HALEDON, N.J. -- Nicholas Markets/Foodtown here laid its food on the table this month in an effort to heat up catering sales.
In a two-day expo designed to show what it can offer for parties and smaller gatherings, the retailer displayed nearly 100 items ranging from 6-foot submarine sandwiches to giant raspberry tortes to chafing dishes of shrimp scampi and cavatelli with broccoli. A staff of 15 helped tout the retailer's catering capabilities and offered shoppers samples both days at two stores. The event's success was quickly evident. At one of the units, 35 orders for hot catering were placed on the spot. One order was for 21 platters for a company Christmas party. The week after the expo, held Dec. 10 and 11, orders were more than double for the same period last year.
"We've been making hot food from scratch for about five years, and have offered catering nearly that long, but we hadn't found a way to get the message across to the public until we thought of this," said Nick Lacatena, senior vice president of the four-unit retailer, which is supplied by wholesale cooperative Twin County Grocers, Edison, N.J.
"We had tried ads, coupons, and handouts, but I think people have to see the food and taste it to trust you for a party or event," Lacatena said.
Nicholas Markets held its first expo just prior to Thanksgiving, and its success sparked this one. Last year, orders per store for the same period ran 20 to 30 a week. After the November expo, the number increased to 70 to 80 orders and stayed there.
"I think the earlier expo served as an advertisement for this one, because some customers had heard about the first after it was held, and said they were sorry they'd missed it," said Lacatena. The retailer didn't seek support from vendors for the expos, because it "didn't want them to turn into trade shows for manufacturers." The timing of the event was designed to make the most of the holiday sales season.
"At just one of our stores in an upscale neighborhood, we usually push out 200 to 300 orders the week before Christmas. This year, based on what we've seen, we expect that number to go to 400 to 500 just at that store. Even at our inner-city stores where Christmas week orders averaged 40 per store in the past, we expect the number to go over 100," Lacatena said.
"We had people say they never realized we could produce such quality and variety of hot foods," he said. That's despite the fact that Nicholas Markets offers hot entrees each day from service cases and has a hot lunch-of-the-day special. That the stores are relatively small at 23,000 square feet could give the wrong perception that the stores can't handle large quantities, Lacatena said.
Some retailers say catering isn't worth the bother, but Lacatena disagrees.
"We have a chef and cooks making hot food each day, so why not make it in quantity? It doesn't cost more in labor to make 100 pounds of something than it does to make 10 or 15," he said. But why hot foods in the first place? "For increased sales," Lacatena said.
Also, the margin on hot, prepared foods is 30% to 40% higher than for other deli items, he said. At this point, hot items make up about 15% of the retailer's deli sales, and Lacatena said he'd like to push it to 25% to 30%. Preparing hot foods from scratch at store level, as Nicholas Markets does, is not as labor-intensive as it sounds, Lacatena said. He estimated that it takes 16 manhours per day per store. There is a trained chef at one store and one cook at each of the other three.
The 16 hours takes into account their eight-hour shifts and another total of eight hours of staffers' time for refilling hot wells, garnishing and keeping the case looking good. At the holiday expo, which featured sampling of eight hot entrees, 200 area businesses such as real estate companies and banks were represented.
The retailer sent invitations to several hundred area firms of all sizes. The public also was welcome. "Our traffic flow was up 50% to 60% at the expo stores on both days," Lacatena said.
To track which catering orders the expo generated, the retailer handed out coupons only in-store at the expo for 10% off on orders. Although he declined to reveal the cost of putting on the events, Lacatena said the company had recouped 40% of the cost of the November expo even before the December event.
At the most recent expo, the display table was arranged with a variety of items, including shrimp platters, stuffed fish, a torte with New Year's decoration, and bowls piled with the company's signature artichoke cups. A dining table complete with linen tablecloth, candles and poinsettias, was set with china and silverware, a serving platter of rolled veal, bread and vegetable side dishes. Behind the table, hot cases displayed roast chickens and pans of fried and baked chicken.
"Take the worry and hurry out of the holidays. Let us cook your holiday meal," read a sign at the table.
Another sign touted wines, which were set up in front of entrees. "These wines go well with any cheese appetizers, chicken, veal dish, with scampi or Francais-style sauces." Nicholas Markets encourages customers to pick up their catering orders. All hot items are packed in microwavable containers. The company provides full-service, on-site catering upon request.
In conjunction with its expos, the company has had a video made on its catering capabilities. Lacatena declined to say how much it cost to produce. The tape will be sent to more than 100 area firms, on a loan basis, to promote the idea of using Nicholas Markets for company parties throughout the year.
The retailer has already set another expo for May. "We're going to have one twice a year now. In the spring, we'll feature some of our barbecued items. We'll be cooking outside the store on grills," Lacatena said. Nicholas Markets' competition comes from 256-unit Grand Union Co., Wayne, N.J., and 17-unit Kings Super Markets, West Caldwell, N.J., Lacatena said. Both have stores in the market area that offer limited catering services and some hot foods. "But when it comes to prepared foods, our size is an advantage," Lacatena said, adding that Nicholas Markets tailors its mix to each neighborhood.
"We'll even duplicate a person's favorite recipe for a catered event. We've learned to make Polish pierogis and other ethnic foods. And we can respond to trends more quickly," he said.
