Convenience Stores Redefine the Grab-and-Go Experience

Convenience stores (C-Stores) have undergone a remarkable transformation, shedding their reputation as mere pit stops for late-night snacks and beverages. Today, these retail hubs are emerging as formidable players in the foodservice industry, offering a diverse array of fresh, affordable, and irresistible menu options that are captivating consumers in record numbers.

Revolutionizing the Convenience Store Dining Experience

The Rise of C-Store Foodservice

The convenience store industry has experienced a remarkable shift in recent years, with foodservice sales now accounting for a significant portion of in-store revenue. In 2023, foodservice sales accounted for 27% of the industry's in-store sales, up 1.3% from the previous year, amounting to an estimated $88 billion, according to data from the National Association of Convenience Stores (NACS). Moreover, when factoring in margins, foodservice accounted for an impressive 37.3% of total store profits, underscoring the industry's newfound culinary prowess.This trend is further reinforced by consumer behavior, with 93% of consumers reporting that they have tried a made-to-order food item from a C-Store, up from 76% in 2022, according to a Convenience Store Trends Report. This surge in demand for fresh, high-quality offerings has prompted C-Stores to rethink their approach to foodservice, leading to a culinary revolution within the industry.

The Casey's Pizza Phenomenon

One prime example of a C-Store chain that has capitalized on the growing demand for quality foodservice is Casey's. Known for its delectable pizza offerings, Casey's has become a household name, particularly in the Midwest, with nearly 2,500 locations across 16 states. The chain's success can be attributed to its focus on affordability, taste, and accessibility.Casey's large cheese pizza, priced at $13.99, is significantly more affordable than the nationwide average of $18.33, according to a 2024 study from Slice. This combination of quality and value has resonated with consumers, leading to Casey's becoming the fifth-largest pizza chain in the country.But Casey's is more than just pizza. The chain has expanded its hot-food offerings to include a variety of items, such as wings, wraps, and burgers, catering to the grab-and-go and delivery-focused consumer segments. During the past two fiscal years, sales of prepared foods at Casey's have increased by 14%, further solidifying the chain's position as a culinary destination.

Fried Chicken and Beyond at Kwik Trip

The foodservice revolution in C-Stores is not limited to large chains like Casey's. Smaller outlets, such as Kwik Trip, the 11th-largest convenience store chain with 873 stores in Iowa, Minnesota, and Wisconsin, are also thriving in the culinary arena.Kwik Trip has strategically placed its food and beverage centers at the front of its stores, making it easy for customers to grab a sausage egg croissant for breakfast or indulge in broccoli cheese soup or fried chicken later in the day. The chain's willingness to experiment with new offerings, such as the addition of pepper jack cheese to four new sandwiches, has resonated with customers, contributing to its impressive $1.2 billion in food sales in the fiscal year that ended in 2023.Like Casey's, Kwik Trip is also expanding its footprint, investing $151 million to expand operations in its Wisconsin stores, further solidifying its position as a culinary destination within the convenience store industry.

The 7-Eleven Delivery Ecosystem

The convenience store industry's foodservice transformation is not limited to regional players. Even the largest C-Store chain, 7-Eleven, has recognized the importance of delivering a seamless dining experience to its customers.7-Eleven has created its own delivery ecosystem through its 7NOW app, allowing customers in 45 major cities to order a variety of hot-food items, from mini-tacos to nachos, and have them delivered within 30 minutes, 24/7. This innovative approach to fulfillment has positioned 7-Eleven as a formidable competitor in the convenience store foodservice landscape, with the company stating that one of its goals is to drive fresh food offerings.

Leveraging Technology and Efficiency

The convenience store industry's success in the foodservice arena can also be attributed to its savvy deployment of technology and focus on operational efficiency. C-Stores, often being relatively small in size, have been able to keep labor costs down by leveraging self-service kiosks and automation for tasks like sandwich ordering.This streamlined approach to operations, combined with the industry's inherent advantages in terms of accessibility and convenience, has allowed C-Stores to offer a compelling value proposition to consumers. By delivering on service, price, and loyalty, these retail hubs have emerged as formidable competitors in the broader foodservice landscape.

The Battle for Taste and Quality

While C-Stores have made significant strides in the foodservice arena, the battle for consumer loyalty is far from over. According to Anne-Marie Roerink, a principal at 210 Analytics, a market-research firm, the key to continued success lies in the ability to deliver on taste and quality."If you try something and it doesn't taste good, consumers aren't going to try it again," Roerink said. This underscores the importance of C-Stores maintaining a relentless focus on culinary excellence, ensuring that their offerings not only meet the demands of convenience and affordability but also satisfy the palates of discerning consumers.As the convenience store industry continues to redefine the grab-and-go experience, the battle for taste and quality will be the ultimate differentiator, separating the true culinary innovators from the also-rans. With a steadfast commitment to delivering exceptional dining experiences, C-Stores are poised to solidify their position as a prime competitor in the broader foodservice landscape.