Table of Contents
Executive Summary
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- The issues
- Hot and cold dispensed beverages lost sales share
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- Figure 1: Distribution of foodservice dollar sales, by category, 2013-14
- Made-to-order: Dependent on convenience
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- Figure 2: Drivers for made-to-order food/beverage in convenience store visits, December 2015
- Healthful offerings: Finding the balance
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- Figure 3: Attitudes toward made-to-order food/beverage in convenience stores, December 2015
- The opportunities
- Strong growth forecasted through 2020
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- Figure 4: Total US convenience store foodservice sales and forecast, at current prices, 2010-20
- Operators can prove freshness
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- Figure 5: Consumer definition of fresh food and beverages at convenience stores, December 2015
- More and better branding
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- Figure 6: Drivers for made-to-order food/beverage in convenience store visits, “I like the brands offered,” by age, December 2015
- What it means
The Market – What You Need to Know
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- Solid growth of foodservice
- Consumers have more money in their pockets
- C-stores need to keep the pulse of US demographics
Market Size and Forecast
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- Steady growth continues
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- Figure 7: Total US convenience store foodservice sales and forecast, at current prices, 2010-20
- Fan chart forecast
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- Figure 8: Total US convenience store foodservice sales and fan chart forecast of market, at current prices, 2010-20
- Forecast methodology
Market Breakdown
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- Prepared food; a larger piece of a growing pie
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- Figure 9: Distribution of foodservice dollar sales, by category, 2014
- Looking beyond sandwiches and hot dogs
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- Figure 10: Distribution of prepared food dollar sales, by type of food, 2014
- Hot dispensed beverages
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- Figure 11: Distribution of dollar sales, by hot dispensed beverages, 2014
- Cold dispensed beverages
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- Figure 12: Distribution of dollar sales, by cold dispensed beverages, 2014
Market Factors
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- Health and wellness concerns – More fresh/healthful offerings at c-stores
- Positive disposable income and lower oil prices
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- Figure 13: Disposable personal income change from previous period, January 2007-December 2015
- Competition to convenience from “nonconvenient” channels
Key Players – What You Need to Know
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- 7-Eleven’s 7-Select; healthful and indulgent
- Quick Trip’s shopper base grows
- Circle K to launch global convenience brand
- Wawa remains a local favorite
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- Figure 14: Convenience stores where consumers have shopped at in the last four weeks, July 2011-15
What’s Working?
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- Using technology for food delivery and online ordering
- C-stores add healthful options
What’s Next?
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- C-stores turn to restaurants for design cues
- Breakfast is an area for innovation
- Loyalty evolution
The Consumer – What You Need to Know
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- Younger males, Hispanics and parents – Most active c-store shoppers
- C-stores need to increase MTO food/bev trial
- Opportunity exists for healthful snacks at c-stores
- Freshness is tangible
- Operators need to find the balance between quality and speed
Convenience Store Visitation
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- C-stores cater to a broad consumer base
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- Figure 15: Convenience store visitation, December 2015
- Gas stations are the most visited c-store type
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- Figure 16: Convenience store visitation, by store type, December 2015
- Gender and age are c-store visitation determinants
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- Figure 17: Convenience store visitation by gender/age, December 2015
- When it comes to c-store shoppers, not all Millennials are the same
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- Figure 18: Convenience store visitation by generation, December 2015
Reason for C-store Visitation
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- While food and drinks drive c-store visits, visitation for prepared food is low
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- Figure 19: Convenience store reason for visit, December 2015
- Young men, Hispanics, and urbanites are key consumers of prepared food/beverages
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- Figure 20: Convenience store reason for visit, December 2015
- Highway and other c-stores are most popular for c-store foodservice
MTO Food and Beverages at Convenience Stores
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- Beverages are the most common MTO c-store item
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- Figure 21: Made-to-order and fresh food/beverage purchases, December 2015
- Breakfast is bigger with Hispanics
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- Figure 22: Made-to-order and fresh food/beverage purchases, December 2015
- Parents – Heavy MTO buyers
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- Figure 23: Made-to-order and fresh food/beverage purchases, December 2015
MTO Drivers
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- Convenient means quick
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- Figure 24: Drivers for made-to-order food/beverage in convenience store visits, December 2015
- Millennials purchase c-store food for more “secondary” reasons
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- Figure 25: Drivers for made-to-order food/beverage in convenience store visits, December 2015
MTO Motivators
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- Price, quality, and healthfulness may increase MTO food/beverage purchases
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- Figure 26: Motivators for made-to-order food/beverage in convenience store visits, December 2015
- Health and easy access are important for parents
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- Figure 27: Motivators for made-to-order food/beverage in convenience store visits by presence of children, December 2015
- Income and MTO food/beverage motivators
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- Figure 28: Motivators for made-to-order food/beverage in convenience store visits by presence of children, December 2015
Attitudes toward MTO Food and Beverages at C-Stores
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- C-stores must satisfy more than cravings
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- Figure 29: Attitudes toward made-to-order food/beverage in convenience stores, December 2015
- C-store perception lowest in Midwest
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- Figure 30: Attitudes toward made-to-order food/beverage in convenience stores, by census region, December 2015
- Reach Hispanics with healthful/fresh options
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- Figure 31: Attitudes toward made-to-order food/beverage in convenience stores, by ethnicity, December 2015
Definition of Freshness
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- Sight and scent can help communicate “fresh”
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- Figure 32: Consumer definition of fresh food and beverages at convenience stores, December 2015
- Freshness definition driven by ingredients for younger consumers
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- Figure 33: Consumer defintion of fresh food and beverages at convenience stores, by age/gender, December 2015
Important “Better-for-You” Traits of MTO Food and Beverages
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- Natural is most important descriptor for made-to-order
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- Figure 34: Important traits of made-to-order food or beverages at convenience stores, December 2015
- Feel-good claims resonate most on the coasts
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- Figure 35: Important traits of made-to-order food or beverages at convenience stores, by region, December 2015
- Millennials drive interest in descriptors
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- Figure 36: Important traits of made-to-order food or beverages at convenience stores, by ethnicity, December 2015
- Claims are especially important for parents
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- Figure 37: Important traits of made-to-order food or beverages at convenience stores, by presence of own children, December 2015
TURF Analysis – Food and Beverage Descriptors
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- Methodology
- A combination of different claims reaches the maximum number of customers
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- Figure 38: TURF Analysis – Important food characteristics, December 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- TURF analysis – Methodology
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- Figure 39: Table – TURF Analysis – Important food characteristics, December 2015
- Abbreviations and terms
- Abbreviations
- Terms
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