Are you struggling to find a way to boost your bottom line? Taking a good, hard look at your hot and cold food selections may reveal clues to boost your numbers. New figures released but NACS in their 2022 State of the Industry survey shows a 14.3% increase in total food service sales, which includes prepared food, commissary, and dispensed beverages. Of those, prepared food shows the best results with an average sales of over a half million dollars per store for the year. If that got your interest, let’s delve further into 2023 trends for food service in C-stores.
In today’s fast-paced world, convenience stores have become more than just a pit stop for fuel or a quick snack. They are evolving into destinations where customers seek ready-made meal selections that are not only convenient but also delicious and nutritious. The demand for high-quality and affordable hot and cold food options is on the rise, presenting an opportunity for convenience store owners to grow their profitability and satisfy the changing needs of their customers.
Current Foodservice Purchasing Trends
Convenience store consumers have spoken, and the message is clear: they want ready-to-go and serve-yourself food options. According to a recent Convenience Store Consumer Study by AlixPartners, the majority of customers prefer grab-and-go beverages, baked goods, hot dogs, and prepackaged cold sandwiches, salads, and fruit trays. However, the landscape is changing, and customers are also expressing a growing interest in healthier food options. While convenience stores have not historically been associated with nutritious fare, many top-quartile chains are now prioritizing healthy food offerings to cater to this increasing demand. This trend highlights the need for convenience stores to offer a variety of options that cater to different dietary preferences, thus expanding their customer base.
A few other key findings from AlixPartners’ report include:
- 28% of participants listed food service as one of their top purchases from C-stores, yet 40% of respondents indicated they rely on C-stores mainly for snacking.
- 57% of participants indicated “ready-to-eat” as their top food service choice, while 29% favored “made-to-order.”
- 50% of participants said healthier choices are important to them, an increase from 46.5% the prior year.
Foodservice Profitability
These 2023 trends for food service in C-stores have many implications on the bottom line. The profitability of prepared meal selections at convenience stores depends on various factors, such as ingredient costs, labor, and equipment expenses. To maximize profits, many convenience stores are investing in higher-quality equipment equipped with precise digital temperature controls that keep food fresh for longer periods and reduce waste. By adopting these advancements, convenience store owners can enhance their profitability through reduced food waste and better preservation of food quality.
Moreover, offering high-quality food selections doesn’t just lead to reduced waste but also increases foot traffic and drives sales. It’s clear that food quality, price, speed, and menu variety are crucial factors influencing consumers’ decisions to purchase from a convenience store. By providing a diverse range of high-quality and affordable food options, convenience stores can attract more customers and increase sales. On the flip side, savvy C-store managers carefully analyze food service sales to refine menu selections so that best-sellers and highest profitability items are included while others are quickly discontinued.
GP Energy can help you analyze your food service profitability potential.
GP Energy works with convenience stores like yours across the country to implement programs that increase profitability and help owners meet their strategic goals. From rebranding an entire location to adding an energy-efficient car wash, our clients realize their full potential at current and new C-store locations. Give us a call to learn more about how GP Energy can transform your business.