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Convenience Store Foodservice - US - March 2011

SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Convenience stores still have a niche
The c-store marketplace is populated with local and regional brands
Figure 1: Top 20 convenience store companies, by total store count, July 2010
7-Eleven is the most visited brand
C-store expansion is stagnant
The recession has been a double-edged sword for c-stores
C-stores face more and tougher competition
Cigarette sales are increasingly unhealthy
OMG! New media give c-stores new inexpensive marketing tools
Beverages continue to be c-stores’ most alluring products
Young adults are c-stores’ best customers
Speedy service, not price or quality, is c-stores’ biggest draw
Afternoons have become c-stores’ busiest daypart
Quality is a chief concern among c-store avoiders
INSIGHTS AND OPPORTUNITIES
C-stores are not top-of-mind options for many consumers
C-stores should consider QSRs’ “barbell” pricing strategies
C-stores could add or promote all-day breakfast
C-stores can better leverage important snack trends
Evenings have the highest checks
Keep on trucking: C-stores are missing the hottest trend
C-stores aren’t addressing healthy eating issues
Food allergies are a growing issue
INSPIRE INSIGHTS
Trend—Extend My Brand
Figure 2: Reasons for not ordering food at convenience stores, November 2010
Consider this
Bottom line
MARKET SIZE AND FORECAST
Key points
Foodservice sales grow as more enter the market
Sales and forecast of foodservice at convenience stores
Figure 3: Convenience store foodservice sales, at current prices, 2005-15
Figure 4: Convenience store foodservice sales, at inflation-adjusted prices*, 2005-15
Fan-chart forecast
Figure 5: Convenience store foodservice sales, fan forecast, 2005-15
COMPETITIVE CONTEXT
Key points
More competition from more sources
Hypermarkets and others cut into gas sales
Cigarette smoking continues to wane
Beer sales are healthy, making them appealing to other retailers
Coffee becomes a morning battleground
QSRs launch attack of the breakfast sandwich
Figure 6: Top 20 menu items on quick service restaurant menus, by incidence, Q4 2007-Q4 2010
Figure 7: Top 20 menu items on quick service restaurant menus, by incidence and price, Q4 2007-Q4 2010
C-stores continue to be a fragmented category
MARKET DRIVERS
Key points
Our desire for speed and convenience is undiminished
Foodservice industry slowly recovering from recession
Figure 8: U.S. restaurant sales, at inflation-adjusted prices, 2005-15
Figure 9: National Restaurant Association Restaurant Performance Index, January 2009-January 2011
Consumer confidence improves, too
Figure 10: Thomson Reuters/University of Michigan Consumer Sentiment Index, March 2007-February 2011
Mixed unemployment data
Figure 11: Unemployment and underemployment rate, January 2007-January 2011
Coupon usage data show Americans remain wary
Other data question recovery speed for consumer spending
Gasoline prices have been rising since 2009
Figure 12: U.S. average gasoline prices, 2000-11
BRAND ANALYSIS: 7-ELEVEN
Overview
Performance summary
Brand positioning
Figure 13: Breakout of 7-Eleven merchandise sales for fiscal year 2004
BRAND ANALYSIS: CIRCLE K
Overview
Performance summary
Brand positioning
BRAND ANALYSIS: SHEETZ
Overview
Performance summary
Brand positioning
BRAND ANALYSIS: WAWA
Overview
Performance summary
Brand positioning
BRAND ANALYSIS: SPEEDWAY/SUPERAMERICA
Overview
Performance summary
Brand positioning
BRAND ANALYSIS: CASEY’S GENERAL STORE
Overview
Performance summary
Figure 14: Revenues for Casey’s General Stores Inc., years ending 30th May 2008-10
Brand positioning
MARKETING STRATEGIES
Digital channels
Figure 15: Tedeschi Food Shops Web page
Figure 16: Tedeschi Food Shops Facebook page
Figure 17: 7-Eleven Facebook page for Slurpee beverages
Figure 18: ampm Facebook page for Big West basketball tournament
Figure 19: ampm Facebook homepage
Figure 20: The Pantry/Kangaroo Express Facebook page for “The Battle for Bean Street” promotion
Figure 21: Ricker Oil YouTube announcement of Twitter promotion
Figure 22: Wawa.com monthly visitors, August 2010-January 2011
Showing some app-titude
No-nonsense media
Figure 23: 7-Eleven “Tasty Treats” commercial
Figure 24: ampm “Too Much Good Stuff” commercial
Figure 25: Speedway “Your coffee. Your way” commercial
Figure 26: Wawa “HoagieFest 2010” commercial
Figure 27: Wawa “Gottahava Wawa” television commercial
Figure 28: Wawa “Coffeetopia” television commercial
CONVENIENCE STORE FOODSERVICE ORDER USAGE
Figure 29: Foodservice items ever purchased at convenience stores, November 2010
Figure 30: Foodservice items ever purchased at convenience stores, by gender, November 2010
Figure 31: Foodservice items ever purchased at convenience stores, by age, November 2010
Figure 32: Foodservice items ever and usually purchased at convenience stores, November 2010
Figure 33: Foodservice items usually purchased at convenience stores, by gender, November 2010
Figure 34: Foodservice items usually purchased at convenience stores, by age, November 2010
Figure 35: Foodservice items usually purchased at convenience stores, by household income, November 2010
CONVENIENCE STORE USAGE
Figure 36: Convenience store brand usage, November 2010
Figure 37: Convenience store brand usage, by gender, November 2010
Figure 38: Convenience store brand usage, by age, November 2010
Figure 39: Convenience store brand usage, by region, November 2010
CONVENIENCE STORE ORDERING DRIVERS
Figure 40: Drivers for convenience store foodservice ordering, November 2010
Figure 41: Drivers for convenience store foodservice ordering, by gender, November 2010
Figure 42: Drivers for convenience store foodservice ordering, by age, November 2010
CONVENIENCE STORE FOODSERVICE ORDERING
Figure 43: Convenience store daypart usage, November 2010
Figure 44: Convenience store daypart usage, by age, November 2010
Figure 45: Convenience store daypart usage, by household income, November 2010
Figure 46: Convenience store meal usage, November 2010
Figure 47: Convenience store meal usage, by age, November 2010
Figure 48: Convenience store average meal spend, November 2010
Figure 49: Convenience store average meal spend, by gender, November 2010
Figure 50: Convenience store average meal spend, by age, November 2010
ATTITUDES TOWARD CONVENIENCE STORES
Figure 51: Consumer attitudes toward convenience stores, November 2010
Figure 52: Consumer attitudes toward convenience stores, by gender, November 2010
Figure 53: Consumer attitudes toward convenience stores, by age, November 2010
WHY NOT CONVENIENCE STORES?
Figure 54: Reasons for not ordering food at convenience stores, November 2010
Figure 55: Reasons for not ordering food at convenience stores, by gender, November 2010
Figure 56: Reasons for not ordering food at convenience stores, by age, November 2010
CLUSTER ANALYSIS
Reluctants
Demographics
Characteristics
Opportunity
Anytimers
Demographics
Characteristics
Opportunity
Breakfast Clubs
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 57: Convenience food clusters, November 2010
Figure 58: Daypart visits, by convenience food clusters, November 2010
Figure 59: Primary c-store usage drivers, by convenience food clusters, November 2010
Figure 60: Purchase attitudes, by convenience food clusters, November 2010
Cluster demographics
Figure 61: Convenience food clusters, by gender, November 2010
Figure 62: Convenience food clusters, by age, November 2010
Figure 63: Convenience food clusters, by household income, November 2010
Figure 64: Convenience food clusters, by race, November 2010
Figure 65: Convenience food clusters, by Hispanic origin, November 2010
Cluster methodology
APPENDIX—TRADE ASSOCIATIONS

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