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What’s happening in convenience stores that matters in your business?
What do convenience stores and vending and onsite foodservice operators all have in common? All are in the “immediate consumption” business. Over 80 percent of c-store sales are consumed within 15 minutes of purchase. We expect that it’s much the same for vending. Operators in these channels face many of the same challenges and enjoy many of the same opportunities.
Let’s take a closer look at what c-stores are doing lately. It appears c-stores are doing much better than vending and onsite foodservice operators at overcoming challenges and capitalizing on opportunities.
Since c-stores are your toughest competitors, you should be knowledgeable about what they’re doing. We looked at the 2007 State of the Industry (SOI) Report from the National Association of Convenience Stores (NACS).
We have some good news and some bad news for you about c-stores.
First, here’s the good news. C-store operators are under pressure. They face most of the same challenges you do. There are also some unique challenges for these retailers of gasoline, beer and tobacco products.
But there’s bad news for vending and onsite foodservice operators. Especially since these tough competitors are about to get even tougher. Expect to see even more stores – there are about 145,000 convenience stores in the U.S. now. Leading chains are ramping up for growth. Major expansions are in progress. There are lots of acquisitions and consolidations. Some chains are planning to drive store count through franchising (7-Eleven).
And expect to see even better stores. Some are opening convenience restaurants (Sheetz). Foodservice is becoming much more important to the growth plans at convenience store chains (Alon USA).