On the Lookout for Takeout
With a focus on using more efficient equipment, grocers have an opportunity to steal takeout market share from restaurants.
January 1, 2018
Calling and ordering dinner is something most people are accustomed to doing—some more so than others. While pizza and Chinese restaurants may be among the most common places takeout is ordered from, some say supermarkets could make their way on to this list in the near future.
With the amount of money spent on takeout the opportunity to grow share of foodservice dollars is obviously appealing. However, industry observers question whether grocers are prepared for a transition of this magnitude—in terms of both menu offerings and the equipment needed to produce more varied and potentially sophisticated options. The collective answer seems to be “probably, maybe, sort of.”
For certain, grocers’ foodservice operations have come a long way in recent years and many are offering much more than a rotisserie chicken-based selection. However, growing this portion of their business to play at a level on par with restaurants that strictly do this type of business could be a tall order. The Wegmans of the world may have proven it is possible to excel at prepared food ideal for takeout, but what about other grocers looking to follow suit?
Observers say if grocers have any hope of growing their foodservice share and “play with the big boys,” they will need to go deeper into their current program content and focus on developing a unique niche that emphasizes quality, healthful offerings. From menu improvement to producing and displaying the product, observers say retailers will need to up their game substantially. Having the proper equipment and processes will be a critical component to achieving these goals. At the end of the day, say observers, food quality can and will continue to be a key driver in attracting and retaining customers.
Brian Zornes, vice president of national accounts-retail with Alto-Shaam, based in Menomonee Falls, Wis., says technology will play a prominent role in helping retailers achieve their foodservice goals this year. Zornes says that if grocers want to appeal to customers looking to order a prepared meal they need to reach them one-on-one through their mobile devices. The need and desire for immediacy, says Zornes, is behind this, noting that shoppers, particularly Millennials, want easy access to shopping. And being able to order a prepared meal from their supermarket via their phone is growing in importance.
“Apps that allow for orders to be placed through smartphones—or even orders being placed via Twitter—will create the additional need for systems to be in place to streamline the customer ordering process and having the food product available for them,” says Zornes. “For example, for customers to place an order for dinner from your deli and pick it up on the way home, you need to ensure your holding equipment will keep that food at a precise temperature.”
That investment in technology will lead to investments in backroom equipment as well.
Jordan Robinson, a marketing specialist with Milwaukee-based Ovention, agrees that Millennials are one of the key elements influencing prepared food trends today. “The future of foodservice is having available hot, fresh, immediate options, and arguably Millennials are driving these changes,” says Robinson. “Their demand for simultaneous convenience and quality must be met at the front end of this market shift if someone wants to be a contender.” To do this, Robinson says the best operators will need to have flexible menus and equipment to seamlessly respond to Millennials’ evolving demands.
“In response to this, retailers will be focusing on fast, healthy cooking options,” says Robinson. “Adding hot foodservice to supermarkets is a key move in staying relevant, and implementing this will take equipment that is compact, versatile and easy to use.”
Ovention manufactures a ventless, countertop oven that cooks a large variety of food products at high speed—without using microwaves. Robinson says this helps enable the fast, healthy food that customers are craving.
The different models and footprints, all certified UL Ventless, allow for flexible location and addition of hot foodservice. Ovention ovens can store up to 1,000 custom cook settings available at the touch of a touchpad. They also offer a patented auto-loading and unloading feature, which ejects the food upon completion of cooking. Robinson says this makes it easier for operators to focus on their customers instead of supervising the oven to ensure the food is cooked perfectly.
Michael Williams, director of retail, culinary for Unified Brands, based in Conyers, Ga., says that if grocers utilize many of the equipment options available to them it will be possible to develop a well-rounded foodservice program that can go toe-to-toe with restaurants. He says grocers that have moved away from offering just standard choices toward prepared foods featuring better variety and quality will be among those best able to compete against the growing number of outlets looking to grab consumers food dollars.
Williams adds that the mission could prove challenging given that previously grocers just had to contend with other foodservice operators, but now companies are popping up that can ship ingredients for a full meal right to the customer’s door-step, a development he says will either force grocers to up their game this year or risk losing business.
Unified Brands offers a variety of foodservice equipment from blast chillers, power soakers and products that wash produce to steamers, combi ovens and refrigerated butcher block type products that keep the surface temp below 38 degrees, ideal for cutting meat on. “We understand the importance of having simple, easy to use, easy to clean equipment that come in a variety of sizes to accommodate various work environments and needs that all levels of workers can operate,” says Williams.
With the increased competition, taking advantage of impulse buys will be key, say officials at Fri-Jado. The company’s technologically innovative heated merchandisers were specifically created to enable retailers to optimally display hot prepared foods and capture consumers’ attention. Company officials at the Woodridge, Ill.-based company say impressing shoppers at first sight is the best way to boost impulse sales. The heated multi-deck merchandisers feature a unique airflow technology in which hot air is blown from the front of the shelf and circulates within the shelf surface creating the optimum movement of air around the hot product. Additionally, its large glazed walls offer a 180-degree view of the products.
The focus for officials at 1515 Design and Manufacturing is on delivering equipment that combines efficiency, elegance and performance. Currently, 1515 Design, based in Inglewood, Calif., imports and distributes Doregrill Rotisseries, the European leader in rotisserie manufacturing since 1963; and Criocabin, a unique Italian manufacturer of refrigerated display cases.
“Our goal is to offer the latest vision and design and combine it with unique state-of-the-art equipment,” says Francis Delpech, co-founder and president. “The merchandising appeal of our equipment is one of key elements of our company’s success and recognition today.”
To help their clients stay ahead of the game, the company educates retailers about the latest technology, the differences in quality and the importance of merchandiser appeal. “Our rotisseries are unique—built with the best materials such as porcelain enamel—and provide fast, consistent cooking. Our displays stand out and are based on three fundamental elements—modern structure, technical efficiency and design,” he says.
Overcoming Challenges
The question many are asking is, can supermarkets truly offer an advanced takeout menu and be a competitive presence within a setting whose footprint, including the kitchen and back room, has been shrinking in recent years? William Buck, national corporate chef for Rational USA, based in Rolling Meadows, Ill., believes it is possible. “The trick to overcoming this challenge will be investing in multi-functional foodservice equipment. By being able to use one piece of equipment, like our SelfCookingCenter 5 Senses, retailers can drastically reduce the amount of space needed in order to produce a wide array of high quality foods,” says Buck.
The SelfCookingCenter 5 Senses ease of use and push button controls, he says, make it comfortable and easily understandable for all employees.
“Having the ability to grill, bake, proof, steam, fry, overnight cook, roast, smoke and much more with one piece of equipment is the leg up grocers need,” says Buck, adding that the SelfCookingCenter 5 Senses can replace up to 50 percent of traditional equipment, while accommodating up to 90 percent of the cooking needs in a retail kitchen. He says this allows for operators to reduce the amount of space needed for food preparation, leaving the remainder of space to merchandise products.
Ovention’s newest model is Matchbox 360, featuring a unique cooking carousel and offering all of the advantages of Matchbox cooking in a small footprint. Robinson calls the new addition the perfect middle-of-the-house oven with a compact footprint, flexible menu, easy operation and custom decorative options. Ovention’s precision impingement technology delivers enhanced performance without the need of ventilation. Dual cooking surfaces mean that the cooking cavity is open only when food is entering or exiting the oven. Some other features include FlexTemp, Intuitive One-Touch Display, Auto Unload and USB menu upload capability of up to 600 pre-programmed cook settings to name a few. “The Matchbox 360 bakes, broils, cooks, grills and roasts a full and varied menu better, faster, easier,” says Robinson.
Recognizing the need for flexible options, Fri-Jado’s multi deck Grab ‘n Go merchandisers come in three, four and five presentation levels and range in width from 24- to 48-inches. Fri-Jado officials note that these portable merchandisers—which are ideal for displaying hot, prepackaged snacks and meal solutions—can be placed anywhere in the store, but placement near checkouts is often most effective. The upright design means the unit takes limited floor space.
Fri-Jado also offers a rotisserie and merchandiser combo known as the Space Saver. Combining the TDR 5 Rotisserie and MDS 2 self-serve Grab ‘n Go merchandiser, the Space Saver is designed to save retailers valuable floor space. With the rotisserie positioned above and at eye level, company officials say its sight and smell captures the attention of passing consumers and its self serve feature increases impulse purchases.
Regardless of size, every retailer is searching for ways to optimize their labor force, traditionally one of the most expensive components to their food service operation. Doing this while retaining the ability to make the needed amount of food can be a challenge, and while quickness and quality are top concerns, so too is safety.
Zornes says retailers should be focused on equipment that can help reduce labor while maintaining the ability to produce the necessary quality and quantity products for their customers, especially as they are facing the possibility of rising wages and health insurance changes. Speed and safety, he notes, are two other qualities that help drive decisions. “The labor savings fall right to the bottom line and the being able to do things faster while maintaining the desired quality allows operators to produce product based on demand,” he says.
To address the top foodservice issues, many observers would like to see retailers adjust their mindset when it comes to purchasing the necessary equipment, specifically when it comes to cost. Rather than focusing on the upfront equipment price, Zornes suggests the focus be placed on the equipment’s total value during the life cycle of the product.
“We would love to see retailers create an opportunity where they are able to remain competitive,” says Zornes. “With more consumers turning to grab-and-go dinner options, retailers will need to add additional take-home item choices to entice customers to shop in their store versus other grocers down the road.”
Officials at Alto-Shaam would also like to see decision makers continue realizing the importance of holding food at a precise temperature in order to increase their food quality and, in turn, increase their same-store sales. In 2016, Alto-Shaam will be unveiling a new and improved product focused on labor savings and safety, something Zornes says the industry has been clamoring for for some time.
“While specifics are under wraps, we look forward to showcasing this product in the near future. We truly believe it will be an innovative game changer for delis throughout the world,” he says.
Williams believes forward thinking operators will focus on improving the food quality, consistency, variety, safety and labor with the effective use of Cook Chill equipment and methods. He says this allows for many stews, gravies, soups and vegetables to be prepared in advance, then packaged in half or full gallon bags and quickly chilled for later use.
“When needed, products can be rethermed by using a steamer or water bath to bring them to serving temperature,” says Williams. Not only will products be fresh and attractive when served, he says any unused food at the end of a shift will be able to be saved as well.
Officials at Rational USA would like to see more retailers get away from using “traditional cooking equipment” (convection ovens, steamers, rotisseries ovens, grills, fryers, etc.) and toward using technology that can help them be more profitable on a daily basis. “Multi-functional equipment is essential when it comes to successfully running a retail kitchen in terms of space, energy and labor costs,” says Buck. Moving forward, he notes that Rational will continue to focus its efforts on providing maximum customer benefit by offering retailers and foodservice professionals working in commercial kitchens the most beneficial solution to their thermal cooking tasks with the SelfCookingCenter 5 Senses.