CHICAGO -- As revenues from gasoline and tobacco products fall, foodservice sales are increasingly becoming convenience stores' most profitable category, said consulting firm Technomic in its new Market Intelligence Report: Convenience Stores.
C-store foodservice is an $11 billion industry and the second-largest retail host foodservice category behind supermarkets. The c-store segment comprises about 29% of retail foodservice and almost 2% of the total foodservice industry. Technomic projects that c-store foodservice will grow nominally by 2.5% over each of the next two years.
"Convenience stores have shifted their focus to provide a wider variety of fresh, high-quality food offerings to help gain a greater share of stomach and compete with restaurants," said Tim Powell, director of research and consulting services . "At the same time, there seems to be significant room for convenience-store operators to generate increased foodservice sales by translating existing traffic into purchases."
C-store chains are looking to better position themselves for continued growth in foodservice. Some chains are upgrading their facilities by integrating technology to enhance their offerings and the consumer experience. Differentiating themselves from the c-store crowd could better position them to compete with limited-service restaurants.
Chicago-based Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.