7 Tips for Retailers Expanding Into Foodservice
By Aimee Harvey on Aug. 10, 2017Consultant Jerry Weiner, formerly of Rutter's Farm Stores, shares his advice for convenience-store retailers expanding into foodservice ...
1. Keep it simple
“Chances of consistent execution are unlikely with a food item that takes more than three steps to prep.”
2. Make peace with spoilage
“The only way to have zero spoilage is to close the store. You cannot operate a food business and not have spoilage. Manage it to reduce it as best you can while still making money.”
3. Use bonuses to engage your staff
“Bonus programs are great when they’re done right. It’s a tool that can help you steer the boat. Apply it to areas of improvement, and employees will have an incentive to work toward those goals, whether it’s reducing spoilage or just driving sales.”
4. Bet on breakfast
“It’s the easiest way for c-stores to get into the food business. You don’t need a lot of SKUs and you can easily compete with QSRs and even full-service restaurants with a high-quality breakfast. Use it to create a good perception with customers.”
5. Sample, sample, sample!
“You can’t oversample. But don’t use samples to reduce spoilage. Only put out samples that are at their peak of quality. Otherwise you’ll risk losing future sales.”
6. Be nimble—and patient
“Introduce several new items every year to keep your food program fresh and avoid menu stagnation. But remember: Some products take years to develop. I wanted a Rutter’s signature sauce, and it took two years to achieve that.”
7. Identify the real competitive threat
“Everyone’s talking about Amazon and other online services as these huge disruptors to our industry, but keep your eye on drug stores. Once Walgreens understands the foodservice world, they will be your single biggest competitor.”