Foodservice Traffic Growth
Convenience stores have been the best performing segment over the past three years, increasing traffic each year, according to The NPD Group.
| Segment | 2011 | 2012 | 2013 |
| C-stores | 3% | 2% | 1% |
| QSRs | 1% | 1% | 0% |
| Food/drug | 0% | -1% | 0% |
Source: The NPD Group/CREST
Distribution of Day-Part Traffic: C-Stores vs. QSRs vs. Retail
Year ending December 2013
QSR and food/drug segments won this past year with the morning meal, while c-stores performed well at lunch, according to NPD. Snacking was strong for both QSR and c-stores.
| Day-part | Share of traffic | PCYA |
| C-stores | ||
| Morning meal | 33% | -1% |
| Lunch | 19% | 5% |
| Supper | 6% | -2% |
| P.M. snack | 42% | 3% |
| QSRs | ||
| Morning meal | 22% | 4% |
| Lunch | 36% | -1% |
| Supper | 29% | -1% |
| P.M. snack | 13% | 1% |
| Retail | ||
| Morning meal | 19% | 11% |
| Lunch | 29% | -3% |
| Supper | 22% | -3% |
| P.M. snack | 30% | -1% |
Source: The NPD Group/CREST
Pizza and Chicken Menu Importance
Year ending December 2013
When comparing c-stores to QSR and food/drug segments, retail establishments continue to lag behind QSRs with pizza. However, chicken at food/drug stores is almost on par with QSR.
| Food type | Percent of meals/snacks that include the item |
| C-stores | |
| Pizza | 3.3% |
| Chicken | 5.7% |
| Food/Drug | |
| Pizza | 3.6% |
| Chicken | 18.0% |
| QSR | |
| Pizza | 10.4% |
| Chicken | 20.6% |
Source: The NPD Group/CREST
Cross-Category Opportunity
According to research by Management Science Associates that examined retail point-of-sale data at three midsize c-store chains, stores with a foodservice program sell 2% more packaged beverages and salty snacks than those without, and see about a 13% increase in total store sales.
Overall, 82% of foodservice baskets included items from other categories. (This compares to baskets with tobacco, only half of which include items from other categories.)
The top five items included in a foodservice basket, according to the MSA retail POS analysis: perishable grocery, potato chips, ready-to-eat meals, tortilla ships and flavored milk.
Consumers and Foodservice
The Culinary Visions consumer research panel for Chicago-based Olson Communications explores culinary topics and helps foodservice businesses test products and concepts. In the latest iteration of its
C-Store Consumer survey, Olson asked 1,010 participants about their motivations for purchasing food from a c-store. In the 2013 survey, 55% of participants were female and 45% were male. Age was fairly evenly distributed, with baby boomers—those 48 to 66—contributing slightly more respondents than other age groups.
Thirty-four percent of consumers in Olson’s 2013 survey stated they eat hot food from a c-store about once per week. Survey participants ages 49 to 67 had the highest propensity to eat from a c-store at least once a week, at 42%.
What follows are highlights of the c-store Culinary Visions Panel 2013. For more information about the panel, contact Olson Communications at (312) 280-4757 or info@culinaryvisions.org.
C-Store Food Purchase Motivators
The No. 1 reason consumers choose to purchase hot food from a c-store is convenience, with location a distant second, according to the Olson Communications research.
| Reason | Percentage |
| Convenience/speed | 74% |
| Location/proximity to home or work | 49% |
| Good value for the money | 41% |
| Taste/flavor of hot food items | 34% |
| Quality of hot food items | 19% |
| Variety of flavors available | 15% |
| Other | 6% |
Source: Olson Communications
Most Important Hot-Food Attributes
Price, c-store quality and time-saving capability topped the list of “very important” attributes consumers seek in a hot-food purchase.
| Attribute | Percentage overall who consider it “very important” |
| Price | 69% |
| C-store quality | 68% |
| Time-saving | 67% |
| Flavorful | 61% |
| Past experience with c-store | 52% |
| Homemade taste | 38% |
| Healthy menu options | 21% |
| Brand name | 19% |
| Ethnic flavor | 13% |
Source: Olson Communications
Reasons for Purchasing Hot Food at C-Store by Age
Regardless of the age group, convenience and speed were the top reasons why consumers said they purchased hot food from a c-store.
| Reason | 19-36 | 37-48 | 49-67 | 68+ |
| Good value for the money | 47% | 39% | 37% | 34% |
| Taste/flavor | 36% | 38% | 33% | 34% |
| Quality of hot food items | 21% | 15% | 20% | 17% |
| Convenience/speed | 69% | 79% | 72% | 79% |
| Location/proximity to home or work | 43% | 53% | 51% | 51% |
| Variety of flavors available | 15% | 18% | 12% | 19% |
Source: Olson Communications
Typical C-Store Purchases by Gender
Roller-grill items are favored by more men than women, according to Olson Communications research. The other hot-food type women tended to clearly favor is soup, with 13% of females vs. 7% of males citing it as a common c-store purchase.
| Food item | Male | Female |
| Roller-grill items | 60% | 47% |
| Breakfast sandwich | 45% | 40% |
| Deli sandwich | 33% | 30% |
| Pizza | 31% | 27% |
| Burger | 22% | 15% |
| Chicken strips/wings | 19% | 17% |
| Nachos | 19% | 25% |
| Taquito | 18% | 20% |
| Soup | 7% | 13% |
Source: Olson Communications
Customer in Focus
When asked to rank the effectiveness of marketing strategies in encouraging a purchase of a prepared or made-to-order food or drink item from a c-store, consumers in a Mintel survey voted “free samples of menu items” as the top choice, or 47% of the 1,395 survey participants. Next up? Frequent-visitor reward cards at 42% followed by a coupon printed on a gas receipt (36%)
and coupons by mail (34%). “This shows that despite the rise in tech-savvy marketing techniques, people want an offer they can touch/hold, especially when using offers while on the go and in the car,” Mintel concludes.
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