Restrained economic times and stiff competition across the supply chain make it critical for convenience store operators to have a solid understanding of their customers, particularly high-frequency, high-value shoppers.

With clear insights, operators can manage the necessary steps to retain loyal customers and attract new ones.

Though store owners continued to face a harsh post-pandemic retail environment (higher operating costs, reduced labor, supply chain shortages, etc.), the industry outperformed many other retail channels because of its inherent ability to provide the speed of service to time-starved consumers who want to get in and out quickly. These shoppers recognize this channel of trade for its convenient locations, extended hours of operation, one-stop shopping, grab-and-go foodservice, variety of merchandise and expedited transactions.

Foodservice remains the biggest area of opportunity for convenience stores. As revenues from gasoline (thanks to the federal government’s push for electric vehicles) and tobacco products fall, foodservice sales are increasingly becoming convenience stores’ most profitable category.

“With the lingering effects of the COVID-19 pandemic, fluctuating economic instability, increasing political unrest and new artificial intelligence around every corner, many consumers feel overwhelmed and distracted, resulting in interesting behavior shifts,” said Jenny Zegler, director of Mintel Food & Drink, in the published report.

To help understand the foodservice consumer, Mintel calls out three new trends. They are:

1. Trust The Process. Clear communication will become necessary to help consumers make informed decisions about how processed and ultra-processed food and drink fit into their diets.
2. Age Reframed. Healthy aging will be redefined by debunking “old” stigmas and prioritizing extending consumers’ healthy years.
3. Eating: Optimized. A new era of convenience will emerge as technology streamlines meal planning, shopping and cooking.

Let’s take a quick look at each of these trends.

Trust the Process

About a decade ago, the government started aiming for foodservice packaging and labels to push for more ingredient transparency. Mintel believes that scrutiny of processing used in the food and drink industry is intensifying.

“Fueled by discussions about highly, overly or ultra-processed food (UPF), feelings about processing will inspire consumers to look more closely at ingredients, nutrition and production methods. In light of this, ultraprocessing is the latest evolution of terms such as junk food or clean label,” the report said.

Starting in 2024, more consumers will become aware of different levels of processing from media reports, regulations and voluntary label stickers. “This will encourage them to consider processing levels when choosing food and drink and to reconsider how frequently and on which occasions they consume processed food and beverages,” Mintel reported.

For convenience stores, this could have far-reaching implications on your food program. For example, if you push better-for-you options, ensure the ingredients match the labels. This applies to drinks as well as food items.

Smoothies and healthy shakes should only be marketed as such if they contain proper ingredients. Consumers will be watching and taking to social media if they don’t like what they see.

Conversely, convenience store customers continue to enjoy indulgence. Brands that produce sugary, indulgent drinks will need to remind consumers of the joy and comfort they get from these products.

Age Reframed

Members of Gen X, who are currently in their mid-40s-to-late 50s (born between 1965 and 1979), are pioneering a new approach to healthy aging that includes products that will help them thrive in their diverse lifestyles now and for decades.

“The new focus for aging societies will be an extended healthspan, the period of life spent in good health, which requires a proactive long-term strategy,” Mintel reported. “Brands need to understand and focus on the needs of Millennials and the increasingly powerful Generation Z (born between 1995 and 2012). It’s also crucial that they focus on the evolving needs of consumers aged 40 and over, who account for the most significant share of food and drink spend in many markets worldwide.”

In the next 12 months, brands will play an essential role in helping guide Gen X through transitional periods of middle and older adulthood by educating them about healthy ways to progress through different life stages. Food and drink brands can help promote healthy aging by ensuring nutrient-rich food and drinks are affordable, accessible and convenient for all ages.

This is important for convenience stores because of the rise of foodservice delivery and specialty food stores. If convenience stores don’t adapt to this trend, the next generation of consumers has plenty of options to get these products, often delivered right to their front door or office. Use this emerging trend as an opportunity to capture these customers rather than a threat to lose them. That means utilizing your locations, reasonable pricing and loyalty programs to drive business to your stores.

Eating: Optimized

Convenience has always been an evolving concept, but the COVID-19 pandemic accelerated consumers’ desires to find shortcuts to quality food and drink experiences in their day-to-day lives. As more consumers become used to technology’s helpful role, they will be more interested in and trusting of emerging technologies to help them optimize their meals, snacks and drinks, Mintel reported.

Brands have adapted their products to help consumers optimize their time in the kitchen, as shown by cooking instructions for multiple appliances and product lines designed to cook at the same time and temperature. Looking ahead, consumers’ experiences with these efficient products and tools will make them more open to new routes to time savings via technology. This will propel conveniences like automated shopping lists and meal-planning apps from “nice to have” to integral daily tools. Of course, this leads to eating out less often, reducing trips to the local restaurant or convenience store.

Consumers’ daily experiences with technology will make AI, AR and other technology tools nonnegotiable time savers in the kitchen in the next two to five years. This will pressure brands and retailers to make consumers’ experiences seamless.

In the coming years, convenience store chains must look to better position themselves for continued growth in foodservice. This is important because quick-service restaurants target c-store customers, and other c-store competitors are upping their game with fresh foods and healthier ingredients.

To download a copy of the full Mintel report, visit Mintel.com.

Elie Y. Katz is the CEO and president of National Retail Solutions (NRS).