Maximizing Food Service Offerings in Convenience Stores
Are you properly maximizing food service offerings in your convenience store chain? According to the National Association of Convenience Stores (NACS), food service comprises nearly 40% of all in-store profits for convenience stores in the US.
For many convenience store customers, food selection is the main driver behind their visit. Whether it be a hot breakfast and coffee, a grab-and-go sandwich for lunch, or a late-night snack before hitting the road, convenience stores have long been relied upon for their ability to deliver quick eats around the clock.
In the digital era, the game has changed, and for many consumers, so has the definition of convenience. Online retailers such as Amazon, and grocery chains with strong online ordering platforms such as Walmart have revolutionized how Americans purchase items that are commonly found at convenience stores. From snacks to household products, everything is now just a few clicks away from being delivered to a consumer’s front door, sometimes with same-day delivery.
Convenience stores need to expand their food service offerings to highlight the unique advantages their model has over the digital world. Specifically, convenience store owners must promote in-store food service experiences that cater to consumer demand and offer versatility in terms of both selection and price.
Feeding the Earlybirds
Gone are the days of a quick bowl of cereal to start the morning.
A recent report from The Washington Post found an increased number of consumers seeking portable, protein-heavy breakfast options who have turned specifically to breakfast sandwiches to satisfy their hunger over other alternatives. Per NielsenIQ, more than $2.4 billion was spent in the US on breakfast sandwiches alone through September 2024, up from almost $1.5 billion in 2019.
This 60% jump has prompted several convenience store chains to add breakfast sandwiches and other breakfast meals to their hot food menu.
Casey’s, a major regional chain in the Midwestern and Southern regions of the country, was early to the breakfast craze in 2021. Earlier this year, Kevin Smartt, CEO of the CEO of family-owned and operated TXB Stores, announced his brand’s unique breakfast offering. You can read more about their croissant-donut breakfast sandwich hybrid in a LinkedIn post.
These menu expansions, among others, provide key opportunities for convenience store owners to target and advertise to an entirely new demographic. From the early birds going to work, dropping off kids at school, or running errands before the busier hours of their day, this demographic craves convenience. This type of expanded food service offering gives consumers a reason to stop at a convenience store at a time when they may have previously opted for a cafe or coffee shop.
Setting a New Standard
Menu versatility isn’t just limited to breakfast.
Brands like Buc-ee’s and Wawa have built strong reputations due to their elevated food service offerings that extend to lunch and dinner. Buc-ee’s is known for its vast selection of pre-made meals, with favorites such as the brisket sandwich and beef jerky strips. Wawa, on the other hand, has secured sandwich success through its annual Hoagiefest campaign. These chains have defied the status quo that is often associated with convenience stores and gas station foods.
Unlike many of their competitors, which offer low-quality meals made from questionable ingredients, these two brands have pulled market share away from restaurants, cafes, coffee shops, and fast food chains by offering tasty and affordable on-the-goal meals. In the aforementioned cases, the stores’ price versatility is equally as important as the elevated food offering itself.
This proves that there is a tangible market of customers willing to eat at convenience stores as long as the food offered was reliable, varied, and relatively inexpensive. As a result, thousands of convenience stores across the country are renovating their kitchens in an effort to replicate the success.
Obtaining a Chicken License
Other store owners have signed licensing agreements with specialty vendors to ensure food quality and variety.
A prime example of this practice can be found across the 2,850+ stores that have partnered with Krispy Krunchy Chicken. Krispy Krunchy Chicken is a convenience store-based quick-service (QSR) concept providing menu items such as fried chicken, chicken tenders, honey buttered-fried shrimp, honey butter biscuits, mac-n-cheese, mashed potatoes, and more.
This model has served as a valuable alternative to convenience store owners who want to prioritize food service expansion without dedicating in-house resources to the initiative.
Increasing and Capitalizing on Dwell Time
Convenience store owners and operators are often on the lookout for new ways to increase customer dwell time. This term refers to the length of time a customer spends within a retail space. When average dwell time increases, the rate at which customers engage with products and make purchases often increases as well.
Adding breakfast options, elevating food quality, and meeting consumer demands for accessible and affordable meals are great ways to drive traffic to your convenience store. In addition to food service expansions, offering engaging entertainment options like skill gaming is a great way to increase dwell time and drive revenue to your business.
At INAMAX, we partner with convenience store owners to maximize their revenue-generating potential through data-driven route gaming deployments. From strategic game placement and marketing techniques to ongoing data analysis to ensure the right games are selected, INAMAX is an active partner in driving revenue.
INAMAX terminals also help fuel indirect revenue sources. Coin-operated amusement machines (COAMs) have been proven to drive new customers to storefronts that offer skill gaming experiences, leading to an increased volume of in-store product and service purchases.
If you’re ready to learn how INAMAX can help increase your dwell time and complement your new food service offerings, give us a call at 770.449.0400 ext. 700, or fill out our contact form for more information.