C-Stores Keys to Growing Foodservice Sales and Profits

 

Today consumers are looking for more than just a quick snack, meal, or treat they are looking to maximize every foodservice encounter with multiple solutions.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®; mix and match meal component bundling is the key driver of the continued growth within the grocerant niche.

Abbey Karel is vice president of business development for convenience at Bounteous she agrees and says, that “the line between convenience retailers, restaurants and grocery blurs, c-stores have a unique opportunity to meet several demands — food, fuel, home products and even groceries — in one fell swoop.

But to compete with quick-service restaurants (QSRs) on the food front, convenience stores will need to continue to strategically invest in and expand digital offerings.

Customer relationship management (CRM) software, loyalty apps, first-party data, consumer research and reviews can all be mined for insights, which can help inform development of a foodservice strategy.

Bounteous recently fielded research for the National Advisory Group (NAG) that revealed areas of opportunity that can help c-stores grow their foodservice footprints.

Power Upsells with Data

Bounteous + NAG research found 70% of c-store app users who place a food order are likely or extremely likely to order add-ons (beverages, snacks, candy, tobacco, alcohol, etc). This is a critical data point because the in-store shopping experience relies on the store planogram for add-ons increasing the average order value. Knowing that a strategic app experience can yield the same results as in-store can help c-stores feel confident in digital growth.

Variety is where convenience stores outshine their QSR counterparts. Where else can customers order and pay for food, snacks, gas, a car wash and beer at one time? This level of convenience is invaluable to consumers, and digital can amplify this convenience.

App users who order food are primed to make add-on purchases: 52% are likely or extremely likely to purchase candy, and about 44% are likely or extremely likely to add alcohol or tobacco products.

Whichever way customers order, c-store brands must create a successful digital flow by inserting upsells and cross-sells during the ordering process. Suggestive selling is an effective method of increasing basket size and encouraging customers to try new products. By showing images of complementary products that customers might not have considered otherwise, the customer is prompted to add additional items to the basket.

Unlock Breakfast Potential

Bounteous + NAG research revealed that 27% of survey respondents are most likely to order lunch from c-stores — higher than any other daypart. A closer look at the data, however, reveals hidden potential for the breakfast daypart: 47% of specialty-coffee app users go there for breakfast. C-store retailers already have the advantage of morning commuters filling up and have an opportunity to appeal to the breakfast crowd by building out their specialty coffee and beverage menus.

Understanding your customers’ behaviors, patterns and personas is key to maximizing the potential of your breakfast offerings and marketing strategies. Mornings are a crucial time for customers, and they want to start their day off on the right foot. By creating habits that make your customers feel happy and excited about their morning routines, you can build new loyalty and increase basket size.

Crack the Social Code

Unsurprisingly, 52% of respondents in our research said friends/family members are the biggest influence in looking for restaurant/prepared food options. Social media platforms Facebook and Instagram come in at third and sixth respectively (with Google and YouTube mixed in between).

Social media is one of the best tools that brands can use to connect with customers.

Fifty-seven percent of consumers spend more with brands they follow online — and if they do have a negative experience, 40% of the time they are more willing to give your brand a second chance than if they didn’t follow you. Understanding the relationship between your brand and consumers is the key to creative success when it comes to social media.

Simply having a social media presence — even if you post regularly — isn’t enough. It’s critical to understand which audiences use which platform, and what type of content interests them. You can’t just replicate your content on each platform and hope for success. Instead, research your target audience and followers, then analyze their behaviors on each platform and tailor content accordingly. This will increase engagement and help build a stronger connection between your brand and your customers.

C-stores have a unique opportunity to build brand loyalty and grow basket size through foodservice offerings. By strategically leveraging digital tools, customer data and overall consumer trends, c-stores can compete with QSRs and maximize their foodservice investment.

Abbey Karel is vice president of business development for convenience at Bounteous. With a background in mobile product management in retail, Karel’s focus is on deeply understanding clients’ needs to optimize global teams throughout the product lifecycle and driving strategic, long-term partnerships centered around co-innovation.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® 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 one of the following links: Facebook,  LinkedIn, or Twitter