2019 Year-End Report: Top 5 Foodservice Stories
By Brett Dworski on Dec. 17, 2019CHICAGO — Made-to-order foodservice stole the show in convenience stores this year. Whether it was through consolidation among distributors, innovative menu items hitting stores or new initiatives to boost healthy eating, the convenience-store industry made its message loud and clear in 2019: It's in total attack mode to increasingly compete with restaurants.
Here were the top foodservice stories of the year …
1. Plant-based meats arrive
Multiple c-store chains latched onto the plant-based burger trend toward the end of 2019. Rutter's, York,, Pa., introduced the Perfect Burger on its menu in October, while GetGo Cafe & Market, a division of Pittsburgh-based Giant Eagle and Minit Stop, Hawaii, added the Impossible Burger to their menus. The Perfect Burger is made with four kinds of vegetables: sweet potato, butternut squash, beet and carrot. The Impossible Burger is made with 100% plant ingredients, including water, plant proteins, sunflower oil, coconut oil and heme.
Nearly a quarter (23%) of all consumers and 29% of millennials said they would consider ordering plant-based burgers at a foodservice establishment, according to CSP’s sister data firm, Technomic Inc., Chicago.
“Many convenience operators are gun-shy to go plant-based because we’re in an industry that mainly serves meat protein,” Ryan Krebs, director of foodservice for Rutter’s, told CSP Daily News. “They’re convinced it’s not for our consumer base, but we believe now is the perfect time to give customers these options.”
2. 7-Eleven launches idea lab
In March, 7-Eleven Inc., Irving, Texas, debuted its 7-Eleven lab store, a concept store that serves as a launch pad for new ideas for the company. The store, located in Dallas, features Laredo Taco Company and a cafe. Inside the store, consumers can taste signature entrees and sides, made-to-order coffee, juice, aguas frescas and alcohol beverages from an area called The Cooler. The site also uses Scan & Pay Technology, through which customers can make non-age-restricted purchases directly by scanning products with their smartphones.
“The 7-Eleven lab is an experiential testing ground where customers can try and buy our latest innovations in a revolutionary new store format,” a 7-Eleven spokesperson told CSP Daily News. “7-Eleven plans to open other lab stores in geographically dispersed markets across the United States. We will study sales results, shopping trends and customer feedback to help determine the innovations that could launch in other stores around the country.”
3. Dollar General debuts fresh food
In March, Dollar General, a growing competitor to convenience stores, began selling self-distributed fresh and frozen foods. The Goodlettsville, Tenn.-based retailer said the DG Fresh initiative has already launched through a cold-storage facility in Pottsville, Pa., which earlier this year began serving approximately 300 Dollar General stores in the Northeast. The discount retailer said it expects to distribute its own fresh foods to as many as 5,000 stores by the end of its fiscal year in January and chainwide in three to four years, CEO Todd Vasos said in a conference call.
Dollar General has used fresh, frozen and refrigerated foods to help build store traffic and sales as it has expanded to a nationwide discounter. These items, until then, had been supplied by a variety of regional distributors, which tended to limit the company’s ability to differentiate in those departments, Vasos said.
“It will allow us to control our own destiny in fresh foods,” he said. “Most notably, by distributing perishables ourselves, we can carry more of the fresh products and brands our customers want. These include better-for-you items and national brands.”
4. PFG acquires Reinhart
In July, Performance Food Group (PFG) acquired fellow distributor Reinhart Foodservice in a $2 billion deal that would make PFG one of the largest national distributors in the United States. The deal combined the country’s third- and fifth-largest foodservice distributors. Richmond, Va.-based PFG is No. 3 behind Sysco and U.S. Foods, according to Technomic data, while Reinhart, Rosemont, Ill., was No. 5, and the second-largest privately held distributor in the country. Reinhart generates more than $6 billion in net sales, which would give PFG about $30 billion in net sales, the company said.
This marked the second acquisition in three months for PFG. Earlier in March, the company acquired Eby-Brown Co. LLC, a U.S. distributor of prepackaged candy, snacks, specialty beverages and tobacco products in the convenience-store industry.
5. NACS wins PHA honor
NACS was named Partner of the Year by the Partnership for Healthier America (PHA) for its commitment to fighting obesity in the convenience channel. PHA presented the award April 2 during its 2019 Summit: Accelerating a Healthier Future in Chicago.
The group presents the award annually to a PHA partner that goes above and beyond in its commitment to fighting obesity. This includes focusing on populations disproportionately affected by obesity; doing well while doing good; using an innovative approach to address childhood obesity and other chronic diseases; or creating a ripple effect within its respective industry.
NACS began its partnership with PHA in 2017. Its commitment to healthy eating includes nutrition advice, catering and healthy-eating marketing.