In the ever-evolving landscape of convenience stores, the
key to success lies in understanding and leveraging customer touchpoints. Now
according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, the
convenience store that shines the brightest is the one that prioritizes fresh
food, premium coffee, and ready-to-eat (RTE) and heat-and-eat (HNE) fresh food
options. Let’s dive into why this approach is propelling convenience stores to
new heights of profitability and growth.
Customer Touchpoint Relevance: The
Heart of Convenience
Customer touchpoints are the myriad ways in which a
customer interacts with a brand. For convenience stores, these touchpoints
range from the physical in-store experience to digital interactions through
apps and social media. The stores best positioned for success are those that
create seamless, engaging, and relevant touchpoints at every opportunity.
Research shows that 80% of customers are willing to pay
more for a better customer experience. This statistic underscores the
importance of touchpoints. Convenience stores are capitalizing on this by
offering loyalty programs, mobile ordering, and personalized promotions. By
ensuring that every interaction is meaningful and convenient, these stores are
building strong, loyal customer bases.
Fresh Food: The King of Convenience
Fresh food is not just a trend; it’s a revolution.
Convenience stores that focus on providing fresh, high-quality food options are
seeing significant growth. According to the National Association of Convenience
Stores (NACS), sales of fresh food in convenience stores have increased by 4.4%
annually over the past five years. This growth is fueled by consumer demand for
healthier, more nutritious options.
Leading stores are investing in fresh produce, salads,
sandwiches, and snacks. They are also partnering with local suppliers to ensure
the highest quality and to support the community. This commitment to fresh food
is not only driving sales but also enhancing the store's reputation as a go-to
destination for quick, healthy meals.
Coffee: The Daily Ritual
Coffee is a staple in the daily routine of millions of
Americans, and convenience stores are capitalizing on this. The market for
coffee in convenience stores is projected to grow by 6.9% annually, making it
one of the fastest-growing segments in the industry. Offering high-quality,
freshly brewed coffee can significantly boost foot traffic and sales.
Innovative stores are going beyond the traditional cup of
joe by offering a variety of premium options, including cold brew, espresso,
and specialty drinks. These stores are also creating inviting spaces where
customers can relax and enjoy their coffee, turning a simple beverage into a
memorable experience.
Ready-to-Eat and Heat-and-Eat: The
Future of Fast Food
The RTE and HNE segments are redefining the convenience
store industry. These options cater to busy consumers who seek quick, delicious
meals without sacrificing quality. According to a recent survey, 63% of
convenience store customers purchase ready-to-eat meals at least once a week.
Stores are responding by offering an array of freshly
prepared meals, from breakfast burritos to gourmet pizzas. The versatility and
convenience of these options make them a hit among customers looking for
hassle-free dining solutions. Moreover, the profit margins on these products
are substantial, contributing significantly to the store's bottom line.
Profits and Current Growth Rate: The
Numbers Don’t Lie
The financial performance of convenience stores embracing
these trends is impressive. According to the latest data from the NACS, stores
that prioritize fresh food, premium coffee, and RTE and HNE options report an
average annual sales growth of 7.2%. This growth is driven by increased
customer loyalty and higher ticket averages.
Profit margins in these stores are also higher. Fresh food
and coffee typically yield margins of 50-60%, compared to the 30-40% margins of
traditional convenience store products. The combination of higher sales and
better margins results in robust profitability and a strong financial position.
Think About This: A Recipe for Success
The convenience store industry is at a crossroads, and
those that adapt to the changing landscape are reaping the rewards. By focusing
on customer touchpoint relevance, fresh food, premium coffee, and ready-to-eat
and heat-and-eat options, stores are positioning themselves for unprecedented
success. The numbers tell a compelling story: these stores are not only growing
but thriving, setting a new standard for the industry.
As the Grocerant Guru®, I see a bright future for
convenience stores that embrace these strategies. The journey to success is
paved with fresh ingredients, aromatic coffee, and the convenience of
ready-to-eat meals. It’s a recipe that’s sure to satisfy both customers and the
bottom line.
Foodservice
Solutions® team is here to help you drive top line sales and bottom-line
profits. Are you looking a customer ahead?
Visit GrocerantGuru.com for more information
or contact: Steve@FoodserviceSolutions.us Remember success
does leave clues and we just may the clue you need to propel your continued
success.
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