NEW YORK -- Following a period of rolling out their own, branded foodservice programs that return higher margins while also improving food quality and healthfulness, convenience stores are now going head to head with established restaurant players, according to a new report from Packaged Facts.
These c-stores are seeking to take a slice out of the limited-service restaurant pie while also keeping in mind their customers' broader on-the-go purchasing needs, the report concludes.
"By enhancing foodservice quality and variety, we believe convenience stores are poised to benefit from increased sales of gasoline and other merchandise, as consumers seek to consolidate their purchases in the interest of efficiency," David Sprinkle, publisher of Packaged Facts, said. "Because it is so well positioned, we anticipate that convenience-store-industry foodservice sales growth will outperform the retail and restaurant foodservice industry average through 2013."
Several factors are driving convenience-store companies' efforts to aggressively build sophisticated foodservice platforms designed to go head-to-head with established restaurant players, according to the report, including protecting against gasoline sales volatility; deepening customer relationships; and protecting and leveraging a store's coffee/beverage turf. Moreover, c-store operators recognize their foodservice shortcomings--fewer healthy choices and a perceived quality gap between their offerings and those of traditional restaurant competitors--and they're working to overcome these obstacles.
Packaged Facts projects that convenience-store foodservice sales grew 6% in 2010, and will rise an additional 6% in 2011 and 5% in 2012. The information comes from Packaged Facts new "Convenience Store Foodservice Trends in the U.S." report.
New York-based Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products.
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