Let's Do Lunch

Healthy fare, marketing at the pump can help boost traffic during the busy daypart.

Let's Do Lunch

October 2019   minute read

By: Terri Allan

In an effort to stay competitive, The Pride Stores chain of convenience stores decided to focus on its food offerings several years ago. “It was our feeling that a lot of c-stores were capitalizing on fuel and adding food,” Mario Spina, owner and CEO of the Chicagoland chain—with about a dozen stores—recalled of the decision. “We wanted to differentiate. We wanted to offer healthy food items to attract customers, who would then leave and buy gas from us,” he said. The move was unquestionably the right one. “Lunch is our strongest foodservice daypart,” Spina reported.

The situation is much the same at Nouria Energy’s stores. “Our lunch traffic has been solid,” remarked Joe Hamza, COO at the New England chain, which numbers 21 stores with full foodservice operations. “We see more traffic for foodservice at lunch than any other daypart.” In fact, Hamza conceded, “We’re trying to shift some of that traffic” to other times of day. “It can be challenging when 60% of your sales occur during such a small time frame. It can put a strain on operations and staff.”

Smaller operators also find the lunch daypart rewarding. “Lunch time is essential to our business,” remarked Mike Fogarty, owner of Denver’s Choice Market, which, at presstime, was planning to unveil its second location, with a third expected to open late in the year, all in the Mile High City. Choice Market’s original store is in a business district, and Fogarty said he knew right from the beginning that “we’d always focus on grab-and-go and prepared foods.”

Indeed, with food options at c-stores continually improving, and with the lunch time frame a popular one to fuel up, it’s no surprise that the midday period is a busy one. But there’s still opportunity to capture even more traffic and larger purchases with attention to the latest food trends and creative merchandising tactics.

Tapping into Trends

Health and wellness demands are the biggest needle movers in foodservice these days. “Plant-based eating is a big deal,” said Mark DiDomenico, director of client solutions at Datassential, which tracks food trends and provides insights to foodservice providers. He pointed to the Impossible and Beyond Meat burger variants and suggested there may be opportunity for these offerings as new menu items or LTOs at c-stores.

When 60% of your sales occur during such a small time frame, it can put a strain on operations and staff.

In addition to “super foods” such as kale and açaí, DiDomenico also noted the growth in functional foods, or “foods that do something for you,” such as offerings high in protein. “We’re seeing consumers ramping up their protein intake,” he said. Other functional food ingredients that have been trending include turmeric—appearing in juices and smoothies—which is linked to anti-inflammatory benefits, and chia seeds, which contain Omega 3 fatty acids, beneficial to heart and mental health. “For c-stores, there’s a broader opportunity to include these items in some way,” DiDomenico said, whether in salads, sandwiches, bowls or store-made drinks.

Savvy c-store operators have already spotted these trends and have acted upon them. “Bowls and salads are popular at all times of day,” remarked Fogarty of Choice Market, which emphasizes healthy, fresh and locally sourced fare. “While sandwiches are always popular, folks are moving away from traditional deli sandwiches,” the retailer continued, and toward bowls and salads with protein. “They’re leaning away from bad carbs and toward healthy carbs like quinoa,” he said. Choice Market also offers an Impossible Burger, which Fogarty described as the store’s top-selling foodservice item.

Four Nouria Energy stores in Maine, meanwhile, now feature Nouria Cafes, and according to Hamza, the focus is on locally sourced foods. As such, Nouria has partnered with Amato’s, the Maine-based chain of Italian restaurants, to offer some of their products, such as Pazzo bread. “Maine consumers prefer local,” explained Hamza. At Fuel City, the Dallas-area c-store concept, customers are increasingly demanding healthy and fresh items, and “that trend is benefiting our lunch business,” according to Joseph Bickham, president. He pointed to the four-unit chain’s taco program, which features all fresh ingredients, including locally made tortillas, as well as veggie plates and sandwiches (a fifth location is set to open in November).

In addition to the health and wellness trend, DiDomenico noted, “There’s a lot of opportunity for ethnic foods in c-stores. There are so many flavors to explore.” Beyond popular Mexican food, he pointed to emerging Asian and Mediterranean cuisines that are gaining the attention of consumers, including products like Vietnamese banh mi sandwiches, which the Datassential executive called the “fastest-growing sandwich” in restaurants today.

Promotions at the Pump

With the lunch daypart already a busy one for many c-stores, there’s potential for even stronger traffic by targeting fuel-only customers. According to Pablo Castillo, research coordinator at NACS, the association’s most recent Consumer Fuels Survey found that midday is the most popular time to fill up the tank, with 37% of those responding filling up between 10 a.m. and 3 p.m.

“By reaching shoppers while they are standing at the pump, c-stores open the opportunity for capturing the lunch daypart,” remarked J.C. Harvey, director of retail channel strategy and commercialization at Coca-Cola North America. He shared that the latest report from the North America NACS Coca-Cola Retailing Research Council (CCRRC) found that 73% of food choices are made within an hour of eating, highlighting “an opportunity to capture the attention of shoppers who come to the c-store just for gas by prompting them to grab lunch as well.”

The Pride Stores company, which operates eight Urban Counter, two Taco Urbano and three Pride Cafe locations, tries to win over fuel customers at lunch with occasional samples of items such as burgers and hot dogs, along with coupons, right at the pump, Spina said. Nouria Energy also utilizes sampling at the pump, and according to Hamza, “a good portion of those who sample come in.” The company is additionally working on technology, including voice- and video-prompted ads, that will allow customers to order at the pump and, according to Hamza, “it will be ready by the time they’re done filling up.”

By reaching shoppers at the pump, c-stores open the opportunity for capturing the lunch daypart.

Tried-and-true strategies, such as menu bundling, also are effective in growing lunch programs. Bickham, Fogarty, Spina and Hamza all report bundling promotions at their stores. “It’s critical,” remarked the Texas retailer of “meal deals” on burgers, fries and shakes. “You must offer value.” Limited-time-only offerings also keep lunch menus fresh. Choice Market, for example, features a monthly special. “It could be a grass-fed burger one month, followed by a lobster roll the next,” Fogarty explained. “Customers like the element of surprise.”

Taking on QSR

While lunchtime food offerings at c-stores have become more sophisticated, pressure remains for operators to serve customers as quickly as possible. Due to a large business clientele, “expediency is even more important at lunch than in the morning or evenings,” Fuel City’s Bickham said. In fact, the 11:30 a.m. to 1:30 p.m. period is the busiest of the day at a Little Caesars located within one of the Texas stores, he noted. The new Fuel City, meanwhile, will feature a drive-thru. Fogarty added that Choice Market was designed with quick service in mind. “The proper system can streamline the whole operation,” he said, noting that the store’s goal is “to hit a ticket time of four to five minutes.”

Even though many of Choice Market’s lunch customers prefer the “grab-and-go” model, Fogarty said the store’s indoor seating for 20 and outdoor patio that accommodates up to 25 also can be popular. Similarly, Spina reported that at times the dining areas at The Pride stores “get packed.” The spaces—which accommodate between 18 to 24 guests—feature free Wi-Fi. “You’ve got to have free Wi-Fi these days,” the retailer said. Coca-Cola’s Harvey agreed. “Offering comfortable seating, coupled with free Wi-Fi, enhances the c-store dining experience with amenities most often associated with QSRs,” he said.

And if c-stores are to continue to effectively compete with QSRs for the lunch daypart, delivery could be the next frontier. “Delivery could benefit c-stores if the third party is reliable and doesn’t charge so much that food margins are affected,” remarked Castillo of NACS. Choice Market, for one, has already partnered with Uber Eats and offers its own delivery program via its catering option, an offering that has proved popular with local offices, Fogarty said.

Nouria’s Hamza marvels at the advances that c-stores have made in improving the quality and reputation of the channel’s foodservice offerings during the past 10 years. But he cautioned, “QSR also does a good job. People are eating out more than ever. The category is up for grabs. We must remain innovative, consistent and focused on quality.” Those are certainly words to chew on.

Terri Allan

Terri Allan

Terri Allan is a New Jersey-based freelance writer. She can be reached at [email protected] and on Twitter at @terriallan.

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