The C-Store Foodservice Consumer: 6 Key Trends
By Aimee Harvey on Oct. 20, 2016ATLANTA -- Shifting demographics, the proliferation of technology, urbanization, the evolution of a sustainable economy--all of these national and global developments are converging at once, affecting convenience-store consumer needs, preferences and behaviors when it comes to foodservice.
In a first-day education session at 2016 NACS Show, Clint McKinney, director of Category Advisory Convenience Retail for Coca-Cola, led a discussion entitled “Consumer Trends in Foodservice,” during which he detailed the impact of today’s consumer developments and targeted six key trends in meeting their emerging needs.
1. Value Plus
This trend is all about leveraging the menu to deliver enhanced value beyond just price. “Value doesn’t mean cheap,” advised McKinney. Rather, c-stores should go the bundled meal route, by highlighting new offerings that combine items to get more for the money. Other value initiatives call for menu engineering and “unlocking higher margins through tiers, LTOs and beverages.”
2. Evolution of Healthy
“Healthy means something different to everybody,” said McKinney. Specifically, consumers’ health definitions are now centered on simpler ingredients, transparency and striking a balance between healthy and indulgent foods. This suggests that communicating a more holistic idea about health--one that emphasizes “quality of life”--may be most effective, especially in reaching millennials.
3. Flexibility & Discovery
Consumers are on the hunt for barrier-free dining, more control and new flavor experiences. As they expand their convenience-store visitation to include more snacking occasions, unique flavors, variety and customization continues to be crucial. Nearly three out of four consumers (72%) now expects foodservice to allow for customization, while a quarter of consumers (24%) say that new and interesting foods drive their visitation and purchase decisions. “Think about LTOs and food mashups to speak to flexibility and discovery,” said McKinney.
4. Hyper Convenience
On-demand delivery is up; there has been a 26% increase in non-pizza delivery occasions since 2013. New players are expanding the reach and convenience of delivery, especially during dinner hours.
“You’ve done a great job in capturing snack and breakfast occasions,” said McKinney, “but how do you become that dinner solution?”
To keep pace, convenience stores have to think in terms of “off-premise evolution,” by enhancing the utility of takeout and drive-thru services.
5. Digitization
As technology continues to transform operations and the “end-to-end guest experience,” one of the foremost trends is about leveraging social media to build both visits and brand awareness. Retailers should make the most of new product rollouts by “making it shareworthy.” Get creative with LTOs by marketing online contests that allow customers to name new items, for example.
“Make it fun and use their social media networks to help grow your brand, said McKinney.
This out-of-outlet engagement tactic appeals to the 34% of consumers who gravitate to social media when deciding where to dine out.
6. Brand Authenticity
Today’s foodservice consumers connect to brands that convey authenticity in their values and identity. McKinney advised convenience-store brands to be genuine in their positioning and story. At the heart of this is to be a “business with a purpose,” emphasizing social responsibility, from the environment to the local community.