Theevolving convenience store sector continues to find success with fresh preparedfood. Sheetz now describes itself as arestaurant with gas, Wawa describes itself as serving fast casual fare. In the case of Casey’s General Stores withready-2-eat fresh prepared food the focus is on Pizza. How long will it before they call themselvesCasey’s Pizza? When will restaurants orgrocery stores consider this sector a fresh food threat? The rasdy-2-eat and heat-N-eat fresk foodgrocerant niche is booming. We get it. Do you?
BillWalljasper Casey’s CFO informed CSnews.com that “Pizza delivery, which isavailable now in about 75 stores, will be expanded to another 100 stores by theend of October and 226 stores by the end of the current fiscal year. Deliveryof Casey's signature pizzas has resulted in a 25 to 30 percent lift in preparedfoods sales…
Prepared Food & Fountain: Same-store salesfor the quarter were up 16.8 in foodservice compared with the year-ago period.The average margin for the quarter was 60.8 percent, up 60 basis points fromlast year's fourth quarter, primarily due to lower commodity costs. Casey's wasable to lock in a favorable price on coffee with a bulk buy (saving about 70cents per pound), said Walljasper. However, he noted that the company has nothad an opportunity to lock down a similar deal on cheese, although cheeseprices have retreated from the highs ($2.11 per pound and $2.14 per pound,respectively) of last year's first and second quarter.
Thesame-store sales gain comes following an impressive 11.8-percent increaseexperienced the prior year, …expansion of the pizza delivery program have had abig impact. Walljasper noted that the rollout of pizza delivery has notcannibalized sales at other Casey's that don't offer delivery, nor has it hurtinside the store sales at the stores in the delivery program.”
Noother sector of retail foodservice is experiencing top line growth and bottomline profits in retail foodservice like the C-store sector. That success is driven by ready-2-eat andheat-N-eat grocerant niche food. Is yourrestaurant, grocery store or c-store positioning within the grocerant niche?
Steven Johnson is Grocerant Guru at Tacoma,WA based Foodservice Solutions, with extensive experience as a multi-unitrestaurant operator, consultant, brand / product positioning expert and publicspeaking. Facebook.com/Steven Johnson, Linkedin.com/in/grocerantortwitter.com/grocerant
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