Convenience Store News

FEB 2017

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36 Convenience Store News | FEBRUARY 2017 | WWW.CSNEWS.COM Category Trends + Insights from FOODSERVICE Strengths, weaknesses, and areas of vulnerabil- ity of a brand cannot be fully understood with only a national view. For convenience store foodservice operators, it's the restaurants down the road and local preferences that affect their daily business. As the most local of all businesses, foodservice operators need mar- ket-level information to inform their marketing and advertising decisions. CSN their stores. One out of every four breakfast visits and nearly as many p.m. snack visits are satisfied by Wawa. Wawa has to compete more heavily at lunch and particularly at dinner than it does for breakfast and snacks. Still, with the exception of the dinner occasion, Wawa satisfies an impressively high share of its customers' meal needs. KEY COMPETITORS DIFFER BY OCCASION TYPE Dunkin' Donuts is a major competitor of Wawa for the breakfast and snack occasions, while McDonald's interacts with Wawa customers especially at lunch, and ShopRite is a preferred place for purchasing dinner meals by Wawa customers. Wawa is competing against grocery stores like ShopRite on one-stop shopping, the feature that makes a grocery store a good choice for picking up dinner on the way home. This demonstrates that Wawa needs to evaluate the meal situation to compete effectively. Wawa competes with all other channels, with tra- ditional QSRs receiving the bulk of their prepared meal purchases. However, the strong loyalty to Wawa is reflected in its buyers' considerably higher share of all meal needs given to the c-store channel vs. what is typical of all c-store customers. LOCAL MARKET INFORMATION Opportunities emerge from understanding where cus- tomers buy types of foods. Wawa's hoagies, burritos, other sandwiches, and coffee are strong draws for vis- its. The competition is able to satisfy Wawa customers' interests in chicken, Italian and Mexican foods. These would be food areas Wawa should develop, which could improve purchasing at dinner time, according to NPD's QSR Market Monitor. NPD's QSR Market Monitor measures competi- tive strength, tells operators how their customers feel about the chain, diagnoses the current situation, and offers direction. Wawa's Heavy/Medium/Light Users Just under a third of Wawa's buyers account for more than two-thirds of visits where prepared food and beverages are purchased. PHILADELPHIA % Buyers % Visits Source: The NPD Group; QSR Plus Retail Market Monitor 31.5% 67.5% 27.4% 5.1% 44.5% 23.9% Wawa 1-time buyers Wawa 2-4 times buyers Wawa 5+ times buyers Average Channel Buyer Wawa Buyer Visit Distribution by Channel Wawa buyers are more loyal to c-stores than the averege channel buyer. PHILADELPHIA Traditional QSRs Fast Casual Grocery C-Store Source: The NPD Group; QSR Plus Retail Market Monitor 60.3% 50.3% 7.2% 8.3% 12.9% 11.5% 19.6% 29.6%

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