The True Profit of Foodservice
Published in CSP Daily News
CHICAGO -- A recent Willard Bishop SuperStudy report found some new advantages of embracing foodservice in convenience stores.
Specifically, the report, is based on an analysis of three different convenience-store retailers operating in geographically dispersed markets across the United States, found:
- Foodservice categories generate just over 26% of total store unit movement and true profit contribution.
- Foodservice is covering its fair share of costs. In fact, foodservice generates the same penny profit ($0.32) per unit sold as in-store merchandise.
- This strong penny profit comes from a significantly lower starting point ($1.32 vs. $3.02 retail price).
Department Performance Per Store
(Merchandise departments vs. foodservice)
|Weekly Dollars||Per Unit||Share of|
|Adjusted gross profits||$8,898||$2,656||$0.83||$0.68||77.0%||23.0%|
|Adjusted gross margin||27.5%||51.6%||NA||NA||NA||NA|
|True profit margins||10.6%||24.0%||NA||NA||NA||NA|
Kit Dietz of Dietz Consulting presented the results of the Willard Bishop SuperStudy during a CSP's recent Driving Impulse Sales meeting in Chicago.