The Whys & Why-Nots of Made-to-Order Foodservice

LAS VEGAS — Developing a made-to-order foodservice program can enable convenience stores to refine their brand identity, increase sales and profit margins, and offer consumers something the competition can't, but does that make every other prepared food program second best?

Not so, according to the presenters at the 2018 NACS Show education session, "Is Made to Order Really For Me?"

This session featured Jerry Weiner, president of Jerry Weiner Consulting; Courtney Williams, vice president of food and beverage at Family Express Corp.; and Ieva Grimm, president of SYNERGE, who also served as moderator.

While made-to-order foodservice offers many benefits, the perception that it's what all c-stores should be doing is inaccurate, according to Grimm. One foodservice format does not work for everyone, and retailers must decide for themselves whether made-to-order fits based on the location, size and needs of their store(s).

"It is not the only way we can look at foodservice," Grimm said.

Weiner, a 43-year veteran of convenience foodservice, walked attendees through the reasons they should or shouldn't go with made-to-order. He defines made-to-order as a retailer's own brand of food that is made fresh for each customer's order and can be customized, although a company may have a standard menu in place.

"It's all about choices," Weiner said, noting that a simple turkey sub sandwich that has multiple choices for bread, cheese, toppings and condiments could be ordered in different versions for an entire month.

From the c-store operator's perspective, advantages of made-to-order include:

• Higher average checks due to the available extras;
• Higher visit/purchase frequency;
• Larger market baskets;
• The addition of as much as 3 percent to 4 percent to a store's overall margin;
• The creation of a food destination; and
• Differentiation from the competition, even if they sell the same class of items.

As an example, Weiner cited McDonald's, Wendy's and Burger King, which all sell hamburgers but are not seen as fully interchangeable due to customer preferences.

There are numerous reasons, though, that companies fail at made-to-order. Retailers must be aware of these before they embark on this kind of foodservice program, the presenters cautioned. 

Made-to-order is a major financial and time commitment that takes three to five years to see significant results and develop brand awareness. It also requires greater labor needs, more diligent training and preparation standards, more buy-in and commitment from senior leadership, and serious investment in equipment. All of these factors will influence perception of the brand outside of the foodservice department.