Tweaking the Foodservice Recipe

CHICAGO — Working from home is on the decline but gas prices are rising. Millions have been vaccinated, but millions have not; however, convenience-store customers say their financial outlooks are improving, and summer is fast approaching.

There is plenty in flux nowadays, and change has been accelerating. One place where change is occurring particularly quickly is at c-stores, and a new report, “The New State of C-Store Foodservice,” presented earlier this month by Donna Hood Crecca, principal at Technomic Inc., Chicago, unveiled revealing stats surrounding foodservice.

Click through to digest the data …

During the pandemic, more than 50% of customers have said grab-and-go seems to be a safer food-format choice in c-stores than other options.  

Self-serve formats are crucial for c-stores, Crecca said, and retailers are focused on reviving this. While some items won’t come back because of fallout from the pandemic, in particular due to sanitation concerns, the appeal of hot and cold grab-and-go has been increasing as consumers view it as safer because products are sealed.

It’s no surprise that the c-store breakfast daypart has suffered during COVID-19, with 34% visiting at this time less often than before the outbreak.

To boost business, retailers are encouraged to:

• Lower prices.
• Improve COVID-19 safety protocols.
• Offer higher-quality items.
• Offer healthy items.
• Offer better-tasting items.

Retailers should be cognizant to offer items that consumers want: more hot handheld items, global flavors and unique flavors, such as Kwik Chek/TXB's LTO chorizo egg and cheese quesadilla.

The pedal is to the metal when it comes to menu innovations, with 99% of c-store operators actively working on new ideas to lure customers and up their sales.

Dispensed beverages—hot, frozen and cold—is the category where innovation is both prioritized and needs the most supplier support.

Examples of innovation include the LTO Shamrock Spiked Slushies at Rutter’s, Thornton’sBurgerRitos, and High’sMaryland Jumbo Lump Crab Cake (available as a standalone sandwich or as part of a platter meal).

“Suppliers need to step up as operators will lean more on those partners,” Crecca said. “Operators have accelerated the innovation process.”

Innovation includes expanding the ways in which one can obtain food, an appeal for consumers. In fact, 54% said they would likely order breakfast for curbside pickup at a c-store if available.

Breakfast delivery from a c-store also brings strong interest from consumers, however, growth in this area has drawbacks including longer delivery times, difficulty finding drivers and government regulations with which to contend.

“It’s less about traffic, more about transactions,” Crecca said.

There are four steps in the foodservice industry’s recovery, Crecca said: survival (March through May 2020), start (June 2020 to February 2021), surge and strengthen. The industry currently is in step 3.

While fast-food restaurants displayed relative strength last year, good things are expected for c-store foodservice this year. C-store foodservice dropped 20% last year but is expected to grow 24.3% this year.