Nachos to Go Increases C-Store Profits

The Objective: A New Kind of Retail Nacho Product for Theaters & C-Stores

For years, movie theaters have offered nachos at concession stands. However, this popular snack came with a host of issues for theaters. Often, a significant amount of nacho chips, shipped to theaters in large bags, arrived crushed, making them unusable. Cheese portion control was also an issue. When customers added it themselves from a dispenser, they often added more than needed – a lot more – increasing costs.

To make matters worse, after consumption, discarded serving tubs were messy to clean up within the theater, adding to labor costs required to clean up after a film. Theaters wanted to continue to offer nachos – as they were a popular item with patrons – but cost was a significant issue. The solution: Nachos to Go.

For C-stores, there was a different issue. During the global pandemic, the stores were challenged as open nacho food displays faced contamination issues. Because of the threat of COVID-19, C-stores could not risk open chip displays and cheese pump stations. The solution: Nachos to Go.

The product that Baer & Associates created to help theater chains control costs and mess, and then allowed C-stores to sell nachos while helping prevent the spread of COVID-19. Nachos To Go proved to have multiple other advantages for C-stores that have led to a better bottom line.

The Strategy: Build a Nacho Pack from Scratch

On the surface, Nachos to Go looks like a simple enough proposition. But the components of what becomes the final packaged product required thoughtful consideration. Multiple sources, processes, people, and industries would be needed to create this convenient snack. Fortunately, Baer & Associates has a vast network of resources that were up to the challenge.

Nacho chips needed sourcing, and Baer not only needed to locate great tasting chips – they also couldn’t arrive as broken fragments. Nacho cheese needed to be sourced, as did a sturdy plastic package to contain and separate wet and dry elements of the snack. A label would need to be printed and affixed, as would a container top.

After sourcing all of the subcomponents, Baer would also require a food product co-packer to insert the product into the package, seal and label the product, box specific quantities of the packaged product for shipping, and, finally, fulfill purchase orders for the product to a broad geography of locations.

The Extension: C-Store Profitability

Nachos To Go were originally developed as a solution to rising “Zero Touch” trends in the wake of the COVID-19 pandemic. While the concept limited the number of people coming in contact with food at the point of sale and greatly increased food safety for Grab n’ Go nachos, Nachos To Go revealed several other advantages for C-stores.

Grab-and-go nachos are a high-demand offering in the C-store setting, but the current execution left a wide margin for loss. One issue was self-serve cheese dispensers gave customers the flexibility to apply as much of the cheese product as they desired to their nacho serving. Another issue was the cheese product could be added to any grab-and-go food item the customer desired beyond the intended nacho chips – such as pretzels, hot dogs, and other roller-food offerings. Bottom line shrinkage was occurring both because the quantity of cheese product used on nachos could not be controlled and because the cheese product used on other items could not reliably be added to customer check totals.

In addition, self-serve cheese dispensers also had an inherent product waste issue. The design of the bagged cheese product itself already made it difficult to use every last portion of the product in the bag. But even more concerning was the shrinkage that occurred when bags of cheese were replaced with significant cheese product still within. This happened as C-store employees used slower customer traffic times to prepare stores for busier times of day. For example, bags that were perhaps only 80% depleted were replaced on a Friday afternoon in anticipation of a busy Friday evening. While this practice was done to reduce product downtime during busy periods, shrinkage (and loss of profit) occurred each time a not-empty cheese dispenser bag was replaced.

The Result: Better User Experience – Better Client Margins

With Nachos To Go, C-stores have seen improved experiences for both customers and staff, along with higher margins than traditional self-serve nacho and cheese applications.

Cleaner food stations greatly improved store sanitation and motivated guests to engage and purchase more grab-and-go offerings. For the guests who want to pair cheese with other roller grill items, cheese cups may be stocked à la carte nearby, making it easier for staff to track and account for at checkout.

Removing cheese dispensers allows C-stores more flexibility in designing accessible food stations and reduces the time spent by staff cleaning and maintaining the area. Eliminating the need to replace cheese bags in the dispensers cuts product loss significantly, while Nachos To Go – available warmed or room temperature – provides quicker, more efficient service.