press release

Chevron Press Release - Chevron Ends Foodini's Prototype Phase

SAN RAMON, Calif., Oct. 1, 1999 -- Chevron today announced it has completed the prototype phase of its Foodini's Fresh Meal Markets.

"Foodini's has received good reviews for the innovative concept, quality of food, atmosphere of the stores and guest service," said John Cooper, general manager of Foodini's.

"However, as we approach the end of the pilot phase of the program, we've found that this retailing concept needs a significantly higher scale and therefore investment to support the business for the long term. We will look at several options, including continuing the Foodini's brand, but rather than expanding the store base, we believe it's a better use of Chevron resources to finance other growth opportunities," said Cooper.

Beginning this month, Foodini's will assemble a team to develop plans to reformat existing store outlets and to explore shifting Foodini's to a product line brand strategy.

The company did not disclose how much it has invested in the home-meal replacement concept or how many employees would be affected by the ending of the prototype phase.

Foodini's is owned by Chevron Products Co. in San Ramon and was created in response to a growing need for quality meals that would fit its customers' busy lifestyles. The first store opened in San Ramon 18 months ago, with four others opening later in California and Arizona.

In addition to launching the Foodini's concept, Chevron has continued to grow other parts of its retailing operations, which include the successful toy car advertising campaign and the revamping of its convenience store formats. Chevron has significantly increased its gasoline sales over the past three years.

Updated: October 1999