Convenience Store Foodservice - US - March 2015

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total US sales and fan chart forecast of convenience store foodservice sales at current prices, 2009-19
Market drivers
Key players in the market
Figure 2: 2015 top convenience stores, US and Canada
Figure 3: Convenience stores where consumers have shopped at in the last four weeks, July 2010-2014
The consumer
Customers are focused on convenience at c-stores
Figure 4: Primary reason for convenience store visit, December 2014
Restaurant-style foods can keep men interested in c-stores
Figure 5: Primary reason for convenience store visit, by gender, December 2014
Hispanics are another core user of c-stores
Figure 6: Convenience store visitation, by Hispanic origin, December 2014
What we think
ISSUES AND INSIGHTS
C-stores need to make foodservice visits a habit among their regular customers
The issues
The implications
The definition of fresh needs to translate over to c-stores
The issues
The implications
C-stores need to build loyalty
The issues
The implications
TREND APPLICATION
Trend: Transumers
Trend: Make It Mine
Trend: Factory Fear
MARKET SIZE AND FORECAST
Key points
Sales of total convenience store revenue
Figure 7: Total convenience store revenues, at current prices, 2009-19
Figure 8: Total convenience store revenues, at inflation-adjusted prices, 2009-19
Sales of total motor fuels and in-store convenience store sales
Figure 9: Total convenience store revenues, by segment, at current prices, 2009-19
Fan chart forecast for motor fuels
Figure 10: Total US sales and fan chart forecast of motor fuels revenue at current prices, 2009-19
Fan chart forecast for in-store sales
Figure 11: Total US sales and fan chart forecast of in-store convenience store sales at current prices, 2009-19
Sales of convenience store foodservice revenue
Figure 12: Total US foodservice sales at convenience stores, at current prices, 2009-19
Figure 13: Total U.S. foodservice sales at convenience stores, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 14: Total US sales and fan chart forecast of convenience store foodservice sales at current prices, 2009-19
Forecast methodology
MARKET DRIVERS
Key points
Americans are spending more on food and still dining out
Figure 15: Food-at-home and away-from-home expenditures in the US, 1960-2013
Gas prices
Unemployment rates are falling but underemployment is still an issue
Figure 16: Unemployment rate and underemployment, January 2007-January 2015
Consumer confidence and disposable personal income is on the rise
Figure 17: Consumer confidence index, January 2007-January 2015
Figure 18: Real disposable personal income, in billions, January 2007-December 2014
Millennials are crucial for foodservice
Figure 19: US population, by generation share, 2015
Hispanics are growing in population and are a key demo at c-stores
Figure 20: Population by Hispanic origin, 2013-18
COMPETITIVE CONTEXT
Key points
Food manufacturers are looking to expand their own brands at c-stores
Retail locations are adding restaurants to their premises
Quick service is quick and affordable
C-STORE RANKINGS AND COMPANY SPOTLIGHT
Overview
Figure 21: 2015 top convenience stores, US and Canada
Figure 22: Convenience stores where consumers have shopped at in the last four weeks, July 2010-2014
Wawa
7-Eleven
Sheetz
MARKETING STRATEGIES
Overview
C-stores are willing to push the envelope on their own brands, expand their reach, and bring in new innovation
Rebranding is in the works at Pilot Flying J
CST Brands and CrossAmerica Partners LP acquire Nice N Easy Grocery Shoppes
Micro markets are the future of convenience store concepts
The Cube brings convenience to customers without stepping out of the car
Better for you c-store food
7-Eleven strives to bring healthy choices to their customers
Corner stores in Denver are working to bring fresh items to “food desert” areas
C-store beverages are expanding
RaceTrac thanks their customers with Free Coffee Week
Cumberland Farms debuts new summer ad for iced coffee
Coca-Cola Freestyles to be offered at all Wawa locations
Improvements have been made to c-store foods
Loyalty programs are taking shape in c-stores
Wawa launches mobile app and loyalty program
Thornton’s Rewards Program deemed success after only four months
CONSUMER DATA – OVERVIEW
Convenience is the top driver for consumers who visit c-stores
Figure 23: Convenience store visitation, December 2014
Figure 24: Primary reason for convenience store visit, December 2014
Some consumers are still naysayers when it comes to MTO foods at c-stores
Figure 25: Primary reason for convenience store visit, December 2014
Figure 26: Consumer definition of fresh foods/beverages at convenience stores, December 2014
Potential for MTO items at c-stores lie in beverages and wider variety of foods
Figure 27: Made-to-order and fresh food/beverage purchases, December 2014
CONSUMER DATA – BY C-STORE TYPE
Key points
Variety and natural attributes are associated with independent and transportation c-stores
Figure 28: Made-to-order attributes by convenience store type, December 2014
Figure 29: Consumer definition of fresh foods/beverages at convenience stores, December 2014
CONSUMER DATA – BY GENDER
Key points
Women want more healthful options at c-stores
Figure 30: Convenience store visitation, by gender, December 2014
Figure 31: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages – Any agree, by gender, December 2014
Restaurant-style foods can keep men interested in c-stores
Figure 32: Primary reason for convenience store visit, by gender, December 2014
CONSUMER DATA – BY AGE
Key points
Younger consumers are c-store users
Figure 33: Convenience store visitation, by age, December 2014
Foodservice-based foods are popular with c-stores’ core age groups
Figure 34: Made-to-order and fresh food/beverage purchases, by age, December 2014
CONSUMER DATA – BY HISPANIC/NON-HISPANIC
Key points
Hispanics are another core user of c-stores
Figure 35: Convenience store visitation, by Hispanic origin, December 2014
Hispanics think highly of the MTO items at c-stores but still seek improvements
Figure 36: Drivers for made-to-order food/beverage convenience store visits, by race/Hispanic origin, December 2014
Figure 37: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages – Any agree, by race/Hispanic origin, December 2014
CONSUMER DATA – BY REGION
Key points
Northeast and West panelists tend to visit c-stores more than South and Midwest
Figure 38: Convenience store visitation, by region, December 2014
APPENDIX – OTHER USEFUL TABLES
Figure 39: Drivers for made-to-order food/beverage convenience store visits, December 2014
Figure 40: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages, December 2014
APPENDIX – CONSUMER DATA – BY C-STORE TYPE
Figure 41: Primary reason for convenience store visit, by convenience store visitation, December 2014
Figure 42: Drivers for made-to-order food/beverage convenience store visits, by convenience store visitation, December 2014
Figure 43: Made-to-order and fresh food/beverage purchases, by convenience store visitation, December 2014
APPENDIX – CONSUMER DATA – BY GENDER
Figure 44: Primary reason for convenience store visit, by gender, December 2014
Figure 45: Drivers for made-to-order food/beverage convenience store visits, by gender, December 2014
Figure 46: Made-to-order and fresh food/beverage purchases, by gender, December 2014
APPENDIX – CONSUMER DATA – BY AGE
Figure 47: Primary reason for convenience store visit, by age, December 2014
Figure 48: Drivers for made-to-order food/beverage convenience store visits, by age, December 2014
APPENDIX – CONSUMER DATA – BY RACE
Figure 49: Convenience store visitation, by race/Hispanic origin, December 2014
Figure 50: Primary reason for convenience store visit, by race/Hispanic origin, December 2014
Figure 51: Drivers for made-to-order food/beverage convenience store visits, by race/Hispanic origin, December 2014
Figure 52: Consumer definition of fresh foods/beverages at convenience stores, by race/Hispanic origin, December 2014
Figure 53: Made-to-order and fresh food/beverage purchases, by race/Hispanic origin, December 2014
Figure 54: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages – Any agree, by race/Hispanic origin, December 2014
APPENDIX – CONSUMER DATA – BY HISPANIC/NON-HISPANIC
Figure 55: Primary reason for convenience store visit, by race/Hispanic origin, December 2014
Figure 56: Drivers for made-to-order food/beverage convenience store visits, by race/Hispanic origin, December 2014
Figure 57: Consumer definition of fresh foods/beverages at convenience stores, by race/Hispanic origin, December 2014
Figure 58: Made-to-order and fresh food/beverage purchases, by race/Hispanic origin, December 2014
APPENDIX – CONSUMER DATA – BY REGION
Figure 59: Drivers for made-to-order food/beverage convenience store visits, by region, December 2014
Figure 60: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages – Any agree, by region, December 2014
APPENDIX – CONSUMER DATA – BY INCOME
Figure 61: Convenience store visitation, by race/Hispanic origin, December 2014
Figure 62: Primary reason for convenience store visit, by household income, December 2014
Figure 63: Drivers for made-to-order food/beverage convenience store visits, by household income, December 2014
Figure 64: Consumer definition of fresh foods/beverages at convenience stores, by household income, December 2014
Figure 65: Made-to-order and fresh food/beverage purchases, by household income, December 2014
Figure 66: Attitudes regarding convenience stores and made-to-order, fresh foods/beverages – Any agree, by household income, December 2014
APPENDIX – TRADE ASSOCIATIONS
Council for Responsible Nutrition
Food Marketing Institute (FMI)
International Food Information Council (IFIC)
International Food Service Executives Association (IFSEA)
International Foodservice Distributors Association (IFDA)
International Foodservice Manufacturers Association (IFMA)
International Franchise Association (IFA)
National Council of Chain Restaurants (NCCR)
National Nutritional Foods Association (NNFA)
National Restaurant Association (NRA)