2022
9
US Convenience Store Foodservice Market Report 2022
2022-02-25T03:08:41+00:00
OX1100065
3695
148283
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Report
en_GB
“C-store foodservice is in a unique position, as it must first consider how gas prices will affect foot traffic. Loyalty programs are an important tool in connecting in-store purchases to…

US Convenience Store Foodservice Market Report 2022

£ 3,695 (Excl.Tax)

Description

This report provides comprehensive and current information and analysis of the US Convenience Store Foodservice market including in-store foodservice sales market size, anticipated market forecast, relevant market segmentation, and industry trends for convenience stores foodservice sales in the US.

Current convenience stores foodservice market landscape

Only 47% of consumers are members of a c-store loyalty program, but men and parents are among the demographics more likely to be members. Heightened interest in convenience and value drive these groups, but both are something that almost all consumers can get on board with, making loyalty programs an opportunity for attracting consumers to c-store foodservice.

Inflation will be felt at the c-store inside and at the pump, with rising gas prices particularly painful to consumers who are already struggling, as gas is often a necessity. Consumers may find themselves less willing, or able, to pay for convenience when food prices are steadily rising.

Product shortages and labor shortages are a threat to c-stores as both can complicate the convenience element of the store. If consumers can’t reliably find what they want, or if stores have to reduce hours because of a lack of employees, consumers may find themselves reducing their c-store visits.

Market share and key convenience store trends in 2022

  • Gas rules the c-store
    Gas prices motivate consumers to choose a c-store, while gas rewards motivate loyalty program membership, far above any other factor. Helping consumers get the best gas price is a win for everyone.
  • Rewards programs have room to grow
    Fewer than half of consumers are c-store loyalty members, with gas leading the reasons for use and future use. Age, gender and race groups have different preferences for what rewards they prefer, so programs should be flexible. Rewards will become increasingly important as gas prices rise along with the cost of other goods.
  • Part of convenience is keeping things clear
    Whether it’s a loyalty program, app, or delivery program, c-stores have to maintain ease of use. Collecting, calculating and redeeming points should be straightforward, such as one point per dollar spent, and consumers should be able to check their point balance easily, too.

Future convenience store foodservice trends

Opportunity, then, comes from doubling down on convenience and potential savings. Again, loyalty programs are a win if those programs are easy to use. Prepared foods that are complete meals or are bundled with other foods and drinks to create a complete meal make convenience store food  relevant outside on-the-go eating. Finally, delivery is an ultra-convenient option that keeps convenience stores top of mind; tying delivery to rewards creates additional value.

Read on to discover more about the US Convenience Store Foodservice consumer market, read our US Urban, Rural, and Suburban Lifestyles Market Report 2021, or take a look at our other Food and Foodservice research reports.

Quickly understand the convenience store foodservice market

  • The continued effect of COVID-19.
  • Loyalty program membership and appealing features.
  • The importance of variety and quality of foodservice options.
  • The impact of fuel prices on foodservice sales.
  • Strategies for engaging consumers with foodservice programs.

Covered in this convenience stores foodservice market report

Brands include: Speedway, Wawa, GrubHub, Seamless, Postmates, 7-Eleven, DoorDash.

Expert analysis from a specialist in the field

This report, written by Michele Scott, a leading analyst in the Food and Foodservice sector, delivers in-depth commentary and analysis on convenience store foodservice in the US to highlight current trends and add expert context to the numbers.

C-store foodservice is in a unique position, as it must first consider how gas prices will affect foot traffic. Loyalty programs are an important tool in connecting in-store purchases to paying less at the pump. Supporting other trends in-store, like BFY options, trending flavors, delivery and even sustainability helps connect with different consumer groups and meet their needs in the ways that will be most impactful.
Michele Scott, Senior Analyst
Michele Scott
Senior Analyst

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
    • COVID-19: US context
    • Economic and other assumptions
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US sales and fan chart forecast of convenience store foodservice sales, at current prices, 2016-26
    • Convenience, loyalty define the future of c-stores
      • Figure 2: Convenience store foodservice category outlook, 2022-27
    • Opportunities and challenges
    • Loyalty programs have room to grow
      • Figure 3: Loyalty program membership, 2021
    • Visits return to pre-pandemic numbers
      • Figure 4: Types of convenience stores visited, 2020- 2021
    • Gas discounts offer biggest opportunity
      • Figure 5: Reasons for joining a loyalty program
    • Shortages create problems
    • Make coffee competitive
      • Figure 6: Attitudes about convenience stores
    • Key consumer insights
  3. Market Size and Forecast

    • COVID-19 continues to disrupt in different ways
      • Figure 7: Total US sales and fan chart forecast of convenience store foodservice sales, at current prices, 2016-26
      • Figure 8: Total US sales and fan chart forecast of convenience store foodservice sales, at current prices, 2016-26
  4. Segment Performance

    • Prepared food rebounds; other segments struggle
      • Figure 9: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2016-26
      • Figure 10: Total US convenience store foodservice sales and forecast, by segment, at current prices, 2016-26
  5. Market Factors

    • Labor shortages hit foodservice hard
    • Supply chain disruptions
    • Mergers, acquisitions and closings (oh my!)
    • Demand for gas impacts c-stores
    • Food access impacts who shops at c-stores
  6. Competitive Strategies and Market Opportunities

    • Teach consumers how to hack the coffee program
      • Figure 11: Speedway Instagram coffee recipe
    • Plant-based scratches the BFY and indulgent need
    • Retail can supplement foodservice
    • Cobranding opportunities add a flavorful spin to classic items
      • Figure 12: J&J Pretzel Fillers new flavor
    • See-through packaging aids in ingredient transparency
      • Figure 13: Wawa see-through packaging
    • C-stores must deliver on convenience
  7. The Convenience Store Consumer: Fast Facts

    • Fact #1: Convenience store foodservice cannot ignore gas.
    • Fact #2: Loyalty programs have room for growth, but must maintain the “c” in c-store
    • Fact #3: C-store visits have returned to pre-pandemic levels
  8. Types of Convenience Stores Visited

    • Gas remains the foundation of c-stores
      • Figure 14: Types of convenience stores visited, 2020- 2021
    • Convenience is king for men
      • Figure 15: Types of convenience stores visited, by gender, 2021
    • Food deserts change c-store habits
      • Figure 16: Types of convenience stores visited, by race, 2021
  9. Foods and Beverages Purchased

    • C-stores are not always made for made-to-order
      • Figure 17: foods and beverages purchased, 2020-2021
    • Win women over with packaged food and self-serve beverage bundles
      • Figure 18: Foods and beverages purchased, by gender, 2021
    • Fresh, packaged foods appeal less to White consumers
      • Figure 19: Foods and beverages purchased, by race, 2021
  10. Motivation for Future Visits

    • Gas rules; quality and selection in-store follows further behind
      • Figure 20: Motivation for future visits, 2021
    • Tastes evolve with age
      • Figure 21: Motivation for future visits, by age, 2021
  11. Loyalty Program Membership

    • Consumers are split on loyalty
      • Figure 22: Loyalty program membership, 2021
    • Mid-aged consumers show their loyalty
      • Figure 23: Loyalty program membership, by age, 2021
    • Parents need convenience, savings
      • Figure 24: Loyalty program membership, by parental status, 2021
  12. Reasons for Joining a Loyalty Program

    • Gas, ease, draw consumers in
      • Figure 25: Reasons for joining a loyalty program, 2021
    • Ease is universal; what rewards apply to is not
      • Figure 26: Reasons for joining a loyalty program, by race, 2021
  13. Motivation to Join Rewards Program in the Future

    • Motivations mirror reasons for current use
      • Figure 27: Motivations to join a rewards program in the future, 2021
    • Race interest translates to reasons for use
      • Figure 28: Motivations to join a rewards program in the future, by race, 2021
    • Life stage impacts rewards needs
      • Figure 29: Motivations to join a rewards program in the future, by age, 2021
  14. Attitudes about Convenience Stores

    • Consumers don’t have strong opinions about c-stores
      • Figure 30: Attitudes about c-stores, 2021
    • Healthy and indulgent offers can coexist
      • Figure 31: Attitudes about c-stores, by gender, 2021
    • Non-White consumers more opinionated about c-stores
      • Figure 32: Attitudes about c-stores, by race, 2021
  15. Attitudes about C-store Loyalty Programs

    • Membership programs work
      • Figure 33: Attitudes about c-stores loyalty programs, 2021
    • Women influenced by forces beyond purchases themselves
      • Figure 34: Attitudes about c-stores loyalty programs, by gender, 2021
    • Gas cost, potential savings more impactful with age
      • Figure 35: Attitudes about c-store loyalty programs, by age, 2021
  16. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
  17. Appendix – The Market

      • Figure 36: Total US convenience store foodservice sales and forecast, at inflation-adjusted prices, 2016-26
      • Figure 37: Total US convenience store sales and forecast of prepared food, at inflation-adjusted prices, 2016-26
      • Figure 38: Total US convenience store sales and forecast of hot dispensed beverages, at inflation-adjusted prices, 2016-26
      • Figure 39: Total US convenience store sales and forecast of cold dispensed beverages, at inflation-adjusted prices, 2016-26
      • Figure 40: Total US convenience store sales and forecast of frozen dispensed beverages, at inflation-adjusted prices, 2016-26

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