February 27, 2012
CHICAGOThe average unit volumes for convenience stores offering prepared food and dispensed beverages (true foodservice") jumped to more than $136,000 in 2011, up from $123,000 in 2007, according to new market data from Technomic. The more than 10% growth rates were based on roughly the same number of stores offering foodservice, indicating operators are becoming better at foodservice expansion and execution.
According to the Outlook and Opportunities in Convenience Store Foodservice" report, convenience-store foodservice grew to $11.5 billion in 2011, up from $10.2 billion in 2007, based largely on the expansion of foodservice items, additional stores adding foodservice and more foodservice experience. The number of stores with dedicated foodservice personnel nearly doubled over the same four-year period, from 17% to 33%, reflecting operators' commitment toward developing successful foodservice programs.
Convenience store foodservice has made tremendous inroads in terms of experience, consumer choices and execution," said Tim Powell, Director of C-Store Programs at Technomic. "We expect several key trends, such as snacking and demand for various beverages and breakfast to be pivotal components of future growth."
Technomic predicts annual convenience-store foodservice growth to reach 3.4% nominally through 2014, compared to 2.8% over the past four years. The number exceeds expected growth for the entire foodservice industry, which is forecast at 2.5% annually through 2014.
The report examines the total size and growth of the entire convenience-store foodservice channel, provides insights on consumer and operator attitudes and behaviors, profiles the top convenience-store foodservice providers, and explores the impact of other channels, such as drug stores and quick-service restaurants.
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