According to the CSP-Product Evaluations Annual Trend Report, the more dedicated a c-store operator is to foodservice, the higher growth that operator experienced in the past year and expects to achieve in the year to come. With the ongoing shift toward foodservice in the c-store space, is it time for you to reconsider your own dedication to the category?
Product Evaluations Inc. recently conducted 150 interviews with c-store retailers across the country to track the evolution of foodservice and identify opportunities for growth. (Visit cspnet.com/producteval for part one of our survey coverage.) The responses were plotted on a continuum of “commitment to foodservice,” then organized into groups of limited-, moderate- and high-commitment retailers.
By analyzing the three groups, a c-store retailer can determine where on the continuum they fit and how they stack up against others, and also what areas to focus on for growth and evolution. Read on to plot your own path toward growth.
Finding Your Place
When considering new strategies for growth, first determine where on the spectrum of foodservice commitment your stores fall, given your typical offering.
CONTINUED: Growth Strategies
GROWTH STRATEGIES
Limited-Commitment Foodservice Operators
If you have no foodservice program or, like 18% of the respondents in our survey, are limited in available space or equipment, you likely are wondering how to create or expand your program. First, ensure your space is visually interesting and physically clean. From there, expand in a low-cost, low-risk way: Can you add any of the food or beverage items commonly offered by your c-store competitors that have a higher commitment to foodservice?
Analysis of a wide range of menu items revealed the following as primary differentiators between limited- and moderate-commitment foodservice operators. Consider adding one or some of these items during this early stage of foodservice investment.
Moderate- and High-Commitment Foodservice Operators
Whether you fall into the moderate- or high-commitment group, it is a great place to be with quite a bit of growth potential, and you already have some equipment and systems in place to leverage for even more growth.
At this stage, you offer most of the products found in a limited-foodservice c-store and more. Finding new products that fıt your operations’ space, equipment and staffıng capabilities can help amp up your foodservice offerings with minimal risk.
This chart illustrates the primary differentiators in products offered as operators move from moderate- to high-commitment foodservice.
For the moderate-commitment operators, where can you expand your menu and better compete with high-commitment retailers?
CONTINUED: Equipment Strategies
EQUIPMENT STRATEGIES
Limited-, Moderate- and High-Commitment Foodservice Operators
Evolution also requires an investment in equipment. Often the first pieces that an operator will invest in are a microwave and roller grill. As your foodservice area grows, consider a hot-holding display, warming cabinet or fryer. Equipment should be added strategically to allow expansion toward new products that fit your store’s image and concept.
Challenges and Concerns
Foodservice in c-stores carries some real challenges depending on store setup, location and customer base. Temper the excitement for foodservice with the realities of the commitment, and develop strategies around these potential obstacles to help maximize your growth.
All
- Increasing in-store traffic—how to get customers in the door
- Profitability—food and labor costs
Limited
- Competition from other c-stores
Moderate
- Customer needs for quality items
- Food preparation safety/feasibility
- Perceptions of c-store foodservice
- Competition from other c-stores
- Food preparation equipment
High
- Offering new/more food options
- Food preparation equipment
- Customer demand for custom/personalized items
- Kid-friendly options
- Social media apps
Product Evaluations Inc. is a full-service market-research company helping its clients develop winning products, solutions and strategies for the food-away-from-home industry. Visit the company at productevaluations.com.
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