Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Overview
- C-stores are well-positioned to compete within restaurant industry
- Rising fuel costs can have negative implications for foodservice purchases
- Usage of c-store foodservice impacted by demographic population shifts
- Convenience store brand leaders
- Marketing strategies: Industry applications
- Effective marketing strategies: Consumer perspective
- Widespread usage of convenience store foodservice
- Beverages are the most commonly ordered foodservice items
- C-store foodservice is purchased throughout the day
- Average spend per visit is high for c-store foodservice items
- Purchases of c-store foodservice driven by convenience attributes
- Convenience store foodservice users praise progress in variety/quality
Insights and Opportunities
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- Foodservice brand innovation can expand category
- Proprietary brands
- Brand alignment
- Daypart expansion
- Lunchtime
- It’s always time for a snack
Inspire Insights
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- Trend: “A Simple Balance for Health”
- Trend: “Carnivore, Herbivore...Locavore”
Market Size
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- Key points
- Expanding the scope of convenience store foodservice
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- Figure 1: Total U.S. convenience store foodservice sales, at current prices, 2006-16
- Figure 2: Total U.S. convenience store foodservice sales, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 3: Fan chart of market value for convenience store foodservice sales, at current prices, 2006-16
Market Drivers
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- Restaurant sales slow to recover
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- Figure 4: U.S. restaurant sales, at inflation-adjusted prices, 2006-16
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- Figure 5: NRA performance indices, January 2009-November 2011
- The consumer confidence rollercoaster
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- Figure 6: Real personal disposable income, January 2007-December 2011
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- Figure 7: Median household income in inflation-adjusted dollars, 2000-10
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- Figure 8: Unemployment and underemployment rates, January 2007-December 2011
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- Figure 9: Consumer Sentiment Index, March 2007-January 2012
- Gasoline prices impact convenience store usage
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- Figure 10: U.S. regular gasoline prices, February 2012
- Young age groups are important to market
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- Figure 11: Population, by age, 2006-16
- Hispanic consumers are highly engaged c-store users
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- Figure 12: Population, by Hispanic origin, 2006-16
Competitive Context
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- Overview
- Limited-service operators sell convenient food choices
- C-store challenge: Prep and packaging
- C-store challenge: Quality
- C-store challenge: Menu variety and value
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- Figure 13: Top 20 QSR menu items by incidence, Q4 2009-Q4 2011
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- Figure 14: Top 20 QSR menu items by average price, Q4 2009-Q4 2011
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- Figure 15: Top 10 QSR beverage menu items by incidence, Q4 2009-Q4 2011
Convenience Store Foodservice Brand Usage
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- Key points
- C-store market is highly fragmented
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- Figure 16: Top 20 convenience store companies by store count, May 2011
- Foodservice usage among c-store brands is scattered
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- Figure 17: Convenience store foodservice brand usage, November 2011
- Brand loyalty is strong among Wawa visitors
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- Figure 18: Convenience store foodservice brand usage, November 2011
Brand Analysis—7-Eleven
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- Overview
- Performance summary
- Growth strategy
- Focus on foodservice
- 7-Eleven’s most frequent foodservice purchasers are aged 45-54
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- Figure 19: 7-Eleven foodservice usage, by age, November 2011
- 7-Eleven marketing strategies
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- Figure 20: Effective promotional strategies, by 7-Eleven users, November 2011
Brand Analysis—Circle K
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- Overview
- Performance summary
- Building a network
- Men are more likely users of Circle K foodservice
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- Figure 21: Circle K foodservice usage, by gender, November 2011
- Circle K marketing strategies
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- Figure 22: Effective promotional strategies, by Circle K users, November 2011
Brand Analysis—Wawa
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- Overview
- Performance summary
- Focus on efficiency and service
- Wawa attracts frequent users
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- Figure 23: Wawa foodservice usage, November 2011
- Wawa marketing strategies
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- Figure 24: Effective promotional strategies, by Wawa users, November 2011
Brand Analysis—Sheetz
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- Overview
- Performance summary
- Customer service is key
- Industry hybrid—c-store and limited-service restaurant
- Sheetz brand loyalists
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- Figure 25: Sheetz foodservice usage, November 2011
- Sheetz marketing strategies
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- Figure 26: Effective promotional strategies, by Sheetz users, November 2011
Marketing Strategies
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- Overview
- Television ads
- Daypart promotion
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- Figure 27: 7-Eleven TV ad, We deliver More for Breakfast, July-August 2011
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- Figure 28: 7-Eleven TV ad, Live Action Role Play, July-October 2011
- Specific product promotions
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- Figure 29: ampm TV ad, All Mine, May-July 2011
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- Figure 30: Casey’s General Store TV ad, Pizza Parlor in Town, September 2011-January 2012
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- Figure 31: Circle K TV ad, On the Go, October 2011-January 2012
- Regional television
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- Figure 32: Stop In Food Stores TV ad, Quality Stop, September 2011
- Digital marketing
- Casey’s General Store—integrating social media
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- Figure 33: Casey’s General Store home page, February 2012
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- Figure 34: Casey’s General Store Facebook page, February 2012
- Social media
- Mobile apps
- Billboards going digital
Effective Promotional Strategies
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- Key points
- Reward cards and coupons by mail most effective marketing tools
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- Figure 35: Tedeschi Food Shops home page, February 2012
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- Figure 36: Effective promotional strategies, November 2011
- Coupons are an effective strategy to target women
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- Figure 37: Effective promotional strategies, by gender, November 2011
- C-stores’ core audience receptive to digital marketing efforts
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- Figure 38: Effective promotional strategies, by age, November 2011
- Television and billboards effective in reaching young men
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- Figure 39: Effective promotional strategies, by gender and age, November 2011
- Evening c-store users are more receptive to a variety of marketing strategies
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- Figure 40: Effective promotional strategies by time of day to visit convenience stores to buy foodservice items, November 2011
Convenience Store Foodservice Usage
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- Key points
- Convenience store foodservice usage is far reaching
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- Figure 41: Convenience store foodservice usage, November 2011
- Consumers younger than 35 key c-store foodservice patrons
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- Figure 42: Convenience store foodservice usage, by age, November 2011
- Men aged 18-34 have highest incidence for usage of c-store foodservice
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- Figure 43: Convenience store foodservice usage, by gender and age, November 2011
- Convenience store foodservice users visit often
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- Figure 44: Convenience store foodservice usage in past month, November 2011
- Convenience store foodservice is not top-of-mind choice
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- Figure 45: Reasons for not ordering food at convenience stores, November 2011
- Getting older customers in the door
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- Figure 46: Reasons for not ordering food at convenience stores, by age, November 2011
Popular Convenience Store Foodservice Items
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- Key points
- Fountain beverages most frequently ordered item at c-stores
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- Figure 47: Frequency of foodservice items ordered from convenience stores, November 2011
- Men more likely to order hot food items
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- Figure 48: Foodservice items ordered from convenience stores, by gender, November 2011
- Young respondents more likely to order a range of foodservice items
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- Figure 49: Foodservice items ordered from convenience stores, by age, November 2011
- Part-time and self-employed workers more apt to order foodservice items
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- Figure 50: Foodservice items ordered from convenience stores, by employment, November 2011
- Men aged 18-34 have strong acceptance for a variety of foodservice items
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- Figure 51: Foodservice items ordered from convenience stores, by gender and age, November 2011
When Consumers Visit Convenience Stores
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- Key points
- Steady usage during morning and afternoon hours
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- Figure 52: Time of day to visit convenience stores to buy foodservice items, November 2011
- Men visit in mornings
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- Figure 53: Time of day to visit convenience stores to buy foodservice items, by gender, November 2011
- Those aged <25 more likely to visit in afternoon and evening to buy foodservice items
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- Figure 54: Time of day to visit convenience stores to buy foodservice items, by age, November 2011
- Employment status bears weight on when consumers visit c-stores to buy food
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- Figure 55: Time of day to visit convenience stores to buy foodservice items, by employment, November 2011
Spending on Convenience Store Foodservice
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- Key points
- High average spend on c-store foodservice
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- Figure 56: Spending on convenience store foodservice, November 2011
- Men spend more than women
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- Figure 57: Spending on convenience store foodservice, by gender, November 2011
- Consumers aged <25 spend most on c-store foodservice items
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- Figure 58: Spending on convenience store foodservice, by age, November 2011
- Low-income households have highest average spend on foodservice items
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- Figure 59: Spending on convenience store foodservice, by household income, November 2011
- Part-time workers spend the most on c-store foodservice items
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- Figure 60: Spending on convenience store foodservice, by employment, November 2011
- Men aged 18-34 spend well above average
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- Figure 61: Spending on convenience store foodservice, by gender and age, November 2011
- Evening visits garner highest average spend
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- Figure 62: Spending on convenience store foodservice, by time of day to visit convenience stores to buy foodservice items, November 2011
Reasons to Buy Convenience Store Foodservice
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- Key points
- Quick and easy drives convenience store foodservice usage
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- Figure 63: Reasons to buy convenience store foodservice, November 2011
- Consumers younger than 25 driven to order c-store foodservice because it’s easy and cheap
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- Figure 64: Reasons to buy convenience store foodservice, by age, November 2011
- Self-employed workers driven by one-stop shopping convenience
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- Figure 65: Reasons to buy convenience store foodservice, by employment, November 2011
- High-quality, tasty food and clean stores drive young men to c-stores
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- Figure 66: Reasons to buy convenience store foodservice, by gender and age, November 2011
Attitudes Toward Convenience Store Foodservice
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- Key points
- C-store foodservice succeeds with beverage platform
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- Figure 67: Attitudes toward convenience store foodservice, November 2011
- Coffee platform important to older consumers
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- Figure 68: Attitudes toward convenience store foodservice, by age, November 2011
Impact of Hispanic Origin
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- Key points
- Hispanics are a key consumer group for convenience store foodservice
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- Figure 69: Convenience store foodservice usage, by Hispanic origin, November 2011
- Hot dogs, fruit salad, and nachos more popular among Hispanics
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- Figure 70: Foodservice items ordered from convenience stores, by Hispanic origin, November 2011
- Hispanics outspend non-Hispanics on c-store foodservice items
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- Figure 71: Spending on convenience store foodservice, by Hispanic origin, November 2011
- Low prices drive Hispanics to buy c-store foodservice items
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- Figure 72: Reasons to buy convenience store foodservice, by Hispanic origin, November 2011
- Hispanics interested in restaurant brands at c-stores
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- Figure 73: Attitudes toward convenience store foodservice, by Hispanic origin, November 2011
- Traditional marketing efforts effective in targeting Hispanics
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- Figure 74: Effective promotional strategies, by Hispanic origin, November 2011
Appendix—Trade Associations
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