SAN FRANCISCO -- Chevron Corp. here has completed its experiment with the prepared-foods business intrigued, but unwilling to develop its Foodini's Fresh Meal Market concept any further as a stand-alone segment. The giant petroleum retailer is in the process of dismantling the meal-replacement venue at each of the five prototype stores in California and Arizona.
Officials said the company was discouraged by the need to "make more of a long-term investment" to propel the idea to permanent success.
"As we approach the end of the pilot phase of the program, we've found that this retailing concept needs a significantly higher scale and therefore investment to support the business for the long term," said John Cooper, Foodini's general manager, in a statement announcing Chevron's decision. Cooper has since been reassigned within Chevron and was not available for comment.
However, the Foodini's name is not being treated as a leftover. Cooper said that a team has been exploring ways to develop it through alternative channels, perhaps as a retail brand that could be sold in regular Chevron convenience stores.
"We will look at several options, including continuing the Foodini's brand. But, rather than expanding the store base, we believe it's a better use of Chevron resources to finance other growth opportunities," he said.
The prototype Foodini's store in San Ramon, Calif., has been reformatted with standard convenience-store food items like microwave burritos, hot dogs and nachos. Areas that once anchored a hot service counter and a panini grill are now dedicated to shelves filled with general merchandise, candy and sundry items.
The other four stores in the chain are undergoing similar retrofits, said officials.
When the 4,250-square-foot San Ramon unit opened in March, 1998, Chevron officials touted the new venue as a natural extension of the convenience-store's strengths -- namely ease of access, variety and, of course, convenience. The prototype included Chevron gas pumps, though these were moved off to the side and the front of the footprint was reserved for spacious parking right in front of the unit's main entrance [see "Chevron Corp. Opens Drive for Meals Store Chain," SN, March 30, 1998].
The debut was followed by expansion on several levels, as officials worked to attain a critical mass for the chain's test phase. Foodini's Fresh Meal Market stores opened in other California locations, as well as in Arizona over a period of 12 months. The menu grew as well, to include additional hot items, particularly at breakfast. When the second unit opened in Modesto, Calif., April 22, 1998, Foodini's introduced the "Bagelicious," a bagel sandwich of egg and ham or bacon; and a cinnamon roll. Both items reflected customers' desire for "on-the-go" foods that they could eat while travelling, Cooper noted.
Foodini's offered hot prepared foods from a service counter and limited seating just like quick-service restaurants, but emphasized prepackaged, chilled components that could be selected, paid for quickly, and consumed by the customer at home. Both the prepacked foods and most of the items on the hot table were sourced from regional manufacturers. Heated fare from the service area included rotisserie chicken, grilled-to-order panini sandwiches and fresh-made wrap sandwiches.
In the end, however, officials with Chevron Products Co., a wholly owned subsidiary of Chevron Corp. and Foodini's parent, determined that such fare did not require such expensive preparation and presentation, and could be sold under more traditional store formats.
"There has been no final decision where Chevron will take [the] concept next," Nancy Malinowski, Chevron corporate spokeswoman, told a local California newspaper.
