CHICAGO — Sales of foodservice in convenience stores are growing faster and more consistently than in quick-service restaurants (QSRs), according to recent data from CSP sister research firm Technomic. Technomic's Wallchart shows foodservice sales in c-stores grew 3.6% in 2018, and the research firm projects similar growth this year, compared to 3.1% growth for QSRs in 2018 and a projected 3.4% increase this year.
“The battle for share of stomach is intensifying,” Technomic Principal Donna Hood Crecca said during CSP’s C-Store Foodservice Forum in Chicago. “Six in 10 consumers say they're going to QSRs less often, and many of those trips are moving to c-stores.”
That movement is opening the door for c-store retailers to grow, said Aimee Harvey, managing editor of Technomic, who outlined these four growth opportunities for c-store foodservice …
“We’re seeing a strong focus on executing grab-and-go at a high level,” Harvey said, noting intentional moves to “shorten the lifespan of products on the shelf to show freshness.”
Fifty-two percent of grab-and-go foodservice purchases are planned, according to a recent Technomic C-Store Foodservice Study. The most in-demand timeframes for c-store foodservice are lunch (51%), afternoon snack (49%) and breakfast (31%), times when consumers said they “need something fast and easy” (67%) and don’t have time to wait for a made-to-order meal or snack (32%).
The past five years have shown significant changes in how and where consumers eat. In 2015, 76% of consumers reported eating the food they purchase from a c-store in their cars. In 2019, that’s dropped to 68%, and it’s as low as 64% for consumers ages 16-34, according to Technomic. Instead, eating “at my or someone else’s home” is on the rise, up 5 points to 59% overall and at 70% for those 16-34.
“We’re seeing indications that consumers are beginning to use c-stores differently for foodservice,” Harvey said. “This points to potential to grow the dinner daypart through menu development and marketing initiatives.”
“We’re seeing explosive growth for third-party delivery,” Harvey said. With $10 million worth of business being delivered, third-party delivery would be one of the 10 largest restaurants in the country if it were a single chain.
In c-stores, 40% of consumers say they are “likely to use delivery service if available,” according to Technomic data, and that number leaps to 53% for consumers ages 16-34. “Delivery is an opportunity to convert a moderate c-store customer into a heavy c-store customer.”
In 2012, only 5% of consumers told Technomic they were “very confident” in the safety of food sold in convenience stores. Today, that number has grown to 15%. Unfortunately, the number of consumers who are “very concerned” about food safety in c-stores also has grown, from 10% to 16%.
“There is heightened awareness of the [c-store] channel,” Harvey said. “That’s led to a 10-point improvement in consumer confidence.”
She offered a few action items to improve safety perceptions at the store level:
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