Convenience Stores Emerge as Viable Dining Destinations

The convenience store industry is undergoing a remarkable transformation, as more consumers are now considering these establishments as viable options for made-to-order food, challenging the dominance of traditional fast-food restaurants. A recent report from Intouch Insight, a data analysis firm, sheds light on this evolving landscape, providing valuable insights for convenience store operators and the broader food service industry.

Convenience Stores Closing the Gap on Restaurants

Shifting Consumer Preferences

The data reveals a significant shift in consumer behavior, with 56% of consumers now viewing convenience stores as viable alternatives to fast-food restaurants for their made-to-order food needs. This trend is particularly noteworthy, as it suggests that convenience stores are making strides in capturing a larger share of the busy food service market. While restaurants still maintain an advantage, the report indicates that convenience store operators can learn from their restaurant counterparts to further enhance their offerings and appeal to a wider customer base.

The Impact of the Pandemic

The report also highlights the lasting impact of the COVID-19 pandemic on consumer habits, with 66% of American adults stating that they are more likely to order food now compared to the pre-pandemic era. This shift in consumer preferences presents both challenges and opportunities for convenience stores, as they navigate the evolving landscape and adapt their strategies to cater to the changing needs and expectations of their customers.

Delivery Audits: Insights and Comparisons

To gain a deeper understanding of the competitive landscape, the study conducted a series of delivery audits, evaluating the performance of both convenience stores and restaurants across various metrics. Over a three-month period, 600 deliveries were performed, with 100 shops from convenience stores and 100 shops from quick-serve or fast-casual restaurants being assessed through the lens of three major delivery services: Uber Eats, DoorDash, and Grubhub.

Order Accuracy: Convenience Stores vs. Restaurants

The findings reveal some interesting insights regarding order accuracy. For convenience store orders, in addition to a made-to-order food item, all orders included a pre-packaged item, such as a snack or beverage, which the drivers were required to pick up. The results indicate that 53% of the inaccuracies with convenience store orders were related to the made-to-order items, highlighting the need for improved operational efficiency and quality control within these establishments.

Time of Day and Customer Satisfaction

When examining overall satisfaction by time of day, the study uncovered notable differences between restaurants and convenience stores. Convenience stores achieved their highest satisfaction during the dinner hours (4:01 p.m. to 8:00 p.m.) at 87%, with breakfast (5:00 a.m. to 10:29 a.m.) close behind at 85%. In contrast, restaurants saw their highest overall satisfaction during the breakfast daypart (5:00 a.m. to 10:29 a.m.) at 94%, followed closely by dinner (4:01 p.m. to 8:00 p.m.) at 93%. This data suggests that convenience stores may need to focus on improving their performance during the breakfast and lunch hours to better compete with their restaurant counterparts.

Clarity and Customer Satisfaction

Another key insight from the study was that the lack of clarity on whether meal items were pre-packed or made-to-order severely impacted customer satisfaction for convenience stores. This finding underscores the importance of clear communication and transparency in the customer experience, as consumers expect a seamless and predictable ordering process, regardless of the type of establishment they choose.

Delivery Fees: Convenience Stores vs. Restaurants

The report also sheds light on the differences in delivery fees between convenience stores and restaurants. The data indicates that third-party app delivery fees from convenience stores are generally more expensive than those charged by restaurants. The average total fees for restaurants range from $4.08 for DoorDash to $6.25 for Uber Eats and $5.74 for Grubhub, while the convenience store averages are higher, as shown in the chart provided in the original article.In conclusion, the 2024 annual Path to Third-Party Delivery Excellence report from Intouch Insight highlights the evolving landscape of the food service industry, where convenience stores are emerging as viable options for made-to-order food, challenging the dominance of traditional fast-food restaurants. As consumers continue to shift their preferences and behaviors, convenience store operators must adapt their strategies, learn from their restaurant counterparts, and focus on improving operational efficiency, order accuracy, and customer experience to capture a larger share of this dynamic market.