Saturday, December 7, 2013

C-Store Speedway $925M Capital Infusion Targets QSR Space for Growth.

With a refocused, retooled and refined retail division Speedway has been positioning itself to expand its reach and now, the time has come.  MPC (parent of Speedway) President and CEO Gary Heminger said the Findlay-based company will be allocating capital in the future to drive growth in businesses with more stable cash flow and higher value. Its retail division, Speedway LLC, is one such business.

Today, when looking at Speedway's numbers, merchandise sales are on pace to reach $3.2 billion, noted Tony Kenney, president of Speedway LLC. From 2011 to 2013, two-thirds of Speedway's sales have come from inside the stores. Much like other C-store operators Speedway has focused, retooled and refined its fresh prepared food offerings and the results are now paying off. 

"Consumers continue to show a preference to shop in convenience stores," Kenney said,  that  they will be targeting both organic growth and, small operators are under pressure and could offer an attractive opportunity for Speedway.

In Fact Speedway has identified 280 "fill-in" opportunities for organic growth in its existing markets, with the Chicago, Indianapolis and Louisville areas tapped as key growth markets. In addition, the company has identified 230 existing stores as candidates for rebuilds, Kenney detailed.

Success does leave clues and as of today I do not know of any QSR operator planning on opening 500 U.S. stores in a defined market?  Today’s C-stores operators are well financed, fresh food focused, and driven by customers looking for bundled meal solutions. The retail food consumer is evolving are you?

Outside eyes can deliver inside sales. What are you bundling with you core products? Who are your customers and where and how can you sell them more? For more Visit www.FoodserviceSolutions.us  or http://www.linkedin.com/in/grocerant or twitter.com/grocerant  
 

 

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