Year over year, convenience stores up their competitiveness in the retail market with refreshed store designs, new technology and, noticeably, expanded foodservice programs. C-stores have branched out from the typical roller grill fare of years past.
Now, customers can find different takes on the chicken sandwich, a plethora of pizza flavors, Hispanic options and even healthier meals at convenience stores.
This year is bound to see even more foodservice growth and innovation at convenience stores as retailers cater to emerging trends and try to set themselves apart.
Made-to-Order Meets C-Stores
One direction some retailers are taking is the made-to-order (MTO) foodservice option, which is showing up more frequently on c-store menu boards.
In fact, 66% of customers either agree or completely agree with the statement, “I wish I could get MTO food from a convenience store,” according to FoodserviceResults’ June 2023 foodservice consumer study “Understanding the Food-Focused C-Store Shopper,” commissioned by NAG Convenience and completed by 2,002 respondents who had purchased various foodservice, packaged food and/or beverage items in the last 60 days.
Seventy-two percent of those wanting MTO food from a c-store are members of Gen Z, a demographic many retailers aim to connect with as c-stores move forward into the future.
Tri Star Energy’s Twice Daily, which operates 82 locations in Tennessee, Alabama and Kentucky, with White Bison Coffee at 21 sites, recently launched an MTO menu in the second half of 2023.
“Twice Daily stores offer a variety of items through our MTO menu, such as subs, breakfast sandwiches and snacks,” said Twice Daily’s Rachel Saddler, category manager for food service. “The MTO program also allows guests to customize as they wish through the self-ordering kiosk.”
Currently, the chain’s top-selling foodservice items are its breakfast sandwiches, but the addition of the MTO program has already sparked growth in foodservice sales beyond the morning daypart.
“(For 2024), with the extended hours of the MTO menu, I expect to see more growth of inside sales in the later dayparts, such as late afternoon and early evening,” Saddler noted. Learn more about Twice Daily’s new MTO menu on p. 26.
Clifford Fuel Co.’s Cliff’s Local Market has also incorporated an MTO menu into its foodservice program.
“Our program is fairly robust,” said Derek Thurston, director of foodservice operations for Cliff’s Local Market, which operates 21 locations in New York. “We do a large MTO sub bar area where we’ll do wraps, melts, subs and salads in addition to where we’ll prepare all our grab-and-go items.”
Grab-and-go items include sandwiches, wraps, salads, yogurt parfaits, pudding parfaits, fruit cups, grape-and-cheese cups, pepperoni-and-cheese cups and more.
Additionally, the chain offers MTO whole pizzas to its customers, as well as individual slices.
Possibilities for Chicken and Pizza
As c-stores debate which items to put on their menus, one option that many don’t need to question is pizza.
Ordering a slice of pizza is a quick and easy solution for a hungry customer on the go, and customers are taking advantage of the option when they can.
Eighteen percent of customers purchase pizza from a c-store multiple times a week, and 8% purchase c-store pizza every day, according to the FoodserviceResults study.
One of the c-store chains where customers can purchase pizza is Twice Daily.
“A top trend that I’m seeing is proprietary pizza programs and menu offerings,” noted Saddler. “We currently offer a premium personal-sized pizza that our guests can order with their choice of additional toppings.”
At Cliff’s, the top-selling pizza flavor is a pepperoni-topped slice, followed by Buffalo Chicken, Chicken Bacon Ranch and Classic Cheese.
However, Cliff’s offers other varieties such as Carolina Gold and matches limited-time offers (LTO) with pizza options.
“Earlier in (2023) we did a chorizo LTO where we did some chorizo breakfast burritos that performed very well. And then we also did Chorizo Breakfast Pizzas since we had the chorizo already in the building, and that also performed very well,” explained Thurston.
In addition to typical pizza flavors, Cliff’s customers can purchase breakfast pizzas, which are among the chain’s top-selling foodservice items.
The majority of Cliff’s pizza business is slices, but in a few stores, such as those in more rural areas where Cliff’s might be the primary pizza location in the area, whole pies are popular.
At Lansing, Mich.-based Quality Dairy Co., which operates 26 sites in Michigan, the larger focus for 2024 is starting its own fried chicken program.
“We’re really diving into a proprietary fried chicken program that’s going to be bone in (and) boneless that will initially start as an LTO, but I’m very confident it’ll become something that will be much more,” said Michael Wensel, fresh food category manager for Quality Dairy.
The new program will cater to the steadily growing popularity of heat-and-sweet flavors with spicy chicken paired with Mike’s Hot Honey. Turning the chicken into a sandwich offering and crafting heat-and-sweet baskets are potentials for the program, as well as using it to create a barbecue chicken pizza.
The chicken program would offer additional menu options to the chain’s traditional items and more “eclectic” food, such as bacon, cheddar and chive potato kegs, and its variety of doughnut concepts.
Quality Dairy is not the only c-store chain investing in chicken, however.
Global Partners, operating 400 sites in eight states under brand names including Alltown Fresh, XtraMart and more, with 250-plus locations offering a proprietary foodservice program, is also focusing on this staple.
“We are recognizing the opportunity to meet the growing consumer interest in high-quality, on-the-go dining options, and chicken sandwiches have become a focal point of this evolution,” said Joy Almekies, senior director of food services, Global Partners.
Global customers can choose to purchase the chain’s own take on the chicken sandwich, among other options.
“As the demand for convenient dining options continues to grow, it’s clear that the marriage of the chicken sandwich trend with the convenience store experience is a natural and successful combination that is here to stay,” Almekies continued.
In addition to the chicken sandwich, Nashville hot chicken is a growing trend for the segment, and Twice Daily has found its Nashville Hot Chicken Sub to be a top-selling item. Its Chicken Waffle Sandwich, too, performs well, and Twice Daily plans to expand its chicken menu to include chicken tenders soon.
International Flavor Opportunities
Datassential’s Stephen Davis, research and insights manager, noted that nearly two-fifths of consumers are interested in global flavors and options without artificial colors or flavors, based on the company’s 2023 C-Store Segment Guide.
That being said, he observed they aren’t as likely to be willing to pay more for these dishes.
Still, in an effort to appeal to broad flavor profiles, many c-stores are adding international cuisine to their menus.
“In response to the burgeoning interest in global flavors and culinary diversity, convenience stores have embraced the trend of offering a more extensive range of international and gourmet food options,” said Almekies. “Customers can now indulge in an assortment of ethnic cuisines, artisanal snacks and premium grab-and-go meals that reflect a rich tapestry of flavors from around the world.”
Global Partners, for example, has empanadas on the menu, as well as tacos and quesadillas.
“This trend not only caters to the adventurous palates of consumers but also underscores our commitment to providing an elevated and culturally diverse dining experience,” Almekies continued.
Twice Daily, too, offers empanadas, which are customer favorites, according to Saddler, as well as burritos.
Quality Dairy has also embraced this trend with its chorizo doughnut breakfast sandwich.
“We’re known in the Lansing area for our doughnuts. We make them every day. They go out to every one of our stores every single day fresh. They’re amazing,” Wensel shared.
The chorizo doughnut breakfast sandwich is a sliced plain cake doughnut bookending a chorizo patty with cheddar cheese and a cracked black pepper egg. The item is another way in which Quality Dairy embraces the trending heat-and-sweet flavor combination.
In addition to Spanish-inspired food, Quality Dairy also plans to expand into Indian food, as more people are showing interest in the cuisine.
“Samosas are going to be in our stores very shortly and probably a couple of different curry-style dishes or tandoori dishes because we’re getting asked about that more and more often,” noted Wensel.
In fact, Davis recommended offering Asian-inspired flavors and dishes — as well as retro beverages — to increase food quality perceptions.
Thurston, too, has noticed the escalating popularity of international flavors and spices, particularly Hispanic flavorings, and Cliff’s has decided to offer a Chamoy dipping sauce with pineapple, mango and cantaloupe.
“It’s kind of sweet and sour and spicy and salty,” explained Thurston.
Thurston also sees Tajin, a seasoning in Hispanic culture that is often paired with fruit, continuing to trend.
Health Considerations
“One prominent trend that has gained traction in 2024 is the expansion of healthier and more nutritious food options within convenience stores,” said Almekies.
Global Partners, in recognition of this budding health-conscious segment, has expanded its menu with salads, fruit cups, organic snacks and protein-packed grab-and-go items.
“By prioritizing nutritional quality and transparency we are empowering consumers to make informed decisions about their dietary intake while on the move,” Almekies remarked further.
She noted that Global Partners has been proactive in partnering with reputable suppliers and brands as nutritional quality standards evolve. The chain provides a selection for specific diets, such as those who are vegan and gluten free.
Additionally, Global Partners shares nutritional information for its healthier offerings.
“With an array of nutritious, convenient and delectable options, Global is well positioned to play a pivotal role in promoting and supporting healthier lifestyles within our communities,” said Almekies.
Twice Daily also has fruit cups and salads on offer through its cold and fresh deli cases. Although they aren’t the best-selling items, Saddler noted they’re a great option for those looking for something healthier to eat.
One of the goals Twice Daily has for 2024 is adding healthier items to its MTO menu.
Quality Dairy, in addition to salads and other deli items, is serving quinoa bowls to appeal to those who have specific diets or want a healthier option.
“Unfortunately, you can’t make one thing that’s going to fit (every dietary preference), but we’re constantly building a repertoire of items that encourage customers that may not see something that they traditionally like right away in our stores and entice them to come and visit, because we are putting out new things all the time,” said Wensel.
“Ultimately, the expansion of healthier choices in convenience stores reflects a commitment to meeting the evolving needs of today’s discerning consumers,” Almekies stated.
Thinking of Technology
Curating the menu and cooking the food does not complete the entirety of foodservice operations.
Establishing how the customer orders the food and how they receive it is also important.
“Integrating technology, such as mobile ordering, contactless payment options and loyalty programs, can enhance the customer experience and streamline operations,” said Almekies.
Thirty-six percent of people would make a purchase from a c-store more frequently if delivery were offered, according to the FoodserviceResults report.
Cliff’s is already taking advantage of the benefits of this by partnering with Vroom Delivery.
“We’re seeing an additional probably 100 Vroom customers a month as we continue to go with it, with pizzas, breakfast pizzas and whole subs being our top items on Vroom,” said Thurston.
Quality Dairy also partners with Vroom to deliver items to its customers, and it has its own QD Express delivery as well.
In addition to delivery, Quality Dairy installed new Anthem pumps with interactive screens that, as of December 2023, allow customers to order fresh food right at the dispenser. Employees then deliver the food to customers at the pump.
Moreover, Quality Dairy has a few locations with drive-through and has found this method of ordering and receiving to be successful. Customers can either order at the drive-through or order on the mobile app and pick their food up at the drive-through.
“One of the benefits of having that drive-through, specifically for us, is not only do we have a drive-through on one side of the building, but we have a walk-up window as well,” said Wensel.
Customers can purchase ice cream and desserts at the walk-up window and pick up additional hot foods and groceries from the drive-through window.
Twice Daily, although it doesn’t currently offer delivery, has mobile ordering as well as drive-through at most of its White Bison Coffee locations.
Aside from delivery, drive-through and mobile ordering, c-stores are utilizing loyalty programs to market to their foodservice customers.
“Marketing and loyalty programs are driving sales and foodservice by fostering strong customer engagement, building brand loyalty and incentivizing repeat business,” said Almekies. “Through targeted marketing efforts, we effectively promote our foodservice offerings, create awareness about new menu items and communicate special promotions to attract customers.”
Datassential’s Davis noted that customers are most motivated by coupons, deals, discounts and loyalty programs.
“Utilizing these tools to advertise and push options consumers are willing to pay more for could be a way for operators to increase traffic and profits,” he said.
Staffing and Other Challenges
Like any endeavor, operating a foodservice program doesn’t come without its challenges. The bane of many retailers for years now — staffing — is one of them, especially as training foodservice employees becomes more specialized.
“Finding and retaining skilled and reliable foodservice staff can be a significant challenge,” stated Almekies. “It’s crucial to recruit individuals with culinary expertise, food safety knowledge and a strong commitment to providing exceptional customer service. Additionally, managing staffing levels to accommodate fluctuating customer traffic while ensuring optimal productivity is an ongoing balancing act.”
Quality Dairy’s Wensel agreed that the challenge of staffing is “the nature of the beast right now.”
Cliff’s Thurston, too, finds hiring to be a hurdle.
“It’s a high-turnover industry. So I’d say labor is my biggest challenge to foodservice because foodservice is more labor intensive,” he said. “If you’re going to be making food, you need people to do it. Robots can’t make a sandwich yet. (It’s also) finding that skilled labor who will also be friendly to your customers.”
Staffing is not the only issue for which c-store foodservice operators need to find solutions. For Twice Daily, organizing the kitchen space can be difficult.
Saddler noted that some Twice Daily stores have smaller footprints, and a big challenge is determining how best to manage and rearrange the kitchen space appropriately for these stores.
Working in smaller kitchen spaces is a feat Almekies, too, agreed can be challenging, particularly maintaining food safety and quality standards while dealing with high traffic.
“Ensuring proper food handling, storage and preparation practices is essential to upholding the integrity of our offerings and safeguarding the health of our patrons,” she said.
Maintaining these practices involves guaranteeing employees are properly trained, which Almekies noted can be time consuming and resource intensive.
Beyond staffing and spacing, one challenge c-stores should always keep in mind is customer perception — an ongoing task for marketing teams.
However, this challenge can over time become an important opportunity.
“When I came on board with the company I’m working at now, I had a vision,” said Wensel. “I still have a vision of how to transform what people’s initial reaction to convenience store food is. … I want (the c-store) to become a destination. And so bucking that stigma of, ‘oh, it’s just c-store food’ is very important. And I see that being a challenge, but something that we can attain.”
Once more customers start associating convenience stores with fresh, quality food, retailers can make their stores foodservice destinations.
Opportunities for Growth
Despite any potential challenges, the possibility for advancement through foodservice is high.
A greater assortment of fresh food would motivate 36% of people to visit or make a purchase from a c-store more frequently, based on the FoodserviceResults report.
And, a customer stopping inside the store for food is likely to make an impulse purchase as well, such as a candy bar, a bag of chips or a pack of gum.
“(Foodservice) differentiates you from some of the other retail businesses out there that we are competing against,” said Thurston.
Additionally, c-store foodservice offers convenience.
“Consumers are increasingly looking for convenient, on-the-go meal and snack solutions, and convenience stores are well positioned to meet this demand,” Almekies said.
Together with convenience, c-stores can provide quality meals, as well.
Global Partners maintains relationships with local suppliers to help deliver quality and authenticity, Almekies stated, and the chain promotes sustainable packaging and eco-friendly practices, also.
Almekies noted this appeals to environmentally conscious consumers and adds to a positive brand image.
For Wensel, one opportunity lies in take-home meals, particularly for customers who rely on electronic benefit transfer (EBT).
“After I fry (chicken) and I package it, I cool it down, and now it’s a take-home meal. Now it is EBT eligible. And so (I try) finding ways … to help all of our clientele, not just the ones that can afford it, the ones that need to be able to afford it,” he said.
Additionally, he believes the opportunity for customer service is paramount.
“If you’re not treated very well, if there’s no real customer service, most people aren’t going to go back,” he said.
Foodservice gives employees a different way to interact with customers, and good impressions can lead to repeat visits, which allow customers the chance to try new menu items.
“By capitalizing on these opportunities and staying attuned to evolving consumer preferences, stores can enhance their foodservice offerings and attract a broader customer base,” Almekies said.