The Emergence Convenience Foodservice Forum kicked off at the Hyatt Regency O’Hare in Rosemont, Ill., on April 9, drawing convenience store foodservice executives from across the country.
The conference began with a look at the changing c-store foodservice landscape. Tim Hand and Bruce Reinstein, partners with Kinetic12, began the forum with an overview of the opportunity for foodservice in convenience stores.
Hand pointed out that U.S. foodservice now represents more than 50% of the food dollar, making foodservice a logical area for convenience stores to pursue. It’s no surprise that foodservice is critically important to the success in the convenience store industry today. In fact, some say it’s the most important category, Hand explained. A Kinetic12 survey found that 94% of surveyed operators said foodservice in c-store was very important to long-term success.
For c-stores serious about competing on food, it’s critical to adapt their assortment for the modern consumer. That includes a focus on grab and go, healthier options, enhanced freshness and quality, ethnically/culturally relevant options and overall food safety and hygiene.
The benefits to investing in foodservice can be huge, including much higher margins compared to other areas of the c-store.
A Kinetic12 survey with c-store operators found that the No. 1 change retailers are planning to make is to increase grab-and-go options.
Hand also pointed out that today, customers are more likely to try c-store foodservice and less likely to consider it “gas station food.” To compete in today’s market, however, c-stores must provide excellent food, limited-time offerings, friendly staff and a clean store.
The Evolution of C-Store Foodservice
Kinetic12 Consultant Kim Letizia spoke on how c-stores are delivering convenience in a differentiated way. This includes being a one-stop shop, balancing quality product with speed of service and leveraging data and insights to be able to deliver on customer needs without them having to think about what they need, just to name a few.
A panel discussion featuring c-store retailers and suppliers shared some of the biggest shifts impacting c-store foodservice today, including a need for menu simplification, a focus on loyalty and rewards, finding solutions amid inflation and labor shortages, and becoming food-forward brands. C-stores are adapting to customer value concerns by highlighting their value offerings, so customers don’t have to find them on their own, listening to customer feedback and stocking vendor brands customers recognize. They’re also leading with loyalty offerings and combo deals and focusing on backend negotiations to avoid raising prices.
Retailers are also offering perks to appeal to employees as they continue to struggle with labor shortages.
After lunch, attendees participated in a workshop entitled, “Changing Customer Expectations” at their tables and shared insights with the group.
One-On-One With Allison Dean
In the afternoon, Allison Dean, executive director of NAG Convenience, shared thoughts on the future of c-store foodservice in a special one-on-one session with Kinetic12’s Reinstein.
“There’s a lot of opportunity,” she said, of c-store foodservice.
Dean shared some statistics from the recent “Understanding the Food-Focused Shopper” study, commissioned by NAG Convenience. The survey found that Gen-Z customers love convenience stores.
What this generation looks for most when purchasing food at a c-store are made-to-order offers and customization.
Family-owned chains are adapting to the world of foodservice. “What I see across the industry is that the family-owned companies are around three to four generations in by now and have a company brand and identity, and they’re focused on their community and who they are to their customers,” Dean said. “We’ve seen early foodservice adopters who were focused on, ‘What do our customers need from us right now?’”
On the labor front, Dean noted that a consistent food offer relies on training and supports your food safety efforts. A holistic hiring plan is essential.
“We see customers like Weigel’s, offering the option of the four-day work week. We see c-stores adding good referral programs. That referred employee coming on board has a good expectation of what that day-to-day looks like,” she said.
The conference continued with one-on-one roundtable connection meetings, where operators and suppliers had the opportunity for a series of 15-minute one-on-one conversations. An afternoon panel discussion and workshop delved into balancing driving revenue with managing costs in c-store foodservice.
The first day of the conference concluded with a supplier showcase and a reception. The Emergence Convenience Foodservice Forum continues through April 10.