The Changing Face of Your Fresh Food Case

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The Changing Face of Your Fresh Food Case

• Speakers Deborah L. Holand, Food Sense, Inc.
• Trevor Dickson, U.K. British C-Store Association
• David RAE, U.K. British C-Store Association

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Strategic Innovation
A process by which the organization develops a
careful, well thought-out, tactical plan to
improve and upgrade operations for freshness,
uniqueness and progressive growth.
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STRATEGIC INNOVATION Five Essential Phases
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A Balanced Approach The Five Ps to
Profitability
Planning
People
Product
Profitability
Positioning
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The Discovery Process
Perform Thorough Strategic Assessment Emerging
Market Trends
ORGANIZATIONAL DESIGN Positioning, Product,
People
Determine Resources Core Competencies
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The Gourmet Sandwich
Herb Roasted Turkey with Aged Provolone Cheese,
Vine Ripe Tomatoes and Roasted Red Pepper Aioli
on Multi- Grain Crusty Roll
Smoked Ham with Imported Swiss, Roma Tomatoes
with Spicy Dijon Mustard on a Fresh European
French Baguette Bread
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Product Migration PathExample Emerging Gourmet
Sandwich
Product RD - Culinary Manufacturers
New Product Availability Awareness
Culture-Heritage
Grocery Dept.
Special Occasion
Food Kiosks
FSR-Family
Frequent Option
Everyday Meal
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Creating the Value Proposition
Value Equation Quality Variety
Freshness Consistency
Convenience Service Atmosphere
/ Price Value Proposition
Identify Key Customer Behaviors Emerging Trends
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Concept/Product Development
Consumers

• Demographic Profiles, Core Target Audience

Behaviors

• Buying/Eating Motivations, Occasions, Frequency

Trends

• Emerging Products, Downstream Migration path

Value

• Quality, Variety, Convenience, Images, Price

• Supply Chain, Standards, Management Systems

Enablers
Goal Attainment
Strong Strategic Framework, Improved Business
Performance and Competitive Posture
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Case Study Example

• Elements Before After
  .
• Value Weak, Not Clear Strong, Focused
• Appeal Low Quality Diversified, Healthful
• Selection Stagnant, Repetitive TOD DOW
  Sets
• Identity Low Price, Flat Value Price,
  Leader
• Price Low Profit Model Competitive, High
  PQ
• Efficiency High Shrink Below Avg. Shrink
• Labor Intense High DQPS SPMH
• Execution Complex, Low EFR Simplified,
  Strong EFR

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Menu Engineering

• Seven Essential Elements to Effective Menu
  Engineering
• Value Strong Proposition, Focused, Delivered
• Appeal - Menu Breadth, Ethnic Diversity,
  Occasion
• Selection - High Variety, Low Complexity, Cat.
  Mgmt.
• Identity Ambiance, Image, Positioning,
  Marketing
• Price - Profitable ABC Models, Cost Controls,
  High PQ
• Efficiency - DQPS Turn Frequency, Delivery
  Systems
• Execution Simplified, People Enablers, Less is
  More

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Penny Profit Menu Engineering Matrix
2.50 2.25 2.00 1.75 1.50 1.25 1.00 .75 .5
0
Chicken Salad Croissant
Chicken Salad Wedge
Turkey Sub
Dijon Ham Swiss
Seafood Salad Wedge
Penny Profit Per Item Sold
Seafood Salad Pita
Greek Wrap
Smoked Ham Sub
Turkey Wedge
.5 1 1.5 2 2.5 3 3.5
4 4.5 5 5.5 6 6.5 7
7.5
Daily Average Quantity Sold per Store
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Penny Profit Menu Engineering Matrix
2.50 2.25 2.00 1.75 1.50 1.25 1.00 .75 .5
0
Chicken Salad Croissant
Winners
Chicken Salad Wedge
Turkey Sub
Dijon Ham Swiss
Seafood Salad Wedge
Penny Profit Per Item Sold
Seafood Salad Pita
Greek Wrap
Smoked Ham Sub
Turkey Wedge
Losers
.5 1 1.5 2 2.5 3 3.5
4 4.5 5 5.5 6 6.5 7
7.5
Daily Average Quantity Sold per Store
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Venue Design Development

• Space Efficiency, Ease of Shop, Service Systems

Venue Flow

• Consumer Interaction, Service Attention, Ease of
  Execution, Replenishment/Depletion

Daily Execution
LESS IS MORE!!!
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Merchandising Marketing Strategies
Internal
External
Effective Communication Vehicles
Value Proposition
Visual Impulsive
Trial Repeat Business
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Perspectives on Branding

• Two most important things to consider in choosing
  a brand
• Will the brand add credibility and a positive
  image to your programs?
• Will the brand drive additional traffic and
  revenue into the store?
• Before you jump on the Brandwagon, consider the
  following
• Do you have a clearly defined brand identity?
• Is your brand distinctive enough to compete in
  the marketplace, or is it me too?
• Is your brand relevant to your customer?
• Do you have a value proposition that is
  meaningful?
• Do you have the budget to support and nourish
  your brand?

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Perspectives on Branding

• Once you choose a brand, make sure it does not
  become a commodity
• Dont try to look like your most successful
  competitor.
• Reflect in everything you do from advertising to
  product quality/packaging.
• Develop standards and specifications for your
  logo. Legally protect and communicate to everyone
  responsible for presenting your brand image.
• The more focused your brand image, the more
  powerfully it will hit home with your target.
  Dont be afraid to be irrelevant to non-target
  audience.
• There is nothing less distinctive than a brand
  identify developed by a large committee whose
  primary concern is making everyone happy. Be a
  little uncomfortable.
• Budget on-going promotions. Be prepared to defend
  your brand forever.

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Developing the Strategic Enablers
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Key Management Tools

• Best Practices to Managing a Profitable Program
• Perform ABC costing models by venue and category.
• Effective EFR models and efficient menu DQPS turn
  ratios.
• Effective inventory menu management cost
  control systems.
• Incorporate daily training tools and OCS
  checklists into daily routine to maximize service
  and productivity
• Updated recipe, production and waste logs
  utilized every shift.
• Perform operations performance opportunity gap
  analysis monthly.
• Effective operations accountability and reward
  systems exist.

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Food Safety Standards

• Key considerations when reviewing your practices
• Food Safety cannot be assumed, it must be
  aggressively managed.
• The delivery of a safe food product can no longer
  be considered a single, fragmented procedure and
  requires interlocking control points.
• Interlocking systems must be in place at all
  levels, from vendor through supply chain to POP,
  to insure delivery of a safe product.
• All levels of organization must participate,
  including vendor partners.
• Monitoring, testing and evaluation process must
  be real-time.
• Accepting status quo may not be the solution.

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Handling Food Safety Crisis

• FACE TACKLE THE PROBLEM! (Dont Hide)
• Gather information about the crisis, utilize
  government sources.
• Assess situation devise action plan.
• Know your history, research past incidences and
  be prepared.
• Create a Crisis Response Team, all speak same
  message.
• Practice the Three Cardinal Rules of Crisis
  Communication when dealing with the media
• Tell the Truth, Tell it First, Tell it Fast.

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Execution Training Tools

• Top Five Essential Training Tools
• Daily Operating Shift Checklists-Specific/Concis
  e
• Daily Product Management, Tracking Waste Logs
• Comprehensive Training Guides-Production/Service
• Specs, Presentations, Product Knowledge, Testing
• Effective Program Category Management Reporting
• Risk Reward Accountability Compensation

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Whats your true PQ?

• Top 7 PQ indicators in a Foodservice Operation
• Do you use up-to-date, accurate recipe specs and
  manuals and are they incorporated into your daily
  routines for efficiency cost control?
• Do you know your current food cost and penny
  profit for every item?
• Have you updated your menu variety in the last
  4-6 months?
• Do you apply profit strategy to layout/design in
  all merchandising and marketing promotional
  materials?
• Is staff train well in product knowledge and to
  sell suggestively?
• Are venues is flexible to make changes quickly
  and inexpensively?
• Do you Employ effective operations
  accountability/reward systems?

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The Changing Face of Your Fresh Food Case

• Deborah L. Holand, Food Sense, Inc. 10/22/01