The NACS Leadership Forum is taking place this week, February 11-13, in Amelia Island, Florida. This year’s event is themed “Be the Destination: Fuel, Food and Experience.”
Here are five foodservice-related insights from the event, based on sessions with expert speakers and panels.
- Value Is So Much More Than Price
Circana’s David Portalatin, senior vice president and industry advisor, food and foodservice, reminded operators that no matter how many value bundles they create, they can’t compete on price with the consumer’s own pantry, since the cost of prepared food is generally about four times higher than an equivalent meal at home.
Operators should aim to “make customers feel delighted about the value they get,” but not get pulled into a race to the bottom.
“We're in the foodservice industry, and so it's always more about the convenience, the quality, those craveable indulgences, those food items that I cannot make for myself that I can only get from you. That's where the value is, and don't undersell that value,” he said.
Portalatin pointed to Chipotle and Chili’s recent growth and success as signs that consumers aren’t looking for the lowest price, but instead the best total package of value.
- Remember That Preparing Food Can Be Transformative
Chef Jeff Henderson shared his experiences as a former drug dealer and convicted felon who discovered his talent for cooking while in prison. Cooking sparked a life transformation that led to Henderson managing kitchens at premier restaurants across the country, where he found validation and a sense of accomplishment through preparing food. The takeaway: How can operators best unleash a sense of pride and fulfillment in their foodservice frontline staff? This can be a powerful motivator.
Philip Santini, senior director of foodservice and advertising at Rutter’s, shared that the retailer has open kitchens, so foodservice employees can see and interact with guests and “get that extra connection point with them.”
Dr. Jay Ellingson, chief science officer at Kwik Trip, shared that the retailer’s mission statement includes the phrase “to make a difference in someone’s life” and that it looks for foodservice employees who can live up to that mission. “It comes full circle,” he said, with customers taking pride in “their” Kwik Trip and employees taking pride in their customer service.
- Introducing the “Fullcourt”
Does the current default design of the forecourt make sense for the c-stores of the future? If you’re a food-forward c-store or want to become one, ask yourself if your site, in totality, is an inviting place to eat. Panelists John Eichberger of TEI, Joe Bona of Bona Design Labs and Art Sebastion of NexChapter, said that big picture ideas include putting pumps behind the store and putting a foodservice counter at the front of the store so that it’s the first thing customers see. Easier steps might include putting fewer signs in the windows and adding a couple of picnic tables to highlight that your store has food.
The panel suggested that the forecourt and backcourt concept might need to be updated to a “fullcourt”—a seamless integration built around conversion and including, where appropriate, a dedicated EV charger area.
- Nostalgia Is Still Creating a Warm Glow—Around Sales
Portalatin shared that 56% of consumers are “likely to purchase something that makes them feel nostalgic,” which is a three-point increase from a year ago. When asked what era they feel most nostalgic for, 24% of people responded the 1990s, the most of all the decades.
More impressive is the success of nostalgia-based promotions, which registered higher short- and long-term transaction impact than value-based promotions and were also more likely to be successful in the short- and long-term than value meal deals.
Unlike Taco Bell and McDonald’s, which are QSRs that are finding success with nostalgia, your operation may not be able to bring back menu items from past decades. However, “there are a lot of ways to find nostalgia,” Portalatin said. “It could be something about your brand story. It could be some other cultural touch point, music, a movie, a period of time, a fashion trend, whatever it is.”
- Treating Is on the Rise
Visits where “wanting a treat or a reward” is the primary motive are up 33% since 2018, and treating is also up as a secondary trip driver. And today’s fastest-growing QSRs are all built around treating, such as Crumbl Cookies.
Portalatin suggested that cold beverages, such as teas and coffees, could be one area where operators look to build more treats into their offer. To bring it full circle: Value is more than price, so low price by itself may not earn visits from treat-seeking customers.