Most retailers are THINKING they should win. Many are actually PLANNING to win. However, when you look in the stores, few are really PLAYING to win in retailer foodservice.

1. ARE YOU PLAYING TO WIN IN FOODSERVICE?
March 31, 2011
Presented at
117 South Cook Street #339
Barrington, Illinois 60010
phone: 847.722.2732
fax: 847.382.1801
Copyright © 2011 Balvor LLC. All Rights Reserved. davidbishop@balvor.com

2. To win in foodservice requires you to demonstrate that
you deserve to be on the “A” team, but…
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3. …It’s clear that many retailers still have a lot of work to
get on the “A” team and …
2.2x
1.0x
0.3x
Top Quartile Survey Average Bottom Quartile
Average Foodservice Sales per Store Index
*Includes all dispensed beverages, food prepared on-site, and commissary & other packaged products.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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4. …Making the cut is only becoming more difficult as the
“A” team players are getting stronger
1.7x
1.0x
0.6x
Top Quartile Survey Average Bottom Quartile
2010 Foodservice Dollar Sales Growth Index
*Includes all dispensed beverages, food prepared on-site, and commissary & other packaged products.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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5. So, where do you need to strengthen your game first to
improve the chances of winning?
Frozen
Dispensed
Cold
Beverages
Dispensed
Commissary Beverages 7%
& Other Packaged 8%
Products
7%
Food
Prepared
Hot On-Site
Dispensed 58%
Beverages
21%
Share of foodservice dollar sales
Source: NACS SOI Annual Report, 2009 data.
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6. Focus on improving execution in the core day-parts
before attempting to build other segments
85%
38%
33%
15% 15%
10%
0% 5%
Morning (6am - 10am) Mid-day (10am - 2pm) Afternoon (2pm - 6pm) Evening (6pm - 10pm)
Hot Dispensed Beverages Food Prepared On-Site
Q: Which of the major day-parts offers the most growth potential for each foodservice category respectively in your store(s)? Percent of retailers responding.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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7. Help get consumers to spend money in your store(s) by
taking some pressure off their wallets
129
95
75
Top Quartile Mid Quartiles Bottom Quartile
Hot Dispensed Beverages Index
Q: Have you introduced any new products in the past 12 months that enable your store(s) to offer lower retail prices?
Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010.
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8. Think differently about how products are described on
your in-store menu boards
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9. Enhance the shopper experience around the coffee bar
with new and/or improved equipment
134
102
63
Top Quartile Mid Quartiles Bottom Quartile
Retailers Likely to upgrade hot dispensed beverage equipment-
Index
Q: In terms of dispensed beverages, which areas will your company likely test or implement in 2011?
Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010.
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10. Leverage more combo deals to build transaction size –
especially during the morning day-parts
121
96
83
Top Quartile Mid Quartiles Bottom Quartile
Retailers Changing Quarterly or Monthly - Index
Q: How frequently do you change foodservice-related combo deals in your store(s), e.g., buy a beverage and a food item and save $$?
Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010.
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11. Reward purchase frequency from your store with
special product deals
159
121
108 105
82
0
Top Quartile Mid Quartiles Bottom Quartile Top Quartile Mid Quartiles Bottom Quartile
Retailers Using with Hot Dispensed Beverages- Index Retailers Using with Food Prepared On-Site- Index
Q: Do you offer a club program in any of the following categories, e.g., buy 5 and get your 6 th free?
Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010.
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12. Drive more customer traffic into store by promoting
Food Prepared On-Site at fuel pumps
129
102
65
Top Quartile Mid Quartiles Bottom Quartile
Retailers Using Monthly with Food Prepared On-Site- Index
Q: How frequently do you leverage signage at the fuel pump to promote special deals or products available in-store?
Source: CSD/Balvor Foodservice Survey, Balvor LLC, May 2010.
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13. Be sure to refine the offering at times in order to satisfy
the consumers’ changing preferences
167
96
50
Type of Brands
• Proprietary / Store
• Manufacturer
Top Quartile Mid Quartiles Bottom Quartile • Wholesale / Control
Percent of Retailers Changing Type of Brand Offered In or Since
2009 - Roller Grill Products* - Index
* Based on retailers selling.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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14. Select the branding strategy that’s best for your store
today and realize this may evolve over time
Percent of Retailers Employing as Dominant Branding Strategy –
Roller Grill Products*
Top Quartile 50% 25% 25%
Survey Average 32% 11% 55% 3%
Bottom Quartile 11% 11% 67% 11%
Proprietary/Self Branded Franchise/License Branded Manufacturer Branded Wholesaler/Control Branded
* Based on retailers selling.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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15. Wining in foodservice means improving your game in
order to compete against “A” team operators
2011 Sales Forecast - PCYA
11.7%
10.0%
9.2% 9.0%
8.3%
4.2%
Food Prepared On-Site Hot Dispensed Beverages
Top Quartile Survey Average Bottom Quartile
* Sales weighted based on the number of stores operated.
Source: CSD/Balvor 2011 Foodservice Outlook Survey, Balvor LLC, January 2011.
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16. David Bishop
Managing Partner, Balvor LLC
Biography
David is the managing partner of Balvor LLC, which is a sales and marketing P: 847.722.2732
firm that provides consulting, sales support, research, and analytic services to
davidbishop@balvor.com
retailers, product suppliers, financial analyst and other organizations.
Balvor’s services support various food channels, covering both foodservice and
retail classes of trade. Public Accomplishments
David has helped many leading retailers evaluate new retail concepts, enhance White Papers
annual category planning processes, and develop new business support • Convenience Channel Opportunity: Insights for the Dairy Industry, Dairy
methods related to assortment rationalization, space allocations, or branding Management Inc., 2010.
strategies.
• Are Retailers Doing Enough? Preventing Underage Access to Tobacco at
He helps product suppliers improve their competitive positioning, trade Retail, Center for Responsible Tobacco Retailing, Inc., 2009.
programs, and category management capabilities by better understanding
what retailers’ value while also benchmarking versus peer companies. • Accelerating Cigar Profits Through an Increased Strategic Focus, John
Middleton Inc., 2008.
David also has extensive experience with activity-based costing, channel sales
• How to Succeed in Convenience Retail:A Practical Guide for Product
strategy, merchandising assessments, trade communication, and custom
Suppliers, NACS, 2007.
analytical support for both consumer packaged goods and foodservice
industries. Industry Research
Prior to founding Balvor in 2008, David spent 12 years at Willard Bishop in • State of Foodservice, Convenience Store Decisions, 2008 - 2011.
various positions, including most recently as partner. David began his career • Tobacco Retail Survey, Convenience Store News, 2008 – 2011.
with The Levy Restaurants in operations for new store concepts where he
focused on beverage and financial programs. • SKU Rationalization Survey, NACS/Balvor, March 2010.
• Motor Fuels Retailer Survey, Balvor/NACS, January 2010.
Current Industry Affiliations
• Convention and Events Committee, NACS, 2007 – present
• Supplier Advisory Board, Convenience Store Decisions, 2006 – present
• NACSPAC Member, 2008 - present
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