Convenience stores that sell food and beverages continue to steal market share from limited-service restaurant chains, new research finds.
While quick-service chains have expanded their operating hours and menus to operate across all dayparts and capture consumers trading down from casual and fast-casual competitors, they still face threats from convenience stores. Chicago-based market research firm Technomic Inc. found in its “Consumer C-Store Brand Metrics Shopper Insights Report” that a significant number of quick-service consumers are starting to view convenience stores in the same category as limited-service eateries for prepared foods and beverages.
Technomic’s study, which surveyed more than 3,700 consumers, found that 27 percent of respondents said that if they had purchased a meal from a convenience store somewhere else, it would have been from a quick-service restaurant. The same number of consumers said they would have purchased the meal from another convenience store.
Tim Powell, a director at Technomic, said 82 percent of survey respondents said they buy prepared foods or beverages from convenience stores once a month, and 52 percent do so once a week.
“Convenience stores are increasingly falling into the same consideration set as fast-food restaurants,” Powell said. “This really speaks to the enhanced foodservice offerings in convenience stores, as well as evolving consumer behaviors.”
Twenty-seven percent of consumers said they purchased an afternoon snack on their most recent trip to a convenience store, Technomic found, while 19 percent bought lunch on their last convenience store trip and 23 percent ordered just a beverage.
Impulse buying was a key factor in convenience-store sales, the data found, as 31 percent of respondents purchased a prepared food item at a convenience store only after seeing it on the premises and getting a craving for it.
Food and beverage sales growth at convenience stores has prompted several restaurant companies to expand their unit counts with locations in convenience stores or gas stations.
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Impulse buying was a key
Impulse buying was a key factor in convenience-store sales. - I agree with this. I usually don't buy on convenience stores because their products are more expensive than food or grocery store but there are times when you feel like eating something on wee hours and as they name their selves, they're the most convenient to come, stop by and eat.
I wanted to add that
I wanted to add that foodservice such asd prepared foods, dispensed beverages is the single most important growth area for c-store operators today.Kari Young
This is a great to hear that
This is a great to hear that Convenience stores is growing day by day but other hotels and restaurants are loosing their sells because of C-Stores. I personally feels that if other restaurants wants to be in competition with C-Store then they have to provide best of best services and quality of food to customers.
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That is so true that
That is so true that convenience stores are stealing away the shares from the restaurant holders. Now-a-days these store are earning quite a lot more than the restaurant holders in terms of market shares as their operating hours are more flexible than the restaurant holders.binder carousels
That is so true that
That is so true that convenience stores are stealing away the shares from the restaurant holders. Now-a-days these store are earning quite a lot more than the restaurant holders in terms of market shares as their operating hours are
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Convenience stores do steal a
Convenience stores do steal a lot of business from the restaurants and bigger Hotels. The food here is cheap and also the service is quick enough.
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C-Stores
I believe the verbiage that C-Stores are "stealing" business is incorrect. In actuality C-stores are earning the business share they deserve by upgrading their offer, working with better suppliers, brokers and manufacturers, attracting restaurant talent and offering a wide variety of food options that a QSR can't touch. Groceraunts and C-store eateries are viable options for the time and income starved consumer since the food is on a par with many QSRs. Also, since the overhead is lower, speed the focus and variety is king - a "dashboard diner" can fill all his/her food and beverage needs rather quickly. So I would submit to you that C-stores are indeed earning the business, not absconding with it.
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Franchises only work in these setups. Company I worked for in the past tried a proprietary restaurant brand within a C-Store or Travel Plaza. All three locations we tried flopped. Despite good foot traffic,customers were only interested in hot dogs on the roller and candy bars.
Technomic is dead right
The grocerant niche filled with ready-2-eat and heat-N-eat fresh and pepared food is driving top line growth in both the C-store and grocery sector.
If success leaves clues, C-stores have picked many up and are now rolling out with success new food items that are driving same store year over year top line growth and new unit growth.