What you need to know
Convenience store foodservice sales are expected to grow more than 30% between 2016 and 2020. This growth of ready-to-eat, grab-and-go, chef-prepared and fresh food-for-now offerings in the convenience store space is the result of increased consumer demand, along with improved quality and consumer perception of quality, more-and-better menu options, as well as implementation of emerging technologies that are simplifying and streamlining the ordering and payment process.
Furthermore, a stronger economy defined by lower gas prices, improved consumer confidence, and lower unemployment (among other factors) is helping to support growth across the convenience store foodservice segment. At the same time, convenience store operators will want to keep abreast of the changing demographics with Hispanics becoming more important and slower growth expected among males aged 18-44.
Definition
This Report builds on the analysis presented in Mintel’s Convenience Store Foodservice – US, March 2015. Mintel’s Convenience Stores – US, March 2014, Convenience Stores – US, August 2012 and Attitudes Toward Convenience Store Shopping – US, April 2011 are important companions to this Report.
For the purposes of this Report, Mintel defines convenience stores as establishments that retail a limited line of goods, primarily groceries and ready-to-consume beverages and snacks, in easily accessible locations. The majority of convenience stores also sell motor fuel.
According to the NACS (National Association of Convenience Stores), common characteristics of convenience stores include:
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Building size of less than 5,000 square feet
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Stock of at least 500 stock-keeping units (SKUs)
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Off-street parking and/or convenient pedestrian access
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Extended hours of operation with many open 24 hours a day, seven days a week.
Note: Sales data in this Report will include foodservice (ready-to-eat) sales only and exclude retail sales ad sales of gasoline. This Report will discuss convenience store retail (as it applies to the over-riding foodservice narrative), but it will not be a central area of focus. Mintel’s Convenience Store Shopper – US, March 2016 focuses on retail sales at convenience stores.
Excludes foodservice outlets that are franchised and/or operated by third parties, such as Subway restaurants housed inside the convenience store.
