Page 10 - Deli Business June/July 2020

INSIDER INSIGHTS
MovinTg to Self Service
By
Lee Smith
Publisher Emeritus
10 DELI BUSINESS JUN/JUL 2020
here are few, if any, long term predictions the more long-term consequences we will see. Will that can be made, given the current state restaurants return to before COVID-19 success of the coronavirus. Usually, we would be or will there be a clear line of delineation between looking at new products being shown at before and after the pandemic? These are serious the IDDBA and the Fancy Food Shows questions that impact everyone.
because this is the time for new products to be At risk are salad and soup bars, olive and
introduced—just before summer vacations and well before the fall selling season. Obviously, this will not be the case this year.
Deli departments have been put on the back burner due to other retailing issues. Working on sup- ply chains to keep staples such as meat, frozen food and products that have never been in short sup- ply on shelves has been a major undertaking. Store employees are heroes, working under extreme con- ditions. There is not enough time and, often, not enough employees because some people don’t want to work due to their contact with hundreds of cus- tomers. Others are at home sick or taking care of family members.
In-store delis are facing the same obstacles, and many deli counters are closed. Lights are off, and customers are skipping that section of the store. They also are missing many self-serve products typically in the deli, such as potato salad, pre-sliced specialty meats, olives and refrigerated soups. There is talk, given the labor expense and high shrink of deli departments, that some may never recover. There is one major operator that is planning on closing all full-service delis.
Self-service was an on-trend opportunity well before COVID-19. Technology has caught up to where specialty meats can be thinly sliced, and packaged, while also providing a long enough shelf life to be exported from Europe and still arrive in the U.S. in prime condition. Salads, prepared foods and specialty cheeses are available pre-packaged, as well. Nutritional information and cooking and handling directions are easier to communicate with packaged goods. For manufacturers, pre-packaged products offer better opportunities for brand mar- keting and customer loyalty programs.
There are many reasons to develop more pre-packaged opportunities. Unfortunately, invest- ing in the equipment, software and technology as well as the additional space required are significant expenditures. Since most manufacturers are seeing horrific sales declines on the foodservice side, capi- tal money is at an all-time low. To predict the future and differentiate between short-term changes and long-term consequences is very difficult, if not impossible.
Will there be long term changes in personal behaviors? Yes. The longer it takes to conquer the beast and to find a vaccine and effective treatments,
Mediterranean islands and cut-to-order cheese departments. Will people get more comfortable with take-out options? There are enormous opportuni- ties for retailers if take-out becomes more the norm. Will pick-up windows like those in fast food restau- rants become a must have?
There is one area that is more of a guarantee than any other, and it is manufacturer pre-packed fresh options. Packed under scrupulous hygienic con- ditions with longer shelf lives and low labor needs answers many of today’s customers’ needs.
The ability to pick up a wide variety of fresh olives, grape leaves, grain salads and pickles will be key. Traditional salads, such as potato, mac and slaw, have been moving in that direction for a long time. For many specialty meats, manufacturer pre-sliced products have allowed customers who are not near specialty shops to indulge in these delicacies. There is no doubt availability has driven sales.
The difference is customers may no longer want to wait in line; in fact, they may dread it to the point of sacrifice and avoidance. Customers may also have long term hesitations about allowing store clerks, regardless of how well trained, to handle their food. Even more disturbing to some may be self-service food bars, where anyone can sneeze or cough over the products. Sneeze guards are no longer seen as a panacea when it comes to food safety.
What can retailers do? Quickly develop less than perfect solutions to self-serve. If you have an olive bar, ask your suppliers if they have a pre-pack option. Otherwise, pre-pack at the store level using existing cup options. You may have to look in the boneyards of used equipment to replace the salad/olive/soup bar with refrigerated upright cases or coffin cases. Yes, you will need a bit of a breather to do even that, but it will be important.
Ask meat suppliers if they pre-pack. Many do, and they could provide unrealized opportunities. Most of all, get creative. Even in times of great stress, we need creative thinkers as well as doers. Ten-to-one, necessary creative ideas are ready for the picking and found within your own ranks.
Good luck to all, and thank you to everyone who is working to provide the American people with a rich tapestry of tasty foods at an affordable price.
DB