Food is the Future, now, today, this week…..

Jeff Rogut
CEO AACS
At various times I have said that food is the future for our industry. It was really interesting to hear this said at the recent NACS Show in Atlanta. “Food. It’s essential to existence — not just in the broader sense as humans, but also in regards to the convenience store industry. That was the message Jack Kofdarali, chairman of NACS, the Association for Convenience & Fuel Retailing, relayed at the 2016 NACS Show. Addressing a standing-room-only crowd during Wednesday’s general session, he recounted growing up in Lebanon and the roles that food and meals played in his family. “Meals were more than about eating; they were a celebration,” he said. “I treasure those moments.”Today, convenience store retailers must put an emphasis on food as challenges arise in other product categories. But they will have to fight for the food business — fight for customers and fight to tell their story, according to Kofdarali, president of Corona, Calif.-based J&T Management Inc. Not that long ago, food was a choice between something delicious vs. something fast. However, Kofdarali said as he’s traveled the country — and the world — as the 2015-2016 NACS chairman, he has seen this changing within the convenience channel. He called his journey an “eye opener.” “So many retailers are executing food at a high level,” he said, pointing specifically to taste and quality. “And it’s making them money.” Notably, c-store operators in the Northeast are selling twice the amount of prepared food, two and half times the amount of coffee, and three times the amount of alternative snacks than the industry average. Kofdarali also cited the level of execution he found in European stores. “You can’t beat food that is both fast and delicious,” he added.
Source: Convenience Store Decisions.
For now for today, for this week……
Having recently visited a number and variety of stores in London, Amsterdam and the USA as part of the AACS Overseas study tour, there are a number of noticeable insights for our industry:
• For now, for today, for this week – stores are being formatted to surround customers with products for immediate consumption or needs e.g. particularly fresh bakery, coffee etc, followed by products for later use e.g. meal solutions, and then for later use, such as grocery etc
• Self scanning is growing
• Electronic shelf labels are starting to be used more widely
• Fresh and local are key messages
• Alcohol is widely available
• Various new store formats are in use eh neighbourhood, uni campus etc as well as payment formats e.g. no cash, cards only
• Alliances continue successfully e.g. BP/M&S, but also self developments of new food stores e.g. Deli by Shell
• Fresh can mean delivered fresh, not necessarily prepared fresh in the store for c-stores, saving labour, time and space
• Quality and value is more prevalent than price e.g. no need to sell coffee for 80cents – rather compete on quality, and overall value of offers
• Self checkout is growing across all formats
• The store experience is vital. Whether in a c-store or supermarket. Retailers in Holland excel in providing and excellent experience through lighting, design and ease of shopping as well as freshness, excellent service and great value. A number of components that our local supermarkets seriously lack.
• All formats are concerned with customer convenience – making the shop easier, time efficient and offering fresh products as extensively as possible, becoming destinations rather than just relying on impulse sales or limited category reliance as we do with just tobacco and beverages.
The future for convenience globally is strong. Greater selections of fresh products, locally sourced, delivered or prepared fresh, meal solutions, salads etc as well as a reduced focus on products that we tend to stock in large volumes that take up space and require maintenance, but do not really sell in proportionate volumes.
We have terrific stores that can compete anywhere in the world in terms of standards and design. The opportunity is to accelerate availability fresh food ranges and become destinations for these rather than rely on impulse for their sale.