A common response by many meat and deli retailers to the growing Hispanic population is to add proteins to their cases that are popular among Latino customers. Shoppers from Mexico and other Latin American countries frequently prefer cuts that are outside the U.S. mainstream menu, such as thinly sliced meats and organs from different parts of animals.

Yet, many conventional supermarket chains still fail in their effort to satisfy the Latino segment, analysts say. Some outlets, for instance, don’t have the case space to merchandise adequate amounts of Hispanic-oriented products. Operators also are frequently ignorant about the specific items being sought by shoppers, and how to best promote such foods.

Stores that are best positioned to attract and retain Hispanic customers are able to create comfortable and satisfying shopping environments. Elements include offering vast arrays of Latino-oriented perishables; hiring bilingual workers; leveraging bilingual signage; and pricing items so they appeal to the predominantly cost-conscious shoppers.

While such features are rare, some chains—particularly those with outlets in Hispanic neighborhoods—are indeed responding to the needs of Latino consumers. The most active merchants—including Carnival Supermarkets Inc.— are offering a mix of Hispanic-oriented proteins, pricing and promotions and illustrate how large retailers can become appealing alternatives to the small specialty stores preferred by many Latino shoppers.

A chain of 22 stores in the Dallas/Fort Worth area, Carnival is owned by Coppell, Texas-based Minyards Food Stores Inc., which also operates non-Hispanic outlets under the Minyards and Sack ’n Save banners.

The company last August opened a flagship Carnival store in the Oak Cliff section of Dallas, and is planning to remodel additional Carnival outlets over the next few years to better address the expanding Hispanic population. Indeed, Minyards is positioning Carnival as its primary growth vehicle.

“Opening Hispanic-oriented stores in Texas and other areas with large Latino populations makes perfect sense because those shoppers are searching for meats, cheeses and other foods that they can’t find in mainstream stores,” says Marcia Mogelonsky, senior research analyst for Mintel International, a Chicago-based market research firm. “Language also is an issue because many Hispanic shoppers find it hard to express what they want to workers in conventional outlets. It is important to have the right cuts of meat and selections of proteins and the proper atmosphere for shopping.”

Carnival is attempting to satisfy all those requirements at its Oak Cliff location. The 56,000-square-foot store—which features Hispanic-oriented artwork on the interior and exterior walls—operates full-service counters in a variety of perishables departments, including Carniceria (Meat), Pescaderia (Fish), Salichicheria (Deli), Cocina (Kitchen), Tortillaria (Tortillas), Pandaderia (Bakery) and Fruiteria (Fruit Bar).

Most employees are bilingual and product signage, labels and even newspaper ads are in Spanish and English. David Ferrelli, Minyard vice president of meat and seafood, says company research found that Hispanic customers prefer bilingual elements because it helps them to more easily select foods while also learning English.

Bilingualism also enables associates to recommend recipes, provide cooking instructions and offer shopping tips to most customers. Indeed, employees at full-service counters in the Oak Cliff store even address shoppers through microphones so nearby customers also can hear the answers to questions and conversations about products. Departments also have individual public address systems for more targeted promotions.

The vast majority of Carnival products are aimed at Latinos, who comprise about 70 percent of the shopper base at the Oak Cliff store. Yet certain foods also are geared to African-American and Caucasian consumers, who each account for about 13 percent of sales.

A key Latino destination is the store’s meat and seafood areas. The Oak Cliff location, for instance, has a 60-foot-long full-service meat and poultry case with about 85 varieties of proteins. Most of the other—and smaller—Carnival stores typically have full-service counters of between 28 and 36 feet. All SKUs are selected in accordance with the demographics of consumers in nearby neighborhoods.

Oak Cliff carries a variety of marinated foods, including Chicken Wings, Leg Quarters, Thighs and Boneless/Skinless Breast, along with Beef Fajitas.

Other beef selections include Cheeks, Lips, Feet, Tripe, Tongue, Liver, Neck Bones, Oxtails, Spareribs, Trim Brisket, Tips and Boneless Top Round Steak.

Among the pork varieties are Brisket Bones, Sliced Ribs, Carnitas, Stew Meat, Rib End Chops, Whole Shoulder, Diced Feet, Spare Ribs, Whole Roast, Boneless Rib Chops, Boneless Sirloin Chops, Stuffed Chops, Mexican Sausage, Chorizo and Bacon.

Chicken choices include Feet, Gizzard, Leg Quarters, Split Leg Quarters, Butterfly Breast, Thighs, Boneless/Skinless Breast, Wings, Drumsticks and Buffalo Wings.

The case also contains Rabbit and Quail.

Ferrelli says Carnival merchandises unconventional animal parts because “many Hispanics when they were growing up slaughtered and used every section of the animal in recipes.”

Carnival operators closely study the buying habits of Hispanics before deciding which meat and poultry to merchandise at locations, Ferrelli says. Research includes trips to Hispanic markets in California, Arizona, Mexico and the Dallas area.

Most beef and pork is cut in stores, and meat depart­ments are configured so customers can see butchers in action. The Oak Cliff outlet employs 16 butchers and 20 service clerks, while smaller Carnival stores have about half that strength.

“Hispanic customers want to see butchers working,” Ferrelli notes. “We don’t carry many case-ready meats because shoppers don’t perceive the items as being fresh, and that includes proteins in gas-flush packaging.”

Butchers are on duty from 7 a.m. to midnight—Carnival’s operating hours—and Ferrelli says he has little trouble finding experienced cutters.

“Meat cutting is a dying art among Caucasians, but there is not a shortage of experienced Hispanic butchers,” he notes. “We just have to train them on American cuts.”

Veteran Carnival butchers and field supervisors also teach newer Hispanic cutters proper sanitation, presentation and safety techniques, and educate them on trim standards.

An emphasis on freshness and variety also extends to full-service seafood counters. All Carnival stores typically offer 30 to 40 seafood choices.

Selections at the Oak Cliff location include Whole Catfish, Whole Gulf Snapper, Whole Tilapia, Gasper Goo, Blue Runner, Yellow Croaker, Whole Whiting, Sliced Octopus, Baby Octopus, Kingfish Steak, Frog Legs, Smelt, Oysters, Soft Shell Crab, Squid, Catfish Nuggets, Atlantic Salmon, Red Snapper, Mahi-Mahi, Pollock Fillets, Tilapia Fillets, Whiting Fillets, Arrowtooth Flounder Fillets, Ocean Perch, Sea Trout, Conch Meat, Sea Scallops and Shrimp Salad.

The outlet also displays live Catfish and Tilapia in large tanks behind the counter, and associates offer to fry seafood for customers for no extra charge.

Ray Pullen, a customer at the Oak Cliff location, says Carnival’s merchandising of extensive arrays of fresh meat and seafood, “is the best thing that ever happened to this community. I’m used to buying packaged foods but now we can see what we’re getting, such as the texture of the fish.”

Ferrelli says future meat and seafood plans include the addition of new marinated items.

The greatest meat and seafood challenge, he notes, is pinpointing the specific varieties that should be highlighted in ads and promotions.

“We’ll still stay away from the traditional meats, such as T-Bone or Porterhouse steaks, because they don’t work here,” he says. “We compete on price, but also attempt to offer better quality.”

A hot deli destination

Price, quality and variety also are a key focus of Carnival’s deli operators, says Faye Greenberg, vice president of bakery and deli.

In addition to a full-service meat and cheese counter, the Oak Cliff store also features a 60-foot-long hot prepared foods case with about 50 choices.

Greenberg, who previously was procurement director for Central Market in Texas and was trained as a chef at the Le Cordon Bleu culinary school in France, says she is working to bring some Central Market elements to Carnival. That includes emphasizing product freshness and bringing production and aromas closer to shoppers.

The ultimate goal, she notes, is to carry “an abundance of products that Hispanics expect to find. The deli is getting more competitive and the key is having the right items based on the demographics of customers. I see everyone as a challenger for share of stomach and wallet, and that includes restaurants.”

To better gauge shopper preferences, Greenberg will occasionally bag groceries; inspect the baskets of customers in both Carnival and rival stores; and even ask shoppers why they are—or aren’t—purchasing specific goods.

New prepared foods recipes are generated from a potpourri of sources, such as cookbooks, magazines, newspapers, the Food Network, restaurants, employees and customers.

“I’ll make weekly visits to at least four or five of our competitors, small restaurants and little specialty delis to make sure we’re keeping up with the food trends,” Greenberg says. “We fight for every dollar that we get.”

Creating the optimal menu is the greatest challenge for Hispanic-oriented delis, she notes.

“It is important to carry authentic recipes and not a gringo version of what we think is authentic,” she states. Greenberg says, for instance, that many mainstream consumers are used to having small, chopped vegetables in soups.

“But that is not what our Hispanic customer is looking for,” she says. “For them it’s important to have big pieces of cabbage, tomatoes and carrots.”

Hispanic-oriented recipes dominate Carnival’s cafeteria-style hot prepared foods counter. Selections at Oak Cliff include Turkey Legs, Pork Ribs, Fried Chicken, Rotisserie Chicken, Beef Soup, Chicken Soup, Enchiladas in Red Sauce, Cactus with Cheese, Potatoes with Pico de Gallo, Charro Beans, Refried Beans, Tilapia Vera Cruz Style, Taco Meat, Cheese with Sliced Pepper, Nachos, Beef Fajitas, Chicken Fajitas, Beef Stew, Pork Stew, Mexican-Style Barbecue, Beef Tongue, Pork Skin, Sausage on a Stick, Corn Dogs, Fried Jalapenos, Carnitas, and Onion Rings.

Adjacent to the hot counter is a “Village Square” with 14 wooden benches for eating and a big-screen television. Greenberg says the area is popular at meal times—including breakfast when shoppers can purchase breakfast tacos, potatoes, biscuits, scrambled eggs and other items.

About 15 persons work in the hot foods section of the Oak Cliff store. While chefs prepare standard recipes throughout the year—such as Ribs, Barbecue Chicken, Refried Beans, Charro Beans and Rice—there also are seasonal choices. Two fresh seafood items, for instance, were offered each day during a six-week Lent promotion.

Selections are promoted via in-store signage, fliers and table-top menu “tents.”

Carnival—unlike many other chains—does not merchandise cold prepared entrées at the full-service counter because it is “traditional” for Hispanics to buy warm foods, Greenberg notes.

The deli’s full-service sliced meat and cheese case, however, contains more of a mix of Hispanic and conventional proteins to address all shopper segments. While 70 percent of customers at the Oak Cliff store are Hispanic, Latinos often account for about 50 percent of business at other Carnival locations.

Brands include La Villita, El Mexicano, John Morrell, Riverside, Russer, Plantation, Honeysuckle White and Kretschmar.

“It’s important to have brands that are familiar to customers and have quality they can trust,” Greenberg says. “But we’re careful not to duplicate the brands being carried in the meat department so shoppers don’t feel like there is competition within the store.”

Carnival at a glance

Carnival Supermarkets Inc.
Owner: Minyard Foods Stores Inc.
Headquarters: Coppell, Texas
Stores: 22
Market: Dallas/Fort Worth metropolitan area
Chief Executive: Michael D. Byars, president, chief executive officer
Key Meat Executive: David Ferrelli, vice president of meat and seafood
Key Deli Executive: Faye Greenberg, vice president of bakery and deli