Company News

Wawa's Revenue Revelation

Food and beverage now account for 50% of chain's revenue

WAWA, Pa. -- Wawa Inc. turned 52 last week, and there’s plenty to celebrate. The convenience-store chain is growing its food presence and adding another Center City location, reports the Philadelphia Inquirer.

Wawa lovin'

As the chain has evolved into a full-service operation that is part store, take-out restaurant, coffeehouse, bakery and gas station, food and beverage now account for more than 50% of Wawa’s revenue, president and CEO Chris Gheysens told the Inquirer.

This figure does not include candy bars at the cash register or peanut butter and bread loaves on its shelves; such items are considered grocery. Food items are the meals prepared in the back kitchen that customers can customize using electronic touch screens.

“We still sell a tremendous amount of traditional convenience products, such as cigarettes, cold beverages and snacks," Gheysens told the newspaper. "But a differential for our brand has been fresh food. In the last decade, we've been dedicated to quality and assortment, like you would find in a fast-casual or even a sit-down restaurant."

Wawa was in the top 10 on three items in the Philadelphia market: its brewed coffee (No. 1), hoagies (No. 1) and breakfast sandwiches (either No. 1 or No. 2), Michael Sherlock, vice president of fresh food and beverage for Wawa, told the Inquirer. The chain is No. 6 nationally for brewed-coffee sales.

And the role food plays at Wawa will only continue to expand. The company is hiring a food and beverage manager and a food and beverage supervisor for each store this year, the Inquirer reports.

Earlier this year, the chain announced plans to hire 5,000 people companywide by June 1. Wawa now employs 26,000 and operates more than 700 convenience stores. 

The Inquirer also reports Wawa is opening a new Center City location with seating at 1900 Market St., Philadelphia, by the end of the year. Wawa opened its first Center City store in September 2015. It was the first Wawa location to offer indoor seating. 

"Center City has responded," Gheysens told the newspaper. "As a result, we are opening another location in the city."

Company spokeswoman Lori Bruce told the Inquirer that Wawa is looking to hire 60 to 70 associates for the 1900 Market St. location, set to open at the end of the year. The store will have two entrances and 25 bar seats. It will be among the largest in the chain at 7,000 square feet—well above the typical 4,500 to 5,000 square feet—with seven registers.

About 435 of the chain's 725 stores are concentrated in the Philadelphia region, which includes the Philadelphia suburbs, the city, South Jersey and Delaware. Most are open 24 hours a day, 365 days a year.

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