Grocers Share Similar Foodservice Challenges

Last week I had the opportunity to attend the FMI Retail Store Development Conference in Austin, Texas.  The conference covered a variety of topics that relate to more traditional foodservice operations. While it would have been easy to stay home and cite the challenging business climate as a suitable reason for doing so, all the attendees I spoke to felt attending  such an event was important to help make sense of the particularly difficult times and position their organizations for future success. 

It was interesting to note that grocers continue to wrestle with many of the same issues that traditional foodservice operators are trying to tame. These include managing labor costs and store development and remodeling issues, among many others.

As a growing number of grocers implement and execute relevant foodservice offerings, they, too, continue to explore what it means to design an efficient way to deliver profits and great hospitality to the consumers. Indeed, much like traditional foodservice operators, the challenge of having the right resource in the form of equipment and labor, in the right place, at the right time remains of the utmost interest to grocers looking to leverage their ability to compete in the marketplace.  Grocers realize that minimizing the capital and operating costs, while maximizing the offering and customer service is pivotal in their foodservice equation.

Of particular interest was a session presented by Juan Romero and Tom Henken of api (+), an organization that offers retail design services. The duo discussed different grocery designs that balance the merchandise mix, store planning and brand issues to provide a differentiated experience. Among the different designs presented were examples that promote efficiency and simplicity, guide the customers through the experience and celebrate cultural diversity. Other examples were designed by service department, making it easier for customers to segment and shop in specific departments.

In another presentation of note, Kevin Kelley of Shook Kelley spoke about different ways to improve how grocers display merchandize in their operations.  Kelly presented a novel retail design concept whereby the area was transformed from a generic product shelving display system for cookies, to one that resembles the place in someone’s home where the consumers would interface with the product, cup-board and all.  The design evolved the space from a dry and sterile one, to a cozy one that resembled a home environment the customers would feel comfortable with.  The results of such a change were increases in sales for the category as a whole.

In another session, Harold Lloyd offered a methodology to help companies “Ride the Wave of Change.”  He presented the “ECLIPSE” method, a change management process.  The steps include: (1) Educating oneself to what is going on, (2) Challenging your peoples, (3) Listening well, (4) Interpret the information carefully, (5) Plan the change, (6) Sell the change and then  (7) Error analyze the results of the change.