9 minute read
Samco Expands Family Business
quickBites
EVOLVING CUSTOMER BEHAVIOR AND OUTLOOK
The COVID-19 pandemic’s latest surge has waned, allowing customers to return to spring gatherings and a to-go lifestyle, but the pandemic continues to influence shopper trends. Meanwhile, inflation is rising, impacting the overall economic outlook.
TOP NEEDS DRIVING EATING OCCASIONS THE TO-GO LIFESTYLE
A recent nationwide Y-Pulse survey polled customers ages 18-34 on takeout and delivery program preferences.
IRI reported that price trends in the top 25 edible categories compared to one year ago range from increases of 26.3% for powdered milk to 13.8% for shelf-stable spaghetti/Italian sauce.
1. Fueling
2. Wellness 3. Connecting 4. Gratifying 33% of all eating occasions are infl uenced by the need to fuel the body. 21% of all eating occasions are infl uenced by wellness. 83% of respondents were willing to drive a distance to pick up food from a restaurant they really liked. 72% would buy grocery items at a local restaurant. 70% have learned about new restaurants because of a unique takeout o ering. 79% like to try new things on the restaurant’s menu when they order meals to go. 82% prefer to order directly from a restaurant rather than a delivery service.
IRI predicted that weakening unit demand will lead retailers to increase promotion investments, and that growing price infl ation and price sensitivity will result in consumers shopping more aggressively on deals.
Source: NPD Groups’s recent report “America’s Health Pulse: Closing the Gap Between Wants and Needs,” 2022.
INFLATION WON’T HALT SPRING HOLIDAY GATHERINGS
Spring holiday gatherings are expected to make a comeback in 2022 after COVID-19 impacted gatherings over the last two years. 90% of respondents notice that the cost of food is higher than last year 30% plan to prepare a special meal only for themselves or their family, down from 38% in 2021. More customers plan to host or attend a meal with extended family in 2022 compared to 2021. 26% expect to pay much more or some more for their spring holiday gatherings compared to 2021.
Source: “Spring Holiday Report 2022,” Information Resources Inc. (IRI)
ECONOMIC OUTLOOK
After hitting record lows, economic sentiment grew slightly over the two weeks ending April 13, 2022. The Hamilton Place Strategies (HPS)-CivicScience Economic Sentiment Index (ESI) increased 0.9 points to 36.7. The only economic indicator to decrease during the week ending April 13, 2022, was confi dence in the housing market, which dipped 0.6 points to a record low of 22.4. Confi dence in the U.S. economy grew 0.2 points to 34.9.
Source: Y-Pulse, a division of Olson Communications
PRICE TRENDS
Samco Expands Family Business
With a bold design and proprietary food offerings, Samco is growing its footprint through acquisitions and new builds.
Emily Boes • Associate Editor
Offering the market a fresh take on convenience stores, Bakersfield, Calif.-based Samco Food Store is building its brand with new locations and a bold look, giving the local community a destination, not just a convenient spot for a quick bite.
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Samco operates 10 company-owned locations in the Bakersfi eld area, with one new location currently under construction and two new sites planned for 2023.
Samco got its start in 1991 when Sam Jouda, CEO and co-founder of Samco, purchased Greenacres Market, a c-store complete with gas and liquor located at Rosedale Highway and Calloway Drive. “I moved from overseas (Syria) to the U.S. in 1989. The rest of the immediate family came two years later. I worked for a friend in the business with the goal to learn and grow our own brand,” said Jouda. The family worked together to run Greenacres Market, with Jouda overseeing the day-to-day business and his siblings working outside of school hours. Jouda’s father also visited the store daily.
With the arrival of more family members, the store count continued to grow. “We now have adjusted into a more corporate structure,” said Jouda.
Jouda works with his brother, Wisam, who serves as vice president, operations manager and co-founder of Samco. “We love working with our family members, cousins and close friends on a daily basis with the goal of making Samco the best stores in Kern County,” said Jouda.
REBRANDING TO SAMCO
After learning the business with Greenacres Market, the family decided the Samco brand would allow them to expand their footprint. “The name Samco came from the brothers’ names Hosam and Wisam,” said Jouda. “It means Sam’s company.” The fi rst Samco site was purchased in 2006 on California Ave. and began as a conventional store, with a liquor license later added. Its store operations modeled that of Greenacres Market.
Samco stores are designed with a modern feel and open concept in mind, featuring bold graphics and visible colors.
With the first Samco site up and running, the family looked to grow and acquired two more sites over the next three years. “We continue to learn the business and grow together as a family each day,” said Jouda. The original Greenacres Market site was relinquished in 2007, as the city took part of the land for road widening, and it was decided that the gas lease would not be renewed.
Samco has also built two new-to-industry locations. The first Samco location built from the ground up is located on Buena Vista Road. The process of opening the new Buena Vista Road location during the pandemic proved difficult. It was affected by issues with labor and equipment and permit delays, but finally opened to the public January 2022. “Our dedication to the process and perseverance helped us maintain the course, and (by) working with a great support group (such as Paragon Solutions and Blackburn Construction), we were able to get it done,” Jouda commented. The chain’s second ground-up build is currently under construction at South Fairfax Road and East Brundage Lane and set to be completed in about six months. The process has also faced challenges in today’s difficult climate, with delays such as PG&E poles that had to be repositioned, equipment shortages and labor issues.
Samco’s new-to-industry sites will average 5,300 square feet.
BOLD, VISIBLE, UNIQUE
Samco partnered with Paragon Solutions to design its stores with a modern feel and open concept in mind. The sites feature bold graphics and visible colors, particularly blue, yellow and red, along with lime green accents.
The beer cave is situated along one wall, which features a golden yellow color peppered with circle graphics. It currently stocks local breweries, including Kern River Brewery, Temblor Brewery and Lengthwise Brewery.
In addition to the beer cave, Samco stocks Cinnabon bean-to-cup coffee, with regular, decaf and dark roast options. It also boasts eight Icee products, six Slush products and a fresh-blend fruit smoothie machine. The fountain area includes 20 different flavors.
A significant portion of the store is designated to its Cinnabon and Carvel offerings, which comprise fresh baked goods and ice cream — with real dairy — selections, respectively. With a natural beige color scheme for the area, the spot maintains the look and feel of a café and bakery. It has signage to indicate where the line starts and digital menu boards.
“The Cinnabon and Carvel area gives you a bakery feel. The c-store area feels open and shoppable. The coolers are stocked with many varieties of drinks, with the beer cave capping it off at the end,” explained Jouda.
Samco decided to add Cinnabon and Carvel to its concept because it was looking to expand its fast-food footprint.
“We looked around and thought that the Cinnabon and Carvel brands were needed in the area,” Jouda said.
Samco contacted Cinnabon’s representative, Dan Pawlak, who looked at the new sites, saw the operations and helped the chain become a franchisee. “He was very helpful and provided support and information throughout the process,” Jouda added.
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