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 
Dollar sales$32,412$5,147$3.02$1.3286.3%13.7%
Adjusted gross profits$8,898$2,656$0.83$0.6877.0%23.0%
Activity-based costs$5,456$1,421$0.51$0.3679.3%20.7%
True profit$3,442$1,236$0.32$0.3273.6%26.4%
Unit movement10,7433,896NANA73.4%17.0%
Adjusted gross margin27.5%51.6%NANANANA
True profit margins10.6%24.0%NANANANA

Kit Dietz of Dietz Consulting presented the results of the Willard Bishop SuperStudy during a CSP's recent Driving Impulse Sales meeting in Chicago.

Willard Bishop SuperStudy
Related Topics: 
hot & cold food