Motivating Customers to Try Food Through Beverages

NACS CAFÉ webinar shared strategies and solutions for attracting beverage customers to a convenience retailer’s foodservice offer.

June 30, 2014

ALEXANDRIA, Va. – It’s no secret to successful convenience store operators that beverages are an important component of foodservice. But the harder code to crack is getting the beverage-only customers to try out foodservice menu items and subsequently boost in-store sales.

During the June 27 NACS CAFÉ webinar, “Beverage Role in Foodservice,” three presenters shared strategies and best practice examples of how they’ve successfully attracted convenience beverage customers to try their food offers.

Stephanie Kowitz, shopper consumer insights senior manager, convenience, at Coca-Cola Refreshments, gave an overview of current opportunities for beverages, noting that among convenience retailers, beverages are purchased on 63% of shopping trips — more than any other channel.  Of those trips, 87% are single-serve purchases, including packaged and fountain. At the same time, food items are purchased on only 37% of trips, which represents a big opportunity gap. “And if we look at only the ready-to-eat food, the number is even smaller — it’s 18% of trips,” she said.

Kowitz shared how Starbucks is winning the meal/snack experience through social media and mobile payments while continuing to focus on speed of service. Dunkin’ Donuts, meanwhile, is offering value through its loyalty program by keeping it simple without making customers jump through huge hurdles to reap their rewards.

Mendy Meriwether, category manager–fresh beverages at Wawa Inc., focused on the morning daypart and the approach Wawa uses to attract customers to its foodservice items. First, Wawa recognized a few facts about seizing its morning daypart:

  • One of every two customers purchases a hot beverage.
  • 64% also buy something else
  • Friendliness, cleanliness and availability of assistance are critical.

To drive customer count and increase market basket, she shared a case study of the retailer’s morning Sizzli/Coffee combo. Wawa communicated value with a strong price ($2.99) and did not limit the customer to just one product size and one variety, therefore giving the retailer the ability to meet different customer needstates.

“Remember, it’s not just a price-point combo offer,” she said, adding that it’s important to also provide customers with options. Meriwether also noted the importance of making sure store associates are well versed on both the objectives and goals of the offer.

Sampling is another great way to engage customers and build brand awareness around your foodservice offer, said Meriwether, who also cautioned that there are several obstacles for retailers to be aware of: cost, labor and process. If all three are not followed consistently, she commented, sampling efforts could fall flat.

Femi Cole, food operations design/fresh food mergers and acquisitions, at 7-Eleven Inc., agreed that sampling is an important part when introducing new food items and driving trial.

Focusing on the afternoon and evening dayparts and changing needs of customers, Cole noted meals are increasingly consumed away from home. Snacking among younger customers is also becoming more prevalent during these two dayparts, with more customers also looking for on-the-go and better-for-you options to finish off their day.

He also reminded retailers to continue focusing on the fundamentals: customer service and quality of execution. This includes clean stores, well-stocked beverage bar, friendly sales associates and consistency from store to store.  

 

Presenters reminded webinar participants that it is not only important to drive beverage customers to food and snack, but to acknowledge customers when desired purchase behaviors are exhibited.

The next NACS CAFÉ foodservice program, “Advanced Foodservice Finance,” is taking place July 9–10 in Chicago. This two-day program shows convenience retail executives how to integrate the financial activities of a foodservice operation into their organization’s strategic business plan to maximize profitability. Join your colleagues by registering today at nacscafe.com.

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