Delivering C-Store Foodservice Success

In the concurrent session The Role Distributors Must Play in Delivering C-Store Foodservice Success, Tim Powell, Technomic, said that value does not mean just low prices.

Photo 2011 © Gary Michael www.exposuresltd.com

No longer is the typical c-store customer “Bubba,” the guy who stops by every day for his smokes or a can of Skoal. Instead, increasing numbers of consumers are looking for good tasting, healthy and convenient foods to satisfy their fast-paced on-the-go lifestyles.

Thursday morning, Tim Powell, director of consulting at Technomic, led a breakout discussion in which he offered guidance for distributors to help retailer customers capture today’s more demanding consumer.

According to Technomic data presented by Powell, more than 80% of shoppers surveyed said they base their c-store foodservice purchases on taste, freshness, and quality, followed by appearance of the food and expiration dates. Having an on-site bakery or kitchen was appealing to 55% of shoppers, while 40% said an offsite facility is satisfactory.

As c-stores seek to meet these consumer preferences, Powell said, many have become similar to fast-casual dining outlets, providing a “coffee house feel” in an effort to draw new customers into the store. Nevertheless, portable foods remain the most popular, he noted, with the most frequently purchased breakfast items continuing to be donuts, muffins, bagels, and made-to-order sandwiches or wraps.

According to Powell, when consumers were asked what would prompt them to purchase more foodservice items from c-stores, higher quality foods topped the list, closely followed by better overall value, healthier options, and more affordable prices. Food that tastes better was also important to many respondents.

Value is more than just low prices, Powell said, stressing that low prices are not sustainable. “Operators must be creative as we move out of the recession and focus on other drivers such as service, convenience, atmosphere, and quality. Value equals price plus these other factors,” he advised.

Combo meals and promotional discounts were the most popular among consumers seeking value, Powell reported. Coupons were also listed by about 28% of those surveyed.

Powell discussed numerous ways distributors can help retailers maximize sales and profits within specific categories, such as hot and cold beverages, snacks, and ethnic offerings. He also discussed the growth of private label products in c-stores and the role that they play.

While some c-store retailers can expand their footprint and offer a wider range of products and a more upscale feel, many are unable to do that. So Powell discussed strategies that can be implemented, stressing the importance of keeping food safe, maximizing the use of equipment in the décor, and using employees as in-store marketers.

The future is bright for c-store foodservice, according to Powell, who predicted that c-store foodservice will average 3.4% from 2011 through 2015 compared to 3% for foodservice overall during that same period.

Powell advised distributors to work closely with retailer customers and to develop easy-to-implement, turn-key solutions that will satisfy customers’ needs. Take advantage of the expertise of suppliers, he advised, as they are “well-versed” in the industry and can offer valuable assistance.