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Mar 31, 2011

New Research Finds Third of Shoppers Shun C-Store Foodservice

PrintNew Research Finds Third of Shoppers Shun C-Store Foodservice  

CHICAGO -- Consumers are constantly on-the-go these days and as a result, they prefer that restaurants offer quick and convenient meal and snack options that won't slow them down. However, one foodservice option that is widely ignored by hungry shoppers is the convenience store.

While c-stores position themselves as the ultimate destination for convenience, new Mintel research found that 33 percent of consumers who have never purchased food at a convenience store haven't done so because they believe the food is of low quality.

"When consumers think of convenience stores, food quality isn't the first thing that comes to mind," stated Eric Giandelone, director of foodservice research at Mintel. "Improved quality -- not just for products but for service, location and marketing communications -- is needed to bring in or bring back consumers for whom c-stores aren't top-of-mind choices."

Of those who don't purchase processed food at convenience stores, 64 percent said they never or rarely consider purchasing food from a c-store. Meanwhile, 32 percent said the food was not appealing to them, and 26 percent cited high prices as a deterrent. Thirty-five percent reported that there were better food options nearby.

"Convenience stores are always going to face competition from restaurants, especially fast-food establishments," Giandelone said. "Luckily, convenience store foodservice suffered less than restaurants did during the recession, and we forecast this $22.8 million dollar industry to experience 4.1 percent growth in 2011."

So what foods are consumers purchasing when they visit convenience stores? It seems c-stores are most popular for their beverage options. Fifty-eight percent of consumers said they purchase fountain beverages, 52 percent purchase coffee drinks and 44 percent purchase "slushies" or other frozen beverages, according to the research findings.

When it comes to consumers who purchase c-store food -- hot dogs (38 percent) and pizza (33 percent) are the most popular choices. Additionally, 28 percent go for made-to-order sandwiches, while 26 percent grab nachos and a quarter of shoppers opt for chicken wings or tenders.

 






Find Reports & Data

CSNews 2009 Foodservice Study

Foodservice sales rose 7.7 percent on a per store basis in 2008, and prepared foods led the way with a 9.1 percent sales gain per store, according to Convenience Store NewsĂ˝ 2009 Foodservice Study.

CSNews 2010 Industry Forecast Study

CSNews' 8th annual Forecast Study includes a macroeconomic projection of market conditions in 2010 and the impact they will have on sales and growth of key convenience store categories: motor fuel, tobacco, malt beverages, confectionery, and snacks.

CSNews' 2009 Industry Report Study

Industry sales climbed 11.4% to an all-time high of $633.9 billion last year, according to the Convenience Store News 2009 Industry Report, the longest-running compilation of sales and operational results in c-store retailing. 40 pages, including 69 charts.

CSNews' 2009 Realities of the Aisle Consumer Study

Food quality and in-store execution greatly impact a consumer's choice to purchase and consume prepared food from a convenience store, according to the new Realities of the Aisle consumer research study conducted by Convenience Store News, in partnership with Nielsen Homescan. Study is 11 pages and includes 14 charts.

CSNews 2010 FIRST LOOK Report

CSNews' 2nd annual FIRST LOOK report provides convenience store retailers with a first glimpse of industry dollar and volume sales changes in five major product categories, based on data provided exclusively to CSNews by The Nielsen Co. The report includes sales, unit and regional market share percentage changes for packaged beverages, other tobacco products, candy and snacks, and beer.

CSNews 2010 Industry Forecast Study

The Great Recession has caused a fundamental shift in consumer spending. How will this affect the c-store industry and your business in the year ahead? The CSNews 2010 Industry Forecast Study provides a glimpse of the rough conditions ahead and critical insight for you to make the right buying decisions.

CSNews HR & Labor Study 2010

Likely owing to the economic recession, 40 percent of retailers responding to the Convenience Store News 2010 Human Resources (HR) & Labor Study said store associates turnover decreased over the past two years.


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