp and Polar Pops, and they aren’t even food.
Where’s the Fast Fries, the Fresh Fries or the Free Fries?
RELATING TO A BRAND
Most convenience stores that have embraced the foodservice category and have invested heavily in the operational side of the business, have also attempted branding. Consumers relate to a brand as part of their identity, and as such, brands are sought-after commodities when a customer decides to open their wallet.
So why the struggle to be successful within our industry to capture the loyalty of the foodservice customer? A customer that would like nothing more than to ask for their product by name?
Building a brand, particularly in food, is not an easy thing to do.
Food is considered a commodity until it’s branded. A tomato is a tomato until it’s called Red Gold Tomatoes. Keen packaging that stands out, which implies the product you’re selling is a better choice, is also critical to success.
Training your staff to refer to your brands, and advertising them at every possible opportunity provides impressions to the consumer that translates into brand recognition and long-term success for a product. Your pumps, your employees’ attire and your receipts are all avenues to increasing the branding impressions your consumer sees in and out of your store.
Branding helps distinguish you from your competition, but it can be tough to do within a convenience setting. It takes much trial-and-error and sometimes a significant capital investment.
For instance, Pilot Flying J in 2015 launched a fresh brand identity campaign as part of its commitment to improving life on the road for its truck-driving patrons. The initiative included offering a variety of healthy food selections, a high-quality collection of hot beverages and a $100-million investment in building upgrades.
The campaign included promotion of the company’s PJ Fresh Marketplace program, which offers fresh, healthy and high-quality meal choices such as home-style meatloaf and roasted chicken.
Of course, you don’t have to commit to that level of expense to distinguish your foodservice program. But there has to be a certain level of commitment to realize a certain level of success.
EQUITY, LOYALTY AND IDENTITY
You’ve probably already taken the time and effort to make your foodservice a focal point of your stores, you’ve invested the money it takes to produce a good product and train your staff, so doesn’t it make sense to brand your products and own it? This prevents your competitor from copying your idea and profiting off your efforts. Brands build ELI: equity, loyalty and identity.
The last concept—identity—can differentiate your foodservice program. If your foodservice is marked by your c-store’s identity and vice-versa, and is compelling, it can attract a profitable number of devoted consumers.
For this consumer, I can’t say I know every single item my local Circle K sells inside the store, but I sure know where to go for a Polar Pop.
Steve Sandman has worked in the tobacco and convenience store industry for more than 30 years, most recently as the president of Republic Tobacco. His extensive experience includes product management. He can be reached at (812) 569-1388.