ARE YOU PLAYING TO WIN IN FOODSERVICE?                                                                        March 31, 20...
To win in foodservice requires you to demonstrate thatyou deserve to be on the “A” team, but…                    Copyright...
…It’s clear that many retailers still have a lot of work to  get on the “A” team and …                          2.2x      ...
…Making the cut is only becoming more difficult as the  “A” team players are getting stronger                          1.7...
So, where do you need to strengthen your game first to  improve the chances of winning?                                   ...
Focus on improving execution in the core day-parts   before attempting to build other segments               85%          ...
Help get consumers to spend money in your store(s) by   taking some pressure off their wallets                            ...
Think differently about how products are described onyour in-store menu boards                    Copyright © 2011 Balvor ...
Enhance the shopper experience around the coffee bar  with new and/or improved equipment             134                  ...
Leverage more combo deals to build transaction size –  especially during the morning day-parts             121            ...
Reward purchase frequency from your store with   special product deals                                                    ...
Drive more customer traffic into store by promoting  Food Prepared On-Site at fuel pumps             129                  ...
Be sure to refine the offering at times in order to satisfy  the consumers’ changing preferences             167          ...
Select the branding strategy that’s best for your store  today and realize this may evolve over time                     P...
Wining in foodservice means improving your game in  order to compete against “A” team operators                           ...
David BishopManaging Partner, Balvor LLCBiographyDavid is the managing partner of Balvor LLC, which is a sales and marketi...
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Are you playing to win in foodservice?

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Most retailers are THINKING they should win. Many are actually PLANNING to win. However, when you look in the stores, few are really PLAYING to win in retailer foodservice.

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Are you playing to win in foodservice?

  1. 1. ARE YOU PLAYING TO WIN IN FOODSERVICE? March 31, 2011 Presented at 117 South Cook Street #339 Barrington, Illinois 60010 phone: 847.722.2732 fax: 847.382.1801 Copyright © 2011 Balvor LLC. All Rights Reserved. davidbishop@balvor.com
  2. 2. To win in foodservice requires you to demonstrate thatyou deserve to be on the “A” team, but… Copyright © 2011 Balvor LLC. All Rights Reserved. 2
  3. 3. …It’s clear that many retailers still have a lot of work to get on the “A” team and … 2.2x 1.0x 0.3x Top Quartile Survey Average Bottom Quartile Average Foodservice Sales per Store Index*Includes all dispensed beverages, food prepared on-site, and commissary & other packaged products.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 3
  4. 4. …Making the cut is only becoming more difficult as the “A” team players are getting stronger 1.7x 1.0x 0.6x Top Quartile Survey Average Bottom Quartile 2010 Foodservice Dollar Sales Growth Index*Includes all dispensed beverages, food prepared on-site, and commissary & other packaged products.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 4
  5. 5. So, where do you need to strengthen your game first to improve the chances of winning? Frozen Dispensed Cold Beverages Dispensed Commissary Beverages 7% & Other Packaged 8% Products 7% Food Prepared Hot On-Site Dispensed 58% Beverages 21% Share of foodservice dollar salesSource: NACS SOI Annual Report, 2009 data. Copyright © 2011 Balvor LLC. All Rights Reserved. 5
  6. 6. Focus on improving execution in the core day-parts before attempting to build other segments 85% 38% 33% 15% 15% 10% 0% 5% Morning (6am - 10am) Mid-day (10am - 2pm) Afternoon (2pm - 6pm) Evening (6pm - 10pm) Hot Dispensed Beverages Food Prepared On-SiteQ: Which of the major day-parts offers the most growth potential for each foodservice category respectively in your store(s)? Percent of retailers responding.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 6
  7. 7. Help get consumers to spend money in your store(s) by taking some pressure off their wallets 129 95 75 Top Quartile Mid Quartiles Bottom Quartile Hot Dispensed Beverages IndexQ: Have you introduced any new products in the past 12 months that enable your store(s) to offer lower retail prices?Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010. Copyright © 2011 Balvor LLC. All Rights Reserved. 7
  8. 8. Think differently about how products are described onyour in-store menu boards Copyright © 2011 Balvor LLC. All Rights Reserved. 8
  9. 9. Enhance the shopper experience around the coffee bar with new and/or improved equipment 134 102 63 Top Quartile Mid Quartiles Bottom Quartile Retailers Likely to upgrade hot dispensed beverage equipment- IndexQ: In terms of dispensed beverages, which areas will your company likely test or implement in 2011?Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010. Copyright © 2011 Balvor LLC. All Rights Reserved. 9
  10. 10. Leverage more combo deals to build transaction size – especially during the morning day-parts 121 96 83 Top Quartile Mid Quartiles Bottom Quartile Retailers Changing Quarterly or Monthly - IndexQ: How frequently do you change foodservice-related combo deals in your store(s), e.g., buy a beverage and a food item and save $$?Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010. Copyright © 2011 Balvor LLC. All Rights Reserved. 10
  11. 11. Reward purchase frequency from your store with special product deals 159 121 108 105 82 0 Top Quartile Mid Quartiles Bottom Quartile Top Quartile Mid Quartiles Bottom Quartile Retailers Using with Hot Dispensed Beverages- Index Retailers Using with Food Prepared On-Site- IndexQ: Do you offer a club program in any of the following categories, e.g., buy 5 and get your 6 th free?Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010. Copyright © 2011 Balvor LLC. All Rights Reserved. 11
  12. 12. Drive more customer traffic into store by promoting Food Prepared On-Site at fuel pumps 129 102 65 Top Quartile Mid Quartiles Bottom Quartile Retailers Using Monthly with Food Prepared On-Site- IndexQ: How frequently do you leverage signage at the fuel pump to promote special deals or products available in-store?Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010. Copyright © 2011 Balvor LLC. All Rights Reserved. 12
  13. 13. Be sure to refine the offering at times in order to satisfy the consumers’ changing preferences 167 96 50 Type of Brands • Proprietary / Store • Manufacturer Top Quartile Mid Quartiles Bottom Quartile • Wholesale / Control Percent of Retailers Changing Type of Brand Offered In or Since 2009 - Roller Grill Products* - Index* Based on retailers selling.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 13
  14. 14. Select the branding strategy that’s best for your store today and realize this may evolve over time Percent of Retailers Employing as Dominant Branding Strategy – Roller Grill Products* Top Quartile 50% 25% 25% Survey Average 32% 11% 55% 3% Bottom Quartile 11% 11% 67% 11% Proprietary/Self Branded Franchise/License Branded Manufacturer Branded Wholesaler/Control Branded* Based on retailers selling.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 14
  15. 15. Wining in foodservice means improving your game in order to compete against “A” team operators 2011 Sales Forecast - PCYA 11.7% 10.0% 9.2% 9.0% 8.3% 4.2% Food Prepared On-Site Hot Dispensed Beverages Top Quartile Survey Average Bottom Quartile* Sales weighted based on the number of stores operated.Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011. Copyright © 2011 Balvor LLC. All Rights Reserved. 15
  16. 16. David BishopManaging Partner, Balvor LLCBiographyDavid is the managing partner of Balvor LLC, which is a sales and marketing P: 847.722.2732firm that provides consulting, sales support, research, and analytic services to davidbishop@balvor.comretailers, product suppliers, financial analyst and other organizations.Balvor’s services support various food channels, covering both foodservice andretail classes of trade. Public AccomplishmentsDavid has helped many leading retailers evaluate new retail concepts, enhance White Papersannual category planning processes, and develop new business support • Convenience Channel Opportunity: Insights for the Dairy Industry, Dairymethods related to assortment rationalization, space allocations, or branding Management Inc., 2010.strategies. • Are Retailers Doing Enough? Preventing Underage Access to Tobacco atHe helps product suppliers improve their competitive positioning, trade Retail, Center for Responsible Tobacco Retailing, Inc., 2009.programs, and category management capabilities by better understandingwhat retailers’ value while also benchmarking versus peer companies. • Accelerating Cigar Profits Through an Increased Strategic Focus, John Middleton Inc., 2008.David also has extensive experience with activity-based costing, channel sales • How to Succeed in Convenience Retail:A Practical Guide for Productstrategy, merchandising assessments, trade communication, and custom Suppliers, NACS, 2007.analytical support for both consumer packaged goods and foodserviceindustries. Industry ResearchPrior to founding Balvor in 2008, David spent 12 years at Willard Bishop in • State of Foodservice, Convenience Store Decisions, 2008 - 2011.various positions, including most recently as partner. David began his career • Tobacco Retail Survey, Convenience Store News, 2008 – 2011.with The Levy Restaurants in operations for new store concepts where hefocused on beverage and financial programs. • SKU Rationalization Survey, NACS/Balvor, March 2010. • Motor Fuels Retailer Survey, Balvor/NACS, January 2010. Current Industry Affiliations • Convention and Events Committee, NACS, 2007 – present • Supplier Advisory Board, Convenience Store Decisions, 2006 – present • NACSPAC Member, 2008 - present Copyright © 2011 Balvor LLC. All Rights Reserved. 16

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