tobacco products fall, foodservice sales are increasingly becoming
c-stores’ most profitable category. Convenience store foodservice is an
$11 billion industry, and the second-largest retail host foodservice
category behind supermarkets.
The c-store segment comprises about
29% of retail foodservice and almost 2% of the total foodservice
industry. Technomic projects that c-store foodservice will grow
nominally by 2.5% over each of the next two years.
“Convenience
stores have shifted their focus to provide a wider variety of fresh,
high-quality food offerings to help gain a greater share of stomach and
compete with restaurants,” said Tim Powell, director of research and
consulting services, in a press release. “At the same time, there seems
to be significant room for convenience-store operators to generate
increased foodservice sales by translating existing traffic into
purchases.”
C-store chains are looking to better position
themselves for continued growth in foodservice. Some chains are
upgrading their facilities by integrating technology to enhance their
offerings and the consumer experience. Differentiating themselves from
the c-store crowd could better position themselves to compete with
limited-service restaurants.
Technomic’s new Market Intelligence
Report: Convenience Stores found that more than half of today’s
consumers (52%) pick up snacks from prepared-food sections of
convenience stores or mini-marts, compared to 37% in 2010. Almost one in
four consumers (22%) occasionally has breakfast from a c-store during
the week, compared to only 12% three years ago, and 13% purchase
breakfast from c-stores on the weekends versus 7% previously.
During
the week, just one in five consumers surveyed indicated that they
purchase lunch from retail foodservice locations such as grocery stores
(20%) and convenience stores (17%), while 56% purchase lunch from a
fast-food restaurant.
While c-stores score well with consumers in
terms of convenience, portability, and speed of food preparation and
service, the healthfulness of the food gets satisfactory marks from just
28% of those surveyed. (NACS: www.nacsonline.com)
