Thursday, August 15, 2013

Convenience Stores Fresh Prepared Food Momentum Growing

Quick Service Restaurants and many Quick Casual Restaurant are reporting flat sales.  There are a few exceptions.  However, one retail food sector is standing out. In The 2013 Convenience Store News Foodservice Study found seventy five percent of chain operated convenience stores expect to see their foodservice sales increase by the end of this year.  Ready-2-eat and heat-N-eat fresh prepared food continues to drive profitability.  When consumers like the new fresh food products (which purchase validate) and the new fresh food items drive profitability this sector will continue to garner share from restaurants, grocery stores, and others entering the fray.

CSNews report found that “profitability is up for operators, as 60.3 percent expect to find an increased bottom-line foodservice profit this year, compared to 54.7 percent in 2012. Nearly 30 percent expect to match last year’s profit numbers.”

The same report found, “foodservice accounts for 14.3 percent of in-store sales and 24.2 percent of in-store gross margin dollar contribution industry wide. Overall, foodservice sales grew 7.6 percent in 2012, with prepared food leading the way.” Are your sales up by 7.6%? Is your market share growing?

They are winning in traditional day parts “The lunch daypart, which falls between 11 a.m. and 1:59 p.m., is still bringing in the majority of foodservice sales in the c-store industry (32.5 percent), followed by breakfast from 6 a.m. through 8:59 a.m. (23.7 percent). Dinner also remains a popular daypart, capturing 15.7 percent of sales. In addition to bringing in the most sales, the lunch daypart also saw the most sales growth.” How is your lunch business? 

Bundling mix and match dinner items is the next focus for this sector.  How long will you wait and see what are happens next before you edify your brand, menu and position?

Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization contact us via Email us at: or visit Johnson, or

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