C-Store Foodservice Trends
In January 2015, Product Evaluations conducted an online and telephone-based survey of 150 c-store operators—67 independents with one to 10 stores, and 83 chains with 11 or more units—on behalf of CSP. Each of the interviewees was a purchase decision-maker at the store level, and each offered foodservice items not packaged by a manufacturer.
Eighteen percent of the retailers surveyed have a “limited dedication” to foodservice, meaning they offer four or fewer food items. Nearly half—or 49%—of the operators have a “moderate dedication” to foodservice, meaning they offer three to nine items, while 33% have a high dedication (10 to 15 items).
What follows are highlights from the 2015 survey, which revealed retailers’ optimism for strong foodservice sales in the coming year, as well as the items upon which they are hinging hopes for growth.
Most Commonly Offered Food Items
Among the retailers in the CSP Annual Trend Report, nearly 80% of the sample offered a sandwich, sub or wrap, and the same percentage sold breakfast sandwiches. The most common offers varied by a retailer’s dedication to the category. Those who are highly dedicated most commonly sell sandwiches, and those with a limited offer typically sell dispensed beverages and roller-grill items.
| Food item | Sample | High dedication | Moderate dedication | Limited dedication |
| Sandwiches, subs or wraps | 79% | 96% | 85% | 33% |
| Breakfast sandwiches | 79% | 100% | 88% | 15% |
| Hot dogs, sausages or encased items | 75% | 86% | 78% | 44% |
| Hamburger/cheeseburger | 63% | 96% | 62% | 4% |
| Handheld ethnic | 61% | 78% | 73% | NA |
| Baked goods/pastries | 52% | 80% | 44% | 22% |
| Chicken (fried/broasted/grilled) | 44% | 82% | 34% | NA |
| Appetizers/hot side items | 40% | 76% | 29% | 4% |
| Pizza | 40% | 78% | 27% | 4% |
| Deli salads | 39% | 86% | 21% | 4% |
| Fresh-cut fruit/vegetables | 35% | 58% | 29% | 115 |
Source: CSP-Product Evaluations Annual Trend Report
Room to Grow
C-store retailers enjoyed growth in the past year; most expect more sales growth in 2015.
What % change have your foodservice sales experienced in the past year?
| Retailer type | Sales change |
| Independent | 13.6% |
| Chain | 16.8% |
| High dedication | 18.7% |
| Moderate dedication | 17.1% |
| Limited dedication | 5.9% |
| Mean | 15.4% |
Source: CSP-Product Evaluations Annual Trend Report
What percent change do you expect in foodservice sales in the next year?
| Retailer type | Sales change |
| Independent | 16.2% |
| Chain | 17.0% |
| High dedication | 22.4% |
| Moderate dedication | 16.4% |
| Limited dedication | 8.0% |
| Mean | 16.7% |
Source: CSP-Product Evaluations Annual Trend Report
Top Growth Prospects
Among the entire survey sample, the greatest percentage of retailers expect pizza, chicken and deli salad sales to grow in the coming year.
| Food item | % of retailers expecting increase |
| Pizza | 73% |
| Chicken (fried/roasted/grilled) | 65% |
| Deli salads | 64% |
| Sandwiches, subs or wraps | 62% |
| Breakfast sandwiches, wraps or pockets | 61% |
| Baked goods/pastries | 58% |
| Appetizers/hot side items | 58% |
| Hot dogs, sausages or encased items | 57% |
| Hamburgers, cheeseburgers | 55% |
| Hand-held ethnic | 54% |
Source: CSP-Product Evaluations Annual Trend Report
Top Focus Areas
Beyond particular food items, the vast majority of retailers will focus on increasing store traffic, according to the CSP Annual Trend Report.
| Focus area | % of retailers emphasizing |
| Increasing in-store traffic | 96% |
| Customer needs for quality items | 93% |
| Profitability (food/labor costs) | 91% |
| Offering new/more food options | 90% |
| Perceptions of c-store foodservice | 88% |
| Customer needs for healthy options | 87% |
| Food prep safety/feasibility | 86% |
| In-store atmosphere/decor | 86% |
| Marketing/merchandising | 86% |
| Staffing concerns | 85% |
Source: CSP-Product Evaluations Annual Trend Report
CONTINUED: Menu Trends &Snacking
C-Store Menu Trends
Technomic’s MenuMonitor c-store database features menus from 40 U.S. retailers. Below is a snapshot of their foodservice offerings in 2014.
“Penetration” measures the “reach” of a product on a menu or of operators offering an item. Sandwiches accounted for 21.2% of all items on the menus at retailers in the MenuMonitor database; 42.4% of all c-store foodservice items in the database were sandwiches.
Food at C-Stores
Hot dogs were the most popular meal entree on the menu in second-quarter 2014, with 90% of the retailers in Technomic’s MenuMonitor sample offering the item.
| Product category | Menu incidence | Total menu penetration | Snack menu distribution | Operators offering | Operator penetration |
| Sandwich | 528 | 21.2% | 42.4% | 35 | 87.5% |
| Breakfast sandwich | 147 | 5.9% | 11.8% | 27 | 67.5% |
| Pizza | 110 | 4.4% | 8.8% | 18 | 45.0% |
| Hot dogs | 98 | 3.9% | 7.9% | 36 | 90.0% |
| Burgers | 75 | 3.0% | 6.0% | 24 | 60.0% |
| Chicken dish | 65 | 2.6% | 5.2% | 16 | 40.0% |
| Burrito/chimichanga | 52 | 2.1% | 4.2% | 15 | 37.5% |
| Salad (main dish) | 48 | 1.9% | 3.9% | 13 | 32.5% |
| Soup | 42 | 1.7% | 3.4% | 8 | 20.0% |
| Taco/taquito | 40 | 1.6% | 3.2% | 17 | 42.5% |
| Mexican | 40 | 1.6% | 3.2% | 16 | 40.0% |
Source: Technomic Inc., MenuMonitor, Q2 2014
Snacks at C-Stores
The most common snack items on the menus of c-store retailers in Technomic’s MenuMonitor sample in second-quarter 2014 were doughnuts, muffins and pastries.
| Product category | Menu incidence | Total menu penetration | Snack menu distribution | Operators offering | Operator penetration |
| Doughnuts | 48 | 1.9% | 25.8% | 21 | 52.5% |
| Muffin | 30 | 1.2% | 16.1% | 23 | 57.5% |
| Pastry | 26 | 1.0% | 14.0% | 17 | 42.5% |
| Bagel/English muffin/toast | 15 | 0.6% | 8.1% | 9 | 22.5% |
| Hash browns | 12 | 0.5% | 6.5% | 11 | 27.5% |
| Dessert bread | 12 | 0.5% | 6.5% | 6 | 15.0% |
| Chicken strips/nuggets | 11 | 0.4% | 5.9% | 9 | 22.5% |
| Cheese sticks/fried cheese | 11 | 0.4% | 5.9% | 11 | 27.5% |
| Fruit | 11 | 0.4% | 5.9% | 9 | 22.5% |
| Chili | 10 | 0.4% | 5.4% | 8 | 20.0% |
Source: Technomic Inc., MenuMonitor, Q2 2014
Foodservice Sales Growth by Channel
Technomic expects c-store proprietary foodservice sales to have grown 2.5% in 2014*, on pace with casual dining.
| Channel | 2014 growth of foodservice sales |
| Fast casual | 9.0% |
| Supermarket foodservice | 6.0% |
| Quick-service restaurant | 3.0% |
| Casual dining | 2.5% |
| C-store foodservice** | 2.5% |
Source: Technomic
* Projected
** Proprietary only
Customer in Focus
According to a March 2014 Mintel survey of more than 1,600 Internet users who visited a c-store in the past three months, a majority—or 58%—did so to buy food and/or drink items. For another 20%, visiting a restaurant or foodservice offer within the c-store was one of the primary reasons for their stop.
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