Over the last decade, convenience stores (C-stores) have
evolved into formidable competitors for fast-food restaurants. From KFC’s fried chicken to McDonald’s
burgers, traditional fast-food chains are now facing stiff competition as
C-stores leverage their strategic locations, evolving menus, and
technology-driven operations to attract hungry consumers.
According to Steven Johnson the Grocerant Guru® at Tacoma,
WA based Foodservice Solutions®,
one stellar example is Kwik Trip,
a family-owned C-store chain that has successfully used its fried chicken
program to lure customers from fast-food giants, drive top-line sales, and
significantly boost bottom-line profits, but that’s not the only example.
The 10-Year Trend: From Gas and Snacks
to Full Meals
The shift in consumer preferences over the past decade has
created fertile ground for C-stores to expand into the quick-service restaurant
(QSR) arena. As early as 2013, C-stores began testing the waters of hot food
service, seeing success with grab-and-go options like pizza and sandwiches.
Over time, this evolved into comprehensive hot meal offerings that directly
compete with fast-food chains. According to a report from NACS (National
Association of Convenience Stores), prepared food sales at C-stores have grown
steadily, becoming one of the top drivers of revenue, with hot food accounting
for over 22% of in-store sales.
What distinguishes C-stores from traditional fast-food
restaurants is the blend of convenience, speed, and variety. C-stores typically
offer diverse meal options, from fresh salads to hearty comfort food, all in
one location. The growth in this sector has led chains like Kwik Trip to
aggressively expand their hot food offerings, including its now-famous fried
chicken program, to tap into the demand for fresh, quality meals.
Kwik Trip's Fried Chicken Program: A
C-Store Game Changer
In 2019, Kwik Trip launched its fried chicken program,
offering a variety of options including tenders, crispy fried sandwiches, and
whole roasted chickens. But it wasn’t just the menu that made the program a
hit. Kwik Trip’s use of automation and technology, such as the Total Oil
Management (TOM) system provided by Restaurant Technologies, has been crucial
to ensuring product consistency and operational efficiency across its 725
locations that feature fried chicken.
One of the critical factors in Kwik Trip’s success has been
its ability to manage the quality of its cooking oil. While fast-food giants
like KFC and Popeyes rely on traditional oil management methods, Kwik Trip's
TOM system fully automates oil filtration, recycling, and monitoring. By doing
so, the company has managed to improve food quality while cutting costs on
labor and oil usage. Not only does the TOM system increase the lifespan of the
oil, but it also ensures that customers consistently receive a product that is
never greasy or overcooked. These improvements, largely invisible to the
customer, have been key to the program’s rapid growth.
Why Customers Are Flocking to C-Stores
Over Fast Food
Several factors are contributing to the migration of
fast-food customers to C-stores like Kwik Trip:
1.
Convenience and
Speed: C-stores are designed for quick
in-and-out service, a critical advantage over fast-food chains that often
require drive-thru waits or dining-in experiences. Kwik Trip’s layout
encourages a seamless experience where customers can quickly grab a hot meal,
fuel, and essentials all in one stop.
2.
Quality and
Freshness: Fresh, never frozen chicken has
become a hallmark of Kwik Trip’s offering, distinguishing it from many
fast-food competitors. This focus on freshness and quality resonates with
health-conscious consumers who seek better alternatives to traditional fast-food
fare.
3.
Technology and
Efficiency: As seen with the TOM system, Kwik
Trip has invested heavily in automation and training to ensure a superior
product while keeping operational costs in check. This focus on tech-driven
efficiencies has allowed C-stores to offer competitive pricing while
maintaining high-quality standards.
Three Examples of C-Store Success in
the Hot Food Arena
1.
Kwik Trip’s Fried
Chicken: In just five years, Kwik Trip’s
fried chicken program has become a cornerstone of its foodservice offerings. By
expanding to 725 stores and leveraging oil automation technology, the company
has managed to build a reputation for high-quality fried food while
simultaneously reducing operational costs and increasing employee satisfaction.
This has driven both top-line sales and bottom-line profits.
2.
Wawa’s Hoagie
Expansion: Another C-store giant, Wawa, has
seen massive success with its made-to-order hoagies. Wawa has invested in
touch-screen ordering systems, allowing customers to customize their meals.
Over the past decade, Wawa has reported that its foodservice sales, driven in
large part by hoagies, have grown to account for more than 40% of its revenue.
3.
Casey’s General
Store’s Pizza Program: Casey’s, another major player in the
C-store market, has built a loyal following for its pizza, which is made fresh
in-store. It’s now one of the top 10 pizza chains in the U.S. by number of
locations. Casey’s success with pizza has been largely driven by its ability to
replicate restaurant-quality food at C-store speed, contributing significantly
to its profitability.
The Grocerant Guru’s Recommendations
for Incremental Success
To sustain their competitive edge over fast-food chains,
C-stores need to continue innovating and expanding their foodservice offerings.
Here are three recommendations from the Grocerant Guru:
1.
Expand Meal
Customization Options: C-stores should look to mirror the
customization options seen at fast-food chains. Offering customizable meals via
digital kiosks can enhance the customer experience and cater to individual
preferences.
2.
Leverage Data
Analytics: Data is critical in identifying
trends and optimizing operations. As Kwik Trip has done with its TOM system,
C-stores should continue to use data analytics to fine-tune recipes, track
product quality, and manage costs.
3.
Focus on
Sustainability: Consumers are increasingly concerned
about sustainability. Kwik Trip’s oil recycling efforts are an excellent
example of how C-stores can integrate eco-friendly practices into their
operations. By embracing sustainable practices, C-stores can appeal to
environmentally conscious customers and differentiate themselves from fast-food
competitors.
Think About This: A Recipe for Continued
Growth
The C-store landscape has changed dramatically over the
past decade. With technology, operational efficiency, and a focus on quality,
chains like Kwik Trip are successfully attracting customers who would otherwise
visit fast-food restaurants. By capitalizing on the convenience factor,
improving food quality, and using automation, C-stores are not just competing
with but outperforming many traditional fast-food chains. The shift toward
fresher, faster, and more tech-savvy operations is driving both top-line
revenue and bottom-line profits, positioning C-stores as powerful players in
the fast-casual food industry.
Don’t over reach. Are
you ready for some fresh ideations? Do your food marketing ideations look more
like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while
creating a platform for consumer convenient meal participation, differentiation
and individualization? Email us
at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the
following links: Facebook, LinkedIn, or Twitter
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