2020
9
US Convenience Store Foodservice Market Report 2020
2021-02-19T03:01:30+00:00
OX986886
3695
134617
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
Convenience store foodservice sales continued to struggle in 2019, with slow growth predicted over the next five years. The largest factors contributing to the slow growth are fast food and…

US Convenience Store Foodservice Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Convenience store foodservice sales continued to struggle in 2019, with slow growth predicted over the next five years. The largest factors contributing to the slow growth are fast food and retail competitors,from chicken chains to mobile-based retailers. C-stores will need to look beyond core foodservice programs such as coffee and the roller grill to remain relevant, especially among their important young customers.

– Jill Failla, Foodservice Analyst

This Report will cover the following areas

  • Restaurants and retailer competition cuts into core products
  • C-stores can compete with MTO programs, mobile ordering and delivery
  • C-stores cannot count on their past top sellers

Table of Contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Top takeaways
          • The issues
            • Foodservice sales lag amid fierce competition
              • Figure 1: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2014-24
            • Fast food is a top competitor
              • Figure 2: Top 200 restaurant and c-store chain foodservice sales growth, by menu category, 2017-18*
            • RTD coffee may be eating into dispensed coffee sales
              • Figure 3: Convenience store food and beverage purchases, by generation, January 2020
            • The opportunities
              • MTO programs can boost freshness perceptions
                • Figure 4: MTO convenience store food and beverage purchases, by generation, January 2020
              • Opportunity lies in pasta, hot food bowls and plant-based proteins
                • Figure 5: Convenience store prepared food purchases and interest – NET any interest, January 2020
              • 18-34 year olds look beyond coffee at c-stores
                • Figure 6: Convenience store prepared beverage interest – NET any interest, by age, January 2020
            • The Market – What You Need to Know

              • C-store foodservice sales struggle
                • 7-Eleven recovers somewhat, but Stripes falters
                  • Retail and foodservice pose formidable threats
                  • Market Size and Forecast

                    • C-store foodservice sales continue to slump
                      • Figure 7: Total US sales and fan chart forecast of c-store foodservice sales, at current prices, 2014-24
                      • Figure 8: Total US convenience store foodservice sales and forecast, at current prices, 2014-24
                  • Market Breakdown

                    • Prepared foods drive c-store foodservice growth
                      • Figure 9: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2014-24
                      • Figure 10: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2014-24
                    • Circle K posts greatest foodservice gains year over year
                        • Figure 11: Top 200 c-store chain foodservice sales, 2017-18*
                    • Market Perspective

                      • Frictionless retail expands
                          • Figure 12: goPuff Facebook ad, April 2019
                        • Foodservice chicken wars
                        • Market Factors

                          • Higher gas prices may mean fewer c-store visits
                            • Figure 13: US gasoline and diesel retail prices, January 2008-January 2020
                        • Key Trends – What You Need to Know

                          • MTO grows and differentiates
                            • C-stores’ coffee mainstay may soon be a thing of the past
                              • Opportunities lie in cannabis
                              • What’s Working?

                                • MTO programs
                                  • Bougie bodegas
                                    • Plant-based proliferates
                                      • Off-premise business grows
                                      • What’s Struggling?

                                        • Coffee
                                          • RTD competition
                                            • Functional flavored options
                                              • Beloved brand extensions
                                                • New brews
                                                    • Figure 14: New RTD coffee products
                                                • What’s Next?

                                                  • Internationally inspired c-stores
                                                    • Catering business
                                                      • CBD
                                                      • The Consumer – What You Need to Know

                                                        • Growing c-store prepared food customer base may surprise
                                                          • Plant-based proteins and hot food bowls are opportunities
                                                            • Juice, smoothies and specialty coffee bars hold high interest
                                                            • Convenience Store Visitation

                                                              • Convenience stores with gas stations remain the most frequented
                                                                • Figure 15: Convenience store visitation, January 2020
                                                              • Men are core convenience store customers
                                                                • Figure 16: Convenience store visitation, by gender, January 2020
                                                              • Gen Zs and Millennials are also key c-store customers
                                                                • Figure 17: Convenience store visitation, by generation, January 2020
                                                              • Healthy Diners drive nontraditional c-store visits
                                                                • Figure 18: Convenience store visitation, by dining behavior segmentation, January 2020
                                                            • Convenience Store Visitation Frequency

                                                              • Most convenience store customers are frequent visitors
                                                                • Figure 19: Convenience store visitation frequency, January 2020
                                                              • Black and Hispanic c-store customers are most frequent visitors
                                                                • Figure 20: Convenience store visitation frequency, by race and Hispanic origin, January 2020
                                                            • Convenience Store Food and Beverage Purchases

                                                              • More customers are buying c-store foods and beverages year over year
                                                                • Figure 21: Convenience store food and beverage purchases, December 2018 and January 2020
                                                              • Gen Zs and Millennials drive c-store MTO food and beverage business
                                                                • Figure 22: Convenience store food and beverage purchases, by generation, January 2020
                                                              • Hispanic and Black c-store customers overindex in MTO drink purchases
                                                                • Figure 23: Convenience store food and beverage purchases, by race and Hispanic origin, January 2020
                                                              • Highway oasis c-store shoppers tend to buy MTO items
                                                                • Figure 24: Convenience store food and beverage purchases, by convenience store visitation, January 2020
                                                              • Healthy Diners drive demand for MTO c-store options
                                                                • Figure 25: Convenience store food and beverage purchases, by dining behavior segmentation, January 2020
                                                            • Year-over-Year Changes in Convenience Store Prepared Food Purchases

                                                              • C-store prepared food purchases are marginally on the rise
                                                                • Figure 26: Year-over-year changes in convenience store prepared food purchases, January 2020
                                                              • Young men propel c-store prepared food sales forward
                                                                • Figure 27: Year-over-year changes in convenience store prepared food purchases, by gender and age, January 2020
                                                              • Higher-income consumers are key to prepared foods’ growth at c-stores
                                                                • Figure 28: Year-over-year changes in convenience store prepared food purchases, by household income, January 2020
                                                              • The majority of Healthy Diners are buying more prepared foods from c-stores year over year
                                                                • Figure 29: Year-over-year changes in convenience store prepared food purchases, by dining behavior segmentation, January 2020
                                                            • Prepared Food Purchase Motivators and Barriers

                                                              • Improved quality is top motivator for increased c-store prepared food purchases
                                                                • Figure 30: Prepared food purchase motivators, January 2020
                                                              • Cost is leading barrier to those buying fewer c-store prepared foods
                                                                • Figure 31: Prepared food purchase barriers, January 2020
                                                            • Convenience Store Prepared Food Purchases and Interest

                                                              • C-store chicken is an area of opportunity
                                                                • Figure 32: Convenience store prepared food purchases and interest – NET any interest, Part I, January 2020
                                                              • Interest outpaces purchases of plant-based proteins, bowls at c-stores
                                                                • Figure 33: Convenience store prepared food purchases and interest – NET any interest, Part II, January 2020
                                                              • Men are more interested than women in variety of c-store foods
                                                                • Figure 34: Convenience store prepared food interest – NET any interest, by gender, January 2020
                                                              • 18-34 year olds drive interest in c-store menu variety
                                                                • Figure 35: Convenience store prepared food interest – NET any interest, by age, January 2020
                                                              • Hispanics also express interest in wide variety of c-store food items
                                                                • Figure 36: Convenience store prepared food interest – NET any interest, by race and Hispanic origin, January 2020
                                                            • Convenience Store Prepared Beverage Purchases and Interest

                                                              • Despite fewer purchases, interest is higher in c-store juice/smoothies than tea
                                                                • Figure 37: Convenience store prepared beverage purchases and interest – NET any interest, January 2020
                                                              • 18-34 year olds are equally interested in juice/smoothies as coffee
                                                                • Figure 38: Convenience store prepared beverage interest – NET any interest, by age, January 2020
                                                              • Black and Hispanic consumers drive c-store beverage innovation
                                                                • Figure 39: Convenience store prepared beverage interest – NET any interest, by race and Hispanic origin, January 2020
                                                            • Innovative Convenience Store Concepts

                                                              • Interest in specialty coffee stations at c-stores is high
                                                                • Figure 40: Innovative convenience store concepts, January 2020
                                                              • C-stores can appeal to women in particular with specialty coffee stations
                                                                • Figure 41: Innovative convenience store concepts, by gender, January 2020
                                                              • Generation Z seeks off-premise c-store options
                                                                • Figure 42: Innovative convenience store concepts, by generation, January 2020
                                                              • The majority of Asian Americans would like to see Asian-focused c-stores
                                                                • Figure 43: Innovative convenience store concepts, by race and Hispanic origin, January 2020
                                                              • Appeal to the majority of c-store customers with make-your-own specialty coffee bars and MTO options
                                                                • Figure 44: TURF analysis – Convenience store concept interest, January 2020
                                                            • Appendix – Data Sources and Abbreviations

                                                              • Data sources
                                                                • Sales data
                                                                  • Fan chart forecast
                                                                    • Consumer survey data
                                                                      • Direct marketing creative
                                                                        • Abbreviations and terms
                                                                          • Abbreviations
                                                                            • Terms
                                                                            • Appendix – The Market

                                                                                • Figure 45: Total US convenience store foodservice sales and forecast, at inflation-adjusted prices, 2014-24
                                                                            • Appendix – The Consumer

                                                                                • Figure 46: Convenience store visitation frequency, December 2018
                                                                                • Figure 47: Dining behavior segmentation, January 2020
                                                                                • Figure 48: Prepared food competitive associations, October 2019
                                                                              • TURF analysis methodology

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