In today’s fast-paced world, convenience stores have established themselves as a lifeline for busy consumers. They offer a quick and easy way to grab essential items, from groceries to gas. But for convenience stores to thrive and stay ahead of the competition, these businesses need to go beyond just the basics.
Today, the most successful convenience stores are those that strategically integrate destination points, offering a unique array of food and beverage options that keep customers coming back time and time again.
By embracing and implementing food and beverage offerings, convenience stores can increase customer loyalty, significantly boost revenue, and drive their overall profitability. As a result, convenience store owners can turn their store into a destination in itself.
The Rise of Food and Beverage in Convenience Stores
Convenience stores have evolved from mere pit stops to essential parts of many people’s daily routines—and this transformation is largely driven by the expansion of their food and beverage offerings.
But it’s important to recognize that the modern consumer expects more than just snacks and sodas; they are looking for popular, high-quality options that can rival those of other grocers and established eateries.
Fortunately, this shift presents a golden opportunity for convenience stores to increase their revenue streams.
Convenience Stores: More Than a Convenient Stop
Stuckey’s is a prime example of how a convenience store can become a destination in its own right. An iconic roadside store known for its pecan candy, people make a special point to find a Stuckey’s location when they’re out and about. Similarly, Krispy Krunchy Chicken is a destination that people will often go out of their way to look for.
It’s easy to see that convenience stores can significantly enhance their appeal to customers by strategically integrating various food and beverage options. In turn, this helps drive and boost store profits.
The Profitability of Customer Favorites
Certain food and beverage items are particularly popular and profitable for convenience stores, such as slushies, to-go sandwiches, energy drinks, and fountain drinks.
Energy Drinks
Thanks to their high demand among a wide range of consumers, energy drinks like Gatorade, Monster, and Red Bull are staple items in many convenience stores. The profitability of these drinks lies in their brand recognition and the premium prices that consumers are willing to pay.
Slushies and Fountain Drinks
Slushies and fountain drinks are other examples of highly profitable items. The cost of producing these beverages is relatively low compared to their selling price, which results in impressive profit margins. In addition, these drinks also attract customers—especially during hot weather—helping drive traffic and increase overall sales.
Hot and Fresh Foods
Introducing hot food items like hot dogs, pizza slices, and take-away sandwiches is a great strategy for encouraging repeat visits and purchases. Similarly, freshly prepared meals offer convenience and quality, appealing to customers looking for quick, satisfying options. The higher price points of these items, coupled with the convenience factor, make them lucrative additions to a convenience store’s product lineup.
Maximize Revenue with Marked-Up Products
Do you know how substantial the markup on popular food and beverage items can be? The Electronic Payments Coalition (EPC) wanted to find out. By analyzing data from the National Association of Convenience Stores, the EPC was able to determine the average convenience store markup rate for various merchandise items. As of 2021, convenience stores increased the price of packaged beverages by 72% and hiked up the price of food service by 120%. In addition, the cost of dispensed hot beverages like coffee or tea was marked up by 170%, and the cost of ice went up by a remarkable 262%.
Boost Your Convenience Store’s Bottom Line with Beverages and Food Options
Convenience stores that incorporate food and drink products into their offerings stand to unlock significant revenue potential. That’s because this lucrative business opportunity is about more than just selling convenient food and drinks—it’s about transforming convenience store locations into destinations that customers intentionally seek out any and every time they need to make a stop. As a result, food and beverage offerings at convenience stores can help drive sustained revenue growth and long-term success.
Looking for more ways to boost your revenue? Consider adding coin-operated amusement machine (COAM) games! Not only are these fun machines a great addition to all sorts of establishments, but the average client also generates over $4000 a month in revenue.
Furthermore, a report from Fortune Business Insights shows that the international skill gaming market size is estimated to grow from USD 35.61 billion in 2023 to as much as USD 85.34 billion by 2030. Learn more and find out how you can transform and drive your convenience store’s revenue!