Sorry convenience stores: We have some bad news. Researchers tell us your customers, in particular, still want to see those low prices for sandwiches, and at the same time, they want everything to taste fresher and better—just like at a QSR or fast-casual restaurant.
“Even though a lot of c-stores provide high-quality, made-to-order sandwiches, there is still that same expectation for c-stores to have price points lower than most restaurants,” said Kelly Weikel, director of consumer insights for Technomic.
Naturally, this poses an extra challenge for convenience retailers who might have considered raising prices (even for just a moment, we won’t tell) for more premium products or buying “on the cheap” for lower cost items in an attempt to boost profits as margins continue to shrink.
The solution remains finding that middle ground. The good news: There are a few key strategies c-stores can employ to do just that.
1. Raise Prices A Little, But Not Too Much
According to Technomic, it’s safe to charge slightly more for sandwiches during dinner and other evening eating occasions, with one caveat. “Those sandwiches have to be warmed or heartier or slightly larger, otherwise customers will see it as the same sandwich they get at lunch and would rather pay the lunch price,” Weikel said.
Still, lunch prices can run higher than breakfast and snack items, and that’s okay. “Most consumers expect to spend less at breakfast and during snacking occasions, but they also expect a smaller portion,” Weikel said. “The price threshold for snacking is the lowest, since that’s seen as something extra.”
2. Always Consider That Combo
You’ve heard this before: Bundling items and offering combo deals offers a strategic way to safely raise some prices because they offer a perception of value. Bundles also encourage extra sales that might not have happened without the deal.
Weikel said that many combos can run from as low as $2.99 for a breakfast sandwich and coffee to up to $4 or more for a quality sandwich and drink. Beverages are cheaper to produce, so by offering a 20-ounce coffee or extra-large soda with the same size sandwich, c-stores can build in that value-add without cutting into foodservice profits.
3. Don’t Worry About Dollar Menus
Luckily, consumers don’t expect c-stores to offer dollar menus, nor are they even prevalent or popular among c-stores, according to Weikel.
Rather, c-stores can get away with running special prices more on a promotional basis, and most of the lowest-priced deals will hover around the $2 price mark.
Maverik convenience stores in Utah recently offered a Hottie Pastrami Sandwich for $2. This past fall, ampm offered special pricing on certain menu items, including a two-for-$3 deal on rib sandwiches, Weikel said.
Just this year, Land Mark Products, as part of its Day N’ Night Bites line, came out with two new value breakfast sandwiches: A seasoned pork sausage and buttermilk biscuit and a breaded chicken biscuit sandwich, each priced under the $2 mark at $1.59 and served all day.
4. Quality Always Beats Quantity
Consumers want better, fresher food. We know that. But it helps to really hone in on that reality every day.
“C-stores can offer bottom-basement prices on a sandwich, but if it doesn’t look good or taste good, it won’t matter. Customers won’t buy it,” Weikel said. “To drive foodservice traffic, they need to maintain a certain level of quality regardless of price.”
This post is sponsored by Land Mark Products