Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: convenience store foodservice context
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US sales and fan chart forecast of convenience store foodservice sales, at current prices, 2015-25
- Impact of the COVID-19 crisis on convenience store foodservice
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on convenience store foodservice, February 2021
- Opportunities and challenges
- C-store visitation depressed with fewer drivers on the road
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- Figure 3: Convenience store visitation, January 2020 and December 2020
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- Figure 4: Convenience store visitation frequency, January 2020 and December 2020
- eCommerce adoption creates long-term c-store foodservice threat
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- Figure 5: COVID-19 behaviors, April 2020-January 2021
- Target Heavy C-Store Consumers with digital kids and family meal deals
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- Figure 6: Desired improvements at convenience stores, by parents, December 2020
- Appeal to young consumers with restaurant-quality takeout and delivery services
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- Figure 7: Convenience store attitudes – NET agreement, by generation, December 2020
- Consider the limited-time c-store to both drive and meet consumer demand
The Market – Key Takeaways
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- With Americans at home and off the road, c-stores suffer
- C-stores shouldn’t feel too many negative effects of economic downturn
- Pandemic shifts Americans’ overall retail behaviors for better or worse
Market Size and Forecast
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- C-store foodservice sales won’t recover until 2022
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- Figure 8: Total US sales and fan chart forecast of convenience store foodservice sales, at current prices, 2015-25
- Figure 9: Total US convenience store foodservice sales and forecast, at current prices, 2015-25
- Impact of the COVID-19 crisis on convenience store foodservice
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- Figure 10: Short-, medium- and long-term impact of COVID-19 on convenience store foodservice, February 2021
- COVID-19: US context
Segment Performance
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- C-store dispensed beverages are hit hard during pandemic
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- Figure 11: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2015-25
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- Figure 12: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2015-2025
Market Factors
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- Most car owners are driving less often as a result of the pandemic
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- Figure 13: Driving frequency during pandemic, October 2020
- C-stores are somewhat recession-resistant
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- Figure 14: Total US foodservice sales at convenience stores, at current prices, 2009-14
- Figure 15: US restaurant sales, at current prices, 2008-13
- Brick-and-mortar shopping habits shift as a result of pandemic
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- Figure 17: Changes in shopping behaviors during COVID-19, August 2020
- Figure 18: COVID-19 behaviors – shopping online, April 2020-January 2021
- Amazon Go is beefing up foodservice, licensing cashierless tech
- Flavored tobacco bans may harm traffic
Market Opportunities
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- Pop-up and mobile c-stores can spur – and meet – demand
- Drive-thru opportunity grows exponentially
- Invest in less-traditional c-store dayparts
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- Figure 19: Wawa email, “Let us take care of dinner tonight!” September 14, 2020
Companies and Brands – Key Takeaways
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- Foodservice falters, but c-stores keep close eye on fried chicken, seasonal LTOs
- Off-premise takes off as a result of COVID-19 crisis
Competitive Strategies
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- Foodservice investments continue despite pandemic setbacks
- Leading up to 2020
- Lockdown
- Recovery begins
- Fried chicken wars
- Seasonality drives demand
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- Figure 20: Sheetz’ Halloween beverage LTOs, October 2020
- Lower-contact shopping proliferates
- Delivery service blows up
The Consumer – Key Takeaways
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- Black consumers are key to c-store foodservice success
- Cater to business-critical dads with digital-focused and off-premise family deals
- C-stores must reconsider foodservice options and service formats, including clerk-served and takeout-friendly formats, to boost pandemic losses
Convenience Store Visitation
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- Gas station c-stores must work the hardest to recover from the pandemic
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- Figure 21: Convenience store visitation, January 2020 and December 2020
- Gas station c-stores can recover faster by appealing to core Black customer base
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- Figure 22: Convenience store visitation, by race and Hispanic origin, December 2020
Convenience Store Visitation Frequency
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- C-stores should leverage strength as a speedy, short shopping trip that is perceived as safer to some for frequent visits
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- Figure 23: Convenience store visitation frequency, by c-store consumer segmentation, December 2020
- Some Heavy C-Store Consumers became Light ones due to pandemic
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- Figure 24: Convenience store visitation frequency, January 2020 and December 2020
- Target Heavy C-Store Consumers with more kids menu options
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- Figure 25: Convenience store visitation frequency, by Heavy C-Store Consumers and demographics, December 2020
Convenience Store Food and Beverage Purchases
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- C-stores must reconsider service format, foodservice meal options to combat pandemic consumption losses
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- Figure 26: Convenience store food and beverage purchases, January 2020 and December 2020
- Boost sales among young consumers with fresh, MTO foodservice options
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- Figure 27: Convenience store food and beverage purchases, by generation, December 2020
- Black Americans can also help recoup foodservice sales losses
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- Figure 28: Convenience store food and beverage purchases, by race and Hispanic origin, December 2020
- Upsell bundled family meals to dads, who are the core c-store foodservice consumer
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- Figure 29: Convenience store food and beverage purchases, by parental status and gender, December 2020
Reasons for Visiting Convenience Stores
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- Traditional offerings like gas and food won’t work as well for c-stores during the pandemic
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- Figure 30: Reasons for visiting convenience stores, January and December 2020
- C-stores can attract more women by playing up time savings for food and beverage purchases
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- Figure 31: Convenience store visits to purchase food or beverages, by demographics, December 2020
Convenience Store Behaviors
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- Convenience stores must improve upon delivery options
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- Figure 32: Convenience store behaviors, December 2020
- Self-serve coffee programs need to do a better job of rivaling RTD coffee
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- Figure 33: Convenience store behaviors, by generation, December 2020
- C-stores must boost loyalty program participation among Hispanics
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- Figure 34: Convenience store behaviors, by race and Hispanic origin, December 2020
- Loyalty lags among less-frequent c-store visitors; loyalty programs could help
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- Figure 35: Convenience store behaviors, by parental status and gender, December 2020
Prepared Food and Beverage Trial and Interest
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- C-stores should strongly consider juice and smoothie programs
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- Figure 36: Prepared food and beverage trial and interest, December 2020
- Figure 37: Prepared food and beverage trial and interest – NET any trial or interest, December 2020
- Young consumers are most likely to try new and different c-store prepared food and beverage options
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- Figure 38: Prepared food and beverage trial, by generation, December 2020
- Hispanic and Black c-store customers drive interest in prepared beverage variety
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- Figure 39: Prepared food and beverage trial and interest – NET any trial or interest, by race and Hispanic origin, December 2020
Desired Improvements at Convenience Stores
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- Demand continues for healthier c-store foods amid pandemic
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- Figure 40: Desired improvements at convenience stores, December 2020
- Gen Zs want drive-thrus at c-stores
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- Figure 41: Desired improvements at convenience stores, by generation, December 2020
- Lower-income c-store customers demand lower-contact c-store purchasing options
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- Figure 42: Desired improvements at convenience stores, by household income, December 2020
Convenience Store Attitudes
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- C-stores should require customers to wear masks
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- Figure 43: Convenience store attitudes – NET agreement, December 2020
- Young consumers drive interest in pop-up c-stores
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- Figure 44: Convenience store attitudes – NET any agree, by generation, December 2020
- Black c-store customers are target audience for dinner
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- Figure 45: Convenience store attitudes – NET any agree, by race and Hispanic origin, December 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast methodology
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 46: Total US convenience store foodservice sales and forecast, at inflation-adjusted prices, 2015-25
- Figure 47: Total US foodservice sales at convenience stores, at inflation-adjusted prices, 2009-14
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Appendix – The Consumer
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- Food/Drink Consumer Segmentation
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- Figure 48: Convenience store food and beverage purchases, by household income, December 2020
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- Figure 49: Prepared food and beverage trial and interest – NET any trial or interest, by generation, December 2020
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- Figure 50: Desired improvements at convenience stores, by parents, December 2020
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