Arko Corp., the parent company of convenience-store retailer GPM Investments, is continuing its focus on foodservice and in-store experience to help drive growth.
With its new loyalty pizza program launched in first-quarter 2024, same-store pizza sales increased approximately 19% and units sold increased 36% for second-quarter 2024, the company reported.
The Richmond, Virginia-based company’s enhanced food program rollout also saw hot dog sales up almost 16% over the prior-year quarter with its Nathan’s Famous hot dog partnership.
On the company’s second-quarter earnings call on Tuesday, Arie Kotler, chairman, president and CEO of Arko Corp., also discussed how food and dispensed beverages are “key” components of the company’s strategic plan.
“Same-store food and dispensed beverage contribution dollars were up over 9% and over 400 basis points in margin rate as compared to the prior-year period,” Kotler said. “We plan to continue leaning into foodservice through offering value and bundles to further help our customers in this challenging macroenvironment.”
Furthering organic growth, Kotler outlined the latest advancements within the company’s retail store footprint.
“As part of this, we are advancing our new stores’ design pilot,” he said. “We have completed consumer research to guide development of our prepared food assortment and store layout and have selected seven stores within one of our regions to execute the pilot.”
Kotler said that the initiative aims to “enhance” the company’s customer value proposition and “improve” store operation with a “significant” focus on foodservice.
“We expect to being implementing the new design in our pilot stores in the fourth quart of this year,” he said.
- GPM Investments is No. 6 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count.
GPM Investments is a wholly owned subsidiary of Richmond, Virginia-based Arko Corp. It has more than 1,500 stores under more than 25 regional store brands, including Fas Mart, Li’l Cricket and Scotchman.
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