Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- C-store foodservice sales on the rise
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- Figure 1: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2011-21
- The issues
- C-store perceptions vary dramatically
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- Figure 2: C-store foodservice attitudes, any agree, by repertoire analysis, December 2016
- MTO visitation lags behind beverage visitation
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- : Figure 3: C-store foodservice purchases, by c-store type, December 2016
- C-store foods are not top of mind for consumers
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- Figure 4: Reasons for not purchasing c-store foodservice products, December 2016
- The opportunities
- Prepared foods are an opportunity for c-stores
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- Figure 5: Total US convenience store foodservices sales, at current prices, by segment, 2011-21
- Strategically communicate quality to consumers
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- Figure 6: C-store foodservice quality indicators, December 2016
- Focus on what c-stores do best while experimenting with new opportunities
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- Figure 7: C-store foodservice attitudes, any agree, December 2016
- What it means
The Market - What you need to know
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- The c-store foodservice market is growing
- Competitors satisfy similar need states
- C-stores need to adapt to new consumers
Market Size and Forecast
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- C-store foodservice experiences strong growth
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- Figure 8: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2011-21
- Figure 9: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2011-21
Market Breakdown
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- Foods drive total market growth
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- Figure 10: Total US convenience store foodservices sales, at current prices, by segment, 2011-21
- Figure 11: Total US convenience store foodservices sales, at current prices, by segment, 2011-21
- Sandwich sales experience strong growth
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- Figure 12: Prepared food sales at c-stores, by category, 2014-15
- Fountain CSDs command the cold dispensed drink category
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- Figure 13: Distribution of cold dispensed beverage sales, 2014-15
- Coffee and coffee beverage hot dispensed sales share grows
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- Figure 14: Distribution of hot dispensed beverage sales, 2014-15
Market Perspective
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- QSRs satisfy similar consumer needs
- Grocery stores expand hot and cold grab-and-go options
- CPG foods fight for share of stomach
Market Factors
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- Consumer confidence is up yet falling food prices are leading more to eat at home
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- Figure 15: Consumer Sentiment Index, January 2007 – December 2016
- C-stores need to balance health, indulgence, and clean labels
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- Figure 16: Food and health statement agreement, “any agree,” summer 2012-16
- Understanding iGens
Key Players – What You Need to Know
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- C-stores continue to grow their foodservice presence
- Operators can improve their menu marketing
- Keep an eye open for new competition and changing consumer tastes
What’s Working?
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- Coffee continues to grow
- Sandwiches and sweets drive menu growth
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- Figure 17: Growth/decline in the incidence of the top 10 ingredient flavors at c-stores, Q4 2015 – Q4 2016
- C-stores make food front and center
What’s Struggling?
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- C-stores are dropping Southwest/Tex Mex favorites
- C-stores lack claims and are removing claims from menus
What’s Next?
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- Big brands set their sights on the c-store market
- CSD alternatives offer something new for consumers
The Consumer – What You Need to Know
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- Certain demographics drive c-store foodservice sales
- C-store foods aren’t top of mind for non-users
- Turn beverage buyers into food buyers
- Simple cues can make a difference in perceived quality
- Keep it convenient
- There is a strong difference in how consumers view c-store foods
C-store Foodservice Visitation and Purchases
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- Over half of consumers have made a c-store foodservice purchase
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- Figure 18: C-store foodservice purchases, any visitation, December 2016
- Defining the c-store customer
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- Figure 19: C-store foodservice purchases, any visitation, by select demographics, December 2016
- Self-serve beverages are the most purchased c-store foodservice item
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- Figure 20: C-store foodservice purchases, by c-store type, December 2016
- C-store foodservice categories purchased by demos
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- Figure 21: C-store foodservice purchases, any c-store type, by gender and by generation, December 2016
- Figure 22: C-store foodservice purchases, any c-store type, by ethnicity/race and by HH income, December 2016
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- Figure 23: C-store foodservice purchases, any c-store type, by parental status and by area, December 2016
- MTO experiences vary by region
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- Figure 24: store foodservice purchases, any c-store type, by nine census regions, December 2016
Heavy C-store Customer Food and Health Segmentation
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- Methodology
- Food lifestyle definitions
- Health and wellbeing definitions
- Heavy c-store customers: Food Lifestyle
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- Figure 25: Food lifestyle segmentation of heavy c-store customers, distribution
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- Figure 26: Food lifestyle segmentation of heavy c-store customers, index against all respondents
- Heavy c-store customers: Health and Wellbeing
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- Figure 27: Health and wellness segmentation of heavy c-store customers, distribution
- Figure 28: Health and wellness segmentation of heavy c-store customers, index against all respondents
Non C-store Foodservice Consumers
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- C-stores need to get customers in the door
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- Figure 29: Reasons for not purchasing c-store foodservice products, December 2016
- Foodservice options are not top of mind for older consumers
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- Figure 30: Reasons for not purchasing c-store foodservice products, by age, December 2016
- Urban/suburbanites are skeptical consumers
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- Figure 31: Reasons for not purchasing c-store foodservice products, by area, December 2016
C-store Products Purchased
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- Beverages remain the top purchased c-store offering
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- Figure 32: C-store foodservice purchases, December 2016
- Coffee drinks appeal to female c-store beverage consumers
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- Figure 33: C-store foodservice purchases, by gender, December 2016
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- Figure 34: C-store foodservice purchases, by parents, December 2016
- Millennials buy more meal items
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- Figure 35: C-store foodservice purchases, by generation, December 2016
- Higher earners are coffee/tea drinkers
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- Figure 36: C-store foodservice purchases, by HH income, December 2016
- A third of consumers only purchase one c-store foodservice product
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- Figure 37: C-store foodservice purchases, repertoire analysis, December 2016
Deep Dive: Pizza
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- Keep it personal
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- Figure 38: C-store pizza offerings interest, December 2016
Deep Dive: Coffee
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- A strong coffee program is key for c-stores
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- Figure 39: C-store coffee offering interest, December 2016
- Women value flavor variety
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- Figure 40: C-store coffee offering interest, by gender, December 2016
- Specialty coffee is an opportunity to reach younger consumers
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- Figure 41: C-store coffee offering interest, by age, December 2016
Deep Dive: Roller Grill
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- Value and variety can increase roller grill sales
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- Figure 42: C-store roller grill offering interest, December 2016
Deep Dive: Salad
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- Low-hanging fruit
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- Figure 43: C-store salad offering interest, December 2016
C-store Foodservice Quality Indicators
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- Freshness and visual cues are point of entry quality indicators
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- Figure 44: C-store foodservice quality indicators, December 2016
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- Figure 45: Consumer definition of fresh food and beverages at convenience stores, December 2015
- Freshness resonates more with women
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- Figure 46: C-store foodservice quality indicators, by gender, December 2016
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- Figure 47: Consumer definition of fresh food and beverages at convenience stores, by gender, December 2015
- Presentation is paramount for iGens
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- Figure 48: C-store foodservice quality indicators, by generation, December 2016
- Southern consumers most responsive to employee interactions
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- Figure 49: C-store foodservice quality indicators, by census region, December 2016
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- Figure 50: C-store foodservice quality indicators, by area, December 2016
- Great packaging can keep true loyalists happy
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- Figure 51: C-store foodservice quality indicators, by c-store consumer type, December 2016
MTO Versus Prepared Foodservice Options
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- MTO foods perceived more favorably than prepared foods
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- Figure 52: MTO versus Prepared perception, December 2016
- Men and women have varying views of MTO options
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- Figure 53: MTO versus Prepared perception, by gender, December 2016
- MTO offerings appeal to older consumers
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- Figure 54: MTO versus Prepared perception, by age, December 2016
C-store Foodservice Attitudes
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- Consumers value the “c” in c-stores, but few are loyalists
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- Figure 55: C-store foodservice attitudes, any agree, December 2016
- Disconnect in c-store perceptions by gender
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- Figure 56: C-store foodservice attitudes, any agree, by gender, December 2016
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- Figure 57: C-store foodservice attitudes, any agree, by gender and age, December 2016
- Boomers are reluctant c-store customers
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- Figure 58: C-store foodservice attitudes, any agree, by generation, December 2016
- A “fresh look” may appease higher earners
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- Figure 59: C-store foodservice attitudes, any agree, by HH income, December 2016
- Northeast region has high c-store satisfaction
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- Figure 60: C-store foodservice attitudes, any agree, by census region, December 2016
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- Figure 61: C-store foodservice attitudes, any agree, by area, December 2016
- Heavy c-store users drive positive sentiments
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- Figure 62: C-store foodservice attitudes, any agree, by repertoire analysis, December 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Mintel Menu Insights
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 63: Total US convenience store foodservices sales, at inflation-adjusted prices, 2011-21
- Figure 64: C-store Prepared food sales distribution, 2014-15
- Figure 65: Unemployment and underemployment, January 2007-September 2016
- Figure 66: Disposable Personal Income change from previous period, January 2007-September 2016
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