What’s the one thing everyone wishes they had more of? Time.
What’s one business that promises to give you more time? Convenience stores.
As a result, we’re seeing incredible growth in the c-store industry. The global market is expected to grow at a compound annual growth rate (CAGR) of 5.6%, reaching $3.12 trillion by 2028, according to Grand View Research. To ensure your company captures a healthy piece of this pie, we have three words to guide your strategy.
1. Vibe
Chicago-based chain Foxtrot is a convenience store that doesn’t feel like a convenience store. With high ceilings, moody lighting that changes from day to night, wood paneling, an espresso bar and comfy seating, Foxtrot is more like a coffee shop+upscale grocery + wine bar. “We're so excited about bringing convenience retail and the local café together; we want to create places where people can congregate and enjoy a meal or snack,” said CEO Liz Williams. The approach—specifically designed for urban markets—is taking off. Foxtrot was recently named a Top 10 Brands to Watch by data analytics firm Placer.ai.
On the other end of the vibe spectrum is Buc-ee’s, a fuel stop + c-store chain in the American South and Midwest that’s big, bright, and in your face. It even holds the world record for largest convenience store: Its Sevierville location measures 74,707 square feet (6,940 square meters). Rather than fine wine and fancy food, Buc-ee’s is known for “Beaver Nuggets” puffed-corn snacks, chopped barbecue sandwiches and really clean restrooms.
What do these near-opposites have in common? University of Houston economist Dietrich Vollrath put his finger on it when explaining the Buc-ee’s phenomenon to Marketplace: “They turned a gas station into a place people go on purpose.” A uniquely welcoming vibe inspires loyalty, which in turn means big business. “There’s a million people on the road all the time. If you can capture a little piece of that, it makes sense,” Vollrath said.
2. Convenience
It’s right there in the name: convenience is the reason customers come to c-stores. Savvy operators are seeking new ways to make ordering food, beverages, and other items even more convenient than it already is.
- Curby’s (a fast-growing Texas chain) reduces wait times by having employees with tablets taking orders in the drive-thru line. Eventually, they want the runner to wear a body camera so that the customer can remotely guide the shopping: "If someone knows they got a Monster beverage last time, but doesn't remember which one, they can see inside the store and pick," said Tony Sparks, head of Customer Wow! at Curby's.
- Foxtrot’s app offers 30-minute delivery and five-minute pickup of local beers, wines, prepared foods and more.
- bp America is implementing “pay by plate,” which means customers will be able to have their license plate recognized in order to automatically pay for the gas they pump.
3. Customization
A major trend is emerging among younger, Gen-Z customers: a thirst for specialty beverages. Whether it’s due to “little treat” culture (the idea of brightening every day with a small purchase) or a side effect of Gen Z’s decreased interest in alcohol, beverage consumption in the U.S. has been steadily climbing.
The wise c-store operator will ask: How can I get a piece of the specialty-beverage action? First, take a piece of advice we once heard from Joe Chiovera, Executive Culinary & Innovation Consultant for Premium Brands Holdings Corporation: “Foundation before differentiation.” He recommends c-stores identify and cut the bottom 20 percent of SKUs on their menus. Then, focus on innovating and customizing your best-selling offerings.
For Curby’s, that means a customizable iced tea bar with more than 35 sweetened and unsweetened options, including coconut, blackberry, hibiscus and apple pie. Other offerings include rainbow-hued, made-to-order energy drinks; Red Bull refreshers, “dirty” sodas (fountain drinks with added flavors), frozen coffee drinks; and milkshakes.
In addition to iced tea, slushies and smoothies are high-growth beverage categories, according to CStore Decisions. Thinking about adding customized blended drinks to your beverage menu? Hamilton Beach Commercial makes it effortless with beverage equipment solutions that minimize labor.
The SmartServe™ Blend in Cup eliminates the need for blender jars by blending directly in disposable cups. Rapid blending, automatic programming and self-rinsing capability mean speedy service.
The MixStation™ Heavy-Duty Drink Mixer features pre-programmed cycles and variable speed dial that allow operators maximum control while providing consistent results every time.
The Summit® Edge High-Performance Blender feature one-touch AutoBlend, which stops blending once drinks achieve the perfect consistency.
Discover our full line of commercial beverage equipment for convenience stores.
