As we’ve discussed before, convenience stores have their sites trained on the lucrative quick service prepared foods market. Through a languishing economic recovery, consumers are looking for quick and convenient meal options at affordable prices without sacrificing quality. Many c-store operators believe prepared foods to be key to customer loyalty and higher profitability. For example, Steven DeSutter, president and CEO of Stripes, is recently quoted in Convenience Store News as saying that prepared foods is their “greatest loyalty program.”

In Asia, where convenience stores are even more popular than in North America, c-stores are aggressively expanding their fresh food offerings as well. For example, 7-Eleven (over 4,700 locations) and FamilyMart (over 2,300 locations), the two largest c-store chains in Taiwan, are both adding seating areas to accommodate customers coming in for a fresh snack.

Convenience stores have posited a number of value generators provided by fresh foods, including:

• Generating incremental visits to buy prepared foods
• Attaching other items from the convenience store to the same basket, thus increasing basket size and customer share of wallet
• Increasing customer satisfaction and loyalty
• Driving total store sales and increasing overall profitability

QSR’s responses to new C-Store offerings has been mixed: looking to seize upon a growth opportunity, Dunkin Donuts teamed up with Wilco/Hess to set up franchised locations inside gas stations. Meanwhile NPD reports that grab-n-go foods from C-stores are eroding QSR marketshare among key groups – Wawa hinted that testing has guided the growing C-Store chain in revamping it’s deli counter, from which it’s seen great success and growth.

Are you concerned about losing sales to C-Stores? E-mail us and let us know: info@predictivetechnologies.com.