Foodservice
While convenience stores have offered fresh, prepared foods for years, it is only over the last decade that the trend has accelerated as more time-starved consumers want on-the-go meal solutions and retailers have found that foodservice can deliver new customers inside the store, and at a higher profit level than for items like gas, which has razor-thin profit margins.
The overall convenience store foodservice category includes: food prepared on-site, commissary/packaged sandwiches, hot dispensed beverages, cold dispensed beverages and frozen dispensed beverages. Many retailers have successfully turned their conveniences stores into popular destinations for both hot and cold foods prepared onsite, such as deli sandwiches, flat breads, hoagies, breakfast sandwiches, hamburgers, pizza, grilled chicken sandwiches, salads, soups and wraps.
Convenience stores are stepping up their foodservice programs to keep up with competition from quick-service and fast-casual restaurants. Many retailers now offer a proprietary foodservice program where sandwiches, wraps and other fresh food items are prepared at a commissary.
Coffee is without a doubt the hot beverage of choice in convenience stores and the number one subcategory of the hot dispensed beverages category, generating nearly 78% of the category’s sales, according to NACS. This category typically delivers nearly three-quarters of its sales during morning service hours. Nearly every convenience store (94%) carries cold dispensed (fountain) beverages, making this product a true convenience store classic. About 75% of all convenience stores offer frozen dispensed beverages, which consumers typically enjoy frozen drinks as refreshing “snack” during the day.
Carving Out a Sandwich Strategy
While branded and proprietary foodservice programs get a lot of attention at retail, prepared sandwiches have quietly—and profitably—filled a valuable niche for retailers. By Marilyn Odesser-Torpey, Associate Editor. Sandwiches and wraps are a $2.7 billion category and sales are expected to remain strong through 2014, according to a 2011 report from foodservice research and marketing [...]
Healthy Options Driving Foodservice Demand
Many convenience store retailers are cognizant of the trend toward healthier foods and are adding better-for-you items to their menus. By John Lofstock, Editor. More salads, fruits and vegetables are finding their way onto convenience store shelves—often for purchase in the morning, or as a late afternoon snack—much to the delight of an increasing number [...]
Co-Branding Positives and Pitfalls
As rising gas prices continue to shrink profits at the pumps, having a strong foodservice offering can drive customers into convenience stores. By Marilyn Odesser-Torpey, Associate Editor. A growing number of retailers are choosing to go the brand name route, partnering with high profile quick-service chains or turnkey commissary-style suppliers. Convenience Store Decisions asked some [...]
Finding the Right Foodservice Equipment
To be a winner in the foodservice arena, break out of the convenience store box and take some equipment cues from quick-service, fast casual and white tablecloth restaurants. By Marilyn Odesser-Torpey, Associate Editor. No one understands the pain of working in a cramped space better than a food truck operator, said Larry Miller, president of [...]
Capturing Lunch and Dinner Customers
When it comes to foodservice, convenience store operators must develop the expertise to make smart choices and deliver winning mealtime solutions. By John Lofstock, Editor People need food, and convenience stores need people to like their food, which is why keeping lunch and dinner menus fresh, new and exciting is so important. The food itself [...]
Raising the Bar on Breakfast Sales
The first sports and energy bars in the U.S. were marketed primarily to serious athletes, through alternative channels such as health food stores. These bars did not have wide appeal or distribution as recently as 1990, but over the past two decades these products have since gained mass appeal and distribution after greatly improving flavor [...]
Poultry Booming in C-Stores Despite Supply Concerns
The Washington, DC-based National Chicken Council forecasts that while production of this convenience store menu mainstay will drop by 1.7%, prices will be going up. “This is only the fourth time in five decades that production has gone down,” said Bill Roenigk, senior vice president and chief economist for the National Chicken Council. We are [...]
Forecasting Bakery Trends
Ready to hear some good economic news? Bakery is one category showing improved sales this year. Supermarket in-store bakery sales reached $10.4 billion for the 52-weeks ended December, 2011, a 2.2% increase over the same period last year, according to the Perishables Group. The International Dairy-Deli-Bakery Association (IDDBA) recently released this data and other in-store [...]
Coffee Driving Foodservice Sales
Convenience stores are expanding their brew programs and condiment offerings, allowing guests to customize each cup. Most c-stores have embraced the consumer’s desire for customization by offering broad coffee and condiment selections and stations for customers to prep their cups the way they like. C-stores are improving coffee quality in line with greater demand for [...]
Johnsonville Launches C-Store Website
“The Johnsonville C-Store Website will provide practical business benefits to our c-store foodservice end-users,” says Johnsonville spokesperson. Johnsonville Sausage has introduced a new website that offers extensive tools and resources to help c-store foodservice operators run their businesses and increase profitability. “Our Website is designed to provide a one-stop information resource for our c-store end-users [...]
Pizza Gets Personal
C-store retailers can expect to see continued growth in the pizza category in 2012. “Pizza has good hold times, is a consumer favorite and is relatively easy to prepare. Sales will be up in 2012,” said Tim Powell, director for Chicago-based research firm Technomic. Trends to watch in 2012 include an increase in take-and-bake pizzas, [...]
Turning a Profit at the Roller Grill
One of the most maligned pieces of equipment in all of foodservice—the roller grill—remains the backbone of many c-store foodservice programs, offering an inexpensive, labor-friendly way for operators to expand their fresh-food offering at a time when other nonfoodservice categories are declining. Roller grill sales are estimated to account for roughly 10-15% of convenience foodservice [...]
Ethnic, Local Themes Among Emerging Deli Trends
International fare and regionally produced ingredients are the hottest trends in deli department foods, according to “What’s in Store 2012,” the recently released annual trends publication of the International Dairy-Deli-Bakery Association (IDDBA). Eighty-two percent of consumers enjoy visiting supermarket delis that feature newer and trendier items, regardless of whether they regularly purchase these items. Delis [...]
Technomic Report Analyzes Snacking Habits
Snacking Occasion Consumer Trend Report shows customers are snacking more as meals get healthier. Consumers are snacking significantly more now than they were just two years ago. Almost half (48%) of consumers polled say they’re now snacking at least twice a day, compared to 25% in 2010. Restaurants are capitalizing on the growing snacking occasion [...]
Understanding What Your Customers are Buying
MSA and Paradigm Sample, in partnership with Convenience Store Decisions, examine the market basket of 18-34-year-old convenience store shoppers. By Trish Temmerman, Contributing Editor. Numerous reports are being written about connecting to and interacting with the Millennial (18-34 year-old) generation. These Millennials, numbering 71 million-plus according to the 2010 U.S. Census, are a key shopper [...]