Kevin McIntyre — Online Editor, CStore Decisions and Rick Hynum — Editor-in-Chief, PMQ
As convenience store operators continue to elevate their foodservice programs, the pizza parlor and the gas station are beginning to share more similarities.
C-store operators are expanding their foodservice menus and, when it comes to a crowd-pleasing meal, there is no better option than pizza. C-store pizza is changing, however, and it may surprise the unaware consumer. Today, gas station pizza is no longer the “last resort,” but something consumers seek out and plan their meals around.
Pizza-focused operators have made a point in recent years to attempt to compete with traditional quick-service restaurants (QSRs) by offering many of the same foodservice options, including seating for guests and active customer service. As convenience stores look to compete, however, they’ll need to watch the artificial intelligence (AI) and robotics initiatives that are driving the competition.
Pizza Innovation
7-Eleven is competing with QSRs through authenticity and innovation.
“At 7-Eleven, our pizza was inspired by the classics — New York City’s Brooklyn pizza, pizzeria pizza and all the greats,” said a 7-Eleven spokesperson. “We offer fresh pizza both whole and by the slice.”
7-Eleven also offers “Ready to Bake” pizza, which customers can purchase in stores and bake at home.
7-Eleven noted that the chain currently offers staples like Cheese and Pepperoni, but it has also introduced offerings like Extreme Meat and a Breakfast Pizza.
Additionally, 7-Eleven has launched a variety of limited-time offers (LTOs) to drive consumer engagement and keep its menu fresh and unique.
“We love to experiment with new flavors for our customers to try. Over the last year, we have introduced Spicy Meat Pizza, Breakfast Pizza and Veggie Pizza, to name a few,” said the spokesperson. “We also do a number of pizza-related promotions.”
7-Eleven also allows customers to switch up flavors themselves by customizing their own pizza with toppings from the nacho bar or the chain’s Big Bite toppings.
It is not enough for retailers, however, to just have pizza on the menu — there is no food in the U.S. that is more associated with delivery than pizza. For these convenience stores to truly compete with traditional QSRs, delivery, order ahead and pickup need to be options for pizza-focused consumers.
That is why, at 7-Eleven, customers can order pizza and other in-store items directly through the company’s 7NOW app, in addition to third-party providers.
“We offer best-in-class delivery of food, convenience and grocery items,” added the 7-Eleven spokesperson. “Delivery via 7NOW is available throughout the U.S. and Canada, providing 24/7 delivery in about 30 minutes or less.”
Tried and True Pizza
When it comes to convenience store pizza, however, it is impossible to disregard Casey’s. Casey’s has long claimed the title of the fifth-largest pizza chain in the U.S.
The chain goes through 30 million pies in a year, which is a staggering number for a brand that offers a full array of foodservice options.
Casey’s has noted that when it comes to innovation, its chefs are very thorough, trying to make their product as appealing to customers as possible.
The chain brings in field trainers to its lab that will connect with operators to determine the direction the product should be taken. After the collaboration between retailer and field trainer is made and the product is finely tuned, then it can be rolled out to Casey’s more than 2,500 stores.
Casey’s is aiming to change people’s perceptions about convenience store food, namely pizza. The best way to do that is to just have more people try the food, which is easier said than done.
In order to do that, Casey’s introduces unique LTOs and new menu items to drive customer engagement and loyalty.
Additionally, it leverages a unique advantage it has over some other QSRs — the ability to sell alcohol with pizza. Casey’s recently secured the copyright for the phrase “The Official Pizza and Beer Headquarters.”
“One thing that truly separates Casey’s is the convenience of ordering craveable, handmade pizza from a place where you can also buy fuel, groceries and, of course, beer. We are The Official Pizza and Beer Headquarters because we are the only leading pizza chain in the country where you can also purchase a wide variety of beer, wine and liquor options,” said Tom Brennan, chief merchandising officer at Casey’s.
Casey’s is known for its pizza being handmade and finely crafted. With pressure like that on your foodservice menu, the testing process before the launch of a new product must be extensive.
The chain has both an internal and an external sensory panel that test the products. Whether it is tested by employees or unbiased participants, the company certifies that the product will be enjoyed by the public.
Casey’s makes sure to serve each innovation to at least 150 guests before it is introduced to the menu. Sometimes the chain will make adjustments to recipes and varieties based on those opinions.
Meet The Competition
With AI on the rise and robots powering up the pizza kitchen, pizzerias and QSRs are upping the competition, and c-stores should be aware.
While AI overlords haven’t taken over kitchens yet, generative AI and natural language processing (NLP) — which, for example, powers chatbots and enables computers to understand and process orders at a drive-through — are on the verge of becoming indispensable for many QSR chains. But these technologies aren’t infallible. In a TikTok video posted earlier this year, two young women at a McDonald’s drive-through watched as the AI system kept adding more and more McNuggets orders to their total — tallying at least 26, for a cost of more than $325, before the video cut off.
You might assume Domino’s is leading the way in bringing AI to the pizza industry. After all, the chain’s executives have proclaimed that it is, first and foremost, a technology company. But, while Domino’s isn’t exactly lagging behind — it has been using DOM, an AI-powered ordering assistant bot, for years — other smaller brands have also been running point in this AI revolution.
Foremost among them: Jet’s Pizza, the Detroit-style chain headquartered in Sterling Heights, Mich., with about 440 locations in 23 states. Jet’s has reported that it has fulfilled more than 5 million orders with the OrderAI Text and OrderAI Talk systems from HungerRush. The text-to-order option began in 2019, and, as of July 2023, 4 million orders had gone through. Moreover, in December 2021, the brand started piloting OrderAI Talk, an AI-powered chatbot. It’s now available at 240 stores in 20 states and has already surpassed 1 million orders. In July, the company said it was earning $6 million per month using AI tech.
Aaron Nilsson, Jet’s chief information officer, noted at the time that AI has made employees’ jobs easier.
“OrderAI can take infinite phone calls, which is instrumental in getting employees off the phones and back into the fun part of the job — making delicious pizzas,” he said.
Nilsson added that Jet’s has “seen less turnover as work stress has been reduced. Technology has created a better work environment and, let’s be honest, it’s really fun for our customers to use.”
But Domino’s is very much in the AI game, too. In October, the brand announced a new five-year partnership with Microsoft. The goal is to develop a generative AI assistant that will streamline day-to-day managerial tasks, like inventory management, ingredient ordering and staff scheduling.
So what are AI’s potential applications for pizzeria operators?
“For marketing, AI can be used for personalized customer engagement,” said Bobby Lawson, publisher and technology editor at Earthweb, an online publication and resource discovery platform. “They can use AI to collect data about customer feedback, order history and preferences. They can then use this to create a more personalized marketing campaign and send emails with recommendations based on the customer’s order history and preferences.”
He added, “AI can make operations a smoother process if it’s used to optimize inventory management. With all the data that AI can collect, it will be able to track inventory levels. The AI system can then be trained to generate reorder points, assisting pizzerias in reducing food waste and ensuring they have the right stock on hand to create their customers’ favorite pizzas.”
Nilsson noted AI tools should no longer be considered optional for restaurant chains. “We see them as key competitive differentiators that position us as a market leader.”
Making Peace With Robots
Has 2023 seen an explosion of pizza robotics? Not really. But there have been a few interesting — and even surprising — developments, such as DiGiorno, the frozen pizza brand, testing a pizza vending machine at a Walmart in Colorado, and BRIX Holdings, which owns the RedBrick Pizza chain, undertaking a similar initiative with its new Pizza Jukebox concept at a Walmart in Frisco, Texas. Not so surprisingly, Columbus, Ohio-based Donatos Pizza — a longtime tech innovator under founder Jim Grote — also plans to open a “fully autonomous pizzeria” (i.e., a vending machine) in its hometown at some point in the not-so-distant future.
Making peace with robots will pay off for visionary pizzeria operators, noted Lee Kindell, owner of Moto Pizza with four stores in Seattle. He’s planning to incorporate robotics into his operations.
“It’s gonna take the outliers and risk-takers to get first to market, with a few flops along the way,” Kindell added. “Those who hold on and get to the finish line win. I hope to be one of them. Being early requires a lot of patience and tenacity to fine-tune these technologies to work to scale — and what a ride!”
Partnered Pizza
At Break Time c-stores, management decided that a co-branded partnership was the best way to launch its pizza program. Co-branded programs are easier to implement than a proprietary program, and they come with instant brand recognition and brand support, which can include help with marketing materials and training.
MFA Oil Co. operates more than 70 Break Time convenience stores across Missouri, with the majority of c-stores offering Hunt Brothers Pizza for customers. In addition to Hunt Brothers Pizza, Break Time also offers a variety of foodservice options at locations, including fresh breakfast sandwiches, ready-to-eat meals, Krispy Krunchy Chicken and Smokestack BAR.B.Q.
Break Time is one of many c-store retailers that is putting more and more of an emphasis on its foodservice program.
As the convenience industry continues to evolve, retailers will need to keep an eye on foodservice, making sure customers are satisfied and their menus are not stagnant. In order to truly compete with traditional QSRs, c-store retailers will need to continue to make a concerted effort to improve and build upon their foodservice menu.