ALEXANDRIA, Va. -- Convenience-store retailers are bullish on foodservice, according to a survey of c-store operators released by NACS. Three in five c-store retailers (60%) report that in-store foodservice sales through September 2017 were higher than the same period in 2016.
Three in four retailers (75%) also say they are optimistic about how their business will perform leading into the fourth quarter of the year. They cited several key factors, from recent gas-price declines to improved consumer confidence, behind the strong sales and their optimistic outlook.
Columbia City, Ind.-based Pride C-Stores Inc. indicated that it will be placing a greater emphasis on prepared foods. Kwik Trip, La Crosse, Wis., outlined its plans to continue expanding its hot-foods program. And Folsom, Calif.-based Cameron Park Petroleum pointed to strong sales growth of its fresh sandwich program.
A robust foodservice program is just part of the overall reimaging program at c-stores such as Landhope Farms Corp., Kennett Square, Pa., which is combining a focus on foodservice with a remodeling initiative. Stores have provided more fueling locations for customers, improved aesthetics with enhanced lighting both inside and outside the store and expanded its foodservice program, which has been well-received by customers, said Dennis McCartney, the company’s director of operations.
Greater consumer confidence has also helped grow store sales, according to the retailers NACS surveyed. Both the economy and consumer confidence were cited as important factors growing sales at Gate Petroleum Co., Jacksonville, Fla., and Gore’s 66, Tuttle, Okla.
In fact, the survey found that most convenience-store retailers are equally optimistic about the overall economy. More than three in four (76%) said they are optimistic about the economy in the fourth quarter—a notable increase over 2016, when only 53% of retailers were optimistic about the economy. Additionally, 73% of retailers say they are optimistic about the convenience-store industry’s prospects leading into 2018.
“We are becoming well known for awesome food, clean facilities and great customer service,” said Don Burd of Robins, Iowa-based Otter Creek Country Stores Inc., summing up both his company’s and the industry’s prospects.
Despite the overall optimism, retailers did express some concerns, citing high insurance costs, a shrinking labor pool and increased competition from retail disruptors such as Amazon, said Michael Lanman with Lanman Oil Co., Charleston, Ill.
The quarterly NACS Retailer Sentiment Survey tracks retailer sentiment related to their businesses, the industry and the economy. A total of 90 member companies, representing a cumulative 1,778 stores, participated in the October 2017 survey. NACS has 2,100 retailer and 1,750 supplier members from more than 50 countries.
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