Convenience Store Foodservice - US - March 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Mintel Menu Insights
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
The market
Foodservice at convenience stores have posted strong growth
Figure 1: Fan chart of market value for convenience store foodservice sales, at current prices, 2008-18
Market drivers
Key players in the market
Figure 2: Convenience stores where consumers have shopped at in the last four weeks, July 2009-September 2013
The consumer
Customers look for healthy foods, but often give in to indulgent items
Figure 3: Attitudes toward convenience stores, January 2014
Fresh is enticing, but consumers need to see it to believe it
Figure 4: Attributes to drive fresh, foodservice purchases, January 2014
Marketing strategies need to be about the customer’s needs
Figure 5: Effectiveness of promotions for future fresh food purchases, January 2014
What we think
ISSUES AND INSIGHTS
Perception: Can convenience stores change the way consumers view the channel?
The issues
The implications
Balance: Providing both healthy and indulgent foods at convenience stores
The issues
The implications
Expanding foodservice operations, without compromising convenience
The issues
The implications
TREND APPLICATION
Trend: Transumers
Trend: Help Me Help Myself
Mintel futures: East Meets West
MARKET SIZE AND FORECAST
Key points
Market size insight
Sales and forecast of market
Figure 6: Total U.S. sales and forecast of market, at current prices, 2008-18
Figure 7: Total U.S. sales and forecast of market, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 8: Fan chart of market value for convenience store foodservice sales, at current prices, 2008-18
MARKET DRIVERS
Key points
Consumers are still cautious with spending
Health concerns are top of mind with convenience store consumers
The ever-changing face of America will also change convenience stores
Figure 9: US population by race and Hispanic origin, 2009, 2014, and 2019
Shifting demographics will create more opportunities at convenience stores
Figure 10: US population, by age, 2009, 2014, and 2019
INNOVATIONS AND INNOVATORS
Big box retailers are getting into convenience store game
Convenience stores are expanding their fresh offerings
Convenience stores are renovating their locations and offerings to keep up with on-the-go consumers
Healthier, high-quality, and better-for-you fare at convenience stores
COMPETITIVE CONTEXT
Key points
Grocery stores
Quick-service restaurants
Fast casual restaurants
Pharmacy chains
MAJOR CONVENIENCE STORE BRANDS
Figure 11: Convenience stores where consumers have shopped at in the last four weeks, July 2009-September 2013
7-Eleven
Figure 12: Items purchased, by brand usage, January 2014
Figure 13: Frequency of beverage purchases at convenience stores – Frequent purchasers, by brand usage, January 2014
Circle K
Speedway
Wawa
Figure 14: Items purchased, by brand usage, January 2014
Casey’s General Store
Figure 15: What consumers order at convenience stores, by brand usage, January 2014
am/pm
MARKETING STRATEGIES
 OVERVIEW
Redefining convenience
Pak-a-Sak: Doing drive-thru right
Figure 16: Pak-a-Sak, Doing Drive Thru Right, 2012
Foodservice expansions through vending machines
Counting healthy calories at convenience stores
7-Eleven’s breakfast sandwich
Wawa offers healthy items less than 500 calories
400 calories keeps growing at Tedeschi Food Shops
Unique restaurants within convenience stores are a breath of fresh air
Targeting the Hispanic consumer
Figure 17: am/pm, “calacas” ad, 2012
MENU ANALYSIS
Food purchases at convenience stores
Figure 18: What consumers order at convenience stores, January 2014
Top foods menued at convenience stores overview
Figure 19: Top menu items (food) at convenience stores, by incidence, H2 2013
Sandwiches at convenience stores
Hot dogs at convenience stores
Breakfast sandwiches at convenience stores
Donuts at convenience stores
Cheeseburgers at convenience stores
Pizza at convenience stores
Beverage purchases at convenience stores
Figure 20: Frequency of beverage purchases at convenience stores, January 2014
Leading beverages menued at convenience stores
Figure 21: Top leading menu items (beverages) at convenience stores, by incidence, H2 2013
Sodas at convenience stores
Coffee at convenience stores
Tea at convenience stores
Energy drinks
Juice at convenience stores
CONSUMER DATA – OVERVIEW
Overall usage of convenience stores, specifically among food/beverage visits
Figure 22: Reasons for visiting convenience stores, January 2014
Figure 23: Items purchased, January 2014
Healthy demands are prevalent for all consumers
Figure 24: Attitudes toward convenience stores, January 2014
Figure 25: Important attributes when ordering fresh food/made-to-order items at convenience stores, January 2014
Consumers want immediate gratification from convenience store incentives
Figure 26: Effectiveness of promotions for future fresh food purchases, January 2014
CONSUMER DATA – BY GENDER
Key points
Men are heavier users of convenience stores, while female visits are infrequent
Figure 27: Convenience store shopping frequency, by gender, January 2014
Figure 28: Any agreement with attitudes toward convenience stores, by gender, January 2014
Women seek unique menu items and customized promotions
Figure 29: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by gender, January 2014
Men are brand-conscious, while women seek healthy
Figure 30: Reasons for foodservice purchase at convenience stores, by gender, January 2014
Men often order/desire traditional convenience foods items; salads and frozen yogurt are popular with women
Figure 31: What consumers order at convenience stores, by gender, January 2014
Figure 32: Frequency of beverage purchases at convenience stores – Frequent purchasers, by gender, January 2014
CONSUMER DATA – BY INCOME
Key points
Price is a key influencer for lower and middle income; quality drives higher income
Figure 33: Reasons for foodservice purchase at convenience stores, by household income, January 2014
Everyone wants fresh, but $100K+ consumers demand it
Figure 34: Any agreement with attitudes toward convenience stores, by household income, January 2014
$100K+ consumers need more convincing to buy restaurant-quality foods
Figure 35: Attributes to drive fresh, foodservice purchases, by household income, January 2014
Coffee can be a point of growth for convenience stores
Figure 36: Frequency of beverage purchases at convenience stores – Frequent purchasers, by household income, January 2014
CONSUMER DATA – BY RACE
Key points
Ethnic consumers are heavier users of convenience stores
Figure 37: Convenience store shopping frequency, by race/Hispanic origin, January 2014
Asians are looking for more from convenience stores
Figure 38: Any agreement with attitudes toward convenience stores, by race/Hispanic origin, January 2014
The price at convenience stores needs to be right for Blacks
Figure 39: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by race/Hispanic origin, January 2014
CONSUMER DATA – BY HISPANICS ORIGIN
Key points
Hispanics utilize all forms of convenience stores
Figure 40: Convenience store shopping frequency – Heavy users, by race/Hispanic origin, January 2014
Lower prices will keep Hispanics coming to convenience stores
Figure 41: Reasons for foodservice purchase at convenience stores, by race/Hispanic origin, January 2014
Beverages are a popular purchase, but health concerns linger with Hispanics
Figure 42: Frequency of beverage purchases at convenience stores – Frequent purchasers, by race/Hispanic origin, January 2014
Figure 43: Reasons for foodservice purchase at convenience stores, by race/Hispanic origin, January 2014
CONSUMER DATA – BY GENERATION
Key points
Convenience store usage varies by generation
Figure 44: Convenience store shopping frequency, by generations, January 2014
Baby Boomers need convincing to purchase more MTO foods at convenience stores
Figure 45: Attributes to drive fresh, foodservice purchases, by generations, January 2014
Ethnically diverse generations lead to diverse foods purchases at convenience stores
Figure 46: What consumers order at convenience stores, by generations, January 2014
Health means more to younger generations
Figure 47: Reasons for foodservice purchase at convenience stores, by generations, January 2014
CONSUMER DATA – BY REGION
Key points
Midwest consumers are not heavy users of convenience stores; the Northwest has positive opinions of their stores
Figure 48: Convenience store shopping frequency – Heavy users, by region, January 2014
Figure 49: Any agreement with attitudes toward convenience stores, by region, January 2014
Organic is important in the West
Figure 50: Reasons for foodservice purchase at convenience stores, by region, January 2014
CONSUMER DATA – BY PARENTS
Key points
Parents want to see healthy options at convenience stores
Figure 51: Any agreement with attitudes toward convenience stores, by parent/guardian with children and age, January 2014
Convenience stores serve as a quick stop shop for parents with younger children
Figure 52: Innovations/Improvements desired at convenience stores, by parent/guardian with children and age, January 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Health and lifestyle
Figure 53: American adults by weight category as determined by body mass index (BMI), 2008-Oct. 28, 2013
Childhood and teen obesity – highest in decades
Figure 54: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Consumer confidence
Figure 55: University of Michigan’s index of consumer sentiment (ICS), 2007-14
Racial, ethnic population growth
Figure 56: US population by race and Hispanic origin, 2009, 2014, and 2019
Figure 57: Households with children, by race and Hispanic origin of householder, 2013
Shifting US demographics
Figure 58: US population, by age, 2009, 2014, and 2019
Figure 59: US households, by presence of own children, 2003-13
Major convenience store data
Figure 60: Reasons for visiting convenience stores, by brand usage, January 2014
Figure 61: Reasons for choosing convenience stores, by brand usage, January 2014
Figure 62: Innovations/Improvements desired at convenience stores, by brand usage, January 2014
Figure 63: Any agreement with attitudes toward convenience stores, by brand usage, January 2014
Figure 64: Reasons for foodservice purchase at convenience stores, by brand usage, January 2014
Figure 65: Reasons for foodservice purchase at convenience stores, by brand usage, January 2014
Figure 66: Attributes to drive fresh, foodservice purchases, by brand usage, January 2014
Figure 67: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by brand usage, January 2014
Consumer data: By gender
Figure 68: Reasons for visiting convenience stores, by gender, January 2014
Figure 69: Reasons for choosing convenience stores, by gender, January 2014
Figure 70: Innovations/Improvements desired at convenience stores, by gender, January 2014
Figure 71: Any agreement with attitudes toward convenience stores, by gender, January 2014
Figure 72: Reasons for foodservice purchase at convenience stores, by gender, January 2014
Figure 73: Attributes to drive fresh, foodservice purchases, by gender, January 2014
Consumer data: by income
Figure 74: Convenience store shopping frequency, by household income, January 2014
Figure 75: Reasons for choosing convenience stores, by household income, January 2014
Figure 76: Innovations/Improvements desired at convenience stores, by household income, January 2014
Figure 77: What consumers order at convenience stores, by household income, January 2014
Figure 78: Reasons for foodservice purchase at convenience stores, by household income, January 2014
Figure 79: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by household income, January 2014
Consumer data: By race
Figure 80: Reasons for choosing convenience stores, by race/Hispanic origin, January 2014
Figure 81: Innovations/Improvements desired at convenience stores, by race/Hispanic origin, January 2014
Figure 82: Reasons for foodservice purchase at convenience stores, by race/Hispanic origin, January 2014
Figure 83: Attributes to drive fresh, foodservice purchases, by race/Hispanic origin, January 2014
Figure 84: What consumers order at convenience stores, by race/Hispanic origin, January 2014
Figure 85: Frequency of beverage purchases at convenience stores – Frequent purchasers, by race/Hispanic origin, January 2014
Consumer data: By Hispanic origin
Figure 86: Reasons for choosing convenience stores, by race/Hispanic origin, January 2014
Figure 87: Innovations/Improvements desired at convenience stores, by race/Hispanic origin, January 2014
Figure 88: Any agreement with attitudes toward convenience stores, by race/Hispanic origin, January 2014
Figure 89: Attributes to drive fresh, foodservice purchases, by race/Hispanic origin, January 2014
Figure 90: What consumers order at convenience stores, by race/Hispanic origin, January 2014
Figure 91: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by race/Hispanic origin, January 2014
Consumer data: By generation
Figure 92: Reasons for choosing convenience stores, by generations, January 2014
Figure 93: Items purchased, by generations, January 2014
Figure 94: Innovations/Improvements desired at convenience stores, by generations, January 2014
Figure 95: Reasons for foodservice purchase at convenience stores, by generations, January 2014
Figure 96: Any agreement with attitudes toward convenience stores, by generations, January 2014
Figure 97: Frequency of beverage purchases at convenience stores – Frequent purchasers, by generations, January 2014
Figure 98: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by generations, January 2014
Consumer data: By region
Figure 99: Reasons for choosing convenience stores, by region, January 2014
Figure 100: Innovations/Improvements desired at convenience stores, by region, January 2014
Figure 101: Reasons for foodservice purchase at convenience stores, by region, January 2014
Figure 102: Attributes to drive fresh, foodservice purchases, by region, January 2014
Figure 103: What consumers order at convenience stores, by region, January 2014
Figure 104: Frequency of beverage purchases at convenience stores – Frequent purchasers, by region, January 2014
Figure 105: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by region, January 2014
Consumer data: By parents
Figure 106: Convenience store shopping frequency, by parent/guardian with children and age, January 2014
Figure 107: Reasons for choosing convenience stores, by parent/guardian with children and age, January 2014
Figure 108: Reasons for foodservice purchase at convenience stores, by parent/guardian with children and age, January 2014
Figure 109: What consumers order at convenience stores, by parent/guardian with children and age, January 2014
Figure 110: Frequency of beverage purchases at convenience stores – Frequent purchasers, by parent/guardian with children and age, January 2014
Figure 111: Innovations/Improvements desired at convenience stores, by parent/guardian with children and age, January 2014
Figure 112: Reasons for foodservice purchase at convenience stores, by parent/guardian with children and age, January 2014
Figure 113: Attributes to drive fresh, foodservice purchases, by parent/guardian with children and age, January 2014
Figure 114: Effectiveness of promotions for future fresh food purchases – Most effectiveness, by parent/guardian with children and age, January 2014
APPENDIX – TRADE ASSOCIATIONS