50-year-old Company Revolutionized Ham, Introduces New ConceptÂ
March/April 2007
By Michael Patrick
Responding to increased customer demand for fresh, ready-to-serve meals, The HoneyBaked Ham Company opened four new neighborhood concept stores in the metro Atlanta area, Marietta, Roswell, Alpharetta and Lawrenceville, plus additional locations in Florida and Colorado over the last few months.
These new concept is modeled after old-fashioned delis: Customers come in, order the portion sizes they want (of fresh ham, turkey, side dishes, desserts) and take it home for dinner. The goal is to provide a simple way to grab a good dinner on the run.
“Many consumers consider us as a standard part of their holiday entertaining. But the convenience of this new store will make us a regular part of their dinners year-round,” said Chuck Bengochea, CEO. “There is a great opportunity to fill a void for consumers, and we believe consumers will really react to this.”
Anticipating success, “we have 50 new stores slated for construction all over the southeast, if these first pilot stores do well,” says Dan McAleenan, Vice President of Sales. The company strives to create a new “neighborhood market feel” with the smaller, more integrated store, he says. Space in the new stores will be reduced from 3,000 to 1,400 square feet to help reduce costs, emphasize profit increases and streamline customer service. Residential neighborhood locations are targeted for greater customer accessibility. Another unique element is aimed to increase fun: the once back of the house style of roasting and glazing the hams will be brought to the front for all to see. McAleenan says this “glazing theater will hopefully make the consumer want to buy the product and leave a lasting impression on the consumer.”
Since the beginning, the company’s success has required commitment to an idea. In 1924 Harry J. Hoenselaar invented a machine that would change the way people see ham, but that change took time. The bone-in spiral-slicer actually cooked and smoked the ham, but the invention was of no interest to any meat company for the first 24 years of its existence. Hoenselaar continued to work on improving his invention while trying to sell it to various meat companies. But it wasn’t until 1957, by which time Hoenselaar had taken a second loan out on his house for $500, that he started to realize his dreams by opening his own storefront business with his four daughters in Detroit, MI. Today The HoneyBaked Ham Co. and Cafe’ and The HoneyBaked Ham Company of Georgia are part of the HoneyBaked Ham system, the well-established market leader with more than 300 locations nationwide. In addition to the corporate and franchise locations across the country there’s a booming online and catalogue business.
Quick and convenient has become an American way of life. In response, HoneyBaked Ham has “a new, no wait’ policy,” says McAleenan. To make sure customers don’t have to wait in lines, the company has committed to increasing staff and registers during the busy holiday season. “We are touting no more than 15 minutes at our busiest times during the holiday,” he says.
Customers demand value, and in response McAleenan says that the new stores offer ready-to-eat convenient lunches and dinners featuring the company’s famous ham, smoked turkey, roasted turkey or ribs with two sides and a drink for about six dollars per person. Desserts like cheesecakes, brownies and cookies will be available as well.
While McAleenan says, “we will always be strong at the holiday times”, in fact, holidays draw 70 percent of total business, the new concept is aimed at positioning HoneyBaked Ham as a convenient, year-round destination.
Features of HoneyBaked Ham’s new neighborhood concept stores include:
- Glazing galleries – for the first time in the company’s 50-year history, customers will be able to see how the hams are glazed
- Dinners-to-go – portioned servings of meats, side dishes and desserts
- Sampling stations – taste what’s new, from meats to sides to desserts
- Condiments – a selection of gourmet mustards, salsas and spreads
- Environment – a cozy neighborhood food shop atmosphere
