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Quenching Thirsts and Sales

By Jim Callahan | February 23, 2017

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Spring is almost here, which means summer isn’t too far behind. It’s time to get your beverage business in order.

By Jim Callahan

The warning, “Beware the Ides of March” probably resonates more with readers of Shakespeare’s play “Julius Caesar” than it does with c-store operators.

Still, March is an important month to mark on your calendars. That’s because March signals spring and spring of course is the precursor to summer sales.

However, some c-stores stab themselves in the back (a Caesar reference) by not being prepared to serve their customers all summer long. This month is a good window to plan, prepare dispensing equipment and oil the cash register—homing in on what I consider the No. 1 “must push” foodservice-related segment for convenience retailers.

That, of course, would be beverage offerings. Whether you are in the deep south, like I am here in Atlanta, in upstate New York—where I grew up—or Anchorage, Alaska, where I’ve never been, dispensed beverages are a top business driver throughout the year. That’s because beverage-buying trends cover a broad spectrum of customer behavior.

In my opinion, beverages are by far that No. 1 summer merchandise item. Customers alter their day with an enormous number of unplanned stops to purchase desired beverages—even rivaling restroom stops. After all, quenching one’s thirst and hydrating one’s body is serious business.

In that regard, beverage offerings too are serious business. Both cold and hot dispensed beverages are perennial top 10 performers when it comes to in-store sales. Throw in the unique and expanding frozen beverage tradition that c-store have cultivated and grown since 7-Eleven rolled out the first Slurpee machine.

COMPETITORS ABOUND
Understand that the likes of Burger King, Taco Bell, Pizza Hut, KFC and a myriad of other national and regional fast food brands will always present stiff competition. As I write this, McDonald’s is advertising $1 on any size coffee or fountain drink and $2 for a latte. But remember, c-stores have the most powerful trump card: one-stop shopping. Those fair-weather motorists who stop for fuel can grab food and snacks as well as the very best and widest variety beverages: a hot cup of coffee, a cold bottle of water, an energy drink or a 20-ounce soft drink.

Chances are good that same customer that exits the road for a beverage is also going to include a purchase of salty snacks, candy, jerky or a pack of cigarettes. Filling those baskets means more profit for your business. It all comes down to this point: an operator can’t disappoint customers making an unplanned stop and then expect that they will return; it’s not going to happen.

The path to success is littered with well-intentioned but, poorly thought-out business strategies, which are often torpedoed by a lack of motivation or creativity. As the saying goes: “Fatigue makes cowards of us all.” Adhering to a solid plan doesn’t guarantee success but can become a blueprint for it.

CHOSEN STOP
In order to be a chosen stop or a true destination, you must present excellent curb appeal and stellar choices. Of course, you must demonstrate excellent customer service, cleanliness throughout the store and attractive pricing on popular beverage items. Understand, that while these customers will shop by price for the beverage category they came for, they are likely in a hurry to get back on the road, whether to work or a travel destination and not be nearly as price sensitive on incremental snack items.

Out of stocks, broken dispensing machines and a ransacked coffee offering will not leave patrons with a good taste in their mouths.

We as an industry have by far the best and brightest convenient locations serving all kinds of communities. In order to find a better selection of candy, cookies, snacks and beverages, consumers would have to go to the local grocery store, if there is one.

Even if that grocer offers fuel and has a discount loyalty program, individuals still have to walk through a large store, wait in long lines and then make a separate fuel purchase. Yes, Big Grocery has an advantage when someone goes shopping for groceries, meat etc. and has the time to shop. But for that quick stop and beverage purchase we hold the keys to the kingdom.

All we have to do is keep earning it by practicing simple, but sound business practices.

Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at [email protected].

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  • Home
  • Today on CSD
  • Categories
    • CBD
    • Foodservice
    • Fuel & Gas
    • Health & Beauty
    • Independent Operators
    • Operations & Marketing
    • Technology
  • CStore Playbooks
    • Alcoholic Beverage Playbook
    • Candy Playbook
    • CBD Playbook
    • Foodservice Playbook
    • Technology Playbook
    • Tobacco Playbook
  • Products
    • 2022 Hot New Product Contest
    • Hot New Products Contest
    • Beverages & Cold Vault
    • Candy, Gum & Mints
    • Snacks
    • Tobacco
  • Resources
    • Digital Issues
    • Research & Downloads
    • Podcasts/How To Series
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    • FAQ
    • 2022 Top 111 Chains
    • Leaders in Convenience
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    • Sponsored Content
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Events
    • 2022 Chain of the Year
    • Convenience Directions
    • NAG Convenience Conference
    • Young Executive Organization
  • Join
    • National Advisory Group
    • Safe Shop Assured
    • Young Executive Organization