3 Key Challenges Facing the Dining Industry

And how convenience retailers are optimizing the customer experience
Photograph: Shutterstock

A new report from Bounteous outlines three challenges facing the dining industry, and convenience-store retailers' place in that industry.

According to a recent dining industry report by Bounteous, three macroeconomic challenges—labor, supply chain and inflation—will have a profound impact on overall restaurant industry performance heading into 2023. Average operator profit margin in the restaurant vertical was 21% prior to the pandemic, but declined to 13% in 2022.

As more convenience retailers enter and expand their efforts in the foodservice realm, restaurants can serve as inspiration, Bounteous said. Like restaurateurs, digitally mature convenience retailers with robust foodservice programs such as Wawa and Casey’s General Stores are shifting their focus to retaining existing customers and boosting average check size.

“Today’s c-store consumer is in search of far more than gas and coffee,“ says Arpi Mardirossian, director of digital strategy at Bounteous. “Instead, they want choices and quality when it comes to food. Brands like Wawa and Casey’s excel at meeting customer demand for variety by providing varied menus that feature sandwiches, salads, snacks, pizza, family-style meals, specialty beverages, signature made-to-order items and more.”

Winning quick-service and full-service brands are keeping customer preferences top of mind while delivering on consumer demand for value, convenience and experience. In order to optimize the user experience, drive incremental purchases and increase average order value, c-store operators must take full advantage of the technology already in place and lean into automation where applicable, the report said.

“As c-stores continue to mature digitally, utilizing every aspect of the tech stack is imperative,” Mardirossian said. “The past three years were focused on implementing custom apps and websites. Now, amidst new challenges such as inflation and employee retention, it’s time to delve deeper into personalization, self-service technologies and customer relationship management (CRM) to provide the digital experiences customers want.”

Founded in 2003 in Chicago, Bounteous is a digital experience consultancy that co-innovates with ambitious brands to create transformative digital experiences. With deep roots in the restaurant industry, Bounteous helps restaurants and convenience stores create data-driven strategies, online ordering experiences, and loyalty/CRM programs to grow sales.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


Convenience Stores Speak Out Against New York Tobacco Proposals

Lawmakers reject flavored tobacco ban, accept cigarette tax increase, but negotiations not over yet


Driving EV Owners Into the C-Store

3 ways to encourage customers to charge on their credit cards while charging their cars


Vuse Solo Menthol Can Remain on Market Pending Further Developments

Court stays FDA’s marketing denial order of R.J. Reynolds Vapor Co.’s tobacco product


More from our partners