Huck’s and Weigel’s Leverage Vroom Delivery for Online Food Sales Success

This article summarizes reporting done by C-Store Dive on January 17th, 2024 at https://www.cstoredive.com/news/4-tech-upgrades-drive-foodservice-sales-convenience-stores/704378.

Huck’s Market, headquartered in Carmi, Illinois, and Tennessee-based Weigel’s have significantly enhanced their foodservice offerings and revenue through strategic partnerships with Vroom Delivery. This collaboration marked their foray into the rapidly expanding online food delivery market, which is projected to reach about $270 billion in the U.S. by the end of the year.

Online Sales Strategy and Goals:

Both convenience store chains aim to capitalize on the growing demand for online meal delivery, with foodservice items like pizza and chicken dominating their delivery orders. Huck’s Market initially launched its delivery service in 2020 with an 80% focus on foodservice among 100 menu items, planning to expand to 1,500 offerings. Weigel’s has also tailored its delivery service to include popular and strategic grocery items, alongside its top-selling pizzas.

Quantifiable Impact:

• Increased Average Order Value: The average delivery order at Huck’s and Weigel’s is significantly higher than in-store purchases, driven by customers’ desire to maximize the value of delivery fees. This has led to a noticeable increase in revenue and customer retention rates. Retailers on the Vroom Delivery platform often see over 5x larger delivery baskets than in-store transactions
• Expansion of Product Range: Starting with essential foodservice items, both chains have gradually included a wider range of products, from groceries to alcohol and ice cream, enhancing their market competitiveness and customer appeal.

Success in On-Demand Delivery:

The key to their success lies in the convenience and efficiency of Vroom Delivery’s platform, which supports in-house and third-party delivery options. This flexibility allows for significant labor savings and operational efficiency, particularly highlighted by Huck’s use of three third-party delivery services to optimize resources.

Vroom Delivery's Role in Streamlining Operations:

Vroom Delivery has played a pivotal role in simplifying the online ordering process, offering both Huck’s and Weigel’s an integrated platform that aligns with their loyalty programs. This integration is crucial for retaining customers and encouraging repeat business, with more than 50% of Weigel’s delivery customers being repeat patrons.

Future Expansion and Digital Offerings:

Both Huck’s and Weigel’s are committed to expanding their delivery services, with plans to include more items and leverage Vroom Delivery’s capabilities to further boost online sales. This strategic partnership enables them to not only increase their average basket size through strategic add-ons but also to cater to the evolving preferences of their customers.

Summary:

Huck’s Market and Weigel’s have effectively utilized Vroom Delivery’s platform to navigate the competitive landscape of online food delivery, demonstrating the potential for convenience stores to drive revenue and customer loyalty through digital channels. Their success story underscores the importance of adapting to consumer demands and the strategic use of technology to enhance business growth.