The convenience store bakery comes of age - Supermarket.co.za

akery
FEATURE
The convenience store bakery
comes of age
On-the-go food
solutions offer
huge growth
potential
By Gillian Hurst
Time is today’s most valuable
commodity. In business you get what you
want by giving your customers what they
want. In the current economic environment,
consumers are more pressured than ever to
meet deadlines and keep to tight schedules.
As a result, the easy-to-access forecourt
bakery with its numerous on-the-go meal
options has grown and evolved to a whole
new level and has proved a safe bet in this
recessionary period.
Suzelle Spies, food service consultant for
BP’s Wild Bean café’s confirms this, “The
traditional forecourt bakery as we know
it has grown from a small section of the
store that just offers self-service bread, rolls
and pies, to one that offers ready-to-eat
products, hot beverages and has a defined
space on the shop floor with dedicated
service and a much wider range.” The c-
store bakery has come of age!
Pies prove recession-proof
The popularity of the humble garage pie
has rocketed over recent years due to its
easy accessibility in c-stores as a quick onthe-go
meal. South Africa’s favourite pie
flavours are Pepper Steak, Steak and Kidney,
Sausage Rolls and Chicken and Mushroom.
According to Spies, these have almost
always placed tops. Spies advises
c-store owners to be aware of regional
taste variations as other flavours are more
popular in different regions depending on
local food culture. For example, Mutton
Curry and Vegetable Curry are popular in
Durban, while the Chicken and Mayo is a
favoured choice in Gauteng.
Sandwiches attract a new market
Industry trend spotters reveal that the
consumer’s preference is for food that
is healthy, yet indulgent but that is also
portable to support their on-the-go,
pressured lifestyles. Recognising this, Wild
Bean bakeries expanded their range of
sandwiches and filled rolls in a strategic
move to attract the more health conscious
female consumer. BP’s research has shown
that forecourt stores generally attract
more male shoppers than female. With
the introduction of wholesome low calorie
sandwiches, they have managed to attract
more women to their bakery counters. It
wholesalebusiness Issue 6, 2009 19

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FEATURE
was a strategy that paid dividends. “The
sandwiches do not cannibalise our pie sales.
This is a new customer base that we have
acquired,” says Spies. “We are currently
supplying the following sub categories
that were found to be effective in our
market - sandwiches, filled rolls, filled
croissants, salads and tramezzinis. But we
are constantly innovating to keep up with
evolving trends.”
The quest for health
The global health megatrend continues to
gain momentum. Janet Rose, marketing
manager for Rich Products Corporation,
frozen baked goods supplier to the c-store
market says, “We see international efforts to
enhance health and reduce fat in ingredients
used. It’s about delivering great taste with
less margarine or butter for example or using
more natural flavours – globally, of the top
15 flavours currently being developed, 12 are
natural. In line with this trend, Rich’s South
Africa is working to deliver products with
a healthier ingredient list. We are looking
at more high fibre options and products
with more fruit and seed options. That said,
indulgence will always have a place and
while consumers are becoming more health
conscious in their main meal choices, when
looking for a quick fix or snack they tend to
treat themselves to something a little more
indulgent.”
The rise of the muffin
As consumers become more health
conscious, the muffin is frequently the first
breakfast or snack choice of consumers onthe-go.
Bran muffins are traditionally seen
as the best choice for the health conscious,
but the addition of fibre and grain has made
other flavour options just as wholesome
and popular. Muffins used to be perceived
as a boring flavourless option, but the
addition of super-fruits such as blueberries,
cranberries, strawberries and citrus have
added another level of goodness and a new
dimension, boosting sales. However, while
consumers are looking for healthier options,
when it comes to convenience food, they
will often opt for taste over wellness.
Rose confirms this preference, “The
growth on baked goods sales has slowed
in the recession but certain line items
like muffins and biscuits continue to see
good growth in c-stores this year. While
consumers are far more cost conscious and
circumspect when shopping, they do need
to ‘escape’ all the bad news, if only for a few
Combo deals are always successful as
consumers look for value and love something
sweet with their coffee.
minutes and ‘treat eats’ like baked goods
fulfill this need through the comfort they
provide.” As recessionary times continue
to impact the consumer’s disposable
income, they will focus increasingly on the
essential food items first and only then
would ‘nice to have’ items like baked goods,
confectionary and snack items be added
to the trolley. Rose has observed a definite
move in this direction. “We see people
trading down, so for example instead of
buying a cake, consumers are looking at
smaller options and cake slices instead.”
Future trends
According to Rose, there are three major
trends to watch for in the baked goods
industry:
u Aligned to this health trend, there will be
an improvement in labeling on products.
Consumers want to know more about what
is in the food they eat and the demand
for better information will lead to labeling
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akery
FEATURE
legislation.
u The global quest for health has led to
US pie makers adding wholemeal flour
into their recipes and controlling levels of
trans-fats that clog arteries. This kind of
innovation would go down well with our
local market, which is increasingly conscious
of the food/health connection.
u Demand for flavour will result in use of
more exotic breads like rosemary or olive
and a move towards more chunky, tasty
fillings.
u Innovation to drive impulse remains key
to success in this business. Global statistics
show that only three out of ten shoppers
enter a bakery knowing what they will
purchase. This leaves a great deal of room
to tempt that impulse shopper with a full
range of well-displayed products.
Differentiate yourself with great
service
In a sector like the bakery market where
it is difficult to differentiate yourself on
a product or price basis because you are
selling exactly what your competitor is,
customer service is what can put you ahead.
US customer service expert Jerry Fritz
expressed this perfectly when he said, “You’ll
never have a product or price advantage
again. These can easily be duplicated, but
a strong customer service culture cannot
be copied.” Take a look at your customer
service ethic and make sure your staff are
well trained, presentable and friendly. Great
service could make the difference between
just making a sale and making a loyal
customer.
No matter the time of day, BP’s Wild Bean
Café in Broadacres is as busy as the major
road that runs alongside it. The success of
the bakery is due to two major factors: a
great location and a smoothly run
operation.
Location, location, location
The Café is based within the Broadacres
shopping centre, next to a busy road that
links residential areas to the main highway
network. There is a high concentration of
residential estates, office parks and schools
in the area as well as a large informal
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Welcome Shezi
Above: In-store ovens
produce tempting aromas
that definitely drive sales.
Left: Bake small batches
frequently so that you
always have the freshest
goods on display.
Case Study – BP Express Wild Bean Café Broadacres
settlement. The operation services the full
spectrum of LSMs, ranging from affluent
estate residents, school children and white
collar office employees to workers from the
informal settlement that commute in and
out of the area daily.
The popular pie
The warmers hold a large selection of pies
and confectionary – all of which are baked
on-site. Small batches are baked frequently
to maintain a fresh supply at all times. The
bakery offers a range of six different pie
flavours, the most popular of which is Steak
& Kidney. Store-owner Johann du Toit says
that he sells an average of 100 pies each
day and is always looking for new flavours
and promotions to sell even more. Curried
Chicken has just been introduced and is
gaining in popularity.
To boost sales, combo promotions are
popular, such as two pies for R15.95 or prior
to that, a pie, a 330 ml Coke and a packet of
Orbit Professional gum for R21.50. There is
signage advertising these promotions in the BP
Express windows to bring feet into the store.
30 Laub Street, New Centre, Johannesburg
Tel: 011 493-2146
e-mail: info@sinebar.co.za
Combos sell confectionary
Also popular during the breakfast rush,
22 wholesalebusiness Issue 6, 2009

are muffins, available in seven different
flavours, the latest of which is strawberry.
Doughnuts, custard slices, croissants,
brownies and oversized cookies are also
available to tempt those with a sweet tooth.
A biscuit range is strategically placed next to
the sugar and spoons on the coffee counter
to tempt the more impulsive shopper, while
an individually wrapped biscuit is given away
with each cup of coffee.
Du Toit says that confectionary sales
are flat, but not disappointing. To boost
this sector, he frequently offers combo
deals, which always have great results. For
example, a doughnut and coffee deal is
always a winner. It can be quite easy to
tempt shoppers with confectionary combos
as most people love something sweet with
their coffee!
Café culture
In-store a number of tall café-type tables
and chairs are arranged next to the service
counter, and the bakery has become
a popular meeting place for pre-work
meetings over coffee and breakfast muffin
or pie – or two! Customers enjoying hot
drinks said that it can be difficult to just
settle for a single serving of anything while
sitting in the store. When Supermarket
& Retailer visited the site, freshly baked
chocolate biscuits had just been taken
out of the oven, and the smell filled the
store. A customer coming in to simply buy
cigarettes or a newspaper, could not help
but be steered by the senses to the bakery
counter! With small batches being baked all
day, delicious smells are always present and
always driving sales.
The introduction of wholesome
sandwiches has drawn the health
conscious female market into the c-store bakery.
Healthy Options
Unlike the pies and confectionaries which
are baked on-site, the sandwiches and filled
rolls are delivered ready made from BP head
office, which saves a great deal of time for
bakery staff. Sandwich sales are strong and
regular from morning until late afternoon
and provide a healthier option than pies for
the health conscious. Shoppers coming into
the store in the morning for their coffee,
often buy a sandwich for lunch, as these
keep better than pies, which are best eaten
immediately while fresh and hot.
What makes a bakery successful?
There are three essential elements that
make a bakery successful.
u Understand daily purchase trends to
deliver the freshest goods appropriate to
time of day demand.
u Make sure your presentation is perfect
– bake small batches frequently as fresh
goods always look best.
u Make sure your staff are well trained and
well presented. Great customer service can
be key in making your store the one the
consumer comes back to.
Customers are looking for healthier
food-to-go options and bakeries that have
taken this trend into account are doing well.
Expanding their offerings to include
muffins and sandwiches has grown their
customer base and has not weakened pie
sales at all. These additions have proved
particularly attractive to women who are
generally more weight conscious than
men. While muffins are not entirely
virtuous, the fact that they are smaller in
size and have a lower fat content than pies
means that they are considered the lesser
of the two evils by the female market.
Sandwiches and rolls are considered even
more guilt free and are selling extremely
well, but the pie remains the star of the
snacks-to-go range.
A well-run bakery can now account
for up to 25% of a forecourt store’s sales.
The days of a filling station’s ‘bakery’
consisting of a simple pie warmer at the
back of the store are numbered. Today’s
c-store bakery has expanded from a mere
‘add-on’ to the shop floor, to become
a real competitor in the quick service
restaurant sector, offering meal solutions to
consumers on-the-go, as well as take-home
options. Sales are driven by occasion and
impulse and catering to these needs offers
huge growth potential in the evolving c-
store bakery sector.
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