Convenience Store News

FEB 2017

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34 Convenience Store News | FEBRUARY 2017 | WWW.CSNEWS.COM Category Trends + Insights from FOODSERVICE TRENDSIGHTS C onvenience store foodservice operations and restaurants face different competitors locally. To illustrate, the food-forward Wawa convenience stores have a low 1.5-per- cent national share; however, within the Philadelphia market, Wawa's impor- tance is large — far exceeding that of McDonald's. This makes Wawa a formidable competitor in Philadelphia, and quick-service restaurants (QSRs) and other convenience store operators need to recognize this to grow share in that market. More than half of Philadelphians visited Wawa in an average four-week period, which is more than McDonald's reaches in the same time period. Furthermore, McDonald's attracts fewer customers in Philadelphia than its national average because Wawa is so strong. McDonald's, other QSRs and other c-store operators are challenged to compete against Wawa if they are to build their share in this market. HIGH REPEAT BUSINESS Not only does Wawa reach so many Philadelphians, but it also has high repeat. The typical customer reached by Wawa visits the chain a bit more than once a week (4.5 times over a four-week period). There is a sizeable segment of Wawa customers who visit much more frequently. Close to one-fifth of consumers in Philadelphia visit Wawa 10 times in a four-week period — more than twice a week. Wawa's strong standing is supported by a large group of highly loyal customers. QSRs and c-store operators will benefit from a greater understanding of the preferences of Wawa cus- tomers. Knowing the competition's areas of strength identifies how to defend against important competi- tors, pointing to defensive actions operators can con- sider as a means to entice Wawa customers back to Think Local, Act Local Wawa's significance in Philadelphia illustrates the importance of market-level information Total U.S. McDonald's Wawa Wawa McDonald's Market Penetration (% Penetration) More than half of the DMA visits Wawa during the average month Market Share of Prepared Food/Beverage Visits (% Visit Share) In Philadelphia, Wawa's share is twice that of McDonald's. Total U.S. QSR/C-Store/Grocery Philadelphia QSR/C-Store/Grocery Source: The NPD Group; QSR Plus Retail Market Monitor Total U.S. QSR/C-Store/Grocery Philadelphia QSR/C-Store/Grocery Source: The NPD Group; QSR Plus Retail Market Monitor 1.5% 8.7% 14.9% 78.9% 51.1% 10.9% 80.1% 47.6% 54.2% 7.1% By Bonnie Riggs Restaurant Industry Analyst, The NPD Group www.npd.com

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