The convenience store landscape has undergone a dramatic
transformation over the past two decades, evolving from a quick stop for fuel
and packaged snacks to a robust competitor in the foodservice industry
according to Steven
Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
Leading the charge in this evolution is Casey’s
General Stores, a company that has strategically
embraced the grocerant model—blending the convenience of a grocery store with
the meal solutions of a restaurant. With a strong focus on high-quality
prepared foods, particularly pizza, and an aggressive unit expansion strategy,
Casey’s is capturing a growing customer base seeking mix-and-match meal
solution.
A Historical Perspective on Casey’s
Shift to Foodservice
Founded in 1968, Casey’s started as a small-town convenience store providing
essential goods to rural communities. By the 1980s, the company recognized that
foodservice was becoming a critical differentiator in the industry,
particularly in smaller markets where dining options were limited. The
introduction of Casey’s signature pizza in 1984 was a pivotal moment, setting
the stage for its long-term success in prepared foods.
While many convenience stores traditionally relied on
pre-packaged sandwiches and microwaveable burritos, Casey’s took a different approach—investing in fresh,
made-to-order food. Over the next few decades, the company continued expanding
its menu, adding breakfast pizza, bakery items, and eventually full meal
bundling options. Today, Casey’s is the fifth-largest pizza chain in the United
States by store count, a remarkable achievement for a company that started in
fuel and packaged goods.
Expanding Share of Stomach
Pizza and Meal Bundling Driving
Incremental Sales Growth
Pizza has remained the cornerstone of Casey’s foodservice
success, consistently driving sales and customer loyalty. According to industry
data, nearly 80% of Casey’s customers who purchase a pizza also buy additional
items, reinforcing the strength of its bundling strategy. With meal bundling
becoming an essential part of consumer purchasing habits, Casey’s has
integrated complementary offerings like breadsticks, wings, and desserts,
elevating its check average while enhancing customer value perception.
The results speak for themselves. In the third quarter of
fiscal year 2025, Casey’s reported a 4.7% increase in same-store prepared food
and dispensed beverage sales, with hot sandwiches seeing a 50% surge and bakery
items growing nearly 10%. This growth is largely attributed to Casey’s ability
to bundle fresh meal components into attractive value deals, which keep
customers returning. The introduction of new chicken wings and fries further
supports Casey’s efforts to create mix-and-match meal options catering to a
variety of consumer preferences.
Expanding the Store Footprint and
Capturing New Markets
While menu innovation is a critical factor, Casey’s unit growth strategy is equally impressive. The company
has aggressively expanded, increasing its store count to approximately 2,900
locations across 17 states. The 2023 acquisition of 198 CEFCO convenience
stores marked Casey’s most significant deal to date, bringing 148 new stores in
Texas and an additional 50 in Alabama, Florida, and Mississippi. This expansion
into the South presents new opportunities to introduce its signature pizza and
bundled meal solutions to a broader audience.
Casey’s has long focused on rural and suburban markets, a
strategy that has proven effective as traditional grocery stores struggle with
rising operational costs. By positioning itself as a go-to destination for both
fuel and fresh food, Casey’s continues to build a strong community presence,
particularly in areas where quick-service restaurant options are sparse.
The Grocerant Model: A Future-Proof
Strategy
The rise of the grocerant niche aligns perfectly with
Casey’s growth strategy. As more consumers migrate away from traditional
sit-down restaurants and toward quick, customizable meal solutions, convenience
stores that offer high-quality prepared foods stand to gain significant market
share. The data supports this shift—according to NACS, foodservice has now
surpassed cigarettes as the leading revenue category in convenience stores, a
trend that is expected to continue.
Casey’s has embraced this shift by focusing on fresh,
restaurant-quality offerings while leveraging its existing convenience store
infrastructure. With a well-established brand reputation for quality pizza and
growing consumer demand for bundled meal deals, Casey’s is well-positioned to
capitalize on the next wave of convenience-driven dining trends.
Looking Ahead: Continued Innovation
and Growth
As Casey’s moves forward, the company’s commitment to food
innovation, operational efficiency, and strategic expansion will remain central
to its success. The company has achieved 11 consecutive quarters of reduced
same-store labor hours, a testament to its ability to optimize operations while
maintaining strong customer satisfaction scores.
With plans to add another 350 stores by the end of fiscal
year 2026, Casey’s is poised to continue its dominance in the grocerant niche.
By staying ahead of consumer trends and reinforcing its reputation for fresh,
high-quality prepared foods, Casey’s is not only evolving but leading the
industry into a new era of convenience-driven dining.
The success of Casey’s highlights a broader industry trend:
the rapid transformation of convenience stores into foodservice powerhouses. As
consumer migration continues to favor ready-to-eat and heat-and-eat meal
solutions, Casey’s stands as a prime example of how a retailer can adapt,
innovate, and thrive in an ever-changing market.
Success Leaves Clues—Are You Ready to
Find Yours?
One key insight that continues to drive success is this: "The
consumer is dynamic, not static." This principle is the foundation of
our work at Foodservice Solutions®, where Steven Johnson, the Grocerant
Guru®, has been helping brands stay relevant in an ever-evolving market.
Want to strengthen your brand’s connection with today’s
consumers? Let’s talk. Call 253-759-7869 for more information.
Stay Ahead of the Competition with
Fresh Ideas
Is your food marketing keeping up with tomorrow’s trends—or
stuck in yesterday’s playbook? If you're ready for fresh ideations that set
your brand apart, we’re here to help.
At Foodservice Solutions®, we specialize in consumer-driven
retail food strategies that enhance convenience, differentiation, and
individualization—key factors in driving growth.
👉 Email us at Steve@FoodserviceSolutions.us
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