Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
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- Figure 1: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2013-23
- The issues
- Foodservice is not a top c-store traffic driver
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- Figure 2: Convenience store visitation drivers, December 2018
- C-stores are not keeping up with competitors
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- Figure 3: Convenience store foodservice attitudes, December 2018
- C-stores are not top of mind for dinner
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- Figure 4: Convenience store foodservice consumption – Any item NET, December 2018
- The opportunities
- Invest in customer-facing employees
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- Figure 5: Convenience store loyalty drivers, December 2018
- Off-premise business may recoup foodservice sales
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- Figure 6: Convenience store foodservice concept interest, by race and Hispanic origin, December 2018
- Boost health and quality perception with natural/organic options
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- Figure 7: Convenience store foodservice attitudes, by race, Hispanic origin, and generation, December 2018
- What it means
The Market – What You Need to Know
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- C-store foodservice sales recover in 2018
- C-store competition is fiercer than ever
- 7-Eleven sees foodservice sales slip
Market Size and Forecast
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- C-stores foodservice growth rate hits 10-year low in 2017
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- Figure 8: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2013-23
- Figure 9: Total US convenience store foodservice sales and forecast, at current prices, 2013-23
Market Breakdown
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- Prepared foods continue to drive foodservice sales overall
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- Figure 10: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2013-23
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- Figure 11: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2013-23
- 7-Eleven foodservice sales slip
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- Figure 12: Top 200 c-store chain foodservice sales, 2015-2017
Market Perspective
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- LSR (limited service restaurant) competition is fierce
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- Figure 13: Top 200 LSR & C-Store^ percentage change in sales over prior year, 2017
- Coffee segment sees seismic shifts
- Restaurants increasingly cut into retail
- New c-stores saturate a crowded market
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- Figure 14: Sandwich section in a Chicago Amazon Go store
- Figure 15: Breakfast section in a Chicago Amazon Go store
Market Factors
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- Higher gas prices may hurt foodservice sales
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- Figure 16: US gasoline and diesel retail prices, January 2007-January 2019
- Electric car unit growth rate more than doubles between 2017-2018
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- Figure 17: Total US volume sales of hybrid and electric cars^, 2015-18
Key Players – What You Need to Know
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- More dollars dedicated to foodservice
- Better-for-you beverages arrive at c-stores…slowly
- Delivery will be a must for convenience-centered brands
What’s Working?
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- Reinvesting in foodservice with store overhauls, revamps
- Better beverage developments proliferate
- The anti-soda beverage set
- Cold brew wars
- More premium and sustainable coffee
- Fresher snacking
What’s Struggling?
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- Food safety issues run amok
- What are some of the ways c-stores can prevent foodborne illness going forward?
- Healthy and ethical eats roll out…at a slow pace
What’s Next?
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- Natural and organic upscale c-stores carve out a niche
- C-stores must move business off premise to compete
- Alcohol will differentiate c-store experience
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- Figure 18: 7-Eleven wine display
The Consumer – What You Need to Know
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- Foodservice is not a top traffic or loyalty driver for c-stores
- C-stores have a lagging health perception
- Heaviest c-store users want more off-premise options
- Young parents are key c-store customers
Convenience Store Visitation Frequency
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- C-store customers are extremely habitual
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- Figure 19: Convenience store visitation frequency, December 2018
- Young parents are key c-store customers
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- Figure 20: Convenience store visitation frequency, by CHAID analysis, December 2018
- Men are core c-store users
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- Figure 21: Convenience store visitation frequency, by gender, December 2018
- Lower-income consumers are most frequent c-store customers
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- Figure 22: Convenience store visitation frequency, by household income, December 2018
- Black and Hispanic consumers are heaviest c-store users
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- Figure 23: Convenience store visitation frequency, by race and Hispanic origin, December 2018
Convenience Store Visitation Drivers
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- Location and price of gas are top reasons people choose their c-store
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- Figure 24: Convenience store visitation drivers, December 2018
- Older consumers prioritize convenience highest when choosing c-stores
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- Figure 25: Convenience store visitation drivers – Any rank NET, by generation, December 2018
- Hispanics prioritize food and beverage more than others do when choosing a c-store
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- Figure 26: Convenience store visitation drivers – Any rank NET, by race and Hispanic origin, December 2018
- Lower-income consumers prioritize packaged food and beverages at c-stores
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- Figure 27: Convenience store visitation drivers – Any rank NET, by household income, December 2018
Convenience Store Loyalty and Loyalty Drivers
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- Nearly half of consumers are loyal to one convenience store brand
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- Figure 28: Convenience store loyalty, December 2018
- Prepared foods and beverages are not top loyalty drivers
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- Figure 29: Convenience store loyalty drivers, December 2018
- Prepared food and beverages are less important to c-store loyalty today than they were a year ago
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- Figure 30: Convenience store loyalty drivers, January 2018-December 2018
- Food and beverages drive c-store loyalty for higher-income consumers
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- Figure 31: Convenience store loyalty drivers, by household income, December 2018
- More women than men are loyal to c-stores because of prepared foods
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- Figure 32: Convenience store loyalty drivers, by gender, December 2018
Convenience Store Food and Beverage Consumption
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- Packaged food items and self-serve drinks are top purchases at c-stores
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- Figure 33: Convenience store food and beverage consumption, December 2018
- Beverages are central to c-stores’ food and drink programs
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- Figure 34: Convenience store food and beverage consumption NETS, December 2018
- Younger consumers are heaviest users of c-store food and beverages
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- Figure 35: Convenience store food and beverage consumption, by age, December 2018
- White consumers overindex for c-store beverages and underindex for foods
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- Figure 36: Convenience store food and beverage consumption, by race and Hispanic origin, December 2018
Convenience Store Foodservice Consumption
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- C-store foodservice is not top-of-mind for dinner
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- Figure 37: Convenience store foodservice consumption – any item NET, December 2018
- Coffee and sandwiches are most consumed c-store foodservice items
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- Figure 38: Convenience store foodservice consumption – any daypart NET, December 2018
- C-store baked goods are consumed more for snacks than breakfast
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- Figure 39: Convenience store foodservice consumption, by correspondence analysis, December 2018
- Men are higher c-store foodservice users overall
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- Figure 40: Convenience store foodservice consumption – Any item NET, by gender, December 2018
- Younger consumers overindex in purchasing a variety of c-store foods
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- Figure 41: Convenience store foodservice consumption – Any daypart NET, by generation, December 2018
- Black and Hispanic consumers are heavier c-store foodservice users than White consumers
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- Figure 42: Convenience store foodservice consumption – Any daypart NET, by race and Hispanic origin, December 2018
Convenience Store Foodservice Concept Interest
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- Limited/seasonal and customizable coffee options are fairly expected c-store offerings
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- Figure 43: Convenience store foodservice concept interest, December 2018
- Offering limited/seasonal, customizable coffee, and delivery service could appeal to a majority of c-store consumers
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- Figure 44: Convenience store foodservice concept interest, by TURF analysis, December 2018
- Men aged 35-54 care the most about family meals at c-stores
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- Figure 45: Convenience store foodservice concept interest, by age and gender, December 2018
- Young women prioritize c-store online ordering options
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- Figure 46: Convenience store foodservice concept interest, by age and gender, December 2018
- Black and Hispanic consumers are most interested in online ordering and delivery from c-stores
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- Figure 47: Convenience store foodservice concept interest, by race and Hispanic origin, December 2018
Convenience Store Foodservice Attitudes
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- Only 15% of consumers are satisfied with c-stores’ healthy prepared food options
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- Figure 48: Convenience store foodservice attitudes, December 2018
- C-stores are more likely to draw men than women away from fast food competitors
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- Figure 49: Convenience store foodservice attitudes, by gender, December 2018
- Gen Zers are least likely to find c-stores more convenient than fast food
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- Figure 50: Convenience store foodservice attitudes, by generation, December 2018
- Hispanic consumers want more natural and organic c-store options
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- Figure 51: Convenience store foodservice attitudes, by race and Hispanic origin, December 2018
- Rural c-store customers have seen the most improvement over the years
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- Figure 52: Convenience store foodservice attitudes, by area, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 53: Total US convenience store foodservice sales and forecast, at inflation-adjusted prices, 2013-23
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Appendix – The Consumer
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- CHAID Analysis
- Methodology
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- Figure 54: C-store visitation – CHAID – Table output, December 2018
- Correspondence Analysis
- Methodology
- TURF Analysis
- Methodology
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- Figure 55: Table –TURF Analysis – C-store concept interest, December 2018
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