FRESH PERSPECTIVES 1999

ROSEANNE HARPER

PITTSFORD, N.Y. -- Now is as good a time as any -- indeed, it could be better than most -- to get into the meals business.

That's what Terry Roberts, president of Merchandising by Design, a store design and consulting firm here, said she believes.

She based that observation on what's been happening in the industry since "home-meal replacement" and supermarket food courts came into the spotlight a few years ago.

"In the last three years, food manufacturers and equipment manufacturers both have made big strides in developing products that are applicable to the supermarket," she said. In addition, retailers just gearing up for the meals business can benefit from the experience of those who entered the arena early, she added.

"The pendulum has swung back. The early entries went into full- service, full-sitdown programs, using a lot of space. Now, they're moving back more toward understanding the takeout customer and takeout business and finding ways to satisfy those needs instead of trying to make the supermarket into a restaurant," Roberts said.

In an interview with SN, Roberts talked about the opportunities today's lifestyles present to the industry.

To those who say HMR is dead, her answer is, "Hey, we haven't stopped eating, have we?

"We're still buying food. Part-packaged, part-fresh. I don't believe home-meal replacement is dead. It depends on what people are lumping under that category [when people say HMR is dead]. Sales of convenience products like precut, premarinated items are still growing," Roberts said.

Many supermarkets also are building a ready-to-eat meals business and are finding ways to make it profitable. Compressing food-service programs into a smaller footprint has helped the bottom line, she said. Tightening up the food-service area has helped with labor efficiencies and has made execution easier to handle, she said.

And premarinated, prespiced, ready-to-cook or partially cooked items, too, have become an important part of the equation, she added.

"By adding a few cents worth of spices and a cooking-instructions card in the case, the profitability profile is increased significantly," she said.

Their approach has become more conservative, but retailers are giving consumers what they want, she stressed.

"Consumers are changing their direction somewhat. They really want to eat at home. So what we need to do is provide them with components so they can easily put together eat-at-home meals -- meals that appear to be home-cooked or home-prepared.

"That [consumer change of direction] started retailers' move toward packaging components and making prestuffed, precut, premarinated items available. Reducing the size of the seating area because there's less need for eat-in space, too, has resulted from that consumer trend," Roberts said.

She said the aim of supermarket operators quite simply should be to make it as easy as possible for their customers to put a meal on the table. Whether that involves providing them with fresh, ready-to-eat meals or components or partially prepared components to finish or assemble at home depends on the retailer and his customer base.

In doing so, retailers should make the most of what's available to them, from prepared foods to equipment, Roberts advised.

"A lot of retailers are going to products -- fresh, chilled products and components -- that are made by outside suppliers. They're using them both cold and hot. I see more and more retailer/supplier partnering for the production of signature-type items, too," Roberts said.

They often use recipes developed by the supermarket's corporate chef, she explained.

"There's been an enormous amount of research and development [by manufacturers] that can give retailers a shortcut. There is flexible and multifunctional equipment that wasn't available a few years ago. Manufacturers have developed equipment different in look and in scale than it would be for a typical back-of-the-house in a restaurant," she said.

Roberts pointed out that most supermarkets aren't even making the best use of the equipment they already have in their stores.

"Take a rotisserie, for instance. That's one of the most visible pieces of equipment there is to show customers you're doing your own cooking. But they're being used, for the most part, for only chickens and then just a couple of hours a day."

Roberts went on to point out that the rotisserie can be used to build on a core program -- chicken -- that may already be doing well for the store.

"You have to understand that equipment can, and should, be used for multiple purposes. The rotisserie could be used all day, for roast beef and turkey breasts, and even vegetables."

It's a relatively painless way to add to a menu's variety and make a "fresh statement" at the same time, she said.

But, even with innovation and flexibility, can the supermarket compete with the restaurant business?

"Absolutely," Roberts said. Indeed, since consumers are increasingly looking to spend more family-time at home, the supermarket is the perfect venue for them to get what they need to have an easy meal in their own homes, she said.

On offering customers more convenience, Roberts talked about "ensemble merchandising," which bunches together products from various departments to make a meal.

"It's the department-store philosophy of selling the outfit, not just one piece of clothing. In the supermarket, it translates to selling the whole meal. For example, wine and bread and oil with the entree and the sides," she said.

"For a Mexican meal, why not bring everything together in one place so the customer doesn't have to go 10 aisles over to buy cheese and then back again to another aisle for the jalapenos?"

She pointed out that fresh, chilled entrees or components could easily be a part of such an ensemble.

But it's not just products that make it comfortable and easy for the consumer. It's also decor, displays and kiosks and the direction of traffic, she said.

"The importance of family activities and the influence of home is dictating what stores are popular and what departments in stores are popular," Roberts said.

Use of tile and natural colors and flexible lighting is increasingly being used to create a "homey" atmosphere in supermarkets, Roberts added.

"Customers want an environment they don't mind staying in."