Convenience stores are evolving rapidly, striving to surpass fast-food restaurants in foodservice. This shift was highlighted at the recent National Association of Convenience Stores (NACS) Show in Chicago, where industry leaders discussed future trends and opportunities.
Insights from Industry Leaders
Henry Armour, NACS President and CEO, and his successor, Frank Gleeson, emphasized the need for convenience stores to enhance their food offerings. Gleeson, who will assume leadership on January 1, noted that food represents a significant growth area for this sector.
- Frank Gleeson: Incoming NACS President and CEO
- Henry Armour: Current NACS President and CEO
- Brian Hannasch: Outgoing NACS Chairman
Record Sales in Foodservice
According to NACS data released in April, 2024 marked a record year for in-store sales in U.S. convenience stores. Foodservice sales contributed to 28.7% of total in-store sales, a notable increase from just 11.9% in 2004.
Innovative Food Offerings
Convenience store operators are elevating their food selections. At the NACS Show, attendees could sample various gourmet items. For instance, Core-Mark showcased delicious options like:
- Fresh-fried spanakopita
- Cheesy Salvadoran pupusas
Additionally, beverage stations allowed customers to create customized drinks, such as iced coffees and flavored hot chocolates.
Competition with Quick-Service Restaurants
Gleeson pointed out the competitive landscape between convenience stores and quick-service restaurants (QSRs). Despite the challenges, he believes that convenience stores have a unique advantage due to their proximity to customers.
“You fuel your car once a week, you fuel your body three, four times a day,” Gleeson stated. This perspective underscores the potential for convenience stores to attract consumers throughout the day.
Strategic Focus for Growth
To truly enhance foodservice offerings, Armour advises convenience stores to look beyond competitors in their immediate vicinity. Instead, they should consider the strategies employed by QSRs, particularly in menu execution and market agility.
As convenience stores continue to adapt, the industry is likely to see further innovations that blend convenience with quality foodservice. This evolution reflects their ambition to align more closely with consumer needs in a competitive market.
