C-Stores Going After QSR Dollars

Bloomberg Businessweek highlights the enhanced foodservice programs that are emerging in the industry.

October 03, 2013

NEW YORK — Convenience store foodservice continues to attract media attention, from gourmet food to more basic deliverables, reports Bloomberg Businessweek.

“An English-muffin breakfast sandwich from 7-Eleven might not have the scrumptious, familiar ring of the Egg McMuffin, but it does the trick as a McDonald’s substitute. For fast-food restaurants, convenience stores are increasingly part of the competition vying for value-oriented customers, with food that’s awfully similar,” Businessweek noted.

Convenience stores have been moving beyond packaged fare to pizzas, made-to-order sandwiches, and coffee bars, to compensate for lost cigarette sales in the United States, Businessweek noted.

For Wendy’s executives, the trend is anything but good news. “We’ve got competition above us” from casual dining restaurants, former Wendy’s CFO Stephen Hare said, “and then you’ve got this emerging convenience store group that are pulling away at the lower-end customers.” He called the competitive environment “as intense as we’ve ever seen it.”

According to a report by Bloomberg Industries, three factors are shaping a battle for customers between QSRs and convenience stores:

  • Convenience stores are going after the same core demographic as QSRs: households with income below $50,000.
  • Pizza sales at convenience stores increased nearly 10% last year, adding competition to Domino’s, Papa John’s, and others.
  • Fresh food has increased traffic and brought new customers to convenience stores, particularly female and older shoppers. 
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