With a high demand for affordable, quality foodservice from Americans across the country, there currently is an opportunity for convenience store owners to provide a solution in their local community while turning a profit.
As grocery prices continue to rise, customers have become more inclined to eat out and are considering their local fast-food chains and convenience stores for an affordable meal. As of November 2024, overall food inflation was 2.4% year over year, according to the Bureau of Labor Statistics’ consumer price index. Grocery inflation has been trending higher in recent months, ticking up .5% month over month in January, compared to the 0.3% month-over-month pace recorded in December.
As customers continue to search for affordable options there has been an influx of fast food, with rapid expansions resulting in either a chicken or a hamburger spot on every corner.
According to Fortune Business Insights, the fast-food market size was $862.05 billion in 2020 and is projected to grow from $972.74 billion in 2021 to $1,467.04 billion by 2028.
In today’s extremely competitive and saturated foodservice market, it can be difficult for local convenience stores to stand out. Customers may choose fast food over their local c-store unless they know it offers familiar, affordable hot food options. Nationally branded foodservice programs can help local c-stores level up and compete with national chain c-stores, such as Kwik Trip and Buc-ees, as well as local fast food and fast casual chains.
Today, there lies an opportunity to capture more of the expanding on-the-go market. Recent trends showcase that shoppers are increasingly turning to c-stores on a regular basis for hot foods and rate them as on par with restaurants and as frequently having better pricing. In a time when customers are looking to lower their expenses, c-stores should capitalize on this audience belief.
According to a study conducted by the Acosta Group in 2023, higher-quality foodservice at c-stores is paying off in more frequent customer trips. Of roughly 1,300 consumers polled who had shopped in a c-store within the previous six months, 52% said they shop these stores once or more weekly. Furthermore, 30% reported making more trips to c-stores than they did last year.
When choosing a foodservice partner, opt for a well-known brand to reduce the burden of building customer awareness through marketing. Marketing is expensive and requires expertise that most convenience stores don’t have in-house.
Partnering with a generic foodservice provider that lacks marketing support can delay your return on investment, as you’ll have to rely solely on organic word of mouth to attract customers.
On the contrary, well-known brands come with a built-in customer base of loyal fans who already know and love the product. These customers already trust the brand, so there’s no need to sell them on the menu. Simple forecourt marketing and signage for known brands can go a long way in increasing customer awareness.
Most national brands also provide marketing support beyond this, helping ease the burden of the c-stores.
Similarly, partnering with a branded program requires a smaller labor investment from the convenience store. An established brand already has systems and processes in place. They handle program operational details before launching in your store. Choosing a national brand that requires no additional labor and provides training upfront can be beneficial for c-stores.
In summary, there is an incredible opportunity right now for convenience stores to capitalize on the current market and customer demand for easy, affordable food. More customers are turning to convenience stores for affordable food. Partnering with a national brand boosts profitability and delivers fast return on investment thanks to built-in brand awareness.
Dee Cleveland currently serves as the director of marketing at Hunt Brothers Pizza, after joining the company in 2015. Cleveland boasts over 30 years of marketing experience in the restaurant industry, beginning her career at Olive Garden in 1992 and subsequently holding a variety of marketing positions across Darden Restaurants, Quantified Marketing Group, Longhorn Steakhouse, Denny’s, Cracker Barrel and American Blue Ribbons Holdings LLC.
