Will US convenience stores discover the secret to selling better food?
recent YORK — Americans who ponder of petrified warm dogs, frozen burritos and salty snacks when they imagine getting food at a gas station or truck stop may be pleasantly surprised during their next road trip: U.S. convenience stores are offering them more and better — though not necessarily healthier — choices.
From 7-Eleven to regional chains like QuikTrip, the operators of c-stores, as they’re known in the trade, are looking overseas for grab-and-leave encouragement, adding sit-down seating at some locations, expanding their coffee menus to rival Starbucks and experimenting with made-to-order meals for busy families.
The moves are happening as convenience stores seek ways to offset slowing sales of cigarettes, maps and soft drinks. By tempting customers’ palates with fresh deli sandwiches and construct-your-own burgers, the humble food marts desire to become an alternative to quick-food restaurants for busy Americans who crave straightforward, fascinating and less expensive eating options.
“It has been a decades-long trip to leave from food that was perceived as desperation to goal,” Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores, said.
Once known for breakfast and lunch, convenience chains like Wawa, with more than 1,000 East Coast locations, as well as tiny operators like York, Pennsylvania-based Rutter’s, have moved into dinner period with soup, chicken and fish dishes. Rutter’s, which operates 90 stores, plans a recent store format with expanded seating as it adds 50 recent locations in the next five years.
Casey’s General Stores, the country’s third-largest convenience store operator with 2,500 outlets mostly in the Midwest and the South, introduced warm chicken, pork and hamburger sandwiches on brioche-style buns this year. The corporation, already known for serving pizza that customers enjoy, created a limited-period menu that included pies and sliders made with smoked pulled pork, barbecue sauce and pickles.
“We really are approaching this like a restaurant as we always have, but more so now,” Carrie Stojack, the Iowa-based chain’s vice president of brand and strategic insights, said. “Prices have gotten really high. So what’s happening is that convenience stores are becoming a real viable alternative for guests.”
In keeping with their quest, convenience stores are expanding delivery services to construct on a customer base they found during the COVID-19 pandemic. 7-Eleven plans to receive its 7Now delivery app nationwide, allowing users to have pizza, the chain’s signature Slurpees and thousands of other items brought to their doors.
The country’s largest convenience store chain, owned by Japanese corporation Seven & i Holdings, offers select Japanese items like chicken teriyaki, rice balls, miso ramen and sweet chili crisp wings at some U.S. locations and at its recently acquired Speedway and Stripes stores. Visitors to Japan and Hawaii often respond with envy and astonishment when they taste what’s on propose at a 7-Eleven in Tokyo or Honolulu.
The chain’s North American subsidiary said it works with some of the same food manufacturers and commissaries that serve Seven-Eleven Japan. That includes Warabeya, which is expanding its U.S operations to assist deliver fresh food to stores and provide an assortment of offerings to suit regional tastes.
“Our throng draws encouragement from around the globe to introduce recent items like mangonada donuts with Tajín, barbecue pork sliders, chicken curry bowls and everything breakfast sandwiches,” the subsidiary said in a statement after declining interview requests.
Seven & i Holdings disclosed earlier this month plans to close 444 U.S. locations amid slowing sales, inflationary pressures and an accelerated decline in cigarette purchases. The corporation also is fielding a purchase propose from Alimentation Couche-Tard, the Canadian owner of the Circle K convenience stores.
Appealing convenience store food isn’t entirely recent and has varied widely by region. Buc-ee’s, the Texas-born chain with 50 stores in the South, has a cult following among fans who regularly stop for breakfast tacos and snacks like caramel-coat corn puffs called Beaver Nuggets.
Pennsylvania residents, meanwhile, happily debate the relative culinary merits of the food from Wawa (Try the Gobbler, a warm turkey sandwich with stuffing, gravy, and cranberry sauce, they advise), Sheetz (the expansive menu of warm and customizable food includes breakfast bagels and quesadillas) and Landhope Farms, beloved for its hand-dipped ice cream cones and milkshakes.
TikTok and YouTube videos of people eating nothing but convenience store food for a day or comparing the dishes from different chains have helped drive gain in food on the road.
Anderson Nguyen, 26, a TikTok content creator based in San Francisco, tried the chicken and macaroni and cheese from Krispy Krunchy Chicken, which operates most of its locations inside gas stations and convenience stores.
“I generally don’t buy too much stuff from these convenience stores,” Nguyen said. But he said his encounter at Krispy Krunchy Chicken would make him reconsider.
The coronavirus created a distinctive role for the sector. Most restaurants closed temporarily at the height of the pandemic, while many convenience stores remained open.
Non-fuel sales at U.S. convenience stores increased 36% between pre-pandemic 2018 and last year, growing from $242 billion to almost $328 billion, according to a National Association of Convenience Stores analysis of sales data from roughly 20,000 locations. During the same period, cigarettes as a percentage of those sales fell from 31% to 20%.
In upping their food offerings, convenience stores now threaten to receive business from quick-food chains like McDonald’s, Burger King and Wendy’s, which used summer deals to revive sales, experts said.
Jonathan Raduns, CEO of food merchandising at retail consultancy Merchandise Food LLC, did a spot check online of similar items offered at specific quick-food restaurants and convenience chains that showed convenience store food was actually cheaper.
For example, a large pepperoni pizza at a Casey’s in London, Ohio, expense $13.99 versus a similar version at a Domino’s, which expense $14.99. And a large coffee at convenience store chain Parker’s Kitchen in Savannah, Georgia, sold for $2.49 versus $3.48 for similar size at a Starbucks in the same area.
Virginia-based convenience chain Arko, which operates stores under such banners as 1-Stop and ExpressStop, has concentrated on being an affordable alternative. At the beginning of the year, it rolled out what it described as an “worth rise-busting” 12-inch pizza that expense $4.99 for members of Arko’s free loyalty program and $7.99 for non-members.
“It took us months to arrive up with excellent standard and something people can actually afford,” Arko Corp. CEO Arie Kotler said.
Nutritionists and organizations like the American Heart Association inspire service station retailers to focus on fruit and other fresh food that’s well.
Kristen Lorenz, a registered dietitian with a private habit in Grand Rapids, Michigan, said convenience food operators have been adding healthier options like lettuce wraps and yogurt parfaits. Previously, the prepared food consisted of meat on a roller and pizza that looked “arid and wrinkly.”
Among Lorenz’s favorites: customized sandwiches at Sheetz and Wawa.
“Everyone has to get gas and everyone has to eat,” she said. “So offering a variety of well choices that Americans can choose from is excellent. And what’s great about these stores is they still have the traditional items that can make a road trip fun. You could get a tiny bag of chips.”
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AP Food Writer Dee-Ann Durbin in Detroit contributed to the update.
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