Thursday, September 13, 2012

Fresh Prepared Food Fuels Growth at Casey’s General Stores.



Fresh prepared food that is ready-2-eat or heat-N-eat aka grocerant niche food has driven top line sales and bottom line profits within the convenience store sector for over 4 years now.  In fact fresh prepared food sales success have allowed the convenience store sector to grow at a faster rate over the past 4 years than any other sector of the retail foodservice industry including, restaurant, grocery, club, or drug stores.

Never however has it been so apparent as when Robert J. Myers, president and CEO of Casey's stated "We expect this acquisition to be accretive in the first year of operation and enhance future earnings as we integrate our prepared food operations."  Myers was referring to the news that Casey’s was under contract to purchase 27 convenience stores this week.

Casey’s CFO Bill Walljasper noted during a conference call that they have “opened one new store and three replacement stores. In its latest quarter, Casey's focused on remodeling 26 stores, adding pizza delivery to 50 more locations and converting 26 stores to 24-hour formats.”…Here is the very best part that Walljasper revealed of the “50 stores adding pizza delivery, pizza sales increased by more than 45 percent,” he stated.

The conference call all went on and fresh food continued providing highlights “prepared food and fountain sales rose by 10.6 percent with an average margin of 63.5 percent.”  Success does leave clues and fresh prepared food is one of the clues to retail food sales success. When you are ready-2-eat customers like Casey’s General Stores.

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