The NACS Leadership Forum took place 11-13 February in Amelia Island, Florida. The event – themed “Be the Destination: Fuel, Food and Experience” – highlighted several foodservice-related insights.
Value is so much more than price
David Portalatin, Senior Vice President and Industry Advisor at Circana 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.
Mr 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.
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.
Panellists 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’s warm glow
Mr 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,” Mr 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 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.
Mr 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.
For more insights from NACS Leadership Forum, visit here.
