CSNews Online has been reporting on recent store openings by Casey's General Stores Inc. and Wawa Inc. There are many reasons -- marketing strategy, execution, conservative financial moves, among others -- these two players have weathered the country's recession as well as they have, and continue to grow.
One commonality: popular foodservice programs. Casey's pizza and Wawa's hoagies have earned customer loyalty levels that surpass most c-store programs, and many fast feeders'.
A clue to the importance of these proprietary programs to the chains' overall success is found in a recent Convenience Store Monitor survey by The NPD Group, which found fresh prepared food buyers averaging 7.8 visits over a 30-day period, compared to 5.66 visits for all c-store shoppers.
Perhaps even more meaningful to the bottom line: these fast food shoppers purchased 4.1 products versus 1.64 products bought by all c-store shoppers, and their average check was $1.65 higher than all c-store shoppers.
Considering their foodservice habit, it's probably safe to assume the gross profit earned on that extra $1.65 is higher than a traditional stores' typical sale too.
The c-store industry is in a terrific position to meet customers looking for a value in fast foods. But operators have to deliver all three pieces of the recipe: convenience, price and quality. Too often, our industry stops at the first two ingredients. -- Barbara Grondin Francella
Great point about quality. But what does "quality" mean? Is it gourmet, or imported, or made fresh today? And where does "healthy" factor in? Does it factor in?
Expectations are on the rise, with all three components part of the magic formula, but that quality piece is definitely the toughest; not because quality and low price are in opposition, but because quality can mean a lot of things.
Posted by: Jeff Weidauer | January 26, 2010 at 05:55 PM