As a percentage of total c-store sales, foodservice remains small. But higher gasoline prices may actually help c-store operators grow their foodservice sales. "Consumers are much more interested in reducing their driving," said Tim Powell, c-store foodservice [image-nocss] program director at Technomic Inc. "A trip to the gas station may be unavoidable, but now consumers are more likely to also pick up a quick meal or a snack at a c-store and avoid another stop."
The Technomic study, Target: C-Stores, A Growing Opportunity on the Foodservice Landscape, found that when consumers are hungry for a meal, c-stores typically fall behind restaurants and grocery stores as a top-of-mind destination; however, when asked about snacks, most consumers think of c-stores ahead of all other venues.
The study identified many opportunities for traditional foodservice suppliers to provide expertise in a channel that has historically behaved more like retailers than foodservice operators, including snacks, beverages and meal items. While the major chains (1,000 units or more) hold most of the industry's foodservice share, mid-tier chains (10 to 1,000 units) account for 23% of all units and nearly a fifth of all c-store foodservice industry sales.
"These chains are often easier for suppliers to target and penetrate, particularly since there are fewer management levels and fewer competitors," said Powell. "Any food or beverage supplier that can help implement a branded solution, even if it's just for one product category, is likely to find success."
Chicago-based Technomic Inc. provides food and foodservice clients with the research, insights and strategic consulting support. It offers clients proprietary management solutions, shared-cost common-interest research and a collection of research publications.
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.