If they're not cold, there's a whole host of convenience staples like milk and cool beverages for a start that simply can't be sold. And that should set alarm bells ringing in every Australian C-Store that hasn't thought long and hard about its refrigeration options. Arguably, there is no more strategically important decision facing operators so they certainly want to ensure they get it right.
In the fast-moving convenience world, floor space is always at a premium, and thus every item of merchandising equipment must provide maximum return for investment, both in initial cost, operating costs and long-term service costs.
Most manufacturers offer refrigeration units for either sale or lease and with purchase costs running from hundreds of dollars for a counter top unit to thousands of dollars for a fully functional coolroom, C-Stores want to do their homework very, very carefully.
Of course, it is not just milk and the traditional cool beverages that require refrigeration in today's all-encompassing C-Stores. There is a marked and growing trend towards frozen carbonated beverages, and towards more attractive displays of fruit and vegetable, cheese, yoghurts and even deli products.
According to Laura Garbo, Marketing Manager at Arneg Oceania, many convenience stores are very successfully pioneering the fresh deli/salad bars concepts.
"C-Stores, from the ones located in CBD areas to regional service stations, are widening their range, both in fresh and dry sectors," she said. "Customers perceive them to be more like a more convenient (and quicker) shopping hub, compared to traditional supermarkets."
And, of course, that has wide implications for refrigeration needs. Ms Garbo says the selection of the right refrigeration unit is crucial to the sales figures of a convenience outlet.
"Different locations have very specific clientele and requirements," she said. "Most of the time, it all starts with a spare metre of floor space which becomes a good trial once fresh products are on offer, demand can only rise and, thus, replacement with bigger units."
Ms Garbo says Arneg self-contained units are 'tropicalised', that is they are rated for ambient temperature up to 30 degrees, which is normally a real plus in convenience store environments. And, she says, there has been a trend in recent years towards more open refrigeration in C-Stores, rather than the traditional glass-fronted fridges.
"Whenever the store and plant area size allows for remote refrigeration, the open cases are surely the best option," she said. "Where ambient conditions are more difficult, the presence of a glass door is the only viable option."
Bromic Refrigeration's Sales and Marketing General Manager, Michael Glezerson, certainly agrees.
"The open displays are becoming increasingly popular and are a big hit, particularly with selling beverages," he said. "They are open fronted and this makes the products easy to reach there are no barriers in the way of purchase."
He says the vertical displays and the open displays are the most popular C-Store options.
"You used to have these old big displays that would take up entire walls but now they come as free-standing units that you just plug in," he said. "Really, over the last 18 months, they have been coming to the fore and I see that continuing in the future they are becoming the new face of retail and they are moveable."
While Mr Glezerson says open-fronted fridges can hold packaged products including sandwiches, beverages and cheeses, he warns they must be placed in the right environment, normally one that has air conditioning. He says the units generally need to be in a store that has an ambient temperature of below 25 degrees and to be kept away from drafts.
"Assessments have been done that show stores taking the open displays will boost sales by at least 20%-25%," he said. "Obviously they can lift impulse sales, particularly in a channel like convenience."
However, Tim O'Dempsey, Austwide Sales & Rentals General Manager, is less convinced.
"Open front units are usually at least half a compressor size larger than their glass door counterparts; use more electricity to maintain product temperature; are restricted to air conditioned environments; and hold less product," he said. "Their main advantage is that a glass door doesn't impede the impulse sale. Frankly, in today's energy-conscious era, I'm surprised that anybody would consider an open front from a running cost point of view."
Nonetheless, Austwide which prides itself on customer service will provide its retailers with any refrigeration equipment they require.
"We offer a merchandising solution for most marketing situations," said Mr O'Dempsey, "whether it be a countertop refrigerated or freezer display, a one-, two-, or three-glass door refrigerator or freezer; an island sliding glass lid freezer for ice cream, or perhaps an ice machine to bag your own ice for resale displayed in one of our bagged ice glass door merchandisers."
He says the two basic refrigeration options for C-Stores are self-contained refrigeration and remotely installed condensing units in an external plant room.
The remotely installed systems provide a quiet operating environment; remove the heat generated from the sales area to the plant room; and can often be incorporated into a waste heat utilisation for in-store heating. However, the high initial costs mean it can take a while for the units to pay for themselves.
Mr O'Dempsey says the self-contained equipment is probably better suited to smaller sites, as it offers the versatility of in store layout changes, a common footprint for many suppliers to offer similar items of equipment, and a short payback period. The disadvantages include multiplied noise levels, heat gain into the sales area or storerooms, and small packout capacities necessitating regular restocking.
"It is important to ensure that the products being offered for sale are utilising the most space in the merchandiser, so it is always wise to ensure your product facings and packouts utilise the refrigerated area to their maximum potential," Mr O'Dempsey said. "How many countertop refrigerators have you seen that can only accept one or two rows of 660ml bottles, yet have a third of the cabinet empty? Too often, the refrigerated merchandiser purchasing decision is made on price, not the merchandising capability of the item, or its appeal to entice a customer to purchase from it."
Williams is another company that offers a wide variety of high-quality, high-efficiency refrigerators and freezers.
National Sales Manager, Martin Healy, is happy to acknowledge that open units cost operators more to run but says the trade-off is plain to see.
"Obviously open units are going to sell more product than those with doors," he said. "It invites you to grab the product."
He says there are a number of factors that determine which cabinet is suited to which C-Store. Among them is the fact that a cabinet needs clean, cool air to operate at its optimum.
"Most Australian-made cabinets will operate in 43ēC that is they will perform in that environment," he said. "However, when you open the door, that is when the cabinet has to perform and, if the air above the motor is too warm, then the cabinet will struggle regardless of what ambient it is."
Mr Healy says C-Store operators also need to carefully consider size when buying a unit, particularly as transportation is one of the greatest hidden costs to a business, and one that that many operators simply choose to ignore.
"It is the number of visits that a product supplier makes to a C-Store in a week that can determine just how much storage and display space you need," he said. "Let's say I am going to sell 60 boxes of a new product each week but I only have space for a one-door upright freezer capable of holding 10 boxes. What do I do? Make provisions for one delivery each day, which will cost me in the end, or investigate ways to increase my storage space so that I only have one delivery each week?"
It's an interesting point. And the importance of choosing the most appropriate sized unit for each individual store is a topic picked up on by Daniel Hales, the Managing Director of the family-owned Artisan Food Equipment, an integrated manufacturing and importing business that supplies refrigerated and non-refrigerated display units and cabinets all over the country.
"Selection of appropriate equipment to suit a store varies depending on the product range carried by the store," he said. "It is imperative to select equipment that is big enough to display the whole range of product. Conversely, equipment that is over capacity will tend to make the display of stock look depleted."
Mr Hales says food equipment needs a well-packed display of product that is well stocked and thus creates a 'busy' look.
He acknowledges the growing popularity of open-fronted upright refrigerated displays because of the ease of self-service and the potential for impulse sales, but he emphasises that whatever equipment a C-Store selects it must be positioned in high traffic flow areas of the store. And, he says, growing awareness of food safety issues is a major factor in the growing popularity of refrigerated food display equipment.
"C-Stores should not only look at authority requirements with respect to upgrading equipment but also general appearance and presentability," he said. "Sales of fresh food can be seriously jeopardised if the display units are old, rusty, or in sub-prime condition the food is judged by the containing cabinet!"
And Mr Hales believes that can also mean bigger profits.
"There is no doubt that food presented attractively in refrigerated displays sells better than otherwise," he said. "For instance, strawberries displayed in a refrigerated cabinet sell for $1 per punnet more than strawberries stacked on an open stand."
While IMI Cornelius Australia is another company that supplies customers with a full range of refrigerated merchandisers, it is the rise and rise of frozen beverages that excites them the most.
"Frozen beverage acceptance and consumption is at an all-time high and remains a major drawcard to convenience stores, petroleum sites, fast food restaurants and cinema chains," said the company's General Manager, Andrew Christie. "Frozen beverages attract customers into a store, therefore increasing the probability of impulse buying of other products ... a win-win for the retailer."
Mr Christie says frozen beverages are perceived by consumers as particularly good value for money as they take longer to consume than normal cold drinks, and they are also considered by many to be a dessert item, which incidentally doesn't necessarily cut into the retailers' normal beverage volume.
IMI Cornelius has frozen beverage equipment to suit low, medium and high volume outlets, and says it is crucial that C-Stores purchase the equipment to best suit their particular outlet.
"The size and type of equipment will generally depend on the forecasted volume," said Mr Christie. "Operational issues must also be considered so, for example, if you only have one person serving in the store, you do not really want to install manual fill units that are labour intensive."
He said other factors to be considered include: the store location, as different consumers have different beverage needs; the size of store, as refrigeration units need to earn their space; and the location climate as places with warmer climates will have more frequent purchasers and will require bigger serve sizes.
"We are always attuned to the objectives of the retailer providing traffic and profit enhancing opportunities," Mr Christie said. "We work hard to deliver a beverage solution that is best suited to our customers. We do not just sell equipment."
Crucially, he says that the payback time for C-Stores purchasing a frozen beverage unit is impressively short.
"A well-placed unit with some form of promotional activity should demand a payback period of around 12 months, which is not a bad investment," Mr Christie said. "Successful outlets have always had the equipment in a location where the consumer can easily see it and where it can attract impulse buyers."
Quirks Australia offers products ranging from single units such as glass-door merchandisers (fridges and freezers) and reach-in open displays, all the way through to multiple solutions involving large display cases, modular cool rooms and custom designed units.
National Sales & Marketing Manager, Bob Singh, believes the selection of the right refrigeration unit makes a significant difference to whether customers choose product or not, especially for impulse sales.
"Fridges, freezers, open display cabinets and cool rooms will always play a prominent part in convenience stores," he said. "The need to keep product at the right temperature and ultimately present it in an enticing and attractive form drives purchase."
He says every store needs to be treated on its own merits to determine the right mix and location of refrigeration product.
"The placement of refrigeration solutions in a C-Store will be determined by the objectives of the C-Store operator," he said. "For example, is it just for storage of product? Do you want to drive impulse sales? How important is presentation of product? There are many applications and drivers. Each needs to be considered in totality so that a total refrigeration solution can be developed rather than ad-hoc single solutions."
Quirks Australia can also offer C-Stores after sales service solutions to optimize the uptime of their refrigeration products.
Choosing the right refrigeration option and placing the unit in the right in-store location is then absolutely essential for any C-Store. Get the decision wrong and your sales potential can simply melt away. Get it right and the results can be well, pretty darned cool!