Why Consumers Balk at C-Store Delivery
By Aimee Harvey on Mar. 29, 2017CHICAGO -- Third-party delivery services are expanding their reach, and foodservice operators across channels are getting in on the action. Ordering food to go via delivery systems is becoming more accessible in the convenience-store segment, with major players such as 7-Eleven experimenting with drone deliveries and Sheetz rolling out delivery services in select markets.
But despite all the ink delivery is getting, there are still barriers to entry for c-stores looking to get in the game. There’s the consumer perception to consider: Does a delivery program even answer a distinct need for the c-store consumer? Will implementing delivery align with how consumers fundamentally interact with c-stores?
Technomic’s Q1 2017 C-Store MarketBrief dug deeper to understand how often c-store consumers use delivery for foodservice, and to gauge the sentiment behind their perception.
Overall, 27% of the 500 consumers surveyed said they order delivery from c-stores at least once a month. Nearly one-tenth (8%) said they order less often than once a month. But the lion’s share of these consumers, 65%, said they never order via delivery from a c-store.
Technomic asked: Why not? Here are the findings ...
Meet me halfway
Nearly half of consumers (47%) who have never used a c-store's delivery service said they visit convenience stores only when they're out, rather than planning for a convenience trip; that was the top answer given by this group of respondents. These consumers simply don't see the need for a food delivery service if they're already out and about.
Not on the radar
About a third of consumers (30%) said they don't consider c-stores when they're thinking about food delivery. This could mean they hesitate about whether or not c-stores can execute on this foodservice format, or it could simply point to consumers being unaware that this type of service is now an option at some c-store locations.
Educate me
Twenty-two percent of consumers said they don't know how or where to order delivery from a convenience store. The word has either not gotten out effectively to consumers about c-stores and delivery, or c-stores in their area just don't offer the service, according to Technomic.
Too expensive
About 21% of the consumers surveyed said ordering takeout from a c-store is too expensive. The big draw for these customers is likely a low price point, and any additional charge for their delivery order would weaken the overall value equation for them.
Familiarity issue
The restaurant industry pioneered the whole idea of hot food delivered fast decades ago. A fifth of consumers (19%) said that when it comes to food delivery, they prefer to stick with what they know.