An otherwise tough year for convenience stores was balanced out by strong retail fuel margins from the unprecedented drop in wholesale fuels prices during the fourth quarter of 2008, according to National Association of Convenience Stores’ (NACS) 2009 State of the Industry report. However, credit card fees continue to take a toll on industry profitability.…

The U.S. refreshment beverage market contracted by 2% in 2008, according to Beverage Marketing Corp., making last year the first volume downturn on record. Nonetheless, beverages still performed better than many other industries, such as automobiles and the financial sector. Several beverage types continued to shine, including carbonated soft drinks in many parts of the…

Convenience retailers are increasing their share of healthy, fresh food sales, according to industry observers, who noted convenience outlets and big boxes are also gaining share at the expense of grocery stores. Though fresh and prepared foods offer high margin rings, c-store retailers should be certain they are truly ready to do food preparation before…

Once again, cigarettes dominated in-store sales, accounting for nearly one in every three dollars spent in stores, but cigarette gross margins continued to plummet, falling to 15.3%. These low cigarette margins dropped the category to third in terms of gross margin contribution (16%) behind foodservice (23.9%) and packaged beverages (16.6%) Margins promise to continue falling…

Convenience store operators need to focus on meeting consumer demand for a quality cup of coffee as McDonald’s, Dunkin’ Donuts, Starbucks and Caribou all announced plans to step up their brew programs to reel in consumers during a tough economy. About 54% of the adult population in the U.S. classify themselves as coffee consumers, according…

Despite the SCHIP bill and mounting state taxes, smokeless tobacco products have experienced a strong year packed with innovation, new flavors and increased consumer demand. According to the NACS 2009 State of the Industry report, smokeless tobacco sales surged 6.1% to $2.96 billion last year. The average c-store totaled $1,703 per month in smokeless sales…

The cold frozen dispensed category is undergoing some major changes these days, with many c-stores adding milkshakes and even energy slushees to their offerings. The additions continue to make the cold and frozen dispensed category one of the hottest in the convenience store industry. “We’ve had great success with using energy drinks like Monster, Rock…

Convenience store operators in search of faster cooking times and longer holding times are finding foodservice equipment that can help. But which pieces, at what price points, with what sort of ROIs and in what sort of configuration remain questions that must be weighed and answered. For an industry whose core competency isn’t food, and…

Did You Know? Data released by the National Coffee Association shows the market penetration for coffee has surpassed that of soft drinks, reversing a 20-year pattern. Fifty-seven percent of American adults drink coffee daily versus 51% for soft drinks. Coffee drinking among 18-24 year-olds also jumped 6%, the fourth year in a row for such…

Tough times call for creative measures. The stagnant economy and hefty cigarette taxes have more c-store chains expanding their foodservice segments and adding more roller grill items to provide a greater array of hot food options at a value price to sustain loyal customers. “Customers automatically associate c-stores and roller grills. It’s been a source…