FOR RETAILERS WITH LICENSED C-STORES
In this extremely competitive marketplace, the convenient store channel may be down, but they still drive significant volume. While not all states allow sales of alcoholic beverages in c-stores, overall they account for approximately 55% of measured beer volume. This number dwarfs the second venue for beer sales…supermarkets. They account for about 30% of measured beer volume nationally. The liquor store ranks third with 11%, followed by the drug channel with 5%.
As we all know, getting a product placed into a c-store chain can be a difficult task. Their coolers are just so big and the number of SKU’s is limited. Things are getting better though, as some of the c-store buyers are beginning to see the benefit of expanding their SKU’s. It is now up to the individual supplier and their respective distributors to make that new placement.
One placement method that has worked in a number of markets around the country is selling in a small display of 6 packs for placement at or near the register. Don’t try to place this product in the cooler immediately. Explain the benefits of the profits generated by these incremental impulse sales. The entire display will take up less than 3 square feet. The 6 pack has a low price point (posted on a price sign, placed close to the display)) and that specific package is less likely to be on sale in other brands, offering a fairly high PTC for the retailer.
If the product begins to sell, the manager/owner will hopefully suggest placing it in the cooler, as a regular item even before you do. Fight for your fair share. THINK OUTSIDE THE BOX, LITERATELY!
We appreciate your continued support. Please feel free to add a comment, suggestion or question at the end of this post.
Thank you,
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
908.770.6237
dapostolos@optonline.net
Tuesday, March 30, 2010
Tuesday, March 16, 2010
IMPROVING YOUR CUSTOMER'S R.O.I.
FOR ALL RETAILERS
We are all constantly looking for new ways to increase the customer count in our stores, bars and restaurants. At the same time, your customers are looking for a good return on THEIR Investment. That’s right. A good return on the customer’s R.O.I.
We sometimes tend to take for granted the actual customers who come through our doors. These are the people whose purchases pay our bills. I think we need to look at them in a different light.
Placing ourselves in our customer’s shoes, we can see what it is that our establishments have to offer. Look at your place through the customer’s eyes, on the following points:
PRICE / VALUE:
- You must be competitive with your competition, but you don’t have to be the lowest PTC in town. Value-added items are important. Whether it is a related item, such as glassware or a service such as a free bartender, price and value go hand in hand.
SHOP-ABILITY:
- Your product must be easily found. A no-clutter floor in a package store or an easily maneuvered path in your bar, both help the shop-ability of your place.
- Easily found and read pricing is important. Shelf talkers in the package store, menu boards, menus and clean, attractive draught knobs in your bar/restaurant all lend themselves to shop-ability.
- A good variety of items is always a plus for shop-ability.
- Limiting out-of-stocks is another positive to increase your customer’s R.O.I.
CONVENIENCE:
- Is your place easily entered? Is there plentiful/safe parking? Do you offer cross-merchandising efforts to bring more value to your customers?
EMPATHY:
- Is your place clean? Is it a pleasant environment? Would you shop there if you were a customer?
EXPERIENCE:
- Do you offer an experience to your customer? Entertainment? In-store food samplings? In-store Beverage Alcohol samplings (where legal.)
- Have you ever tied your business to a charity? Many consumers look positively on such efforts.
Some establishments make the shopping experience entertaining. Trader Joe’s is a great example of all the above points. While not an on premise account, it is an event for the customer. Stop in and visit one and you will see what I mean.
Thank you for your on-going support.
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
dapostolos@optonline.net
We are all constantly looking for new ways to increase the customer count in our stores, bars and restaurants. At the same time, your customers are looking for a good return on THEIR Investment. That’s right. A good return on the customer’s R.O.I.
We sometimes tend to take for granted the actual customers who come through our doors. These are the people whose purchases pay our bills. I think we need to look at them in a different light.
Placing ourselves in our customer’s shoes, we can see what it is that our establishments have to offer. Look at your place through the customer’s eyes, on the following points:
PRICE / VALUE:
- You must be competitive with your competition, but you don’t have to be the lowest PTC in town. Value-added items are important. Whether it is a related item, such as glassware or a service such as a free bartender, price and value go hand in hand.
SHOP-ABILITY:
- Your product must be easily found. A no-clutter floor in a package store or an easily maneuvered path in your bar, both help the shop-ability of your place.
- Easily found and read pricing is important. Shelf talkers in the package store, menu boards, menus and clean, attractive draught knobs in your bar/restaurant all lend themselves to shop-ability.
- A good variety of items is always a plus for shop-ability.
- Limiting out-of-stocks is another positive to increase your customer’s R.O.I.
CONVENIENCE:
- Is your place easily entered? Is there plentiful/safe parking? Do you offer cross-merchandising efforts to bring more value to your customers?
EMPATHY:
- Is your place clean? Is it a pleasant environment? Would you shop there if you were a customer?
EXPERIENCE:
- Do you offer an experience to your customer? Entertainment? In-store food samplings? In-store Beverage Alcohol samplings (where legal.)
- Have you ever tied your business to a charity? Many consumers look positively on such efforts.
Some establishments make the shopping experience entertaining. Trader Joe’s is a great example of all the above points. While not an on premise account, it is an event for the customer. Stop in and visit one and you will see what I mean.
Thank you for your on-going support.
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
dapostolos@optonline.net
Saturday, March 6, 2010
THE "FAST-CASUAL" DINING PHENOMENON
FOR RESTAURANTS AND BARS
Many recent articles relating to the on premise segment of our business, have commented on the decline of casual dining. I even authored an article on this very subject, for a national publication.
In that article as well as many others, it seems that, along with the tough economy, the problem facing this segment is cheap competition. I spoke with the owner of three north Jersey restaurants. He told me that he had never seen competition coming at him from so many directions. He told me (I paraphrase), “When times are tough, as they are now, people look long and hard at where they can spend their money. I not only consider other dining places to be my competition, but also Bennigan’s, Chili’s, Mc Donald’s, Denny’s and even the hot dog stands you see around the area. Anyone offering a food experience has to be in my cross-hairs.”
With that as the background, I will now bring up the newest twist to the casual dining scene; In an attempt to fight the soft economic conditions, along with all of the aforementioned competitors, in a more profitable manner, some “outside the box” thinkers are attempting to create a new category…”fast casual” dining.
The idea behind this direction is simple. Take some of the costs out of the equation while maintaining a positive atmosphere for the customers. In any business, two of the top P & L line item expenses are payroll and cost of goods. Knowing this, some intelligent retailers have made changes to the established template for casual dining. They are attempting to alter their business, saving costs where possible, while trying to maintain the same ambiance and positive feel of the original place.
Some suggested changes can be, but are not limited to:
1) A seat-yourself policy (no hostess or reservations).
2) A trendy but limited menu, offering the top selling menu items (or profit-makers) of the current establishment.
3) Cafeteria style food offering, with table service for beverage and clean up only.
4) A limited beverage offering, concentrating on profitability and turnover.
5) A closer look at portion control at the back end of your place. Not reducing portion size, but ensuring consistency.
6) The proper placement of items on your menu. Studies have proven that the customer will spend a greater amount of time looking at the top of the right-hand pages in a menu. Take full advantage of this by placing your most profitable items in these spots.
7) Always post a daily menu on a dry erase or chalk board. Make sure your specials all tie in a beverage at a reduced price. Go one step further and change the board with the meal/time. A lunch board from 11:00 ‘til 2:00; a Happy Hour board (where legal) from 4:00 ‘til 6:00; a dinner board from 5:00 ‘til close. Make sure the customer is aware of the items YOU want to sell.
When analyzing an establishment for this potential makeover, the above points should be reviewed. As the retailer, it is you who must make the final decision on which way to move your business. A great “sounding board” can be your Beverage Alcohol distributors. Beverage Alcohol is the one product that can make the transition to the “fast casual” concept, with the least amount of hassle. It is one of the most profitable categories in your establishment and (with the exception of some wines) it involves very little employee training in order for your wait staff to become proficient in answering customer questions.
Use your Beverage Alcohol distributors to help plan this move to the next hot idea in the on premise segment. These distributors can share with you the sales trends, margin breakouts and support items for all their potential items. They can also help you with promotions and specials tied to food offerings. If this new direction means you must impact new consumers, your distributors can help you to reach them. Consider the distributor as a consultant to you and your business. Their resources enable them to help you with ideas and concepts from different areas. This blog can also assist with ideas and success stories from other markets around the country.
Be aware of all potential avenues down which you can take your business. Making changes to the status quo and staying one step ahead of your competition, can repay you with surprising, long term benefits.
More on this trend in upcoming blogs.
We appreciate your business and support.
Thank you,
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
dapostolos@optonline.net
Many recent articles relating to the on premise segment of our business, have commented on the decline of casual dining. I even authored an article on this very subject, for a national publication.
In that article as well as many others, it seems that, along with the tough economy, the problem facing this segment is cheap competition. I spoke with the owner of three north Jersey restaurants. He told me that he had never seen competition coming at him from so many directions. He told me (I paraphrase), “When times are tough, as they are now, people look long and hard at where they can spend their money. I not only consider other dining places to be my competition, but also Bennigan’s, Chili’s, Mc Donald’s, Denny’s and even the hot dog stands you see around the area. Anyone offering a food experience has to be in my cross-hairs.”
With that as the background, I will now bring up the newest twist to the casual dining scene; In an attempt to fight the soft economic conditions, along with all of the aforementioned competitors, in a more profitable manner, some “outside the box” thinkers are attempting to create a new category…”fast casual” dining.
The idea behind this direction is simple. Take some of the costs out of the equation while maintaining a positive atmosphere for the customers. In any business, two of the top P & L line item expenses are payroll and cost of goods. Knowing this, some intelligent retailers have made changes to the established template for casual dining. They are attempting to alter their business, saving costs where possible, while trying to maintain the same ambiance and positive feel of the original place.
Some suggested changes can be, but are not limited to:
1) A seat-yourself policy (no hostess or reservations).
2) A trendy but limited menu, offering the top selling menu items (or profit-makers) of the current establishment.
3) Cafeteria style food offering, with table service for beverage and clean up only.
4) A limited beverage offering, concentrating on profitability and turnover.
5) A closer look at portion control at the back end of your place. Not reducing portion size, but ensuring consistency.
6) The proper placement of items on your menu. Studies have proven that the customer will spend a greater amount of time looking at the top of the right-hand pages in a menu. Take full advantage of this by placing your most profitable items in these spots.
7) Always post a daily menu on a dry erase or chalk board. Make sure your specials all tie in a beverage at a reduced price. Go one step further and change the board with the meal/time. A lunch board from 11:00 ‘til 2:00; a Happy Hour board (where legal) from 4:00 ‘til 6:00; a dinner board from 5:00 ‘til close. Make sure the customer is aware of the items YOU want to sell.
When analyzing an establishment for this potential makeover, the above points should be reviewed. As the retailer, it is you who must make the final decision on which way to move your business. A great “sounding board” can be your Beverage Alcohol distributors. Beverage Alcohol is the one product that can make the transition to the “fast casual” concept, with the least amount of hassle. It is one of the most profitable categories in your establishment and (with the exception of some wines) it involves very little employee training in order for your wait staff to become proficient in answering customer questions.
Use your Beverage Alcohol distributors to help plan this move to the next hot idea in the on premise segment. These distributors can share with you the sales trends, margin breakouts and support items for all their potential items. They can also help you with promotions and specials tied to food offerings. If this new direction means you must impact new consumers, your distributors can help you to reach them. Consider the distributor as a consultant to you and your business. Their resources enable them to help you with ideas and concepts from different areas. This blog can also assist with ideas and success stories from other markets around the country.
Be aware of all potential avenues down which you can take your business. Making changes to the status quo and staying one step ahead of your competition, can repay you with surprising, long term benefits.
More on this trend in upcoming blogs.
We appreciate your business and support.
Thank you,
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
dapostolos@optonline.net
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