As foodservice solidifies its role as a major growth driver for the c-store industry, retailers are navigating a host of challenges in maximizing the opportunity.
Rising labor and food costs, according to Datassential’s Q3 C-Store Quarterly Tracker, are the main concerns for retailers, with 59% of respondents saying that these were their top operational challenges. This was followed by customers reducing how much they spend per visit (41%), retaining current staff (35%) and labor recruitment (29%).
To combat these challenges, retailers are shifting their focus towards improving their labor and staffing situation, with 53% of respondents noting that this is the initiative they are prioritizing the most this month. Reducing monthly business expenses was the second priority (41%), followed by improving employee skills and capabilities (29%), increasing the average check (29%) and increasing top line revenue (24%).
This shifting foodservice landscape has forced retailers to increasingly consider the value proposition, with 47% reporting that they have implemented value-focused strategies in the past month. Twenty-nine percent noted that they have raised menu prices and launched limited-time offers (LTOs), while 18% noted that they have reduced their menu size.
Notably, 24% of respondents mentioned that they had reduced seating capacity in their stores.
Datassential’s report surveyed 1,518 “gen pop” U.S. consumers and 445 foodservice decision makers, 17 of whom operate convenience stores. It explores a range of macro factors including consumer financial health, spending confidence, price sensitivity, saving strategies and more.
Click HERE to download the full report.
