Regional SOI Data 2016: Northeast and Midwest

Northeast dominates foodservice sales, but Midwest is taking a bigger bite

By 
Kristina Peters, Associate Editor, CSP

One out of every five convenience stores is located in the Northeast. And when you consider the food programs at some of the top players in this region (e.g., Wawa, Sheetz, QuickChek), it’s no surprise that the Northeast sweeps the nation in terms of foodservice sales.

That said, the Midwest, where 15% of c-stores are located, saw the most year-over-year growth in foodservice  despite reaping far less in sales.

“Two years ago, we were talking about the lift in foodservice in terms of sales was being driven by … dispensed beverages. Now, we’ve changed that tune,” said Leroy Kelsey, director of industry analytics for NACS. “With more [money] in their pockets, it looks like shoppers are going after food.”

Read on to learn more about foodservice in the Northeast and Midwest, and find insights on manager turnover, fuel consumption and more.

NORTHEAST

Foodservice Sales

At more than $62,000 per store per month, foodservice sales in the Northeast are almost double the national average. “Foodservice as an area is a high-margin opportunity,” said Jim Smith, senior vice president and CFO of QuickChek Corp. “Everybody is stepping up their game.” And that includes QuickChek. The Whitehouse Station, N.J.-based chain is expanding its menu and creating more daytime opportunities for customers to buy prepared foods, Smith said. QuickChek also has introduced handcrafted beverages, frozen lattes and smoothies.

Prepared foods National PCYA* Northeast Northeast Index PCYA*
Prepared food $29,377 8.5% $58,093 198 12.7%
Commissary $3,964 13.9% $5,214 132 16.5%
Hot dispensed $6,121 3.5% $15,238 249 3.2%
Cold dispensed $4,794 11.6% $6,262 131 16.4%
Frozen dispensed $683 (2.6%) $488 71 13.3%
Total foodservice $32,890 9.6% $62,143 189 12.0%

Source: CSX LLC | * Percent change from a year ago


Top 10 Merchandise Categories in Gross-Profit Dollars

Packaged beverages saw the most growth (28.1%) of the top 10 categories in the Northeast. “We need to call out all the work that’s gone into special lighting on the cold vault [as well as] directional signs. What I’ve seen in the last 10 years across the industry is a lot more focus on that space,” said Jay Ard, vice president of national sales for The Coca-Cola Co.’s convenience channel.

Per store per month National PCYA* Northeast Northeast index PCYA*
Cigarettes $6,740 0.5% $9,706 134 (0.7%)
Packaged beverages $9,651 8.4% $13,230 137 28.1%
Salty snacks $2,799 9.9% $6,324 226 9.4%
Beer $2,900 3.5% $3,247 112 11.7%
Alternative snacks $1,581 12.1% $5,105 323 3.1%
OTP $2,124 4.3% $2,312 109 13.1%
Sweet snacks $1,087 8.1% $1,953 180 3.6%
Candy $2,169 2.4% $2,559 118 8.6%
Ice cream $1,019 5.8% $2,333 229 (0.4%)
Milk $921 10.2% $1,784 194 11.5%
Total merchandise $33,682 6.3% $44,190 131 6.5%

Source: CSX LLC | * Percent change from a year ago


Continued: Midwest

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