Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Convenience Store Foodservice - US - March 2012

While convenience stores have offered fresh, prepared foods for years, it’s only over the last decade that the trend has accelerated. Today, convenience stores are capturing more dashboard-dining occasions, delivering the benefits of quick, easily accessible, one-stop shopping. Industry players have sought to increase consumer awareness and trust for c-store foodservice by partnering with restaurant brands, developing private label brands, and upgrading food/drink quality. Such efforts have contributed to 26% growth in convenience store foodservice sales from 2006-11, with sales reaching nearly $24 billion in 2011.

This report seeks to provide insight and opportunities to help convenience store operators successfully compete and grow in the foodservice category. To that end, Mintel presents analysis of the convenience store foodservice marketplace, underscored by proprietary research featuring consumer attitudes and behaviors toward c-store foodservice:

  • the effects of limited disposable personal income, lower median incomes, as well as unemployment and underemployment on consumer confidence, and in turn, foodservice sales
  • the influence of fuel prices on convenience store usage and foodservice purchases
  • the impact of population shifts by age and Hispanic origin on c-store foodservice usage
  • competitive position of convenience store foodservice in the restaurant industry
  • brand analysis of four convenience store chains, as well as an assessment of overall industry competition and brand usage by c-store foodservice users
  • strategic marketing efforts to promote convenience store foodservice platforms, and insight into marketing efforts deemed most effective by c-store foodservice users
  • an overview of acceptance for convenience store foodservice, including reasons why consumers don’t buy food/drink from these outlets
  • analysis of convenience store usage by foodservice items ordered, time of day, and spending
  • reasons that drive consumers to buy foodservice items from convenience stores.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Consumer survey data
            • Advertising creative
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                    • Overview
                      • C-stores are well-positioned to compete within restaurant industry
                        • Rising fuel costs can have negative implications for foodservice purchases
                          • Usage of c-store foodservice impacted by demographic population shifts
                            • Convenience store brand leaders
                              • Marketing strategies: Industry applications
                                • Effective marketing strategies: Consumer perspective
                                  • Widespread usage of convenience store foodservice
                                    • Beverages are the most commonly ordered foodservice items
                                      • C-store foodservice is purchased throughout the day
                                        • Average spend per visit is high for c-store foodservice items
                                          • Purchases of c-store foodservice driven by convenience attributes
                                            • Convenience store foodservice users praise progress in variety/quality
                                            • Insights and Opportunities

                                              • Foodservice brand innovation can expand category
                                                • Proprietary brands
                                                  • Brand alignment
                                                    • Daypart expansion
                                                      • Lunchtime
                                                        • It’s always time for a snack
                                                        • Inspire Insights

                                                            • Trend: “A Simple Balance for Health”
                                                              • Trend: “Carnivore, Herbivore...Locavore”
                                                              • Market Size

                                                                • Key points
                                                                  • Expanding the scope of convenience store foodservice
                                                                      • Figure 1: Total U.S. convenience store foodservice sales, at current prices, 2006-16
                                                                      • Figure 2: Total U.S. convenience store foodservice sales, at inflation-adjusted prices, 2006-16
                                                                    • Fan chart forecast
                                                                        • Figure 3: Fan chart of market value for convenience store foodservice sales, at current prices, 2006-16
                                                                    • Market Drivers

                                                                      • Restaurant sales slow to recover
                                                                        • Figure 4: U.S. restaurant sales, at inflation-adjusted prices, 2006-16
                                                                        • Figure 5: NRA performance indices, January 2009-November 2011
                                                                      • The consumer confidence rollercoaster
                                                                          • Figure 6: Real personal disposable income, January 2007-December 2011
                                                                          • Figure 7: Median household income in inflation-adjusted dollars, 2000-10
                                                                          • Figure 8: Unemployment and underemployment rates, January 2007-December 2011
                                                                          • Figure 9: Consumer Sentiment Index, March 2007-January 2012
                                                                        • Gasoline prices impact convenience store usage
                                                                            • Figure 10: U.S. regular gasoline prices, February 2012
                                                                          • Young age groups are important to market
                                                                              • Figure 11: Population, by age, 2006-16
                                                                            • Hispanic consumers are highly engaged c-store users
                                                                              • Figure 12: Population, by Hispanic origin, 2006-16
                                                                          • Competitive Context

                                                                            • Overview
                                                                              • Limited-service operators sell convenient food choices
                                                                                • C-store challenge: Prep and packaging
                                                                                  • C-store challenge: Quality
                                                                                    • C-store challenge: Menu variety and value
                                                                                      • Figure 13: Top 20 QSR menu items by incidence, Q4 2009-Q4 2011
                                                                                      • Figure 14: Top 20 QSR menu items by average price, Q4 2009-Q4 2011
                                                                                      • Figure 15: Top 10 QSR beverage menu items by incidence, Q4 2009-Q4 2011
                                                                                  • Convenience Store Foodservice Brand Usage

                                                                                    • Key points
                                                                                      • C-store market is highly fragmented
                                                                                        • Figure 16: Top 20 convenience store companies by store count, May 2011
                                                                                      • Foodservice usage among c-store brands is scattered
                                                                                        • Figure 17: Convenience store foodservice brand usage, November 2011
                                                                                      • Brand loyalty is strong among Wawa visitors
                                                                                        • Figure 18: Convenience store foodservice brand usage, November 2011
                                                                                    • Brand Analysis—7-Eleven

                                                                                      • Overview
                                                                                        • Performance summary
                                                                                          • Growth strategy
                                                                                            • Focus on foodservice
                                                                                              • 7-Eleven’s most frequent foodservice purchasers are aged 45-54
                                                                                                • Figure 19: 7-Eleven foodservice usage, by age, November 2011
                                                                                              • 7-Eleven marketing strategies
                                                                                                • Figure 20: Effective promotional strategies, by 7-Eleven users, November 2011
                                                                                            • Brand Analysis—Circle K

                                                                                              • Overview
                                                                                                • Performance summary
                                                                                                  • Building a network
                                                                                                    • Men are more likely users of Circle K foodservice
                                                                                                      • Figure 21: Circle K foodservice usage, by gender, November 2011
                                                                                                    • Circle K marketing strategies
                                                                                                      • Figure 22: Effective promotional strategies, by Circle K users, November 2011
                                                                                                  • Brand Analysis—Wawa

                                                                                                    • Overview
                                                                                                      • Performance summary
                                                                                                        • Focus on efficiency and service
                                                                                                          • Wawa attracts frequent users
                                                                                                            • Figure 23: Wawa foodservice usage, November 2011
                                                                                                          • Wawa marketing strategies
                                                                                                            • Figure 24: Effective promotional strategies, by Wawa users, November 2011
                                                                                                        • Brand Analysis—Sheetz

                                                                                                          • Overview
                                                                                                            • Performance summary
                                                                                                              • Customer service is key
                                                                                                                • Industry hybrid—c-store and limited-service restaurant
                                                                                                                  • Sheetz brand loyalists
                                                                                                                    • Figure 25: Sheetz foodservice usage, November 2011
                                                                                                                  • Sheetz marketing strategies
                                                                                                                      • Figure 26: Effective promotional strategies, by Sheetz users, November 2011
                                                                                                                  • Marketing Strategies

                                                                                                                    • Overview
                                                                                                                      • Television ads
                                                                                                                        • Daypart promotion
                                                                                                                          • Figure 27: 7-Eleven TV ad, We deliver More for Breakfast, July-August 2011
                                                                                                                          • Figure 28: 7-Eleven TV ad, Live Action Role Play, July-October 2011
                                                                                                                        • Specific product promotions
                                                                                                                          • Figure 29: ampm TV ad, All Mine, May-July 2011
                                                                                                                          • Figure 30: Casey’s General Store TV ad, Pizza Parlor in Town, September 2011-January 2012
                                                                                                                          • Figure 31: Circle K TV ad, On the Go, October 2011-January 2012
                                                                                                                        • Regional television
                                                                                                                          • Figure 32: Stop In Food Stores TV ad, Quality Stop, September 2011
                                                                                                                        • Digital marketing
                                                                                                                          • Casey’s General Store—integrating social media
                                                                                                                            • Figure 33: Casey’s General Store home page, February 2012
                                                                                                                            • Figure 34: Casey’s General Store Facebook page, February 2012
                                                                                                                          • Social media
                                                                                                                            • Mobile apps
                                                                                                                              • Billboards going digital
                                                                                                                              • Effective Promotional Strategies

                                                                                                                                • Key points
                                                                                                                                  • Reward cards and coupons by mail most effective marketing tools
                                                                                                                                    • Figure 35: Tedeschi Food Shops home page, February 2012
                                                                                                                                    • Figure 36: Effective promotional strategies, November 2011
                                                                                                                                  • Coupons are an effective strategy to target women
                                                                                                                                    • Figure 37: Effective promotional strategies, by gender, November 2011
                                                                                                                                  • C-stores’ core audience receptive to digital marketing efforts
                                                                                                                                      • Figure 38: Effective promotional strategies, by age, November 2011
                                                                                                                                    • Television and billboards effective in reaching young men
                                                                                                                                      • Figure 39: Effective promotional strategies, by gender and age, November 2011
                                                                                                                                    • Evening c-store users are more receptive to a variety of marketing strategies
                                                                                                                                      • Figure 40: Effective promotional strategies by time of day to visit convenience stores to buy foodservice items, November 2011
                                                                                                                                  • Convenience Store Foodservice Usage

                                                                                                                                    • Key points
                                                                                                                                      • Convenience store foodservice usage is far reaching
                                                                                                                                        • Figure 41: Convenience store foodservice usage, November 2011
                                                                                                                                      • Consumers younger than 35 key c-store foodservice patrons
                                                                                                                                        • Figure 42: Convenience store foodservice usage, by age, November 2011
                                                                                                                                      • Men aged 18-34 have highest incidence for usage of c-store foodservice
                                                                                                                                        • Figure 43: Convenience store foodservice usage, by gender and age, November 2011
                                                                                                                                      • Convenience store foodservice users visit often
                                                                                                                                        • Figure 44: Convenience store foodservice usage in past month, November 2011
                                                                                                                                      • Convenience store foodservice is not top-of-mind choice
                                                                                                                                        • Figure 45: Reasons for not ordering food at convenience stores, November 2011
                                                                                                                                      • Getting older customers in the door
                                                                                                                                        • Figure 46: Reasons for not ordering food at convenience stores, by age, November 2011
                                                                                                                                    • Popular Convenience Store Foodservice Items

                                                                                                                                      • Key points
                                                                                                                                        • Fountain beverages most frequently ordered item at c-stores
                                                                                                                                            • Figure 47: Frequency of foodservice items ordered from convenience stores, November 2011
                                                                                                                                          • Men more likely to order hot food items
                                                                                                                                              • Figure 48: Foodservice items ordered from convenience stores, by gender, November 2011
                                                                                                                                            • Young respondents more likely to order a range of foodservice items
                                                                                                                                              • Figure 49: Foodservice items ordered from convenience stores, by age, November 2011
                                                                                                                                            • Part-time and self-employed workers more apt to order foodservice items
                                                                                                                                              • Figure 50: Foodservice items ordered from convenience stores, by employment, November 2011
                                                                                                                                            • Men aged 18-34 have strong acceptance for a variety of foodservice items
                                                                                                                                              • Figure 51: Foodservice items ordered from convenience stores, by gender and age, November 2011
                                                                                                                                          • When Consumers Visit Convenience Stores

                                                                                                                                            • Key points
                                                                                                                                              • Steady usage during morning and afternoon hours
                                                                                                                                                  • Figure 52: Time of day to visit convenience stores to buy foodservice items, November 2011
                                                                                                                                                • Men visit in mornings
                                                                                                                                                    • Figure 53: Time of day to visit convenience stores to buy foodservice items, by gender, November 2011
                                                                                                                                                  • Those aged <25 more likely to visit in afternoon and evening to buy foodservice items
                                                                                                                                                      • Figure 54: Time of day to visit convenience stores to buy foodservice items, by age, November 2011
                                                                                                                                                    • Employment status bears weight on when consumers visit c-stores to buy food
                                                                                                                                                        • Figure 55: Time of day to visit convenience stores to buy foodservice items, by employment, November 2011
                                                                                                                                                    • Spending on Convenience Store Foodservice

                                                                                                                                                      • Key points
                                                                                                                                                        • High average spend on c-store foodservice
                                                                                                                                                          • Figure 56: Spending on convenience store foodservice, November 2011
                                                                                                                                                        • Men spend more than women
                                                                                                                                                          • Figure 57: Spending on convenience store foodservice, by gender, November 2011
                                                                                                                                                        • Consumers aged <25 spend most on c-store foodservice items
                                                                                                                                                          • Figure 58: Spending on convenience store foodservice, by age, November 2011
                                                                                                                                                        • Low-income households have highest average spend on foodservice items
                                                                                                                                                          • Figure 59: Spending on convenience store foodservice, by household income, November 2011
                                                                                                                                                        • Part-time workers spend the most on c-store foodservice items
                                                                                                                                                          • Figure 60: Spending on convenience store foodservice, by employment, November 2011
                                                                                                                                                        • Men aged 18-34 spend well above average
                                                                                                                                                          • Figure 61: Spending on convenience store foodservice, by gender and age, November 2011
                                                                                                                                                        • Evening visits garner highest average spend
                                                                                                                                                          • Figure 62: Spending on convenience store foodservice, by time of day to visit convenience stores to buy foodservice items, November 2011
                                                                                                                                                      • Reasons to Buy Convenience Store Foodservice

                                                                                                                                                        • Key points
                                                                                                                                                          • Quick and easy drives convenience store foodservice usage
                                                                                                                                                              • Figure 63: Reasons to buy convenience store foodservice, November 2011
                                                                                                                                                            • Consumers younger than 25 driven to order c-store foodservice because it’s easy and cheap
                                                                                                                                                              • Figure 64: Reasons to buy convenience store foodservice, by age, November 2011
                                                                                                                                                            • Self-employed workers driven by one-stop shopping convenience
                                                                                                                                                              • Figure 65: Reasons to buy convenience store foodservice, by employment, November 2011
                                                                                                                                                            • High-quality, tasty food and clean stores drive young men to c-stores
                                                                                                                                                              • Figure 66: Reasons to buy convenience store foodservice, by gender and age, November 2011
                                                                                                                                                          • Attitudes Toward Convenience Store Foodservice

                                                                                                                                                            • Key points
                                                                                                                                                              • C-store foodservice succeeds with beverage platform
                                                                                                                                                                  • Figure 67: Attitudes toward convenience store foodservice, November 2011
                                                                                                                                                                • Coffee platform important to older consumers
                                                                                                                                                                  • Figure 68: Attitudes toward convenience store foodservice, by age, November 2011
                                                                                                                                                              • Impact of Hispanic Origin

                                                                                                                                                                • Key points
                                                                                                                                                                  • Hispanics are a key consumer group for convenience store foodservice
                                                                                                                                                                    • Figure 69: Convenience store foodservice usage, by Hispanic origin, November 2011
                                                                                                                                                                  • Hot dogs, fruit salad, and nachos more popular among Hispanics
                                                                                                                                                                    • Figure 70: Foodservice items ordered from convenience stores, by Hispanic origin, November 2011
                                                                                                                                                                  • Hispanics outspend non-Hispanics on c-store foodservice items
                                                                                                                                                                    • Figure 71: Spending on convenience store foodservice, by Hispanic origin, November 2011
                                                                                                                                                                  • Low prices drive Hispanics to buy c-store foodservice items
                                                                                                                                                                    • Figure 72: Reasons to buy convenience store foodservice, by Hispanic origin, November 2011
                                                                                                                                                                  • Hispanics interested in restaurant brands at c-stores
                                                                                                                                                                    • Figure 73: Attitudes toward convenience store foodservice, by Hispanic origin, November 2011
                                                                                                                                                                  • Traditional marketing efforts effective in targeting Hispanics
                                                                                                                                                                      • Figure 74: Effective promotional strategies, by Hispanic origin, November 2011
                                                                                                                                                                  • Appendix—Trade Associations

                                                                                                                                                                    Companies Covered

                                                                                                                                                                    • 7-Eleven (North America)
                                                                                                                                                                    • Alimentation Couche-Tard Inc.
                                                                                                                                                                    • American Association of Retired Persons (AARP)
                                                                                                                                                                    • American Petroleum Institute (API)
                                                                                                                                                                    • Arby's Restaurant Group
                                                                                                                                                                    • BP p.l.c.
                                                                                                                                                                    • Bureau of Economic Analysis
                                                                                                                                                                    • Casey's General Stores Inc
                                                                                                                                                                    • CBS Corporation
                                                                                                                                                                    • ChevronTexaco Corporation
                                                                                                                                                                    • Chipotle Mexican Grill Inc.
                                                                                                                                                                    • CITGO Petroleum Corporation
                                                                                                                                                                    • Coca-Cola Company (The) (USA)
                                                                                                                                                                    • ConocoPhillips
                                                                                                                                                                    • Cumberland Farms, Inc
                                                                                                                                                                    • Denny's Corporation
                                                                                                                                                                    • Dunkin' Brands
                                                                                                                                                                    • Exxon Mobil Corporation
                                                                                                                                                                    • Facebook, Inc.
                                                                                                                                                                    • Food Distributors International
                                                                                                                                                                    • Food Marketing Institute
                                                                                                                                                                    • Foursquare
                                                                                                                                                                    • GE Capital
                                                                                                                                                                    • Hess Corporation
                                                                                                                                                                    • International Food Information Council Foundation (IFIC)
                                                                                                                                                                    • International Food Service Executives Association (IFSEA)
                                                                                                                                                                    • International Foodservice Distributors Association (IFDA)
                                                                                                                                                                    • International Foodservice Manufacturers Association (IFMA)
                                                                                                                                                                    • International Franchise Association (IFA)
                                                                                                                                                                    • KFC Corporation
                                                                                                                                                                    • Landshire Inc.
                                                                                                                                                                    • Lil' Drug Store Products, Inc
                                                                                                                                                                    • Marathon Petroleum Company LLC
                                                                                                                                                                    • McDonald's U.S.A.
                                                                                                                                                                    • National Automatic Merchandising Association (NAMA)
                                                                                                                                                                    • National Council of Chain Restaurants (NCCR)
                                                                                                                                                                    • National Restaurant Association (NRA)
                                                                                                                                                                    • National Retail Federation (NRF)
                                                                                                                                                                    • Niman Ranch, Inc.
                                                                                                                                                                    • Panera Bread Company
                                                                                                                                                                    • Pizza Hut Inc
                                                                                                                                                                    • Private Label Manufacturers Association (PLMA)
                                                                                                                                                                    • Sheetz, Inc
                                                                                                                                                                    • Shell Oil Products US
                                                                                                                                                                    • Speedway SuperAmerica
                                                                                                                                                                    • Starbucks Corporation
                                                                                                                                                                    • Subway
                                                                                                                                                                    • Sunoco, Inc.
                                                                                                                                                                    • Supervalu Inc
                                                                                                                                                                    • Taco Bell Corp.
                                                                                                                                                                    • The Ghirardelli Chocolate Company
                                                                                                                                                                    • The Kroger Co.
                                                                                                                                                                    • The New York Times Company
                                                                                                                                                                    • The Pantry Inc
                                                                                                                                                                    • The Quiznos Master LLC
                                                                                                                                                                    • The Wendy's Company
                                                                                                                                                                    • Turkey Hill Dairy
                                                                                                                                                                    • Twitter, Inc.
                                                                                                                                                                    • U.S. Bureau of Labor Statistics
                                                                                                                                                                    • U.S. Bureau of the Census
                                                                                                                                                                    • U.S. Department of Agriculture
                                                                                                                                                                    • University of Michigan, The
                                                                                                                                                                    • US Department of Commerce
                                                                                                                                                                    • USA Today
                                                                                                                                                                    • Valero Energy Corporation
                                                                                                                                                                    • Wawa, Inc
                                                                                                                                                                    • YouTube, Inc.

                                                                                                                                                                    Convenience Store Foodservice - US - March 2012

                                                                                                                                                                    £2,684.63 (Excl.Tax)