There are not many operators at this level of foodservice in the convenience store industry, but quite a few intermediate players aspire to step up their programs to this level. And certainly, those that are at the advanced level can never rest on their laurels — they are continuously advancing their execution, whether it's delivering food to the customer faster, more accurately, or differentiating through new and unique menu items or programs. These players view fast feeders and other restaurants as their primary competitors.

Financial Considerations
Marketing and advertising is the name of the game at this level. To bump up to this level of execution or stay at this level of execution, operators have to be willing to invest heavily in advertising. This investment is typically the stumbling block that leaves intermediate players where they are because they are not willing to pay to promote their foodservice brands outside of their stores. When these operators develop new menu items or new programs, you can bet they are not hiding their light under a bush –– they are broadcasting to every corner of their marketplace in the most efficient manner possible. And they are reinforcing all that messaging inside the four walls of their stores and on their websites. Some even utilize mobile apps.

Technology is another key differentiator for this group. They invest heavily in all forms of technology that give them the data necessary to make informed decisions, including, but not limited to, scanning, item-level inventory management, data warehousing, electronic data interchange and touch-screen kiosk ordering. For these players, foodservice is a science as much as it is an art.

The Talent
These operators are honing and developing a hospitality mindset, offering restaurant-quality food. To do that, they need to have the best talent available and they are paying to attract that talent from other channels of trade, including the restaurant industry. During the economic downturn when restaurants were downsizing and sales were declining, these operators picked up some heavyweight culinary talent and continue to do so. These culinary experts are also helping streamline operations to make these establishments even more efficient and profitable.

What the Future Holds
These operators are heavily focused on differentiation. They don't want to add menu items that every other convenience store operator has. They aspire to restaurant-quality food and will rarely offer self-serve foods where they can't control the quality, image and presentation. They have worked hard to develop their brands and are unyielding stewards of those brands to ensure that every item they bring into the stores and every program they execute is true to the brand promise long-term.

This is likely the group that will successfully develop and execute dinner and home-meal replacement, but they are doing it by building outstanding lunch programs with cold and hot foods that will naturally and successfully migrate to dinner menus. Some players are adding, or already have, seating, while others have declined to go that route. Some are exploring drive-thru windows, but that has yet to gain steam primarily because of the large property requirements.

These are the innovators who often test new menu items via limited-time offers (LTOs), a tactic taken directly from the restaurant industry playbook. They currently are intensely focused on hot foods menu development, which is the bridge to the dinner daypart. They are constantly adding new menu items and culling those that no longer perform. They are stay informed on trends and on top of restaurant competition.

Hot Tips for Advanced Players and Those That Want to Be

• Continue to invest in technology to improve data gathering, with the goal of getting to real-time information.
• Continue developing hot food programs, which will be critical in achieving dinner daypart success.
• Scout for culinary talent continuously to ensure you have an innovative edge.
• Invest in advertising to trumpet your brands and new program development, so your messages stand out from other restaurants on the airwaves and on the net.
• Innovate, innovate, innovate. Try new things all the time. Don't rely on your customer too much for innovation — they might not know what they want until they taste it in your stores.