There is one constant in life that is the consumer is
dynamic not static. Convenience stores
must be as dynamic as the consumer or they risk not only losing market share;
there brand may quite simply become irrelevant according to Steven Johnson
Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
Recenlty CJ Pakeltis is an account
manager at RizePoint, specializing in the grocery and convenience store markets wrote an
article focusing on the importance of EV’s within the C-store sector. The team at Foodservice Solutions® liked it
so much we want to share it with you. If
you like it feel free to let CJ know he can be reached at CJ.Pakeltis@rizepoint.com.
He begins with the
premise: The migration to electric vehicles means convenience stores must
reinvent themselves.
“Historically high gas prices, new
electric vehicle (EV) models, government sales incentives and the desire to
become more sustainable are pushing more consumers toward EVs.
Some states, including California, are
moving toward EVs to meet environmental goals, and plan to stop selling
gas-powered vehicles altogether by 2035. Experts predict that the EV market
will more than double by 2027, and that 45 percent of new car sales will be
electric by 2035.
Since fuel revenue has historically been
so significant for c-stores, the migration to EVs means convenience stores must
reinvent themselves. This means transitioning from a grab-and-go model that's a
10-minute stop — where customers gas up their cars, then grab
cigarettes, beer and a prepackaged snack for the road — to a
destination, where they hang out for an hour or more to shop, eat, work and
charge their cars.
The threat is that casual dining,
shopping malls, etc., may replace c-stores as the travelers' destinations. So,
if your convenience store hasn't yet started thinking about your strategy for
reinventing yourself, it's time.
C-stores need to make foodservice a
meaningful part of their organizations and give their customers a reason to
come and stay. Unfortunately, there are often negative perceptions around
c-stores' food and grab-and-go model, so brands should work diligently to
change these perceptions, emphasize safety and quality, and build consumer
trust. I recommend that c-stores:
Change their mindset around food. Some c-store employees view food preparation as a burden, and
may dread cooking, replenishing and monitoring prepared food. Also, some stores
don't consider where their food comes from, how it's sourced, and whether their
suppliers follow strict food safety procedures. That must change. C-stores must
implement food safety and quality protocols, ensure integrity in food sourcing,
track their suppliers' safety certifications and make food safety part of their
company cultures.
Correct misconceptions. There are still misconceptions about c-store food, with consumers
envisioning old, shriveled hot dogs being held under heat lamps for days.
C-stores need to change the narrative and become famous for serving fresh,
safe, delicious food. And since customers will need something to do while they
charge their cars, add welcoming areas to sit, eat and wait.
Migrate or get left behind. Consumers are becoming healthier, with a decline in cigarette
smoking and a shift away from buying soda and processed snacks. C-stores should
transform accordingly, working to replace these revenue drivers. Offer
delicious meals and snacks, and be sure to have healthier options (e.g.,
vegetarian meals, healthy juices, fruit and smoothies) for the notoriously
health-conscious EV owners.
Embrace the EV trend. There are nearly 150,000 convenience stores nationwide, and
approximately 80 percent of them currently sell gas. As more people
adopt EVs, consider how consumers' needs will change and transform your
business accordingly. Since EVs have a finite battery life, people will need to
periodically charge their cars, so offering charging stations onsite is a great
way to attract customers and differentiate yourself from other c-stores that
don't do this.
Do you want to Thrive
If So you must Evolve
To Grow a Larger Share of Stomach
Understand the changing competition. EVs have changed the landscape. Fast-casual restaurants,
shopping centers, grocery stores, pharmacies and even car washes are adding
charging centers and giving customers something to do — eat, shop,
vacuum their car — while they wait. This means increased competition
for c-stores. To attract the growing number of EV owners, create an environment
where your customers would enjoy hanging out; a seating area with Wi-Fi where
they can catch up on work, sip coffee and enjoy a leisurely meal.
Emulate European models. Quick-service restaurants don't have market presence in
Europe, so for on-the-go meals and snacks, consumers rely on c-stores. European
c-stores make fresh food the centerpiece. Meals are made to order, and they
don't hold hot sandwiches under heat lamps. Consumers across the pond trust and
enjoy c-store food in a way that's quite different from the United States.
Elevate inspections and audits. Use technology tools to conduct daily inspections, ensure foods are
held at proper temps, check store cleanliness, etc. Ditch paper systems, which
can't validate whether checks occurred, and rely on software for easily
accessible inspection records. Hire third-party inspectors for external
validation. These assessments will identify areas of noncompliance so that you
can take immediate corrective actions.
Ensure all suppliers follow strict safety
and quality protocols. In addition to
implementing strict QA programs in your store, monitor your suppliers to be
certain they have proper food safety protocols and structured QA programs in
place. Use tech tools to organize and manage supplier certifications. Audit
suppliers to ensure they're compliant before you work with them (and throughout
your collaboration).
Play the long game. Consumer perception won't shift quickly. Your store must
build trust over time. Have patience.
All signs indicate that EV sales will
spike significantly in the coming months and years, changing what convenience
stores will look and feel like. Instead of wanting grab-and-go experiences,
more c-store customers will want to sit and wait as they charge their cars.
This is an ideal opportunity to give your customers and prospects what they
want — a reason to come and stay awhile.”
Invite Foodservice
Solutions® to complete a Grocerant ScoreCard, or for product positioning or
placement assistance, or call our Grocerant Guru®. Since 1991 Foodservice
Solutions® of Tacoma, WA has been the global leader in the
Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869
