Foodservice -- No Longer Just Hot Dogs on the Grill

The past two years of economic strain have slowed growth of foodservice sales across the board.  However, as consumer confidence regains and consumers have more money in their pockets, the opportunities for foodservice growth in c-stores are promising.

Citing Technomic, Inc. research, Timothy Powell, senior manager, told a room full of early risers at the AWMA Show that foodservice sales reached 10.5 billion in 2009.  

“Foodservice opportunities are heating up, and c-stores that improve on the QSR concept can certainly grab a piece of that foodservice pie,” Powell said.  He outlined several key trends that convenience distributors, manufacturers and retailers can utilize to expand their knowledge base about these opportunities and position their companies for foodservice success.

“The advantage that c-stores have is that they provide a one-stop shopping experience.  When gas prices are high, some consumers may be more likely to make purchases in the store after they pump gas so they don’t have to drive to another retail outlet.  However, operators say that high gas prices also can correlate negatively to foodservice sales – consumers are more likely to make food purchases inside the store if gas prices are low,” Powell said.  So presenting consumers with high quality, convenient foodservice choices can lure consumers into the c-store.

According to Technomic research, here are some of the most significant foodservice consumer trends:
•    Portability and transportability of food products
•    Upscaling of gas stations to more “fast casual” restaurants
•     Convenience/stress-free lifestyles
•    Focus on fresh
•    Price increases
•    Connecting with consumers in new ways--technology
•    Deals and promotions are here to stay
•    Increasing social responsibility
•    More independent store closures

Powell noted that the retail stores, including supermarkets like Kwik Stop and Sheetz, are communicating with their customers through such new technology as Facebook and Twitter.  Sheetz sends out regular Twitter updates (“tweets”) to update consumers on new deals or products.  “Everyone is on Facebook.  It’s not just for the young,” he said.

Lorna Erickson of Henry’s Foods, Alexandria, MN, said it was affirming to hear Powell talk about the same issues that Henry’s has been hearing from its c-store customers.  “He addressed things I already know, but it’s great to have it reinforced by an expert.”