Target Stores to Test New Foodservice Offers

Hot dogs and nachos will be replaced with more gourmet fare from fast-casual chain Freshii at nine stores.

August 24, 2015

MCCLEAN, Va. – USA Today reports that beginning in October, Target will roll out the Freshii fast-casual concept in nine stores, Pizza Hut will open restaurants in three stores and D’Amico & Sons will open up its concept in two Minneapolis stores.

So out with the hot dogs, nachos and popcorn and in with the artisan-style pizza, fresh salads with kale and edamame, and pressed juices with beet and carrot, notes the news source, adding that about 1,700 out of Target's nearly 1,800 stores have cafes. In the test markets, the cafes will be replaced with a Freshii, a D'Amico & Sons or a Pizza Hut.

The test is the first major change to Target's food strategy, and idea that been underway shortly after CEO Brian Cornell took over the company a year ago, commented Tina Tyler, Target’s chief stores officer. One of Cornell’s priorities for the retailer is food and offering natural and organic products as well as local brands. 

Tyler told USA Today that the retailer is responding to consumer demand for higher-quality food options and a more fast-casual atmosphere. Currently, about 40% of Target customers visit an in-store cafe while shopping, although the upcoming October test is less about increasing in-store café visits and more about showing consumers the brand is serious about health and wellness.

“We think this takes us a giant step in the direction of making a much better first impression,” Tyler told the news source.

Brian Yarbrough, a consumer research analyst with Edward Jones, told USA Today that he doubts the new cafes will drive significant store traffic, but they will likely appeal to Target's customer base, which is more affluent than a typical big-box shopper. “Their core customer ... is a little bit of a higher-end customer than Walmart,” he says, “and that's what they want: organic, specialty items, more exclusives.”

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