Coffee Represents a Purpose-Driven Purchase

Coffee and other dispensed beverages contribute to high frequency convenience store visits.

July 06, 2011

HOUSTON - Getting a cup of coffee or another dispensed beverage is the single-minded mission of many high frequency convenience store visitors, and often they??ll grab a donut or something else to go with it, according to research by The NPD Group.

NPD??s Convenience Store Monitor, which continually tracks consumer purchasing behavior of more than 51,000 convenience store shoppers in the United States, reveals that 86 percent of coffee purchases are planned and 7 percent are purchased on a deal. Other dispensed beverages are also purpose-driven purchases, with only 14 percent bought on impulse and 13 percent on a deal. Consumers of coffee and other dispensed beverages are high frequency buyers who represent 68 percent more visits than the average convenience store customer.

"The fact that the buyers of coffee and other dispensed beverages are defined differently than the typical convenience store visitor presents an incremental opportunity for c-stores," said David Portalatin, executive director of industry analysis at NPD, in a press release. "If a convenience store can deliver on what dispensed beverage buyers are looking for in terms of product quality, a rewards program, and a clean and bright store, it can attract a loyal new customer base."

Coffee and other dispensed beverages represent 31 percent of unit purchases made in a convenience store, and of the dispensed beverage consumers, 33 percent are looking for coffee, 11 percent cappuccino or latte and 3 percent hot or iced tea, according to NPD. Typically, with the dispensed beverage incremental purchases are made amounting to an average visit of $6.83. Forty-five percent of consumers who purchase their coffee between 6 am and 10 am tend to also purchase donuts, gum, sweet rolls, sandwiches, breakfast sandwiches, snack cakes and cookies, reports NPD.

Dispensed beverage buyers are different than average convenience store buyers, who tend to be blue-collar males, 18-to-49 years old, according to NPD. Dispensed beverage buyers tend to be female, ages 35-64, white collar, Hispanic and from larger households. Coffee buyers tend to be male, ages 45-65, a mix of white and blue collar, strong military connection, smaller households and higher income.

"The fact that coffee and other dispensed beverages are purpose-driven purchases is a ready-made niche for any convenience store ready and willing to compete with QSRs and other retail outlets offering coffee and beverages," said Portalatin. "If a convenience store is looking for a way in which to distinguish itself from its gasoline or other offering, dispensed beverages appear to be among the possible answers."

Check out the July issue of NACS Magazine for more on how to keep coffee a hot commodity in your store.

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