Author: Mintel Group Ltd.
Last saved by: HTTP server

Convenience Store Foodservice - US - March 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Hot and cold dispensed beverages lost sales share
Figure 1: Distribution of foodservice dollar sales, by category, 2013-14
Made-to-order: Dependent on convenience
Figure 2: Drivers for made-to-order food/beverage in convenience store visits, December 2015
Healthful offerings: Finding the balance
Figure 3: Attitudes toward made-to-order food/beverage in convenience stores, December 2015
The opportunities
Strong growth forecasted through 2020
Figure 4: Total US convenience store foodservice sales and forecast, at current prices, 2010-20
Operators can prove freshness
Figure 5: Consumer definition of fresh food and beverages at convenience stores, December 2015
More and better branding
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
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
Steady growth continues
Figure 7: Total US convenience store foodservice sales and forecast, at current prices, 2010-20
Fan chart forecast
Figure 8: Total US convenience store foodservice sales and fan chart forecast of market, at current prices, 2010-20
Forecast methodology
MARKET BREAKDOWN
Prepared food; a larger piece of a growing pie
Figure 9: Distribution of foodservice dollar sales, by category, 2014
Looking beyond sandwiches and hot dogs
Figure 10: Distribution of prepared food dollar sales, by type of food, 2014
Hot dispensed beverages
Figure 11: Distribution of dollar sales, by hot dispensed beverages, 2014
Cold dispensed beverages
Figure 12: Distribution of dollar sales, by cold dispensed beverages, 2014
MARKET FACTORS
Health and wellness concerns – More fresh/healthful offerings at c-stores
Positive disposable income and lower oil prices
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
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
Figure 14: Convenience stores where consumers have shopped at in the last four weeks, July 2011-15
WHAT’S WORKING?
Using technology for food delivery and online ordering
C-stores add healthful options
WHAT’S NEXT?
C-stores turn to restaurants for design cues
Breakfast is an area for innovation
Loyalty evolution
THE CONSUMER – WHAT YOU NEED TO KNOW
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
C-stores cater to a broad consumer base
Figure 15: Convenience store visitation, December 2015
Gas stations are the most visited c-store type
Figure 16: Convenience store visitation, by store type, December 2015
Gender and age are c-store visitation determinants
Figure 17: Convenience store visitation by gender/age, December 2015
When it comes to c-store shoppers, not all Millennials are the same
Figure 18: Convenience store visitation by generation, December 2015
REASON FOR C-STORE VISITATION
While food and drinks drive c-store visits, visitation for prepared food is low
Figure 19: Convenience store reason for visit, December 2015
Young men, Hispanics, and urbanites are key consumers of prepared food/beverages
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
Beverages are the most common MTO c-store item
Figure 21: Made-to-order and fresh food/beverage purchases, December 2015
Breakfast is bigger with Hispanics
Figure 22: Made-to-order and fresh food/beverage purchases, December 2015
Parents – Heavy MTO buyers
Figure 23: Made-to-order and fresh food/beverage purchases, December 2015
MTO DRIVERS
Convenient means quick
Figure 24: Drivers for made-to-order food/beverage in convenience store visits, December 2015
Millennials purchase c-store food for more “secondary” reasons
Figure 25: Drivers for made-to-order food/beverage in convenience store visits, December 2015
MTO MOTIVATORS
Price, quality, and healthfulness may increase MTO food/beverage purchases
Figure 26: Motivators for made-to-order food/beverage in convenience store visits, December 2015
Health and easy access are important for parents
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
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
C-stores must satisfy more than cravings
Figure 29: Attitudes toward made-to-order food/beverage in convenience stores, December 2015
C-store perception lowest in Midwest
Figure 30: Attitudes toward made-to-order food/beverage in convenience stores, by census region, December 2015
Reach Hispanics with healthful/fresh options
Figure 31: Attitudes toward made-to-order food/beverage in convenience stores, by ethnicity, December 2015
DEFINITION OF FRESHNESS
Sight and scent can help communicate “fresh”
Figure 32: Consumer definition of fresh food and beverages at convenience stores, December 2015
Freshness definition driven by ingredients for younger consumers
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
Natural is most important descriptor for made-to-order
Figure 34: Important traits of made-to-order food or beverages at convenience stores, December 2015
Feel-good claims resonate most on the coasts
Figure 35: Important traits of made-to-order food or beverages at convenience stores, by region, December 2015
Millennials drive interest in descriptors
Figure 36: Important traits of made-to-order food or beverages at convenience stores, by ethnicity, December 2015
Claims are especially important for parents
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
Methodology
A combination of different claims reaches the maximum number of customers
Figure 38: TURF Analysis – Important food characteristics, December 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
TURF analysis – Methodology
Figure 39: Table – TURF Analysis – Important food characteristics, December 2015
Abbreviations and terms
Abbreviations
Terms

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.