As an intermediate operator, you are likely offering more robust food offerings and have moved into custom-made sandwiches, salads and perhaps even hot foods. Your dispensed beverage programs are likely strong and perhaps even branded. What are the key considerations for this type of retailer seeking to improve, enhance or expand its foodservice operation?

Financial Considerations
The financial and research disciplines for an intermediate player are similar to those for a beginner, although the objectives and areas of analysis and research will be different. Before expanding, you will want to conduct a thorough review of the competition around your store(s), their customer traffic patterns, menus, price points, promotions and marketing. You should also carefully study your own foot traffic and sales volume by daypart to help you develop relevant menu offerings that will fully capitalize on existing customers. And don't forget to tap into your loyal customer base and ask them what more they want from your foodservice programs.

Ideally, this process should include quantitative research and perhaps some qualitative research such as focus groups, so be sure to include that in your expansion budget. Don't start developing programs based on "gut feelings." Use research and financial metrics — such as sales volume by daypart, profit margins, profit dollars, food costs, labor costs and operating costs — to make sound and well-informed expansion decisions.

This is also the brand-building stage of foodservice, and intermediate operators should invest in developing their foodservice brand and what they want that brand to stand for. Consider hiring a branding consultant and design firm to help properly develop and position your foodservice brand, if you have not done so already. It is difficult to communicate quality food and customer service if your proprietary foodservice program is disjointed and unbranded.

The Talent
If you do not yet have a foodservice director and a solid corporate infrastructure to manage foodservice, that must be the first order of business. If you have internal foodservice talent, assess their backgrounds and determine if they have the skills to get you to the next level. Don't promote internal people into foodservice positions who have no foodservice experience. If there are no internal candidates that fit the bill, recruit externally, seeking professionals with solid foodservice and restaurant management experience.

If you already have a foodservice director and some departmental infrastructure, make sure you have enough talent with deep enough experience to execute program expansion. The No. 1 challenge for most convenience store operators is consistent foodservice execution at store level. To do that, you need strong corporate management, as well as regional and district talent to oversee store-level execution. And lastly, but vitally important, you need strong and qualified store-level management and associates on the front lines that believe in the foodservice programs you are executing. Make sure you set up strong reward and recognition programs for them as they successfully launch your expansion plans.

The Offering
Many operators have a mixed bag of store formats with varying degrees of foodservice execution based on their facilities. Some stores may have proprietary programs, some may offer national and/or regional branded fast food and others may offer a little of both. Some stores may have kitchens, while others may not. This is the nature –– and challenge –– of convenience store foodservice. The key to future success will be in areas where you have had past success. Continue to hone and develop those successful programs and eliminate those that do not yield financial returns.

But as you focus on expansion in existing stores and/or new stores, be sure to look at all your store formats and study them separately. Develop menu items that will appeal to specific stores' demographics. Many operators have learned the hard way that a cookie-cutter offering across all stores may not work. You may have a core offering in all stores, but may need to add some regional menu items. Know your customer, know your marketplace and don't expand beyond your competencies.

Hot Tips for Intermediate Operators

• Give programs time to develop. Often, operators pull programs too quickly before they have a chance to connect with the customers.
• Be sure to let your customers know you have added new items and programs using in-store marketing, signage, local advertising and attention-grabbing promotions.
• Sample new items in your stores, and see if your vendors will help underwrite sampling costs.
• Focus on cleanliness, quality and customer service 24/7/365 from chain headquarters to store level.
• Don't over-delegate foodservice management because it's a roll-up-your-sleeves, hands-on kind of business. Stay involved at the corporate level to ensure programs are executed correctly.