Tapping into the foodservice opportunity in c-stores
The foodservice segment is experiencing strong growth in the c-store arena, and has the potential to "act as a catalyst in elevating the channel’s reputation around health and wellness as well as value while allowing consumers to fuel up without slowing down", says Kelley Vacca, principal, client insights, at IRI.
In 2012, Mintel estimated the U.S. convenience store foodservice market to be worth about $25.5bn, with a forecast for 28% growth by 2017, notes Vacca.
But what would shoppers like to see in c-stores on the foodservice front?
Above all, better quality, says Vacca, which "may include customizable and freshly made options, or selections provided by local and/or well-known restaurants".
In fact, 31% of consumers would like to see more fast food sandwich restaurant concepts, while the same number would welcome broader prevalence of coffeehouse/donut shop options.
C-store operators also have an opportunity to capitalize on trends around health and wellness as a means of growing their foodservice offerings, she adds. "Several sizable convenience store banners, including 7-Eleven, Tedeschi and Wawa are already doing so with varied strategies.
"7-Eleven, for instance, seeks to move fresh foods from 10% to 20% of sales by 2015, and is introducing more fresh food options in its stores. Tedeschi recently hired a director of fresh foods and is building out fresh food options with more gluten free, organics and whole grains, among other attributes.
"And Wawa is helping consumers understand what they are ordering with an online “Meal Builder” that will calculate the nutritional profile for all of their foodservice items."
