There’s no doubt that Hispanics are important c-store customers. But convenience operators are not alone in their quest to entice the fastest-growing ethnic group through their doors; grocery, mass-merchant, warehouse/club and drug-store retailers are also targeting Hispanic consumers.
But you do have an edge: Ninety-two percent of Hispanics visit c-stores once a month or more, compared with 87% of the general population, according to an exclusive CSP/Technomic survey released earlier this year.
So we’ve got this group covered, right? Not so fast. C-stores are near the bottom of their list of retail outlets for sourcing a category widely recognized as a strategic imperative for the convenience industry: foodservice.
Nearly seven in 10 Hispanic consumers (67%) purchase prepared foods at mass-merchandise stores such as Wal-Mart at least once a month, according to Technomic’s 2015 Hispanic Foodservice Consumer Trend Report. While six in 10 (62%) do so at grocery stores and half (50%) at warehouse clubs, a little less than half of Hispanic consumers (46%) purchase prepared foods at c-stores at least once a month.
For convenience operators seeking to grow foodservice sales, devising strategies to capture a greater share of Hispanic consumers’ stomachs may be in order.
Who Is the Customer?
The first order of business is to ask how well you understand your Hispanic consumers. When you think about the Hispanic customers that frequent your stores, are you aware of factors such as country of origin? C-store foodservice purchases are most frequent among Hispanics whose origins lie in Central America, the Caribbean and Mexico.
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oodservice purchases from retail outlets also vary by language dominance, which is an indicator of acculturation. The Hispanic Foodservice Consumer Trend Report found that a larger portion of Spanish-dominant and bilingual Hispanics than English-dominant Hispanics frequently purchase prepared food from retail outlets, be it c-stores or other retail locations. Nearly four in 10 Hispanic consumers overall say bilingual or Spanish menus are important in limited-service restaurants; that prioritization rises to six in 10 for Spanish-dominant Hispanics. Such information should inform menu development as well as staff training, signage and marketing messages.
Next, examine your menu offerings. Family-friendly prepared foods can appeal to Hispanic consumers, who tend to have larger families and value time spent together. The majority of Hispanics prioritize eating meals with their immediate family (78%) and their extended family (63%). Multiple-portion offerings such as pizza, pasta dishes or chicken with sides provide attractive options for family mealtime. In addition, fresh ingredients, quality ingredients, a variety of items and healthy options are the top menu attributes that prompt foodservice visits by Hispanic consumers, according to the study.
What Do They Want to Eat?
Finally, think about authenticity. The majority of Hispanic consumers consider it important that Hispanic foods taste as if a Latino prepared them, whether served at an American-style (60%) or a Mexican or other Hispanic-style (68%) foodservice outlet.
Giving Hispanic flavors and foods a nod by offering a breakfast burrito will likely add interest to your menu and appeal to mainstream consumers, but it may not earn you too many points from Hispanic consumers, particularly Spanish-dominant or bilingual Hispanics who prioritize authenticity.
One retailer resonating with Hispanic consumers is Stripes, with its Laredo Taco Company, which prides itself on authentic Mexican foods, promoting its handmade tortillas and salsas and fresh ingredients for items such as barbacoa tacos and the carne guisada plate. Other retailers are highlighting regional foods and flavors, including Maverik, which channels the Cuban sandwich with its Cuban Hottie: pulled pork, ham, pickle and pepper jack cheese on flatbread.
Technomic anticipates greater regionalization of Hispanic foods at foodservice outlets going forward, with items such as Venezuelan arepas (cornmeal patties that can be stuffed with savory fillings) and Chilean chacareros (round sandwiches filled with churrasco-style steak with tomato, green beans and chili peppers) appearing on chain restaurant menus.
While the majority of Hispanics in the United States are of Mexican origin, learning about and recognizing the varied origins of your Latino customers through authentic, regional dishes can heighten your appeal to them, increasing traffic, loyalty and sales.
Looking into 2016, avoid complacency regarding Hispanic consumers. C-stores may enjoy strong patronage from Hispanics, but failing to truly engage them in your foodservice program may undermine your long-term growth strategy.
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