The Secret to Foodservice Profitability? Simplicity and Consistency

This article is brought to you by Krispy Krunchy Chicken®. 

Foodservice can be a critical growth driver for c-stores, but launching a program is only the first step in tapping into the category’s profit potential. According to Dave Yarbrough, key account manager at Krispy Krunchy Chicken, operators who achieve long-term success continually refine their programs, understand their numbers, and create a culture that supports consistent execution.

He said one of the biggest mistakes operators make is assuming that growth comes from adding more to their program, but that only adds complexity. In his experience, the opposite is true. Well-executed fundamentals drive growth. 

“Streamlining the menu is a great example of this. The Krispy Krunchy® menu has been optimized to focus on the items that provide the most profitability and the highest desirability,” Yarbrough said. “And you also don’t want to tie up the kitchen staff’s time with ancillary items that might not be major contributors to the overall gross profit.” 

Another key to running a successful foodservice program is to treat it like a business within the business. Yarbrough said operators should have a firm understanding of sales, margins and profitability metrics to maximize results.

"A lot of times, we'll go into stores and ask those questions, and operators might not know exactly where their food sales or margins stand," Yarbrough said.

Monitoring key metrics such as food costs, waste and sales performance can help operators identify areas for improvement. “Our support teams help operators dig into these metrics, understand them and then provide feedback and guidance on how to optimize their program and maximize sales.”

This process shows that small details matter. "It doesn't seem like a lot, but extra sauce is a great example. If you don't charge for that extra sauce, that's an extra 38 cents wasted," Yarbrough said. "By giving that away, you take your gross profit margin down."

Basic fundamentals will always seal the deal for customers, he said. “Monitoring all your metrics is important, but if your product isn’t merchandised well, it won’t sell. If that chicken is displayed in a clean, well-merchandised hot-food case, you're going to get impulse purchases.”

Beyond operations, Yarbrough believes that employee engagement is critical to sustained foodservice success. Employees are more likely to make sound decisions when they understand how the business operates and how their actions affect performance.

"We empower employees and help them understand how the business works. In sports, you always have a scoreboard. You track whether you're winning or losing," Yarbrough continued. "I think business and foodservice are the same way. Our operators and store teams need a scoreboard; they need to understand how their daily actions affect the ultimate score and whether everyone is winning or losing." 

This is the second article in a two-part series brought to you by Krispy Krunchy Chicken. Read part one, which breaks down the challenges of launching a foodservice program.