Wal-Mart serves up The Chef line; new fresh-food label provides prepared food for takeout - Food Merchandising

Discount Store News, Feb 20, 1995 by Laura Liebeck

Wal-Mart is adding a new food label to its grocery menu called The Chef "Meals on the Go," developed specifically for the discount store division.

Unlike the Sam's American Choice label, which was also created for the discount stores, and Great Value for the supercenters and Sam's Clubs, The Chef line is comprised of prepared fresh foods only. The line also is the star of its own convenience food department now being tested in the chain's Rogers, Ark., store.

Wal-Mart's regular candy and snack offerings are unaffected by The Chef program.

A rollout has not yet been determined, but a few new sites will be added later this year, said Rich Donckers, president of Retail Strategies International, a Bentonville, Ark.-based consultant to Wal-Mart.

Donckers was hired in February 1994 by Wal-Mart Stores president Bill Fields to create the convenience food program. He is a former Wal-Mart associate, hired by Wal-Mart founder Sam Walton in 1987 from the supermarket industry. He left Wal-Mart two years ago to found his own company; at that time Donckers was Wal-Mart's vice president of supercenter development.

So far The Chef is positioned as a program for the discount stores, but it is likely that the program will move into the supercenters with items unique to the The Chef so there is no overlap with Great Value or Sam's Choice. No introductory date has yet been determined.

The Chef test is running in tandem with the Harry's in a Hurry program, slated to debut in four Wal-Marts later this year. Harry's is an Atlanta-based convenience food store operation that appeals to busy professionals looking for high quality meals that need little to no cooking. The atmosphere in a Harry's is decidedly upscale. Fresh aromas fill the store.

Donckers also is working with the Harry's organization on Wal-Mart's behalf to coordinate the two convenience food formats.

At least in the short run, Wal-Mart will maintain two parallel convenience food programs in its stores. It is not yet clear which one the retailer will choose or if Wal-Mart will even choose between them.

The Chef program features more than 600 food items, between 150 and 200 specifically bearing the The Chef label. The rest of the skus either carry the name of another vendor - the program includes 20 different suppliers - or no name at all, as is common for prepared foods at supermarkets.

Among Wal-Mart's suppliers are McClean, Camelot, Grace Culinary, Exeline and Doskocil, makers of Wilson and Hudson foods.

The Chef was designed with the busy family in mind. Wal-Mart executives decided that a new food label was needed to convey the high quality nature of the program.

Wal-Mart is "trying to get an identity for a line of cooked entrees," Donckers said. "It's a fresh meal; it's not a cheap frozen dinner."

The Chef, like the Harry's in a Hurry program, is packaged in black trays with a clear dome top finished with a band around the package. Donckers said the package is microwavable and oven proof.

Currently, Wal-Mart has reserved about 1,000 sq. ft. in the Rogers store for this program in the area previously occupied by the photo processing center. In addition to this space, a small "appendage" attached to the store is used for a refrigerator and freezer.

The walls of The Chef department are lined with refrigerator units filled with freshly prepared pizzas in two sizes, salads (with meat and without), quiches, sandwiches, appetizers, entrees, side dishes, soups, sauces, pastas and desserts with prices that roughly ranges from $2 to $9.

Fresh produce also is included in this program. Donckers said the Rogers store just started selling peaches, citrus fruits, whole melons, pears, strawberries and raspberries in addition to apples.

Rotisserie chicken is one of the main entrees in The Chef program just as it is in the Harry's in a Hurry outlets.

Only roasted chicken and ribs will be cooked on site, everything else arrives at the store in packages ready for sale.

Delivery is available for a fee ranging from $3.50 to $4.50 depending on distance traveled.

The Rogers store offers no separate checkout for The Chef customers. They usually use the express lane at Wal-Mart, Donckers said.

The department is open from 9 a.m. to 9 p.m., slightly fewer hours than the Wal-Mart.

Since the test began last fall, Donckers said various changes have been made in the program. Among them, a move to more family-size packages and a reduction in produce skus. He said originally The Chef was geared to single-size portions, but soon Wal-Mart found that family-size portions were more in demand and the program was adjusted. And like any food program, the menu changes to meet consumer demands and tastes.

"We'll be testing new items continuously," said Donckers." "We want to keep it fresh and new looking for the customer."