In recent years, convenience stores have taken a major
turn, transforming into food-focused retail hubs that serve as serious
competitors to restaurants. Brands like 7-Eleven,
Circle K, Sheetz, and Wawa
have pioneered this shift, leveraging food sales to drive customer frequency,
top-line growth, and profitability. This change is part of a broader industry
trend in which convenience stores are emerging as key players in the
foodservice sector, finding new ways to meet consumers' evolving dining habits.
There is one company that is the undisputed king of food
branding and sales according to Steven Johnson Grocerant Guru® at Tacoma, WA
based Foodservice Solutions®
who says 7-Eleven's
Slurpee has become a global icon, symbolizing the brand's success in food and
beverage branding on a massive scale.
Launched in
1966, the Slurpee has since evolved from a simple frozen beverage to a cultural
phenomenon, recognized for its colorful, frosty appeal and fun, refreshing
experience. With strategic marketing, seasonal flavors, and unique promotional
events like "7-Eleven Day," where customers enjoy free Slurpees, the
drink has become synonymous with the 7-Eleven brand worldwide. This clever,
consistent branding has fueled customer loyalty, driven frequent visits, and
helped distinguish 7-Eleven in the crowded convenience store market,
reinforcing Slurpee as more than just a drink—it’s a nostalgic and beloved
global treat that defines the brand's commitment to fun, accessible indulgence.
7-Eleven: Continues Redefining
Convenience with Food-Forward Growth
7-Eleven, a global icon in convenience retailing, has
expanded its influence through a strategic emphasis on food offerings.
Operating nearly 1,100 restaurant locations in the U.S., 7-Eleven's commitment
to food-forward stores highlights the brand’s shift towards integrating
restaurant-quality food in a convenience store setting. This effort includes
plans to open 500 additional food-centric stores in the coming years, aptly
named "New Standard" stores, which feature an enhanced layout, digital
services, and restaurant-quality offerings.
7-Eleven’s food offerings and branding innovations are
central to its growth strategy. This New Standard prototype evolved from its
earlier "Evolution stores," where the company tested fresh product
concepts, technology, and restaurant offerings such as Laredo Taco Company,
Raise the Roost Chicken & Biscuits, and Speedy Café. Three key initiatives
underscore 7-Eleven's success with food:
1.
Branded Restaurant
Offerings: 7-Eleven’s in-store restaurant
concepts like Laredo Taco Company and Raise the Roost are tailored to consumer
cravings for high-quality, quick-service meals. These brands bring a unique
flavor and variety that distinguish 7-Eleven’s offerings from traditional fast
food.
2.
Technology and
Personalization: Leveraging mobile checkout, app
integration, and third-party delivery services, 7-Eleven has modernized the
convenience store experience. These innovations cater to busy customers seeking
efficiency and customization in their food choices, ultimately increasing
transaction frequency and loyalty.
3.
Higher Revenue with
New Standard Stores: Units built under the New Standard
model have already demonstrated remarkable success, achieving a 13% sales lift
in their first year. With a projected 30% increase in average daily sales per
store by full maturity, these locations show that aligning convenience
retailing with foodservice quality and choice is a profitable move.
7-Eleven’s holistic approach to food branding, technology,
and the customer experience positions it as a formidable player, even in the
restaurant sector. By creating distinct restaurant offerings, the brand
solidifies itself as a dining destination while reinforcing convenience store
profitability.
Circle K: Fueling Growth Through Food
and Beverage
Circle K has followed a similar path by expanding its food
and beverage offerings, increasingly setting itself apart in a highly
competitive convenience store landscape. Alimentation Couche-Tard, Circle K’s
parent company, even considered a merger with 7-Eleven, recognizing the
synergies in food-focused growth between the two convenience giants. Circle K’s
approach is built on three key pillars:
1.
Grab-and-Go Meals
and Fresh Food: Circle K's focus on fresh,
ready-to-eat items has attracted customers looking for quality, convenience,
and affordability. By offering a variety of pre-packaged meals and snacks,
Circle K meets the needs of consumers seeking an alternative to fast food
without compromising on flavor or freshness.
2.
Global Beverage
Offerings: Known for its Frosty and Simply
Great Coffee, Circle K has found success in creating unique beverage programs
that drive repeat traffic. Limited-time seasonal flavors and customizable
options add a level of engagement typically associated with specialty cafes,
drawing in consumers frequently.
3.
Loyalty Programs and
Promotions: Circle K's Easy Rewards program has
incentivized regular visits and increased basket size. Through personalized
discounts and offers, the brand strengthens customer loyalty, making Circle K a
habitual stop for food and beverage purchases.
Sheetz: A Convenience Store with a
Restaurant Attitude
Sheetz has gained a strong reputation for its
restaurant-like menu, featuring made-to-order (MTO) food that rivals that of
many quick-service restaurants. Sheetz's success stems from its ability to
transform convenience stores into destinations for unique food options. Three
primary areas drive Sheetz's customer appeal:
1.
Customization and
Quality: The MTO model allows customers to
personalize everything from sandwiches to salads, mirroring a casual dining
experience. The attention to quality and freshness distinguishes Sheetz’s
offerings from traditional convenience store fare.
2.
Seasonal and
Regional Menu Items: Sheetz frequently introduces
seasonal items and limited-time promotions that resonate with local tastes.
From breakfast sandwiches to hearty late-night options, Sheetz appeals to a
broad customer base, driving frequency across different meal occasions.
3.
Around-the-Clock
Service: Open 24/7, Sheetz caters to a
diverse demographic, including shift workers and night owls. Its menu
availability at all hours reinforces Sheetz as a reliable destination for
high-quality food, no matter the time, keeping its stores busy and profitable.
Wawa: Elevating Convenience with
Signature Offerings
Wawa, known for its premium coffee and extensive food menu,
has built a loyal following by focusing on a high-quality customer experience
that emphasizes convenience without sacrificing taste. Three strategic
initiatives have set Wawa apart:
1.
Quality Beverage
Program: Wawa’s coffee and smoothie options
are beloved by consumers. By continually expanding and refining its beverage
menu, Wawa has become a go-to destination for customers seeking high-quality
drinks, enhancing daily visit frequency.
2.
Branded Food and
Customization: From hoagies to breakfast
sandwiches, Wawa’s signature food offerings encourage customization, allowing
customers to make each item uniquely theirs. The brand has successfully
positioned its food as not just convenient but also crave-worthy, increasing
both average ticket size and frequency of visits.
3.
Community-Focused
Initiatives: Wawa has built strong relationships
with the communities it serves, often running events, promotions, and
charitable efforts that foster brand loyalty. These community touchpoints
increase customer loyalty, driving frequent visits for both food and fuel.
The Future of Food-Driven Convenience
Retail
Convenience stores, traditionally focused on fuel and quick
snacks, are now redefining their role by emphasizing food quality, branding,
and customer experience. 7-Eleven, Circle K, Sheetz, and Wawa are all driving
this transformation, blurring the lines between restaurants and convenience
stores. As 7-Eleven’s New Standard stores show, there’s tremendous growth
potential in food-focused locations, with new units driving 13% higher
same-store sales than the rest of its portfolio and projecting continued growth
over the next four years.
Through strategic investments in branded food offerings,
technology, and personalization, convenience stores are set to capture a
significant share of food sales from restaurants. This pivot isn’t just about
convenience but also about offering customers a destination for high-quality,
affordable, and customizable food options. As consumer demand for convenience
and choice grows, these retailers are poised to meet it, further embedding food
as a core element of convenience retail success.
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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