Showing posts with label Chips. Show all posts
Showing posts with label Chips. Show all posts

Monday, December 22, 2025

Evolving C-Store Daypart sales Will Drive Success

 


Convenience stores (c-stores) have quietly remade themselves over the last five years from fuel-anchored retail lots into multi-daypart foodservice operators according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Rising consumer demand for hot, fresh, grab-and-go options combined with investments in foodservice, beverage bars and made-to-order (MTO) capability have pushed c-stores into direct competition with quick-service restaurants (QSRs) across breakfast, lunch and dinner — while snacks and beverage purchases continue to underpin visit frequency throughout the day. The evidence below pulls together industry data and market studies to summarize how each daypart is evolving and who shops when.

Morning: breakfast and coffee — the anchor of frequency

Coffee remains a critical foot-traffic driver. C-stores report the highest purchase frequency for hot coffee across foodservice channels; many shoppers buy coffee at least weekly, and coffee drives repeated habit visits. Operators that improve flavor, freshness and convenience capture outsized share of morning trips.

Breakfast is recovering and growing. Multiple industry studies show breakfast sales growth outpacing other dayparts as more consumers return to commuting and office routines; loyalty programs and targeted morning promotions are cited as effective tactics to convert routine coffee buyers into breakfast purchasers. Prepared breakfast sandwiches, protein bowls and heated bakery items are key growth SKUs.

Operator implications: invest in temperature/hold systems, regimented speed of service for AM rush, premium single-serve brew options and cross-promotions (coffee + bakery/protein) to lift average ticket and capture weekday habitual trips.


Midday: lunch — made-to-order and protein focus

Lunch is shifting toward hot, protein-forward offerings. Research and platform data show consumers ordering hot, protein-focused grab-and-go meals from c-stores at increasing rates; made-to-order sandwich programs, pizza, and hot bowls are converting quick lunch occasions away from some QSRs.

Volume vs. value tension: Growth in foodservice has in some cases been price-driven rather than volume-driven (foodservice CPI pressures noted), so operators must balance quality and margin while maintaining price parity with QSR alternatives.

Operator implications: build scalable MTO platforms (simple order flows), spotlight protein choices, and use digital loyalty/order channels to speed lunchtime throughput and reduce perceived friction vs. QSR lines.

Evening: dinner — c-stores as convenient meal destinations

Dinner traffic is growing where c-stores offer true meal value. Several chains (and market studies) report that prepared foods are turning c-stores into viable dinner options — especially for households seeking convenience, value and shorter wait times than QSR. Chains with stronger commissary and kitchen capabilities (pizza, sandwiches, higher-quality hot foods) report measurable lift.

Operator implications: positioning matters — dinner success requires higher perceived quality, consistent execution, and bundling (meal combos) that compete on value and speed with local QSRs.

Late night: snacking, cravings and niche audiences

Late-night visits skew young and mission-driven. Data show a disproportionate share of late-night shoppers are aged roughly 18–30 (students, night-shift workers, late socializers); their spend centers on snacks, beverages, and quick heat-and-go meals. Promotions, extended-hours offers and culturally relevant marketing (music, social content) work well.

Operator implications: Optimize grab-and-go stacks, leverage lighting and signage for visibility after dark, and maintain staffing/tech that supports fast transactions for small-basket purchases.


All dayparts: the role of snacking visits and complementarity

Snacking visits are the glue across dayparts. Impulse snack and beverage purchases remain the largest single driver of in-store conversion and margin. Studies consistently show candy, salty snacks and bakery items rank top for impulse purchase — and these items attach to nearly any visit reason (fuel, coffee, meal pickup). That makes snacking assortments and strategic placement crucial to converting high-frequency, low-ticket trips into higher-margin add-ons.

Cross-daypart synergy: a customer who drops in for morning coffee can be converted later in the day via targeted digital offers to purchase lunch or an evening meal; similarly, fuel trips can be leveraged to promote in-store meal combos that capture more of the visit value.



Who shops when — demographic patterns

Morning (breakfast & coffee): commuters and older Millennials / Gen X (work commuters) plus urban early-adopters; loyalty members skew slightly older but Gen Z is growing share of single-serve and flavored coffee purchases.
Lunch: workers without long lunch windows (office and light industrial), time-pressed parents, and younger adults seeking value/protein; MTO appeal is broadening demographic mix.
Dinner: families and value shoppers in suburbs, plus late commuters; success here correlates with perceived food quality and value.
Late night: Gen Z and younger Millennials, shift workers, students — snack/drink oriented with occasional meal purchases.

Four Grocerant Guru® insights on mix-and-match meal-component bundling

1.       Design modular bundles, not fixed combos. Offer componentized bundles (pick protein + pick starch + pick side + beverage) with a small, transparent bundling discount. Modularity increases perceived choice while simplifying inventory and allows customers to assemble meals that match dietary preferences—reducing the paradox-of-choice fatigue while increasing attach rate.

2.       Use price architecture to guide, not coerce. Structure tiered pricing (value, premium, premium+). Make the “smart default” the best margin-to-value option (e.g., a mid-tier build that nudges protein + side + coffee). That steers mainstream shoppers toward profitable bundles while leaving premium options available.

3.       Operationalize bundles for speed. Design assembly-line friendly components: standardized protein portions, universal heat-and-hold requirements, and pre-built side racks. Bundles must be executable in the same window as single-item purchases to avoid lunch-rush friction. Invest in clear POS prompts and staff micro-training so bundles flow rather than clog.

4.       Personalize bundling through data. Use LMS/loyalty and transaction data to suggest prebuilt bundles by segment and daypart (e.g., “morning commuter protein + large coffee” vs. “late-night snack pack for students”). Dynamic offers delivered at point of sale or via app increase conversion and lift basket size without expanding shelf space.

 


Think About This

• Prioritize coffee quality and morning speed; convert coffee buyers into breakfast purchasers.
• Scale simple MTO systems for lunch and dinner with protein focus and digital ordering.
• Treat late night as a distinct P&L segment — optimize for young, snack-first shoppers.
• Use modular bundling, POS guidance and loyalty data to raise take-rate across dayparts.

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 participationdifferentiation 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



Friday, August 16, 2024

Why Couche-Tard’s New Significant M&A Moves May or May Not Turn Out

 


In the world of convenience retail, Alimentation Couche-Tard Inc. has never shied away from making bold moves since Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been following the sector. The recent announcement of acquiring GetGo CafĂ©+Markets from Giant Eagle Inc., combined with a nonbinding proposal to acquire Seven & i Holdings Co. Ltd., the parent company of 7-Eleven, signals Couche-Tard's aggressive expansion strategy. With 7-Eleven now valued at $38.7 billion, this could be a defining moment for Couche-Tard's global success. But what could these moves mean for the future?

Here are five possible outcomes:

1. Global Market Domination

If Couche-Tard successfully acquires 7-Eleven, it would solidify its position as a dominant force in the global convenience store market. With over 16,700 stores already, adding 7-Eleven’s vast network could catapult Couche-Tard into the number one spot globally. This would provide significant leverage in negotiations with suppliers and allow the company to standardize operations across markets, driving efficiencies and profits.

2. Enhanced Consumer Loyalty Programs

The integration of GetGo into Couche-Tard’s portfolio, along with the partnership on Giant Eagle’s myPerks loyalty program, could lead to a powerful, unified loyalty program across all Couche-Tard brands. This could drive customer retention and increase cross-promotion between the various stores under the Couche-Tard umbrella, leading to greater customer lifetime value.


3. Expansion into New Markets

Couche-Tard’s pursuit of Seven & i Holdings signals its intent to expand further into Asia, a region with immense growth potential. With its established presence in the U.S., Europe, and other parts of the world, this move could open up new revenue streams and diversify the company’s market presence, reducing reliance on any single region.

4. Innovation in Store Formats

The acquisition of GetGo, known for its innovative open-concept stores and made-to-order food offerings, could inspire Couche-Tard to revamp its existing stores. Combining GetGo’s fresh food focus with Couche-Tard’s scale could create a new standard for convenience stores, blending quick service with quality and variety.


5. Increased Market Valuation

Successfully integrating 7-Eleven into its portfolio could significantly boost Couche-Tard’s market valuation, potentially surpassing the $50 billion mark. This would make it a more attractive investment for shareholders and give the company the financial muscle to continue pursuing strategic acquisitions in the future.

However, not all outcomes may be positive. Here are three reasons why Couche-Tard's ambitious plans might not pan out:

1. Regulatory Hurdles

Mergers of this scale often face significant scrutiny from regulatory bodies. The acquisition of 7-Eleven could be challenged by antitrust regulators in multiple countries, potentially delaying or even blocking the deal. Couche-Tard would need to navigate these complexities carefully to avoid jeopardizing the acquisition.

2. Cultural and Operational Integration Challenges

Integrating two massive organizations like Couche-Tard and 7-Eleven is no small feat. Differences in corporate culture, operational practices, and customer expectations across regions could lead to friction. If not managed effectively, this could impact employee morale, customer satisfaction, and ultimately, the bottom line.


3. Market Saturation Risks

With such a vast network of stores, Couche-Tard could face the challenge of market saturation, especially in regions where its brands overlap with 7-Eleven. This could lead to cannibalization of sales and a dilution of brand identity, weakening the overall impact of the acquisition.

Think about this, while Couche-Tard’s recent M&A moves could position it as a global convenience store leader, the path forward is fraught with challenges. Success will depend on the company’s ability to navigate regulatory hurdles, integrate diverse operations, and avoid market saturation. If executed well, however, Couche-Tard could redefine the convenience store landscape for years to come.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869










Monday, March 4, 2024

What’s Lay's and IHOP Now Offering Rooty Tooty Fresh 'N Fruity Chips

 


Food Marketers have great jobs and most have lots of fun while working.  Imagine being the new person on the marketing staff and tasked with driving brand awareness while driving top-line sales and bottom-line profits for the brand.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® blending pancakes and potato chips most likely is not the first ideation to come to mind.  But it works and will do the job of driving brand awareness and new electricity for two legacy brands.    

Ok, I guess by now you know that IHOP and Lay’s have team up to create something truly unique; Rooty Tooty Fresh 'N Fruity Chips. These delightful chips capture the essence of one of IHOP’s signature dishes, in a crisp, snackable form.



It’s time to check them out, they are available now at Walmart stores nationwide and for a limited time.

Here we go, think about this, Lay's x IHOP Rooty Tooty Fresh 'N Fruity features the flavor of IHOP pancakes, with sweet notes of strawberries and maple syrup, finished with a subtle flavor of bacon for a savory balance, served on a light-textured potato chip. The flavor was translated to Lay’s chips through a customized seasoning mix created by IHOP Chef Art Carl in tandem with Frito-Lay’s R&D and culinary teams at the Frito-Lay R&D headquarters.   

Remember the Frozen Food Court help drive top line sales and bottom line profits for many a legacy restaurant chain, and still does I might note. Think line extension as CPG has become an increasingly robust channel for restaurant brands looking for additional revenue streams and brand awareness opportunities.

Think about it, Lay’s has always been masters of snack innovation, so it a natural fit that elevates both brands. Now then, if your craving a little of IHOP’s breakfast magic, head to Walmart and grab a bag of Rooty Tooty Fresh 'N Fruity Chips.  If you want to drive some new electricity into your brand.  


Are you looking for new customers? Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.




Friday, June 16, 2023

With Summer Almost Here it’s Road Trip Food Time

 


Just what do you like to snack on?  This summer as families load into the car to visit family, National Parks, the Beach, or a Ballpark there is a very good chance they will be buying food to consumer in the car on the way or one the way home according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Kids are starting to get out of school and families are gearing up for summertime fun. They're also making sure snacks are packed for their road trips, and included in soirees and outdoor escapes. A new report found that “road trippers under 40 years old are twice as likely to prioritize finding the snacks they want over clean bathrooms on their stops.”  Our Grocerant Guru® understand that but does not want to be remined of that fact (haha).


Now that experts are predicting a surge in summer travel comparable to pre-pandemic levels, Frito-Lay and Quaker's first-ever joint U.S. Summer Snack Index sheds light on consumer preferences and habits to ensure unforgettable memories this season. Here is a look at what they found:

"Food is an important centerpiece for the joy that summertime brings," said Denise Lefebvre, senior vice president, PepsiCo Foods R&D. "At Frito-Lay and Quaker, we are deeply invested in understanding what our consumers want so they can have the right flavors, variety, snack styles and even packaging options all season."

Frito-Lay and Quaker's Summer Snack Index marks more than four years since Frito-Lay first issued its inaugural trend report. As snacking continues to play a large role in the lives of Americans — 49 percent of which note enjoying three or more snacks per day — the recurring report is an important yardstick for the evolution of food preferences and purchasing decisions through the lens of evolving consumer behavior, the brands stated.

"Americans snack more in the summer, whether they're inside, outdoors or on the move. From boosting road trip morale to complementing an outdoor potluck, today's data confirms the integral role that snacks will play in many of this season's shared moments and activities," Lefebvre added.



Here's what the annual report revealed:

Ready For Road Trips

·         Planning snacks before hitting the road can "greatly reduce the stress" of a long road trip, according to 85 percent of Americans. That's good news for those looking to embark on new snacking adventures, with nearly three out of four consumers declaring these trips as a chance to enjoy offerings they've never tried before.

·         Snacks are a priority pit stop. Road trippers under 40 years old are twice as likely to prioritize finding the snacks they want over clean bathrooms on their stops.

·         Americans note that snacks provide an important morale boost during road trips (43 percent) and are key to staying sane in traffic (39 percent). While 44 percent of people report hiding snacks to keep them from other passengers, nearly one-quarter say they have used snacks to break an awkward car silence.

·         Approximately 41 percent of respondents say they would rather have control over road trip snacks than the music. Millennials (46 percent) show the greatest preference for snack control, as do parents (49 percent) when compared to non-parents (36 percent).

The Ultimate Summer Soiree

·         Americans note "something for everyone" (74 percent) and "easy to share" (63 percent) are the ideal attributes for food and snacks this summer. When compared to "easy-to-make" dishes, shareability still comes out on top (72 percent vs. 28 percent).

·         Party guests note overcooking the food (70 percent), waiting too long to serve food (62 percent) and not having enough snacks or appetizers (51 percent) are the worst hosting mistakes.

·         Bringing uninvited guests to a party is considered this summer's worst party foul (63 percent), with baby boomers (70 percent) and Gen Zers (55 percent) showing the biggest spread of opinion on the faux pas.



Outdoor Escapes

·         When it comes to outdoor sports, more than half of snackers surveyed (53 percent) say post-game snacks are more important than winning the game. Women (59 percent) are more likely to be excited for the post-game snacks than men (46 percent).

·         Parents note being in charge of their children's after-game snacks is more stressful than getting their kids to the game on time (42 percent). Dads feel the most anxiety over the post-game ritual (46 percent) vs. moms (38 percent).

·         Nearly 60 percent of consumers say that snacks can make or break beach days, citing dropped snacks in the sand (42 percent) and running out of snacks (34 percent) as critical beach bummers.

·         Convenience is key, especially in the great outdoors. The survey found that consumers are more likely to purchase snacks that are conveniently packaged (79 percent), with individually wrapped snacks also preferred (52 percent). When selecting snacks for their children, parents noted variety (70 percent) was their top choice, with flavor and convenience tied for the second-most important attributes (64 percent).

Frito-Lay and Quaker's Summer Snack Index surveyed 2,000 U.S. adults ages 18 and older from May 9 to May 15. More information about the survey is available here.” Now what are you selling that can be consumed in the car?


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.



Tuesday, October 5, 2021

Rite Aid Evolving with a Fresh Food Focus

 


Retailer after retailer find that evolving with consumers pays off in the long run. Consumers are dynamic not static and retailers must be as well.  Demand for grocerant niche Ready-2-Eat and Heat-N-Eat fresh food had created new growth for many a retailer as regular readers of this blog know.

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that Rite Aid will benefit from its new partnership with Uber Eats garnering new electricity for its food, beverage, and snacking offerings. So, how is your branding extending your brand invitation this fall?

According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.”  That said, what are you waiting for?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

So, when Rite Aid announced the expansion of its partnership with Uber Eats to offer same-day delivery of grocery and healthcare products the undercurrents of customer demand were once again in play.

Get this, now on-demand delivery is now available for 2,185 Rite Aid drugstores across 17 states on Uber Eats. Customers who wish to order Rite Aid items for delivery open the Uber Eats app, tap the convenience or pharmacy icons, select Rite Aid, and begin shopping. Within the app, users can access a full catalog of healthcare and grocery products from their local Rite Aid store. Uber Pass and Eats Pass customers will also enjoy no delivery fee and 5% off on all orders over $15.

Battle for Share of Customer Dollars


Jim Peters, chief operating officer of Rite Aid, stated, “Consumer shopping preferences are changing, so we are continuing to evolve our retail business to ensure customers are able to conveniently get what they need to keep their family happy and healthy – whether they visit us in-store or buy online,” ... “By adding Uber as a delivery option, we are doubling down on an omnichannel approach that complements the busy lives of our customers. Ensuring convenient access to whole health essentials enables us to live our purpose of helping people achieve whole health for life.”

So, Uber Eats now becomes Rite Aid’s latest partner for on-demand delivery service for front-of-store products. The Camp Hill, Pa.-based drugstore chain has offered same-day delivery of groceries and OTC health products at all of its stores through Instacart under a partnership announced just over a year ago. This past May, Rite Aid teamed up with DoorDash for same-day delivery of nonprescription health, wellness and convenience products. And most recently in August, Rite Aid joined with Shipt nationwide to offer delivery in as soon as an hour.

Raj Beri, Uber’s global head of grocery and new verticals at Uber Technologies, stated, “Convenience is a key component of Uber’s delivery strategy, allowing us to create a seamless delivery experience by ensuring we have the essential stores and products customers need," said. "With our partners at Rite Aid, we're thrilled to make shopping for everything from cold medication to cosmetics more 'convenient' than ever."

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