Once known primarily for their role in providing quick
snacks and fuel, convenience stores have evolved into key players in the retail
foodservice industry. They have become destinations for fresh food fast,
catering to consumers who seek quality meals without the wait.
According to Steven Johnson Grocerant Guru® at Tacoma, WA
based Foodservice Solutions®, from the morning rush to late-night dinners,
convenience stores have transformed how Americans eat on the go. This evolution
has also unlocked new revenue streams, particularly through the sale of beer
and wine to-go, further driving incremental sales. Here’s a historical look at
how convenience stores have mastered the art of fresh food fast across
different dayparts, with industry examples to highlight their success.
1. AM Coffee: The Gateway to
Convenience Store Loyalty
The morning coffee run is a ritual for millions of
Americans, and convenience stores have capitalized on this with a strong focus
on fresh-brewed coffee. Historically, coffee has been more than just a beverage
for convenience stores; it has been a key driver of foot traffic, laying the
foundation for customer loyalty.
Example: Wawa
Wawa, a convenience store chain with a
strong presence along the East Coast, is a prime example of how coffee can
drive business. Wawa’s coffee program, introduced in the 1970s, has become a
cornerstone of its brand, offering a variety of blends and flavors that cater
to diverse consumer tastes. Wawa’s coffee stations are often bustling in the
mornings, with customers grabbing a cup of freshly brewed coffee along with a
breakfast sandwich or pastry. This focus on quality coffee has helped Wawa
maintain a loyal customer base and has been a significant contributor to its
annual revenue, which exceeded $13 billion in 2023.
Industry Fact:
The National Association of Convenience Stores (NACS) reports that coffee accounts for
nearly 40% of convenience store beverage sales in the morning, making it a
critical product for driving early-day foot traffic.
2. Lunch Sales: Fresh, Fast, and Ready
to Go
The evolution of convenience store food offerings has seen
a significant focus on lunchtime options. Historically, convenience stores
offered pre-packaged sandwiches and snacks, but today, many have expanded their
offerings to include freshly made salads, wraps, and hot meals that compete
directly with quick-service restaurants.
Example: Sheetz
Sheetz, a convenience store chain with
locations across the Mid-Atlantic, revolutionized its foodservice program in
the early 2000s by introducing made-to-order (MTO) menu items. Customers can
customize their sandwiches, salads, and other meals through touch-screen
ordering systems, ensuring freshness and personalization. This innovation has
positioned Sheetz as a go-to destination for lunchtime meals, attracting a
diverse customer base ranging from office workers to students. The success of
Sheetz’s MTO program is evident in its growth, with the company reaching over
$7 billion in annual sales.
Industry Fact:
According to NACS, foodservice now
represents more than 22% of in-store sales at convenience stores, with lunch
being a significant contributor to this growth.
3. Pizza for Dinner: Convenience Meets
Quality
Dinner options at convenience stores have expanded well
beyond hot dogs and microwaveable meals. Pizza, a staple of American comfort
food, has become a major draw for convenience stores, offering a quick, hot
meal that satisfies consumers’ cravings for something substantial.
Example: Casey’s General Store Casey’s General Store, a chain with over 2,400 locations
primarily in the Midwest, is famous for its pizza, which has become a key
driver of its dinner sales. Introduced in the 1980s, Casey’s pizza program has
grown to become one of the chain’s most popular offerings. The pizza is made
fresh in-store, and customers can choose from a variety of toppings or opt for
a ready-made slice. Casey’s pizza is so well-regarded that it’s often compared
to those from traditional pizzerias. This focus on quality has made Casey’s the
fifth-largest pizza chain in the United States by sales volume.
Industry Fact:
NACS data shows that pizza is one of
the top-selling prepared food items at convenience stores, with stores that
offer pizza seeing a significant increase in evening foot traffic and sales.
4. Beer and Wine To-Go: Driving
Incremental Sales
Convenience stores have long been associated with quick
purchases of beer and wine, but the ability to pair these beverages with fresh
food offerings has created a new opportunity for incremental sales. By offering
a one-stop-shop experience, convenience stores are capturing consumers who are
looking to grab a meal and their favorite beverage in one easy trip.
Example: 7-Eleven
7-Eleven, the global convenience store giant, has been a leader in the to-go
beer and wine market. Since expanding its alcohol offerings in the early 2000s,
7-Eleven has focused on providing a curated selection of craft beers and wines
that appeal to a broad range of consumers. The chain’s ability to pair these
beverages with its growing selection of fresh food, such as pizza, sandwiches,
and salads, has enhanced its appeal as a dinner destination. This strategy has
helped 7-Eleven maintain its position as a top convenience store chain, with
annual sales surpassing $90 billion.
Industry Fact:
The sale of beer and wine at convenience stores contributes to approximately
12% of total in-store sales, according to NACS, highlighting its importance in
driving incremental revenue.
Think About This
Convenience stores have come a long way from their origins
as quick stops for snacks and fuel. Through strategic investments in fresh food
programs and the integration of beer and wine to-go, they have transformed into
multifaceted foodservice destinations. By focusing on key dayparts—morning
coffee, lunch, dinner, and evening beverages—convenience stores have
successfully met the needs of time-starved consumers while driving significant
incremental sales. As the retail foodservice landscape continues to evolve,
convenience stores are well-positioned to remain at the forefront, offering
fresh food fast in a way that resonates with today’s on-the-go lifestyles.
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
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