As foodservice garners a greater focus in c-stores, new equipment upgrades are making the category hotter.
By Anne Baye Ericksen, Contributing Editor
When Parker’s recently renovated Parker’s Market Urban Gourmet, its flagship store in downtown Savannah, Ga., one of the primary objectives was to create the space to showcase its expanding foodservice offerings.
“We listened to what our customers wanted, and we obliged,” said Amy Lane, chief operating officer for the convenience store company based in Savannah.
Parker’s owns and operates 49 retail sites throughout Georgia and South Carolina.
“We added a double panini grill and a full-service Hussmann brand salad bar. We also upgraded our hot grab-and-go display warmer to a Vendo double-door hot merchandiser.”
In addition to panini, menu highlights now include customized, freshly-made salads, jumbo chicken tenders, and the Southern classic comfort food, macaroni and cheese.
Making more room for foodservice continues to be a top trend for convenience stores as owners and operators seek ways to capitalize on people’s changing dining patterns.
“Consumers have changed how we shop. There are still box stores and warehouses for the staples and standard items, but we’re finding more people are buying actual meals on a shorter-term basis instead of shopping for a week’s worth of meals. Convenience stores are where grab-and-go is the top function,” said Deirdre Flynn, executive vice president for the North American Association of Food Equipment Manufacturers (NAFEM).
According to the “What’s in Store 2017” report by the International Dairy-Deli-Bakery Association (IDDBA), less than half of grocery and consumable product sales in 2015 took place in grocery stores. Mary Kay O’Conner, IDDBA vice president of education, recently told Food Business News that convenience stores are responsible for part of that migration away from traditional shopping practices.
Moreover, the IDDBA reported recently that food sales in the convenience store channel are projected to reach $89 billion by 2025, a 3.5% increase over today’s figures.
FOCUSING ON FUNCTIONALITY
This momentum shift has prompted many in the industry to devote more retail real estate to foodservice. But such commitments extend beyond just adding items to hot and cold menus. These decisions also must calculate for the type, size and functionality of the equipment required to serve hungry customers.
Not that long ago, the typical cadre of foodservice equipment common to c-stores consisted of roller grills, microwaves, coffeemakers, carbonated beverage dispensers and frozen beverage machines. Now, in order to provide customers with fresh meals, businesses are incorporating everything from full kitchens to fryers or high-tech ovens to cold displays as well as soft serve ice cream and milkshake machines.
“We need to be able to prepare and sell more food in less space,” said Paul Servais, retail food service director for Kwik Trip. Based in La Crosse, Wis., the c-store chain operates 515 stores in Wisconsin, Iowa and Minnesota. “Currently, we are testing new high-speed ovens. High-speed ovens that use less space in the kitchen and display cases that take up less space on the sales floor are important.”
In fact, size is one of the top criteria of whether a certain type of foodservice equipment will pay off for a specific site.
“It must make sense in terms of how it is laid out in the traffic flow,” added Flynn. “Convenience store space is smaller and customers are quick in and quick out, so you have to make sure people have the room to work and the equipment has room to function.”
MARKET REACTION
But convenience stores are not just smaller restaurants. It’s not solely a matter of shrinking existing technology to fit into the smaller footprint. C-stores’ foodservice requirements have become more specialized, and according to Flynn, equipment manufacturers are responding to this market segment.
“I think the industry has caught up with the understanding that all the ancillary businesses, such as convenience stores and colleges and universities, are a completely unique experience,” Flynn said. “Manufacturers are focused on those experiences and how to make experiences better for operators so their customers are happier. Manufacturers are addressing how they could try something new to change the equipment in the c-store environment.”
Some of those adjustments were on display at the annual NAFEM Show this past February.
“Electronics and technology are key components to all newly-designed equipment. Greater energy efficiency is a focus, such as allowing the machine to start/stop, especially with equipment that has to come to temperature, so it’s not zapping energy at peak hours. Also, the equipment design is multi-use and multi-functional,” said Flynn. “[C-stores] want flexibility so if they need to change items to respond to customer requests or needs in the market, they do not want to retool their entire kitchen.”
An example of multi-function is the hot grab-and-go design Parker’s selected for its recent remodel. According to Lane, the machine features six heating zones that can be individually adjusted and low-airflow, dual circulation fans to help maintain even temperatures.
“These well-lit, attractive display cases have plenty of room for custom graphics or logos that increase the aesthetic appeal and ‘impulse buy’ sales,” Lane said. “There is equipment available now, Ovention Ovens being one brand, that allows you to cook various types of foods, such as pizza, sandwiches and proteins in a very short time without sacrificing the quality and taste of food. This equipment helps with giving fast service that convenience store customers expect.”
Many new design features incorporate modern controls, including the Internet of Things (IoT) that enables remote monitoring or sensors to optimize energy usage. Other controls offer memory or presets. The NAFEM Show also revealed that manufacturers are keying in on specialties, such as breakfast or cold treats. For example, the Dual Egg Station, from Antunes, was named to NAFEM’s “What’s Hot! What’s Cool! List.”
The compact station uses heat and steam to cook eggs in less than three minutes in a patty shape, for breakfast sandwiches. It also boasts a griddle to warm meats. Conversely, Carpigiani’s 153 Plus model is a countertop soft-serve machine than can also be used to dish out sorbet for customers looking to satisfy a sweet craving in a healthier fashion.
Indeed, foodservice equipment designers are addressing the growing demand for better-for-you options. Numerous market research efforts have concluded younger consumers in particular are pushing retailers to diversify their food offerings to include healthier selections. The NPD Group estimates that fresh food consumption by Gen Y and Gen Z should increase by 7.5% and 11.1%, respectively, by 2018—compared to 2013.
“There’s less focus on frying, and less oil on the products that are fried. Technology is focusing on various cooking methods and how to bring out flavors,” said Flynn.
OTHER CONSIDERATIONS
Besides size, use and output, durability is a key consideration.
“Maintenance, ease, speed of cleaning and minimal downtime [are very important],” said Servais.
Arguably the most important component of a solid foodservice program is the staff that makes it function.
“Every industry and every business has a certain amount of turnover, so the ability to train employees on how to use it and clean it [should be of concern] when looking at equipment,” said Flynn. “The more complicated a piece of equipment, the longer it takes to use and clean, and the more time it takes staff away from customers. C-stores want something that is going to withstand a lot of use.”