43 percent of Millennials purchase more food from c-stores now than 3 years prior; Study examines how, why and where convenience store foodservice is gaining on QSRs
BOSTON – Fast food restaurants have been the go-to for a quick bite for decades. And as Americans get busier, gas station convenience stores have stepped up to provide exceptional, speedy foodservice, creating new competition in the market to contend with long-time restaurateurs. Foodservice now makes up nearly 23% of sales at convenience stores nationwide, growing three percent in the past 5 years.* GasBuddy, the only smartphone app connecting drivers with their Perfect Pit Stop, examines how, why and where convenience store foodservice is gaining on quick service restaurants (QSRs).
The study found that 56% of Americans purchase meals at least once per month at gas station convenience stores, with younger Americans purchasing food at convenience stores more frequently. Twenty-five percent of those aged 30-44 purchase food 5 or more times per month, while 20% of those aged 18-29 purchase food at convenience stores 3-4 times per month.
A significant portion of 18-29 year olds purchase more meals from convenience stores than they did three years ago (43%), and 75% of Americans believe convenience store foodservice has improved in the past 5 years.
“Convenience retailers with compelling foodservice programs are a growing threat to quick service restaurants,” says Frank Beard, convenience store trends analyst at GasBuddy. “Data show that people choose convenience stores over fast food locations because of the convenience of an all-in-one stop for fuel and food, followed by a preference for the taste of the food at c-stores. Couple this with leading convenience brands like Wawa and QuikTrip rapidly expanding across the country, and fast food brands will be forced to find innovative ways to catch up.”
Increased Dollar Spend & Consumer Preference
Frequent visits to purchase meals at convenience stores come with increased dollar spend. The study found that 1 in 4 Americans spend $6-10 per week on convenience store foodservice, with nearly 20 percent of Americans aged 18-29 spending $10-15 per week.
The most-preferred meals from convenience stores and QSRs include sandwiches or wraps (1), fresh salad (2), pizza (3), burgers and fries (4) and fried chicken (5).
“Convenience brands are well-positioned to cater to consumer’s tastes because they aren’t pigeon-holed into one type of cuisine,” says Beard. “Our study found that younger Americans prefer more variety, particularly with newer menu items like burritos and pizzas.”
As for the time it takes to receive their food, nearly one third of consumers are only willing to wait 5 minutes for their meal.
When asked about what they don’t like about fast food establishments, consumers cited unhealthy options as the top concern (1), followed by the quality of the food (2), restaurant cleanliness (3), and limited food and drink options (4).
Additional insights can be found by contacting [email protected] and by attending the National Restaurant Association Conference in Chicago on May 19, 2019 where GasBuddy’s convenience store trends analyst, Frank Beard, will be speaking about this topic.
Methodology
Results based on 550 responses from a GasBuddy survey issued on April 24, 2019.
About GasBuddy
GasBuddy is a company that connects drivers with their Perfect Pit Stop. As the leading source for crowdsourced, real-time fuel prices at more than 150,000 gas station convenience stores in the U.S., Canada and Australia, millions of drivers use the GasBuddy app and website every day to find gas station convenience stores based on fuel prices, location and ratings/reviews. GasBuddy’s first-of-its-kind fuel savings program, Pay with GasBuddy, has saved Americans more than $6 million at the pumps since its launch in 2017. The company’s business solutions suite, GasBuddy Business Pages, provides Fuel Marketers and Retailers their best opportunity to maintain their station information, manage their brand, and promote to their target consumer audience. For more information, visit https://www.gasbuddy.com.
*NACS State of the Industry Data, 2019, NACS Industry data 2014