Single Store Owner

OCT 2016

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FOODSERVICE 38 / Convenience Store News for the Single Store Owner / OCTOBER 2016 Prepared Food / Hot, Cold, Frozen Dispensed Beverages Additionally, while consumers are more willing to try convenience store foodservice when they know the purchase is worth it, an increased amount of discretionary income — thanks in part to low gas prices — is allowing them to put more of their money where their mouth is. "The economy seemed to have had a big impact in 2014 and early 2015," one retailer stated, "then picked up in 2016 as the customers seemed to have a more upbeat attitude." Solid Growth Across Segments Most segments within the overall foodservice category saw individual growth in 2015, proving that it's not just one or two boom segments propping up the business. Cold dispensed beverages generated the largest increase in average sales per single store at 10.2 per- cent, followed by prepared food at 6.4 percent. Hot dispensed beverages had the least impres- sive performance with a 2.5-percent increase in average sales per single store. For the total industry (chains and single stores combined), this year's study also reveals: • Within the prepared food segment, longtime c-store foodservice staples like sandwiches, hot dogs and pizza still gener- ate the most sales. However, the biggest increases in 2015 average sales per store industrywide were seen in sandwiches (up 7.8 percent), chicken and hamburg- ers (both up 7.3 percent). Per-store sales of frozen treats grew by an impressive 7.9 percent, though this product makes up less than 2 percent of prepared food sales. • Coffee remains the king of hot dispensed beverages, accounting for nearly three- quarters of this segment's 2015 sales indus- trywide, and still average sales per store of coffee rose by another solid 4.9 percent last year. However, average sales per store of No. 2 cappuccino/specialty hot beverages grew even more, by 5.3 percent. • Fountain carbonated beverages continue their domination of the cold dispensed segment, with a segment sales share of 86.5 percent. Average sales per store of fountain carbonated industrywide bumped up by another 8.4 percent last year. In a distant second place, fountain noncarbonated beverages grew 6.6 per- cent in average sales per store indus- trywide, which could point to further growth of iced tea offerings. Daypart by Daypart Among single stores, 57.1 percent offer no-touch, grab-and-go/prepackaged items; AVERAGE SALES PER STORE INDUSTRY TOTAL (IN MILLIONS) 2015 % CHANGE 2015 % CHANGE Sandwiches $39,030 7.8% $5,909 9.0% Hot dogs 25,035 4.7% 3,790 5.9% Pizza 25,003 7.2% 3,785 8.4% Chicken 18,562 7.3% 2,810 8.5% Bakery 10,322 6.5% 1,563 7.7% Salads 5,909 4.6% 895 5.8% Hamburgers 5,251 7.3% 795 8.5% Soup 3,626 4.4% 549 5.6% Frozen treats 2,782 7.9% 421 9.1% All other prepared food 14,380 4.6% 2,177 5.7% TOTAL $149,900 6.5% $22,694 7.7% NOTE: These results include both single-store and chain operations. Source: Convenience Store News Market Research, 2016 AVERAGE SALES PER STORE INDUSTRY TOTAL (IN MILLIONS) 2015 % CHANGE 2015 % CHANGE Coffee (including flavored) $34,229 4.9% $5,182 6.1% Cappuccino/specialty 7,887 5.3% 1,194 6.5% Hot chocolate 1,896 1.5% 287 2.6 Hot tea 1,156 2.4% 175 3.6% All other hot dispensed beverages 700 -2.8% 106 -1.8% TOTAL $45,867 4.7% $6,944 5.8% NOTE: These results include both single-store and chain operations. Source: Convenience Store News Market Research, 2016 AVERAGE SALES PER STORE INDUSTRY TOTAL (IN MILLIONS) 2015 % CHANGE 2015 % CHANGE Fountain carbonated $14,961 8.4% $2,265 9.6% Fountain noncarbonated 1,281 6.6% 194 7.8% Fountain sports drinks 258 -3.6% 39 -2.5% All other cold dispensed beverages 793 5.0% 120 6.2% TOTAL $17,293 7.9% $2,618 9.1% NOTE: These results include both single-store and chain operations. Source: Convenience Store News Market Research, 2016 Segment Analysis: Prepared Food Segment Analysis: Hot Dispensed Beverages Segment Analysis: Cold Dispensed Beverages TOTAL SINGLE STORES CHAINS 2015 Increased 66.1% 57.1% 75.0% Decreased 7.1 7.2 7.1 Stayed the same 26.8 35.7 17.9 2016 (expected) Increase 71.4% 59.3% 82.8% Decrease 5.4 7.4 3.4 Stay the same 23.2 33.3 13.8 Source: Convenience Store News for the Single Store Owner Market Research, 2016 Foodservice Profits

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