by Terrie Ellerbee/associate editor

Kevin Coupe, known in the retail food industry as the “Content Guy” for his website, morningnewsbeat.com, moderated a panel at the FMI Midwinter Conference that discussed a topic that has in the past been given the short shrift at such events: food.The discussion was called “Stomach Wars: How and Why Supermarkets Should Become a Force for Fun and Profit.”

“Often food, which can be the greatest differential advantage of all, is ignored or it’s down low on the priority list,” Coupe said.

He called the Supermarket Chef Showdown™ to be held at FMI2012 (see box) the “best idea FMI has had in 20 years.”

The people who joined Coupe on stage for the discussion know a few things about food. One panelist was Michael O’Donnell, president and CEO of Ruth’s Hospitality Group.

O’Donnell acknowledged the challenge for supermarket operators, who generally are in a 1-percent-margin business.

“I go into some traditional supermarkets and you can tell that they’re working on labor costs, you can tell that they’re working on efficiency, you can tell the manager is sweating like crazy, and there’s a real focus on the business of the business,” O’Donnell said. “And I understand that. As a result, there’s not enough cash registers open and there’s a bit of a panic going on.

“Then I go into others, and I talk about The Fresh Market (where he said he shops when home), and they have a very relaxed atmosphere where the employees are able to talk about the food,” O’Donnell said. “It’s every bit as efficient. It’s better presented, but there’s clearly a passion and an education going on for those folks not about how to be more efficient or how to take a better inventory first—I’m sure they do that, but it’s probably second. But first, how do I make the customer experience great and how do I romance the food and how do I make them feel like they’ve just come in and out and had a great non-hassled experience?

“I understand, again, you’re a 1 percent business, but on the traditional side, you can tell that they’re really one person short and one person working like crazy to make whatever margin they can make,” he said.

O’Donnell’s organization was having a franchisee meeting at the same hotel in Orlando where the FMI Midwinter Conference was held. Coupe asked O’Donnell how much time Ruth’s Hospitality Group spent talking about food vs. the business of selling food.

“Ninety-five percent of the time we’re talking about food,” O’Donnell said. “I know this sounds relatively simple, but for us we’re working on the experience constantly, and then the money takes care of itself.”

Food Network star Sandra Lee, host of three television shows and editor-in-chief of Sandra Lee Semi-Homemade magazine, offered her take on food at home. She predicts a shift—albeit slow—back to scratch cooking and encourages food marketers to capitalize on that trend by offering convenience items.

“I think it has to be quick-scratch, and if they need to save money, people buy the convenience items like pound cake, because pound cake, at $1.29 for a box, costs you three times less than making it from scratch,” Lee said. “The McCormick chili seasoning package, pot roast or barbecue—whatever it is—to buy the herbs and the seasonings that it takes to make those packets would cost you $50, and these packets are, again, $1.29. So, I think the shift will come back, but I think it’s got to be spoon-fed.”

Luigi Bonini, VP, global consumer product development and innovation, Starbucks Coffee Co., talked about what supermarkets in other countries are doing.

“One of the things I’ve been surprised by is that the American supermarkets don’t follow what the European supermarkets have been so successful in, which is the development of ready meals—very high quality, all different flavors, easy to prepare,” Bonini said. “I’m not sure why that hasn’t translated into this market, but I would definitely see that as an opportunity here. Some companies have tried it not so successfully, but I think the time is right for this kind of food here.”

Victor Gielisse, VP advancement and business development, The Culinary Institute of America (CIA), grew up in The Netherlands and talked about the Ahold company.

“They came over to the United States and I can’t imagine what has happened to that chain here,” Gielisse said. “I don’t understand it. I thought they were bringing that concept here and they didn’t. Something got lost in translation.”

Gielisse, who pointed out there are 44,000 CIA alumnae “out there” who could help grocery store operators bring in customers, said food culture is created from the top.

“Food conjures up all sorts of ideas for people,” he said. “When I walk into a store, I think that is really what helps drive people to the counter. Once you have me in that store, it’s up to you to drive that issue. I think food culture starts from the top and we see a lot of organizations out there that drive their food.”

As for labeling, O’Donnell shared that when menu labeling went into effect at Ruth’s Chris Steakhouse, nothing changed.

“Meaning that the consumer pattern didn’t change,” he said. “We didn’t start selling lower caloric-count items.”

Lee, whose recipes are typically 70 percent store-bought and ready-made combined with 30 percent fresh ingredients, commented that “it is a real science to try to figure out” ingredients on food packages.

“You have to give the basic information: fat content, sugars and those kinds of things … you just have to be really thoughtful about what it is that you’re shopping for when you go in that grocery store. I believe you have to give people their options. You have to educate them. You have to market to them. That’s one of the things I don’t see a lot of,” Lee said.

Share This

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Related Posts

By Terrie Ellerbee/associate editor The National Association for Retail Merchandising Services (NARMS) is moving its base of operations from Wisconsin to Colorado, making changes to headquarters staff, assessing the services...

Travelocity Founder: Digital Revolution Is Just Beginning

by Terrie Ellerbee/associate editor As the founder and former CEO of Travelocity, Terry Jones knows about disruptive businesses. The travel industry is forever changed. Travelocity changed how the product, in this case travel,...

WAFC Announces 2012-13 Officer Lineup

The Western Association of Food Chains (WAFC) has announced the 2012-13 officers and board of directors elected at the 91st Annual WAFC Convention on April 24 at the JW Marriott Desert Ridge in Phoenix, Ariz. WAFC Officers...