Grocerant Guru’s Take on Shifting Convenience Channel Dynamics: Embracing Gen Z and Millennials’ Fast-Paced Buying Habits

 

In the rapidly evolving landscape of convenience retail, the emergence of digital ordering and delivery services has transformed the game. What started as a pandemic-driven necessity has now become a fundamental aspect of the foodservice industry, with Gen Z and Millennials at the forefront of this revolution. Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated, success does leave clues and if you are paying attention, you too can pick-them up.

Traditionally, convenience stores hesitated to embrace delivery due to concerns over profit margins and operational disruptions. However, as consumer expectations continue to evolve, it's clear that offering digital ordering and delivery options can lead to long-term growth in sales and profits.

Gen Z and Millennials, in particular, are driving this change. With their "get-anything-delivered mindset," they are reshaping how, where, and when fresh prepared meals and meal components are purchased. Convenience stores are no longer just a pit stop for snacks; they are becoming go-to destinations for quality food on-the-go.

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Take Rutter's, for example. By launching Paytronix Online Ordering and integrating it with their VIP Rewards program, they saw a significant increase in visits and check sizes among loyalty members. This demonstrates how pairing digital ordering with loyalty programs can create a winning combination for attracting and retaining customers.

7-Eleven, the largest c-store chain in the U.S., has also capitalized on the trend. Through their 7NOW Delivery program, they've expanded their reach and enhanced convenience for customers, particularly Gen Z and Millennials who value the ease of enjoying high-quality food from the comfort of their homes or offices.

The evolution of digital ordering and delivery has also made it more accessible for smaller chains and independents to enter this space. With advancements in technology and tailored solutions for the convenience channel, the barriers to entry have significantly decreased. This means that even independent c-stores can tap into the growing demand for digital ordering and delivery services.

Moreover, integrating digital ordering capabilities into a store's operations can actually improve efficiency, especially in foodservice. Employees can better prioritize tasks, leading to smoother operations and happier customers.

Of course, there are challenges, such as maintaining control over the customer experience when using third-party delivery services. However, companies like Uber are actively addressing these concerns through courier education programs and collaboration with retailers to ensure orders are picked and packaged properly.

Ultimately, loyalty programs are key to the success of digital ordering initiatives. By aligning digital ordering with loyalty programs, convenience retailers can offer added value to customers and drive profits in an increasingly competitive market.

As the convenience channel continues to evolve, it's clear that Gen Z and Millennials will play a pivotal role in shaping its future. Embracing their preferences for digital convenience will be essential for staying ahead of the curve in the grocerant landscape.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information.