The Rising Power of Dough

 
The changing interface between bakery and foodservice was examined by five speakers representing some of the world’s largest and most influential convenience bakery brands, commanding over $10 bn annual sales between them. One big issue: can the boom in speciality coffee add new sexiness – and all-important increased frequency of visit – to the traditionally homely perception of the bake-shop? Their market niches ranged from grab-and-go donuts to upscale sourdough sandwiches but all the speakers identified natural affinities with quality hot beverages.
 
Andrew Lynch, CEO of SSP has seen big changes in the past two years across many of the company’s 2000 concession units at airports and rail stations in 28 countries. The company has its own inter national brands in both coffee and bake-off (Ritazza and Upper Crust) as well as operating several franchises including Starbucks. “A big focus has been to put barista culture through our bakery brands,” he commented. At the same time, wider choices in baked goods, especially with an artisan edge, are becoming a source of differentiation in attracting increasingly well-travelled transport users.
 
The explosion in demand for wider coffee offers was also crucial at the 7,000- strong Dunkin’ Donuts chain. Within its focus on donuts, cakes and snacks, coffee is strategically crucial, according to Jon L. Luther, chairman/CEO of Dunkin’ Brands. The company gains $6.4 bn system-wide sales from 50 countries worldwide from franchising Dunkin’ Donuts, Baskin-Robbins and ToGo’s. “The donut occasion could be a twicemonthly visit whereas coffee purchase is twice a day,” he pointed out. “Coffee pairs well with convenience bakery products and builds check average. But we are not about baristas; that is a very different niche.” Recent DD commercials poke fun at the bewildering ‘Fritalian’ menu names and even fancier prices and cup sizes of contemporary coffee bars. “We are about serving regular folks, often in a hurry, and getting them on their way”. With “dashboard dining” a prime requirement, the DD chain does not fit the more relaxed bakery shop niche, either, Luther felt.
 
Please click here for the full article

 

 
| 1 November 2007 |