Meeting Healthy Foodservice Demands

Marilyn Odesser-Torpey
July 7, 2017
CS Decisions

Many chains are turning to proprietary programs to meet the needs of health-conscious customers seeking “better-for- you” options, while others find their needs best met via co-branded partnerships.

Marilyn Odesser-Torpey, Associate Editor

In a “U.S. Restaurant Outlook” survey of 1,008 adults published in April by AlixPartners global consulting firm, 91% of the respondents said that the availability of healthy menu options is at least somewhat important to them. That number is higher than the 86% recorded last year.

Eric Dzwonczyk, AlixPartners’ managing director and co-head of restaurants, hospitality and leisure practice, pointed out that an increasing number of c-stores are taking this message to heart.

“Seven or eight years ago, [the consumer call for more healthful options] was thought to be a fad, but instead it became a trend,” said Dzwonczyk. “To consumers, the meaning of the word ‘healthful’ can run the gamut from how food is raised, à la the Chipotle model, to offering more grab-and-go salads, wraps and fresh-cut fruit like the sandwich chain Pret a Manger, to posting calories and other nutritional content on menu boards and on apps.”

Forty percent of consumers surveyed for a “Convenience Stores Keynote Report” released last year by Datassential research company said that healthier food options would make them choose a convenience store over another option for prepared foods.

THE PROPRIETARY WAY
Some c-store retailers like NOCO Express help customers to select “better-for-you (BFY)” options by offering a proprietary line and labeling the BFY varieties in green in its cold case, said Linda Hulings, manager of the company’s proprietary Nickel City Foods brand. All green-labeled items are displayed together so customers can identify them quickly.

The grab-and-go sandwiches, wraps and salads are made in Nickel City Foods’ own commissary, and available in 35 of the 37 NOCO Express stores in western New York.

“Our wraps and salads are very popular,” Hulings said. “And we’re considering adding a new salad in a wrap.”

When Nickel City first started selling salads it offered a choice of two. Now that number has doubled in the larger stores to include a Berry Salad, Greek Chicken Salad and a new Autumn Salad with mixed greens, mandarin oranges, crumbled feta cheese, tart green apples, sunflower seeds and a raspberry vinaigrette dressing.

For customers looking to add more protein, Nickel City offers in the cold case roasted chicken breast strips and cheese crumbles, sticks and string, which can be eaten alone or added to a salad. To assuage snack attacks, the stores also offer fresh-cut fresh fruit cups and veggie cups.

Visiongain business information portal estimated that the global gluten-free foods and beverages market will be worth $5.12 billion in 2017 due partly to the number of people diagnosed with gluten intolerance or celiac disease. The demand for these products is further increased by the growing number of non-gluten-sensitive consumers who perceive gluten-free products as healthier and better for you, the company noted.

Pilot Flying J and its proprietary brand, PJ Fresh Marketplace, is always adapting to meet consumer demands. Gluten will soon be eliminated from PJ Fresh Marketplace-brand soups, salads and entrées whenever possible without sacrificing the quality of the products, but gluten will still be included in places where you would expect to find it, such as bread and pizza, said Shannon Johnson, the company’s vice president of food innovation.

To give customers more meal and snack choices, both indulgent and BFY, PJ Fresh Marketplace will begin offering made-to-order sandwiches in some Pilot Flying J stores this summer.

Presently, Pilot Flying J operates at least 750 stores in the U.S. and Canada, the majority of which offer fresh food options, according to Johnson. The company is also planning to open 17 new food locations, two-thirds of which will be in brand new stores, by the end of the year.

An open-kitchen format was set to be introduced in these new food locations starting this June. These locations also feature an extensive toppings bar for grab-and-go sandwiches and salads.

“This way, guests can add extra dressings, pickles, peppers and other ingredients to add more vibrant flavors or they can skip those ingredients they don’t want,” Johnson said. “We don’t want to be the food police; we just want to offer the widest possible range of fresh options to our guests.”

In some stores, Pilot Flying J also has a hot food program.

While “BFY” is a broad-based descriptor and can be interpreted in many different ways, Johnson defines it as food that “hasn’t been manipulated and is clearly fresh and recognizable.”

PARTNERING PAYS OFF
For chains that don’t have the capability to offer proprietary food or made-to-order sandwiches, salads and pre-cut fruits and vegetables, Dzwonczyk suggested partnering with one or more good suppliers to provide premade items.

“Retailers won’t have to make the investment in inventory and labor to offer these items,” he said. “With the right supply partners, all the retailers need to provide is some open space in the cold case display. The partners will actively manage the category in the stores just as direct-service delivery suppliers of salty snacks and other c-store items do.”

Coffee Cup Fuel Stops, which has nine stores in South Dakota, North Dakota and Wyoming, partners with Subway in four of its locations. The partnership is in its sixth year, said Tom Heinz, president of Coffee Cup.

Heinz, who has been in the c-store industry for 36 years, noted that prior to partnering with Subway, Coffee Cup had operated a proprietary foodservice program.

“We found that we couldn’t meet our food costs and customer expectations to provide the quality of affordable food that we wanted to offer to our customers on our own,” Heinz said. “With Subway, the healthful, customizable sandwiches so many of our customers want are available 24 hours a day.”

As an international brand, Subway brings a bigger presence to the Coffee Cup stores in the stores’ marketplaces. The franchisor also provides nutritional information such as calorie counts for its sandwiches, “something that would be nearly impossible for me to do on my own with any kind of accuracy,” Heinz said.

He pointed out that the training Subway offers to the staff would be cost-prohibitive for Coffee Cup to handle on its own. “Their support is priceless,” Heinz said.

Regular in-store inspections by Subway ensure that the program is being operated correctly.

“Subway’s discipline extends all the way to how ingredients are handled by its suppliers to mitigate the chances of foodborne illnesses,” he said. “We have confidence that the ingredients we receive are healthful and safe.”

Coffee Cup Fuel Stops also partners with Pizza Hut. Beverages ranging from a basic cup of joe to dessert-worthy creations are available in-store from Caribou C