So, we set out to disrupt the space by completely changing that very perception. If you sell gas, people have traditionally assumed you can’t be a high-quality food restaurant. We saw the foodservice area of our business ripe to make a blue ocean shift. It was time for us to reach our full potential. Furthermore, we started as a food company and have roots as a dairy. It was in a red ocean, but had the greatest growth potential and potential for profits. Stoeckel: As we started applying the blue ocean approach at Wawa, we identified foodservice as the weakest link in our overall offering.
Why did you decide to focus on foodservice (instead of c-store or fuel retailing) when you started to apply the blue ocean approach at Wawa? Rather, they found it themselves going through the process and viscerally felt it.
The beauty of the process was that I didn’t need to tell anyone that a blue ocean shift was necessary. Our associates saw first-hand what the strategic reality was and truly we all came together in the name of change. As we started applying the blue ocean process, it inspired a natural wake-up call about our current state of being. We wanted to steer clear of the existing market space and take our business to the next level by finding the blue ocean, and establishing a unique space of our own. Yet, in the midst of the recession, the economy was tough and after the financial collapse, our competitors were catching up to Wawa. We felt strongly we had created the perfect intersection of our three business offerings - a convenience store, fuel retailer and foodservice provider - and we did so with an unrelenting commitment to outstanding customer service. We realized that while Wawa was still strong, our company was drifting into a red ocean. Stoeckel: This was a pivotal time for us. How hard was it to convince the rest of the company to go along with the changes needed to position the company better for future growth? You began to apply a Blue Ocean approach in 2009, at a time when the economy was slowing, but Wawa was still considered one of the best-in-class retailers in the convenience store industry.
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