Competition in the foodservice industry continues to grow as grocery and convenience stores add value meals to try and expand their customer base. With 75 per cent of consumers skipping meals in favour of snacks, there is an opportunity for convenience stores to grow their market share by targeting these customers.
According to Food Business News, foodservice sales account for about 25 per cent of all in-store revenues for convenience, and more than a third of the in-store gross margins. As fast-food shifts to accommodate consumer spending habits, convenience stores are also evolving their models to attract value-minded customers. With consumers watching their spending more and looking for added value from their favourite restaurants, some convenience stores are working to address this need in the marketplace.
Circle K recently launched a line of bargain meals priced from $3 to $5, including meals like a hot dog or taquito, plus chips and a 20-ounce soda. They also offer breakfast combos with sandwiches, a hashbrown patty, and either a 16-ounce energy drink or a coffee. At the top end of this price range, the meal includes two pizza slices or a personal-sized pizza with a 20-ounce soda.
Many convenience stores are getting serious about adopting practices that make them more competitive with restaurants, with 26 per cent of convenience store operators planning to increase their LTO offerings this year to be able to offer unique items and seasonal features.
As restaurant trends evolve, many convenience stores are focused on shifting dining habits, as they update their menus with seasonal toppings and fresh, high-quality ingredients. Following a top restaurant trend this year, 37 per cent of convenience store operators plan to add global flavours to their menu items.
From value menus to top trends to fresh ingredients, many convenience stores are making their way into the fast-food market, providing growing competition for restaurant operators. The average convenience store customer visits more than three times per week, offering many opportunities for food sales. Restaurant operators that want to stay ahead will need to focus on value, convenience, an elevated experience, and encouraging repeat visits from their guests.
