CONVENIENTLY PLACED

LAURA KLEPACKI

PARAMUS, N.J. -- Simple Simon's message couldn't be any clearer. Across the top of the store's front window, in big bold letters, it says, "GREAT MEALS TO GO." There are no other signs to distract -- no milk prices, lottery promotions or cold cut specials.

This 26-year-old family-run convenience store, which refers to itself and its somewhat younger sister store in Hackensack, N.J., as 'super delis,' has for several years been tailoring its programs to capture the home-meal replacement market.

Simple Simon is out in front of most of its C-store peers across the country when it comes to fresh-prepared foods -- and is giving other food retail formats a run for their money, too.

Sol Glastein is president, and son of retired company founder Simon Glastein, who had once operated some Met Foods supermarkets in New York. As convenience-store retailers, they didn't realize they were to be seen one day as forerunners in a now rapidly expanding takeout-food movement.

Glastein acknowledges what was once a niche for Simple Simon is now anybody's ball game.

"Everyone is competing against everyone for the home-meal replacement market," said Glastein. "We are competing with Boston Market, fast foods, supermarkets and delis -- there is no question about it."

Undaunted, Glastein continues to strengthen and refine the store's successful deli prepared foods program, its fresh salad bar, the in-store bakery and the catering operation that primarily serves local business lunches and breakfasts. Nearly half of the 2,800-square-foot floor space is devoted to fresh- and food-service departments. About one-third of the store's sales come from deli and deli-prepared items, said Glastein.

A bakery counter, coffee bar, full-service deli, catering display and soda fountain area ring the right side of the store when entering. A salad bar and refrigerated cases for prepared items and produce are given central floor space nearby which effectively creates a dividing line from the store's grocery and magazine aisles.

The store was opened in the early '70s with an emphasis on deli, said Glastein. "Even then you had to differentiate yourself. And by the mid- to late-'70s you couldn't compete with supermarkets or even with other convenience stores on price."

"At the time, we saw more women starting to work, especially in this area where people were up to their elbows in mortgages," said Glastein, whose stores are located in Bergen County, N.J., one of the most expensive real estate markets in the country.

"So we thought, 'Why don't we do something more for them -- offer better meal opportunities,' " said Glastein.

"Our theory was to open up a convenience store, but expand it beyond chips and snacks and offer more prepared foods with greater emphasis on deli," he said.

"Over time we brought in steam tables and stuff from supply houses. We started barbecuing chickens and have been offering chicken meals for years," he said.

" 'Grab-and-go and heat-and-eat. That's what we are all about," said Glastein. "That's why we are here."

An emphasis on high-quality, simple foods at good prices guides the Simple Simon operation. And "we are different because customers can get in and out really quick," said Glastein.

While lunch is still its strongest meal program, Simple Simon's deli offers hot breakfast items and continues to build its dinner trade, "but that is the toughest because of the competition," said Glastein.

Combination meals are now becoming a bigger part of the plan, said Glastein. "We are trying to use other departments to tie-in, and we are modifying our programs as we go."

One recent promotion included a movie rental and takeout dinner for two for $7.99. At the Hackensack store, you could even pick up a bottle of wine, said Glastein.

But all meal occasions are treated seriously.

On a recent weekday morning, the deli's 6-foot steamtable featured a display of scrambled eggs, bacon, sausage, and croissant sandwiches.

And the self-serve coffee bar offered regular coffee and three specialty flavors -- hazelnut, Kona blend and Viennese cinnamon.

In its modest refrigerated coffin case, about four to five feet long, a few clamshell breakfast packs merchandised for $2.99 included a Dannon yogurt, a plain bagel and a bottle of Tropicana orange juice.

Most of the case accommodates premade sandwiches, which represent about one-third of its sandwich business, and salads that are made fresh daily -- all with stickers noting the current day's date. There were eight sandwich varieties including a hero for $3.99, tuna on a roll for $2.99; and chicken breast on whole wheat for $3.99. Others included roast beef, bologna, spiced ham and cheese, baked turkey and boiled ham all on a variety of breads and rolls.

Cross merchandised above were bags of chips and a display of cookies and brownies. And adjacent to the display is a produce case, where apples, oranges and pears are item-priced, and clamshells with fruit salad and cut up watermelon are also available.

In the deli case, there are some 18 salads in all -- red potato for $3.99, gourmet shrimp salad for $9.99 and a chunky chicken and broccoli salad for $5.99. All are made in-store with the aid of one overnight employee who does a bulk of the prep work, said Glastein.

Simple Simon also has an 11-item roster of specialty sandwiches available at the service deli, which are sometimes merchandised in the "Grab n' Go" case as well. There is also a fairly new line of 11 "Lite n' Healthy" sandwiches that are low in fat and cholesterol, said Glastein.

Cajun flavored, spicy roast beef, with Swiss or havarti cheese, lettuce and tomato on an onion roll for $4.99; turkey, muenster, red onion and honey mustard on marble rye for $4.99; and any cheese, shredded lettuce, tomato, red onion, cucumbers, red cabbage and dressing on pita for $3.99, are some of the specialty sandwiches offered.

The steam table space is eventually taken over by the three or four entrees offered daily, and microwavable containers featuring an entree, potato or rice and a vegetable replace the supply of premade sandwiches and salads as they are depleted.

Glastein buys basic, restaurant-quality food-service items such as a grilled chicken breast, fried chicken or veal patties and uses them as is, or dresses it up in-store.

All pasta is cooked in-house, as well as mashed potatoes and other basics. The single-serve dinners range from $3.99 to $5.99, depending upon the items.

"They are priced to appeal to the masses," said Glastein. "They are not coming here looking for the $8, $9, $10 range -- and we don't want to be in that range. It is good everyday food, but it is not gourmet."

Simple Simon gets a 50% gross margin on thaw and serve type items and 60% to 70% on foods that are more labor intensive or made from scratch, said Glastein.

Some of its wide-range of entree items include: chicken breast stuffed with broccoli and cheddar cheese, chicken cutlet parmigiana, chicken marsala, meat or vegetable lasagna, eggplant rollatini, kielbasi and sauerkraut, shredded barbecue beef and meat loaf. "We have a long list that we rotate from," commented Glastein.

"We are seeing growth in our food-to-go items and we are constantly looking for new varieties," said Glastein who has attended supermarket, restaurant and deli trade shows for inspiration.

Simple Simon prints a takeout menu for its breakfast and lunch items and another for its catering business, which was started in 1980 and offers everything from trays of cheese and fruit to sandwich platters, pasta, chicken dishes, heros, salads, hors d'oeuvres and desserts. It is promoted in-store with a large board depicting 16 items, with the message, "Our Catering Experts Can Help You Now."

Over time, Glastein has dispensed with traditional promotion and now focuses on direct-mail marketing. Additionally, each morning a flier of daily specials is faxed to a list of regular customers.

"We found that a lot of advertising was just not cost-effective," said Glastein. So now, "we try to go with direct-mail pieces to our trading area if we are featuring a holiday-type program, doing something seasonal or introducing a new item."

Glastein has been watching the growth of fast-food counters in units of other C-store operators, but doesn't see expansion into that type of food service in Simple Simon's immediate future.

"We have our proprietary program," said Glastein. "I would consider a top-rated branded program -- but our space is such that we are filled with what we do now."