C-Stores That Think Like Restaurants Will Own the Future

C-Stores Serious About Foodservice Should Invest in Culinary Expertise

Outside of major national chains, culinary leadership is a missing piece for most c-stores and a glaring gap for those who want to compete directly against QSRs for consumer spending.

Unlike the more transactional, purchase-and-resell categories of packaged food, tobacco, fuel and merchandise, foodservice originates within the c-store and involves a more nuanced management of inputs.

In c-stores that own the future, the foodservice category will function like a restaurant in that it will be managed by someone with expertise in recipe creation and menu innovation, ingredient sourcing, equipment specifying, food safety, hospitality and food-oriented brand building.

This piece by CSNews provides a fascinating breakdown of this role and its critical-factor importance that emanates from the foodservice consumer’s expectation now sitting firmly above “gas station food.”

“‘Guests’ (relational) vs. ‘customers’ (transactional) are looking for quality, service, cleanliness, consistency, speed of service and variety—not to mention value and the ability to customize the food they might buy from you.”

Dovetailing closely behind that . . .

C-Stores Serious About Foodservice Should Invest in Made-to-Order

Customization is a major part of this and a big c-store advantage over restaurants, particularly in a tough economy. But, in the spirit of that rising expectation for c-store foodservice, “freshness” also lends credence to this argument.

CSNews’ 2024 Foodservice Industry Deep Dive Report reveals how freshness continues to climb and has pushed its way “into the top three factors consumers account for when buying prepared food.” At 40%, it came in right behind “food quality” (42%) and “price/value” (44%).

Meanwhile, UniPro’s own 2024 Foodservice Report is even more directly compelling, citing a recent survey statistic that “66% of customers either agree or completely agree with the statement, ‘I wish I could get MTO food from a convenience store.’”

Further reinforcing MTO options as a true pathway to owning the future, it’s no coincidence that 72% of those making this request “are members of Gen Z.”

In light of this MTO demand, c-stores with the culinary perspective of restaurants can leverage their advantages over those same restaurants to create unique opportunities. Take our recently published blog on prepared snacks, for example.

C-Stores Serious About Foodservice Should Invest in Food Promotions

Again, it’s about shifting from a transactional to a more relational mindset, and one that elevates the quality and value distinction of the food the same way restaurants seek to do.

Obviously, pricing will continue to be a component of promotions. c-stores that own the future will build on this with tactics that make food the centerpiece rather than a promotional kicker.

They’ll showcase their food across everything from digital ads to pump toppers. They’ll talk to their dining market in real-time on social media and craft meals that are “Instagram worthy.”

They’ll attend foodservice trade shows beyond NACS and explore menu-reach opportunities like food-centric sponsorships and restaurant-style popups.

Dovetailing closely behind that . . .

C-Stores Serious About Foodservice Should Invest in Loyalty

The digital-app front runners are already moving beyond ordering and payment to marketing and loyalty, launching proactive, database-driven programs that personalize offers and fine-tune their timing.

The irony here is that, compared to QSRs, convenience stores already demonstrate a stronger loyalty connection with their customers. The challenge is acquiring them in the first place.

While c-stores lead in retention, with 80% of their loyalty members returning every month, versus 62% for QSRs and 58% for FSRs, they trail both for signups—only 35 per store per month against 110 for QSRs and 70 for FSRs. (Restaurant Dive, July 2024)

The solution is to ramp up loyalty promotion alongside food promotion, including market engagement to research and improve offer relevance and leveraging such unique advantages as fuel and a broader product line that make c-stores a more necessary visit for consumers—especially in today’s inflationary environment, when even QSRs are struggling to attract with value.