There’s a seismic shift afoot in the food industry. The power is changing hands from a few big food suppliers to the consumer. The old model was supplier-driven. Whatever was profitable and abundant was what consumers bought. In the convenience sector, this imbalance was even more exaggerated, generally equating to fewer choices and higher prices. The term “convenience store” used to have a stigmatic connotation, as consumers were expected to grin and bear it.
The confluence of technology, ever-increasing pace of life and a more knowledgeable consumer base are turning the old model on its head. People know what they want, how they want it and when they want it. With the push of a button, the food industry is becoming more consumer-centric. Convenience slanting in favor of the consumer can be seen industry-wide as takeout becomes a preferred dining mode, grocery and c-stores are being reshaped by grab-n-go and ready-to-heat or ready-to-eat offerings flood the market.
Responding to this change in the food landscape means taking a look at what it means to be convenient and consumer-driven. Taking a pragmatic approach to the ways convenience is being redefined can lead to more revenue. Can you afford to miss this opportunity for growth?
Expanding convenience menus
Subway made its mark as a fast deli concept, growing into one of the most franchised stores in the world. Doubling down on convenience with strategic partners has been part of its business model since day one. This explains why Subways exist inside gas stations and supermarkets in addition to standalone stores. Now, Subway is expanding its menu in another convenient and logical way. By partnering with other restaurants in the fast food sector, Subway is reinforcing the idea of convenience with variety. Their most recent endeavor, for example, led to Auntie Anne’s and Cinnabon developing a footlong pretzel and churro to accompany the infamous Subway footlong menu (and giving you another opportunity to get that “Five Dollar Footlong” jingle stuck in your head).
But Subway’s success doesn’t rest on partnerships alone, and neither does any convenience-driven food stores. A great sandwich starts with fresh baked bread. To maintain that from-the-oven warmth, stores that use built-in warming drawers will also find convenience on several levels. Warming drawers do not take up much space, a small footprint in valuable kitchen real estate. This makes life easier for employees, who can enjoy quick, easy access to the bread for building sandwiches. Commercial toasters take efficiency to another level. These workhorses can run hard all day long, with some models producing up to 2,000 slices every hour.
Growing convenience formats
Convenience stores and large grocery stores don’t have to be mutually exclusive formats. In Europe, traditional supermarkets create off-shoot brands to leverage their brand into high-density urban environments. Supermarket companies, such as Auchan from France, distill the essence of their massive brick-and-mortar stores into a more convenient version that fits into the ground floor commercial space of an apartment building. In the suburbs, Auchan sells everything from HD televisions to brie cheese. The brand, “My Auchan,” skews its offerings toward city dwellers on the go with bakery, ready-to-eat meals and other expedient food. “My Auchan” customers arrive on foot, so they need items that they can conveniently carry with them.
The strategy behind food display cases and merchandisers is more than meets the eye. Customers believe they are getting convenient access to goods they want to purchase. Sellers know that there is a direct correlation between the psychology of a customer and impulse sales – an important revenue stream. This psychology can be manipulated with the deployment of product, presentation, placement and promotion in display cases and merchandisers.
Developing convenience in last-mile logistic networks
Better-informed consumers have led to an increased demand for healthy food that is fresh and quick. Consumers want to know where their food is from and how it was prepared. What was once an oxymoron, “fast slow food,” is now increasingly viable as the supply chain becomes more efficient, especially in the last mile. German company Natsu disrupted the traditional grab-n-go grocery store segment by building a last mile delivery network from the ground up. Natsu delivers sustainable, healthy products like sushi, wraps and salads to over 2,500 grocery stores. Their standards of non-genetically modified raw food and peak freshness align with the core values of an ever-growing number of consumers.
The key to maintaining peak food freshness is maintaining safe food-holding temperatures. Technology like the Hatco Intelligent Heated Display Cabinet with Humidity is a game changer in this regard. By simultaneously regulating air temperature and humidity levels, the customer gets the optimal texture for food, a previously unheard of feature in convenience. Meanwhile, the unit’s 360-degree view and energy-efficient LED lighting ensure that pizzas or other food looks tasty and ready to buy!
Isn’t that convenient?
Hatco is dedicated to helping your grocery or c-store leverage its equipment in the name of optimizing cost and quality. After all, it is possible to be convenient and consumer-driven. Visit our website or find a helpful Hatco representative who can explore these opportunities with you.
