From food-trucks and farmer’s markets to online ordering and delivery, consumers’ options for buying food away-from-home continue to expand.
In 2016, foodservice generated more than half of food industry sales, exceeding grocery by 1.2%, according to data from Acosta, Jacksonville, and Technomic, Chicago. The National Restaurant Association’s outlook for U.S. foodservice is robust, outpacing inflation with more than 5% expected gains as consumers face lower food and fuel costs. The need for convenient food options has also contributed to this growth—consumers look for easy-to-eat, easy-to-prepare foods to fit their lifestyles.
But food away-from-home is about more than convenience. Food value is also defined by freshness and fun. Consumers are demanding less processed foods and are interested in food adventure through a variety of tastes and formats.
A recent report from Mintel shows 79% of sandwich-buying consumers are willing to pay more for premium sandwiches. And seven in 10 say they want high-quality sandwiches made with all-natural ingredients. An equal number are interested in switching up from the traditional sandwich served cold to a toasted option. Hot food offerings are an integral part of convenience store foodservice with nearly nine in 10 consumers (88%), surveyed in 2016 by Technomic, stating they buy hot food items at c-stores, and purchasing is up, with 44% claiming to buy hot foods more often than last year.
Many c-store operators have recognized these trends and have developed programs to meet shopper needs. As a result, frequency of visits has broadened, with more than three out of four foodservice consumers (77%) now saying they visit c-stores at least once a week, according to a Technomic survey. And 30% say they’ve increased their foodservice spending at c-stores. The average c-store spend increased more than 3.4% in 2016, but having food as part of the transaction increases value. A VideoMining study demonstrated food-to-go boosts the average transaction in convenience stores by more than 14%. Sales increase by more than 19% for evening/late night baskets.
A successful fresh food-to-go program provides shoppers with an exciting menu that meets their current needs and entices repeat purchasing. Key components of a strong food-to-go program include the following:
- An assortment covering key product lines, such as sandwiches, salads, snacks and entrees, and all dayparts from breakfast through late-night snacking.
- Branding to establish credibility and build trust.
- A range of tastes including familiar favorites and new culinary trends, particularly for larger segments such as sandwiches and snacks.
- Packaging showcasing the product and ensuring food safety—at prices designed to encourage trial and communicate good quality.
Using this best-practice checklist can help c-store operators become a source of great food for their shoppers and capture the growth generated by fresh food-to-go.
This post is sponsored by Greencore USA LLC