Retail Analysis explores best practices of food-to-go in North America
IGD Retail Analysis visited foodservice outlets in North America.
Ahead of its first ever Food-to-Go Conference on November 22, the company visited specialists, convenience stores and supermarkets in US and Canadian cities to explore what we can take from the latest North American food-to-go best practice. Here are some highlights:
1. When a coffee chain goes into fast food - Tim Hortons.
Tim Hortons is a ubiquitous presence in Canada, selling volumes of coffee that dwarf those of more premium rivals like Starbucks. But it's an evolving proposition, developing from a core focus on drip coffee into barista service, while also, and potentially more significantly, pushing into more food, and, significantly, hot food. This is where you can really see the thinking from its new owners, Restaurant Brands International and its other core brand Burger King, feeding through. This is helping it develop more of a hybrid proposition, that positions it firmly within a different competitor set, that extends to the likes of McDonalds or Subway. With international expansion a stated goal, and expansion plans already announced for the UK and the Philippines, this could add a new dynamic to many markets.
2. Second Cup - a new type of (chain) premium coffee experience.
The Toronto-based coffee company has over 300 stores across Canada, and at home is going through an extensive rebrand and refurbishment programme. The advantage of this is that a growing number of its stores are in a format that's up to date and on trend, leaving a striking impression. This is giving it greater differentiation in the marketplace, coming after a difficult trading period. There's a also international expansion under way - Second Cup is now present across much of the Middle East through franchise agreements. It's also present in the UK, with single stores in London, Manchester and Birmingham, but with more in the pipeline.
3. Supermarkets can do an outstanding job in food-to-go, but need the right approach.
For US and some Canadian supermarkets, food-to-go has a different definition, encompassing a vast array of prepared food, presented in a buffet style, and designed either for consumption in-store or to be taken away. Wegmans, Roche Bros. and Whole Foods Market do an excellent job here, but a wide range of other players also offer attractive multiple solutions covering a range of cuisines and nutritional requirements. But food-to-go at this level requires a shift in approach: a successful model of this type runs on very different KPIs to those typical of a big box format.
4. Health and wellness has much further to develop globally.
North America offers fantastic insights into what is to come for many markets. Supermarkets' focus on health is enormously impressive, in assortment, display and in-store zoning, with Whole Foods Market, Stop & Shop and Trader Joe's amongst the best-developed offers we saw. At the same time, food-to-go specialists like Fresh & Co, Sweetgreen and Freshii offer inspiration to anyone, operator or supplier, targeting the segment.
5. When a sandwich becomes more than a sandwich - Panera Bread.
Panera Bread is a simple, convenient concept designed around fast meal solutions for shoppers. Bread-based items may lie at the heart of the proposition, but a curated range of options with different breads and fillings sit neatly alongside a range that has stretched into soups and stews. Potbelly, too, offers much inspiration along similar lines, and now has a toe-hold in Europe, through a single London store.
