Single Store Owner

OCT 2016

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some type of foodservice promotion (79.5 percent vs. 89.7 percent, respective- ly), single-store operators are most likely to turn to social media (38.5 percent) and paper coupons (23.1 percent) as marketing avenues. More than ever, promotions are important because c-stores aren't just competing within their own retail chan- nel. While 64.3 percent of single-store operators cite other c-stores as their biggest competitor in foodservice, other top contenders include McDonald's and chain sandwich shops such as Subway and Quiznos (both named by 32.1 percent of single-store operators), along with grocery stores (cited by 21.4 percent of single stores). With the opportunities presented by foodservice, the category brings challenges as well. Many retailers polled cited competition and consistency as their most challenging areas. Consum- ers have to be able to trust they'll consis- tently find something worth buying at a c-store, otherwise there are plenty of competing places to go. Other retailers reported difficulty finding employees with the right aptitude and skills to properly execute foodservice. "Labor certainly has been challeng- ing," noted one retailer. SSO TOTAL SINGLE STORES CHAINS Other c-stores 68.5% 64.3% 73.1% McDonald's 44.4% 32.1% 57.7% Other national/regional QSRs 35.2% 17.9% 53.8% Chain sandwich shops (Subway, Quiznos, etc.) 35.2% 32.1% 38.5% Grocery stores 24.1% 21.4% 26.9% Coffee shops 22.2% 14.3% 30.8% Fast-casual chains (Panera Bread, Chipotle, etc.) 18.5% 17.9% 19.2% Food trucks 7.4% 3.6% 11.5% Drugstores 3.7% 3.6% 3.8% Multiple responses accepted Source: Convenience Store News for the Single Store Owner Market Research, 2016 TOTAL SINGLE STORES CHAINS Currently offer any type of promotion (net) 83.8% 79.5% 89.7% Social media 42.6% 38.5% 48.3% Paper coupons 30.9% 23.1% 41.4% Loyalty program 30.9% 15.4% 51.7% Radio 22.1% 10.3% 37.9% Mobile coupons/app 20.6% 7.7% 37.9% Billboards 20.6% 10.3% 34.5% Direct mail 19.1% 17.9% 20.7% Text message 16.2% 7.7% 27.6% Email 13.2% 0.0% 31.0% TV 5.9% 0.0% 13.8% Beacon 1.5% 0.0% 3.4% Other 5.9% 5.1% 6.9% No promotions 16.2% 20.5% 10.3% Multiple responses accepted Source: Convenience Store News for the Single Store Owner Market Research, 2016 Biggest Competitors for Foodservice Program Types of Foodservice Promotions Offered

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