Persisting inflation has prompted consumers to control their spending and look for alternatives and deals that are easy on their wallets. Higher prices for food and beverages at convenience stores and restaurants have given rise to C-stores. But there hasn’t been a significant decline in consumers dining out.
Ann Golladay, senior director of publications at Datassential, pointed out that the C-store format and associated occasions are not in line with how most Americans view dinner. She believes C-store operators can still become dinner destinations since many have significantly enhanced food service offerings (since the COVID-19 pandemic).
Golladay said consumers were getting takeout from locations where they would have never gotten takeout before and were looking for new ways to get prepared offerings safely. “What’s more, we saw operators across the industry invest in technology that reduces friction and makes it easier than ever to order, things like loyalty apps and online delivery, pick-up options.”
54 percent of C-store patrons, as per a recent Technomic C-Store Consumer Market Brief, are reducing visits to restaurants because of higher menu prices, but 30 percent of C-store patrons said they are purchasing food service items from C-stores less often.
Donna Hood Crecca, principal at Technomic, said one reason could be that the majority are staying engaged with C-store food service is because they find value in the offering. “Our data shows that nearly seven in 10 consumers are satisfied with the value of c-store food service, with satisfaction highest for beverages, including self-serve and made-to-order hot and cold offerings, as well as roller grill, made-to-order items, and the cold case.”
Many consumers prefer to cook at home or reduce their overall restaurant dine-ins because of high prices. Crecca said it’s a take-share environment. “For restaurants to grow sales, they need to win occasions, spend from other restaurants, and we expect to see some trading down, such as fast-casual customers shifting some occasions to fast food.” She believes she will spur C-stores.
Tina Arundel, senior director of communications at TravelCenters of America (TA), said in the travel industry, they serve guests from all over the country.”We must have options for all dayparts, and the dinner daypart is just as attractive for our guests as the breakfast or lunch may be. We often have bundle opportunities in different day parts – breakfast, lunch, and dinner – and will start implementing more bundle activity in the future as we continue testing what products are more attractive to our guests.”
Analysts say c-stores can implement strategies to take share, including menu innovation – such as trending flavors in breakfast and lunch items, snack items, and beverages. Offerings like chicken sandwiches, pretzel buns, croissants, and ciabatta rolls attract consumers.
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