In the rapidly evolving landscape of convenience store (C-store) operations, foodservice has emerged as a pivotal area for growth. In fact, based on research from Kinetic12's Q1, 2024 C-Store Emergence Report, 94% of operators believe foodservice is very important to their company's long-term success. 



So, how do you unlock the potential and apply a strategic approach tailored to the unique dynamics of the C-store sector? Drawing on industry insights and expert advice, this article reveals six secrets to successfully growing C-store foodservice.

1. Understanding Your Audience:

Key to Success: Demographic Insight and Consumer Feedback

To truly cater to your customers, you must first understand their needs and preferences. But this isn't a cookie-cutter approach. Operators and suppliers need to start by analyzing demographic data specific to their brand to tailor food offerings—whether it's healthier options for health-conscious communities or comfort foods that appeal to local tastes. But for suppliers, understanding your audience is both about the consumer, and the operator capabilities and needs. 

Getting a good understanding of the back-of-house capabilities is a must, including their labor capability, and prep model. Are they cook to serve, or more of a cook to hold model? Where does speed scratch play a role versus fully prepared? All these are important for manufacturers to understand so they can tailor their offerings to the C-store operator. Additionally, leveraging customer feedback through surveys or direct interactions can provide invaluable insights, allowing you to adjust your offerings to better meet consumer demands.

2. Leveraging Technology:

Streamlining Operations and Enhancing Customer Experiences

Technology is transforming the C-store industry, from digital menus and mobile ordering to self-service kiosks. Implementing these technologies can not only streamline operations but also significantly enhance the customer experience by reducing wait times and offering more personalized service options. Furthermore, utilizing data analytics helps optimize your menu and pricing strategy, ensuring you stay ahead of market trends and consumer preferences. However, it doesn't stop at the customer level. 

Operators are leveraging technology back-of-house to help streamline operations, improve ticket time, and reduce the labor burden. Many C-store operators are now investing in new equipment to help simplify prep, so it’s important for manufacturers to make sure that they understand the operators equipment landscape (as different franchises may have different equipment) and provide the right prep instructions to meet the operator needs.

3. Menu Innovation:

Embracing Regional Favorites and Seasonal Variations

A dynamic menu that introduces regional favorites and seasonal items can significantly attract more customers. For instance, incorporating locally sourced ingredients/flavors or offering seasonal specialties can create a buzz, making your C-store a culinary destination. Limited Time Offers (LTOs) are also an effective strategy for testing new concepts with minimal risk, keeping your menu fresh and exciting. The key is to develop the framework, benchmarks, internal and external processes, and stage-gate to enable innovation to come to life. Managing the flow of information internally and aligning your stakeholders early often helps reduce friction and keep the process going.

4. Operational Excellence:

Achieving Efficiency and Consistency in Service

Operational efficiency and consistency are crucial for the success of any foodservice operation, but for C-stores, they present obstacles for growth. In Kinetic12's Q1 2024 Convenience Store Emergence Report, 63% of operators said problems with inconsistent execution and lack of skilled labor were the top two obstacles to growing foodservice revenue. So, how are they solving this? It's a multifaceted approach that includes making the kitchen/prep process more efficient, improving staff training, and introducing products and recipes that simplify production. Consistency in food quality and safety is non-negotiable, as it builds customer trust and satisfaction, encouraging repeat business, and operators are keenly aware that consistency is a significant contributing factor to guest satisfaction and loyalty.

6. Building a Sustainable Model:

Focusing on Sustainability and Staff Engagement

Sustainability is vital, but it goes beyond the food and sourcing into areas of managing your people and the business model itself. We are at a pivotal point where operators are reinvesting in their food programs, looking at how they manage staff differently, leaning into how to offer a better quality of life to staff to solve for retention, and becoming more stringent on the benchmarks of success and the quality of their menu introductions. At the end of the day, it's that balanced people, planet, and performance mindset that keeps the wheels running smoothly and that'll help maintain the business for years to come. 

Integrating sustainable practices into your foodservice operation can attract a segment of eco-conscious consumers and reduce operational costs. Operators are introducing practices such as reducing waste, recycling, and using eco-friendly packaging to address consumer needs. Additionally, engaging employees in the development and execution of foodservice strategies can lead to a more committed and motivated staff, which is essential for delivering exceptional service.

Conclusion:

The growth of foodservice in C-stores presents an exciting opportunity to drive revenue and diversify offerings. By focusing on these six strategic areas—understanding your audience, leveraging technology, innovating the menu, ensuring operational excellence, crafting effective marketing, and building a sustainable model—operators and suppliers working together can make the C-store foodservice operation a preferred destination for quick and quality dining options.

To learn more about what some of today's most successful C-stores are working on and how you can help, visit https://www.kinetic12.com/emergence-convenience-foodservice or contact us at https://www.kinetic12.com/. 

The year 2024 is set to be a landmark year in the foodservice industry, one that will set the tone for years to come. It's a year that challenges us to think beyond the conventional, to be bold in our aspirations, and visionary in our strategies. This is an invitation to embark on a journey that reimagines the very essence of dining, leveraging technology, embracing sustainability, and prioritizing human connections. Let's seize this opportunity to craft a future that's not just profitable but also enriching and inspiring. 

The future is not just about adapting to change; it's about leading it. Together, let's challenge the status quo, adapt the business model to address the market's evolving needs, and be the architects of change that make 2024 a year to remember.

About Kinetic12: Kim Letizia is with Kinetic12 Consulting, a Chicago-based foodservice and general management consulting firm. The firm works with leading foodservice suppliers, operators, and organizations on customized strategic initiatives and guides multiple collaborative forums and best practice projects. They also serve as keynote speakers at operator franchise conferences and supplier sales meetings. Their previous leadership roles in restaurant chain operations and at foodservice manufacturers provide a balanced industry perspective. 

Contact us to discuss or learn more about how we can help your organization understand the Restaurant of the Future and how Emerging & Growth Chains will define the future of foodservice.