Convenience-store operators want to be considered by hungry consumers, so many are menuing, merchandising, operating, hiring, training and increasingly thinking like restaurateurs. They’re also looking to capture more female consumers by pushing out better-for-you, restaurant-quality products, and they’re adopting a decidedly “restaurant” positioning with décor and technology features—all to help them be seen, essentially, as restaurants by consumers.
By the end of this year, convenience operators with 20 or more locations are going to be treated as restaurants by the U.S Food & Drug Administration (FDA), thanks to the new calorie-count requirements that go into effect in December (CSP—Feb. ’15, p. 57). Just like the restaurants they strive to emulate, compete with and steal occasions from, foodservice-focused c-store operators will have to post calorie counts for prepared food and beverage items listed on their menus and menu boards.
Some convenience operators are bemoaning the implications of compliance, pointing to the cost of analyzing food and beverage items, dealing with customizable items and updating or possibly even having to replace menu boards. But such regulation comes as part of being a foodservice provider in an increasingly health-conscious foodservice marketplace. Be careful what you wish for, right?
Savvier operators are quickly getting past the implementation challenges and asking the bigger question about the potential effects on their foodservice business and wondering whether consumers really care about calories. More important, they’re considering if these new regulations might help level the playing field with restaurants, at least in the consumer’s mind.
A Viable Argument
A recent consumer survey conducted by Technomic yields some interesting insights. The portion of consumers who consider calorie information important in their eating decision is about the same—one-third—whether they’re sourcing items at quick-service, fast-casual and casual-dining restaurants or convenience-store outlets. This indicates these consumers approach nutrition similarly across the segments, suggesting parity.
However, slightly more consumers said such information was likely to affect their decision to visit a c-store than those who said the same of quick-service, fast-casual or casual-dining restaurants, which points to an assumption that c-store foodservice might be higher in calories. Once inside the foodservice location, however, consumers are likely to react to the information in c-stores the same way they do in quick-service restaurants: One-third indicates calorie count is likely to influence their order, and one-fifth say it will have no effect on their choices.
So a portion of consumers approaches prepared-food nutrition similarly in both restaurants and c-stores. That, coupled with the fact that the government regulations apply equally to restaurants and c-stores, may indeed reinforce c-stores’ position as viable foodservice providers. The requirement can help demonstrate commitment to better-for-you options, or prompt operators to reformulate some items or introduce healthier ones. While our research consistently shows consumers see room for improvement on this front in the convenience channel, in this most recent survey, slightly more consumers (49%) agree that restaurants should offer healthier items compared to those who said c-stores should do so (43%).
Pondering the Numbers
The availability of calorie information may also help attract more women into convenience stores. Women are more likely than men to indicate calorie counts would influence whether they would visit a convenience store (30% vs. 21%) and also say the information would affect what they order (40% vs. 27%). This reinforces the importance of health and nutrition to female consumers and the opportunity to showcase healthful offerings, with nutrition information to back up the better-for-you positioning.
Just what will consumers do when faced with the cold, hard numbers associated with prepared beverages and food items? For consumers who anticipate this knowledge affecting their behaviors, the majority expects to move to healthier options (61%); just less than half will visit locations with healthier selections (45%), while two-fifths (40%) will order smaller portions.
However, cravings may hold sway over calories. Nearly half of consumers polled (45%) said they’ll still order their favorite items even if they’re higher in calories than they’d thought, a sentiment agreed on by nearly half of women (44%) and younger consumers (48% of Gen Z and 49% of millennials), supposedly the most health-conscious consumers of all.
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