Food Stores at this year’s NACS State of the
Industry Summit.
It’s no doubt a moving target, as convenience
stores continue their evolution to provide
advanced foodservice programs and welcoming
environments that entice non-traditional c-store
customers (like soccer moms and seniors). But
getting to know what you’re up against is essential
to ensuring you retain your newfound gains as
well as those within your grasp.
QSRs by the Numbers
With more than 232,000 U. S. locations, QSRs overshadow the ubiquitous c-store, whose latest U. S.
store count hovers around 154,000. Additionally,
QSRs generate higher transaction counts than
c-stores—575,000 per year per McDonald’s (
according to their website), versus 533,340 per year per
c-store—as well as sales. The average Chick Fil-A,
for instance, generated $3.1 million in sales in 2015,
as reported by QSR Magazine, or about eight times
what the average c-store tallied in foodservice sales.
And much of these sales are coming from the same
customer pool as convenience stores—“Convenience
stores and QSRs share the same customer base,”
states the NACS State of the Industry Report of
2015 Data: “a white male aged 16-34, which aligns
well with ‘Bubba,’ the convenience store industry’s
heaviest user profile.”
But that imbalance has been receding, as c-store
foodservice programs mature and their sales
increase. From January 2013 to November 2015,
as QSR sales remained flat or down, convenience
store sales skyrocketed 28%, with gross margins
up a stellar 32%, according to NACS data. As a
result, QSRs began implementing aggressive
tactics to steer consumers to their restaurants.
Stealing from C-Stores
“There has always been a certain degree of
QSRs mimicking c-store strategy in recognition of shared target consumers,” explained
John Pracht, vice president of retail for Nielsen.
“Snack brands are infused into QSR meal
offerings while being offered in primary CPG
But whereas that mimicry was modest or
perhaps even coincidental, more recently, QSRs
have focused deliberately on c-store tactics,
with BOGO promotions and multiple meal
deals. “While dealing has always been very
important in the QSR space, today, it’s more
than the combo deal,” said David Portalatin,
vice president – industry analyst of food con-
sumption for The NPD Group (NPD). “The 4 for
$4s or 4 for $5 are everywhere.”
Pracht agrees. “All major QSR chains have
developed the price multiple menu—for example,
four for $4, three for $5—that offers more overall
calories for the penny,” he said. “This is an
upgrade from the old dollar menu, as millenni-
als looking to stretch their budgets spend more
per transaction to capture the full value of the
multiple deal.”
“THERE HAS ALWAYS
BEEN A CERTAIN DEGREE
OF QSRs MIMICKING
C-STORE STRATEGY
IN RECOGNITION
OF SHARED TARGET
CONSUMERS.”
