Author: Mintel Group Ltd.
Last saved by: HTTP server

Convenience Store Foodservice - US - March 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2011-21
The issues
Consumers choose c-stores based on convenience and gas prices
Figure 2: Important factors when choosing a c-store, January 2018
QSRs (quick-service restaurants) outperform c-stores in most metrics
Figure 3: C-stores versus QSRs, January 2018
C-store food has improved, but still has room for growth
Figure 4: C-store foodservice attitudes, January 2018
The opportunities
New concepts can attract a more diverse audience
Figure 5: C-store concept interest, by gender and age, January 2018
C-store foodservice consumers want more choices/healthy options
Figure 6: C-store visitation motivators, by c-store foodservice consumers, January 2018
Leverage existing brand loyalty
Figure 7: C-store foodservice brand loyalty, by generation, January 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
C-store sales growing, albeit at a slower rate
Competitors experience strong growth
C-stores respond to consumers’ interest in health
MARKET SIZE AND FORECAST
C-stores foodservice sales slow
Figure 8: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2012-22
Figure 9: Total US sales and forecast of convenience store foodservice, at current prices, 2012-22
MARKET BREAKDOWN
Prepared foods command largest share of the market
Figure 10: Total US sales and forecast of convenience store foodservice, by segment, at current prices, 2012-22
Figure 11: Total US sales and forecast of convenience store foodservice, by segment, at current prices, 2012-22
Figure 12: Total US sales and forecast of convenience store foodservice, by segment, at current prices, 2015 and 2017
MARKET PERSPECTIVE
QSR chains are thriving
Retailers start targeting c-store occasions
MARKET FACTORS 
Gas prices rebound only slightly
Figure 13: US gasoline and diesel retail prices, January 2007-December 2017
The creeping threat of electric cars
Figure 14: Interest in hybrid/electric vehicle ownership/type of hybrid/electric vehicle interest, February 2018
Figure 15: Reasons for buying a hybrid/electric vehicle, February 2018
Road trips on the rise
Figure 16: Annual vehicle-distance traveled (billion miles), moving 12-month total on all roads, Jan 2007-Nov 2017
C-stores stock more healthful CPG items
Figure 17: NACS photo: New Hillshire Snacking Products
Figure 18: NACS photo: Powerful Oatmeal
Figure 19: NACS photo: Organic Valley Good to Go Hard-Boiled Eggs
CSDs sales are down, can c-stores benefit from this trend?
Figure 20: Arctic Coke and the Pursuit of the Perfectly Slushy Coca-Cola
Figure 21: Total US retail sales and forecast of carbonated soft drinks by segment, at current prices, 2011-21
KEY PLAYERS – WHAT YOU NEED TO KNOW 
C-store food grows/diversifies
Tech makes c-stores even more convenient
C-stores fight to compete with QSRs
WHAT’S WORKING?
General c-store foodservice improvements
C-stores build branded partnerships
Breakfast battleground
Figure 22: C-store breakfast sandwich examples
Figure 23: C-store breakfast bowl examples
C-stores diversify beverage offerings
Figure 24: Change in c-store beverage incidence, Q4 2015 – Q4 2017
WHAT’S NEXT?
The future of c-stores in a gas-less society
QSR value wars spill over into c-stores
C-stores refine convenience through technology
Can the market support a “premium” c-store?
Social media trends shape c-store market
Trending C-store food and beverage flavors
Food
Figure 25: Menu Matrix, c-store food flavors, top 20 menued flavors, Q4 2015-Q4 2017
Drinks
Figure 26: Menu Matrix, c-store beverage flavors, top 20 menued flavors (excluding cola), Q4 2015-Q4 2017
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most c-store visits are quick fill-ups
Heavy visitors drive brand loyalty and total sales
C-stores lose out to QSRs in most cases
C-store food is getting better, but there is still room for improvement
C-STORE VISITATION
Four out of five consumers visit c-stores
Figure 27: General c-store visitation, January 2018
iGens represent core c-store customers
Figure 28: General c-store visitation, any c-store, by select demos, January 2018
Negative perceptions don’t prohibit visitation
Figure 29: Reasons for not visiting a c-store, January 2018
C-STORE VISITATION FREQUENCY
Half of consumers are heavy c-store users
Figure 30: C-store visitation frequency, January 2018
Heavy c-store visitor demographic profile
Figure 31: Heavy c-store visitor, demographic profile, indexed against all c-store customers, January 2018
C-STORE MOST IMPORTANT FACTORS 
Convenience and prices determine c-store visitation
Figure 32: Important factors when choosing a c-store, January 2018
Figure 33: Important factors when choosing a c-store, any rank, by c-store visitation frequency, January 2018
REASONS FOR VISITING C-STORES 
Food/drink purchases are the second most common c-store occasion
Figure 34: Reasons for visiting c-stores in the past three months, January 2018
Figure 35: C-store food and beverage purchases, among c-store food and drink buyers, January 2018
C-stores satisfy various needs for heavy visitors
Figure 36: Reasons for visiting c-stores in the past three months, by c-store visitation frequency, January 2018
Younger women are an important potential consumer group
Figure 37: Reasons for visiting c-stores in the past three months, by gender and age, January 2018
Figure 38: C-store food and beverage purchases, among c-store food and drink buyers, by gender and age, January 2018
C-STORE VISITATION MOTIVATORS
Increase visitation with more choices and healthy options
Figure 39: C-store visitation motivators, by c-store foodservice consumers, January 2018
C-STORE FOODSERVICE BRAND LOYALTY 
Over a third of foodservice consumers are brand loyal
Figure 40: C-store foodservice brand loyalty, January 2018
Figure 41: C-store foodservice brand loyalty, by select demographics, January 2018
Gasless c-store visitors and heavy visitors are most brand loyal
Figure 42: C-store foodservice brand loyalty, by c-store type visitors, January 2018
Figure 43: C-store foodservice brand loyalty, by c-store visitation frequency, January 2018
REASONS FOR C-STORE LOYALTY
Convenience not quality drives loyalty
Figure 44: Reasons for c-store brand loyalty, among brand loyalists, January 2018
C-STORE CONCEPT INTEREST
Bakery and breakfast items garner highest interest
Figure 45: C-store concept interest, January 2018
Attract Millennials with new foodservice concepts
Figure 46: C-store concept interest, by generation, January 2018
Figure 47: C-store concept interest, by gender and age, January 2018
Interactive concepts appeal to brand loyalists
Figure 48: C-store concept interest, by c-store loyalty, January 2018
C-STORES VERSUS QSRS
C-stores excel at snacks and drinks, struggle with healthy options and breakfast
Figure 49: C-stores versus QSRs, January 2018
C-STORE FOODSERVICE ATTITUDES 
C-store perception still struggles despite improvements
Figure 50: C-store foodservice attitudes, any agree, January 2018
Coffee may help build brand loyalty
Figure 51: C-store foodservice attitudes, any agree, by c-store brand loyalty, January 2018
Boomers have lowest perception of c-store food
Figure 52: C-store foodservice attitudes, any agree, by generation, January 2018
C-store attitudes relate to location
Figure 53: C-store foodservice attitudes, any agree, by census region, January 2018
Figure 54: C-store foodservice attitudes, any agree, by area, January 2018
Southern cities may be an area for new store development
Figure 55: Key drivers of agreeing that more c-stores should offer MTO foods, key driver output, January 2018
Improvements can appeal to younger women
Figure 56: C-store foodservice attitudes, any agree, by gender and age, January 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Mintel Menu Insights
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 57: Total US sales and forecast of convenience store foodservice, by segment, at current prices, 2015 and 2017
Figure 58: Total US sales and forecast of convenience store prepared food*, at inflation-adjusted prices, 2012-22
Figure 59: Total US sales and forecast of convenience store hot dispensed beverages, at inflation-adjusted prices, 2012-22
Figure 60: Total US retail sales and forecast of convenience store cold dispensed beverages, at inflation-adjusted prices, 2012-22
Figure 61: Total US retail sales and forecast of convenience store frozen dispensed beverages, at inflation-adjusted prices, 2012-22
APPENDIX – THE CONSUMER 
TURF analysis methodology
Figure 62: TURF analysis – C-store concept interest, January 2018
APPENDIX – KEY DRIVER ANALYSIS
Interpretation of results
Figure 63: Key drivers of agreeing that eating at the store is enjoyable, key driver output, January 2018
Figure 64: Key drivers of agreeing eating at the store is enjoyable – Key driver output, January 2018
Interpretation of results
Figure 65: Key drivers of agreeing more should offer made-to-order foods – Key driver output, January 2018

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.