More Than a Morsel of Opportunity

FOODSERVICE
More Than a Morsel
of Opportunity
C-stores can do more to leverage snacking in the foodservice category
C
By Linda Lisanti
are not connecting as well as they could on the prepared food side,” Kevin Miller, senior marketing manager of Tyson Convenience Foodservice, noted during
his presentation at the Foodservice Summit.
To improve, c-store retailers must understand what
drives consumers’ p.m. snacking. According to the
research, it’s a combination of both physical needs and
emotional needs.
The physical needs relate to:
• Taste;
• Satisfy;
• Ease of eating;
• Affordable; and
• Fresh.
The emotional needs relate to:
• Habit;
• Distraction;
• Indulgence; and
• Reward.
When comparing prepackaged snacks at convenience
onvenience store operators are leaving
money on the table today by not doing
enough in their foodservice programs to
attract, satisfy and become the hottest
destination for snackers.
Only 22 percent of recent convenience store snack
purchases include prepared foods, according to the
findings of a joint consumer research study commissioned by Tyson Convenience Foodservice and
Anheuser-Busch. A summary of the findings was
revealed during the 2015 Convenience Store News
Foodservice Summit, held in partnership with Tyson
Convenience Foodservice in March.
The “p.m. snack” daypart (after 2 p.m.) is especially
open for more convenience foodservice business. The
research showed 46 percent of convenience store visits
happen after 2 p.m., and 50 percent of convenience store
snack purchases happen between 2 p.m. and 10 p.m.
“The traffic is there. They’re visiting the stores
then. They’re buying snacks, but convenience stores
Visited Convenience
Stores in the Past Week
Time of Most Recent
Convenience Store Visit
morning
20
59%
Yes
41%
0
Source: Tyson Convenience Foodservice “Channel Choice Study,” 2014, Carbonview
12 Guide to Snacking | WWW.CSNEWS.COM
16%
15%
46%
9%
10
5
evening
19% 19%
16%
15
No
afternoon
3%
2%
Before 6 a.m.
6 - 8:59 a.m. 9 - 10:59 a.m.
11 a.m. 1:59 p.m.
2 - 3:59 p.m.
Source: Tyson Convenience Foodservice “Channel Choice Study,” 2014, Carbonview
4 - 6:59 p.m. 7 - 9:59 p.m.
10 p.m. or later
Convenience Store Snack Purchases Last Week
22%
No
Prepared
Foods
50%
2 p.m. —
10 p.m.
Only
included
Prepared Foods
78%
Source: Tyson Convenience Foodservice A&U Study, 2014, Mills Consulting Group
DESTINATION
DETOUR
of “made for you” and “a special earned treat.”
stores to prepared food snacks, it’s clear that prepackRetailers must keep in mind, though, that quality and
aged snacks are currently winning out in the areas of
freshness are still the most important attributes to conhabit and distraction. However, prepared food snacks
sumers when purchasing snacks at convenience stores.
are winning over consumers in the areas of indulgence
In conclusion, Miller pointed to a few specific stratand reward.
egies c-stores can put into play to make their foodIn the area of habit (habitual snacking, daily fix,
service programs resonate more with snackers in the
etc.), c-store prepared food is missing the mark due
afternoon and evening hours:
to a lack of awareness. Offerings need to become
• Concentrate on portability and ease, which are of
more top-of-mind among shoppers. Meanwhile, in the
great importance for snacks.
area of distraction (completely easy, mindless eating,
• Position p.m. snacks as their own platform using
etc.), convenience foodservice has to do a better job
of incorporating ease into everything — the food, eating, packaging
and portability. It’s a major chalConvenience Store Snack
lenge given the on-the-go nature of
Decision-Making Timeframe
c-store customers who often dine
in their cars, but the hurdle can be
Tier 1: 26-30%
Tier 2: 20-25%
Tier 3: 16-19%
cleared with some consideration.
Morning
Afternoon
Evening
Late Night
There are also things c-stores can
It’s on my route
18%
27%
20%
8%
be doing in their foodservice proI realize I’m hungry and find
grams to maintain and grow their
some place to stop
13
26
21
10
strength in the areas of indulgence
I stop to buy gas and go inside
to buy a snack
15
26
21
8
and reward. For instance, when it
I’m in a hurry and it seems easy
16
26
18
8
comes to indulgence (satisfying a
Someone in my car asks me to stop
want), there’s opportunity to capitalto buy something
10
20
17
8
ize on freshness and customization,
It’s part of my routine
13
17
14
6
as well as build messaging and comI plan to purchase snack food
munication around the indulgence
earlier in the day
10
16
11
5
factor of current offerings.
It’s part of a larger shopping trip
7
15
13
5
When it comes to reward (a
I plan to purchase snack food
earlier in the week
8
14
10
5
key late-day message), convenience
foodservice programs can find even
Source: Tyson Convenience Foodservice & Anheuser-Busch PM Snack Study, 2015, Carbonview
more success by pushing messages
WWW.CSNEWS.COM | Guide to Snacking 13
FOODSERVICE
Would You Like
a Beer With
That Snack?
Core Needs: Getting Emotional
Energizes me
37%
Hungry between meals
Skipped meal
54%
31%
Feel healthy
Complements activity
18%
19%
20%
38%
Craving a specific taste
25%
Bad mood/day
26%
Comfort food
Because it’s there
Morning
Afternoon
Evening
Late night
Source: Tyson Convenience Foodservice & Anheuser-Busch PM Snack Study, 2015, Carbonview
Attribute Importance for Snack Purchases
(Top 3 Box)
Convenience Attributes
82%
81%
Quality of food
Food freshness
Close to work/home
Price of snacks
Store cleanliness
Value of snacks
On direct travel route
Snack menu/options
Previous experience at store/restaurant
Speed of service/overall visit
Food portability/ease of eating on the run
Able to complete other errands
Location atmosphere/environment
Promotions/specials
Healthy options
72%
71%
71%
71%
71%
70%
69%
69%
65%
62%
54%
52%
47%
Source: Tyson Convenience Foodservice & Anheuser-Busch PM Snack Study, 2015, Carbonview
14 Guide to Snacking | WWW.CSNEWS.COM
While 50 percent of convenience store
snack purchases happen between 2
p.m. and 10 p.m., a similar later-in-theday trend can be seen in beer category
traffic at c-stores. And the convenience
channel is uniquely positioned to take
advantage of this connection.
Today, there is a low incidence
of cross-purchasing between beer
and prepared food. A joint consumer
research study commissioned by
Tyson Convenience Foodservice and
Anheuser-Busch revealed only 5 percent of recent c-store beer purchases
included a prepared food item.
Interestingly, though, more than 50
percent of those beer and prepared
food transactions were purchased
to eat as a snack — presenting yet
another opportunity for convenience
stores to connect snackers with their
foodservice programs in the afternoon
and evening hours.
To convert the natural connection
of beer and prepared food snacks into
actual purchases, c-store operators
must address the reasons why consumers don’t make such a prepared food
purchase. The Tyson/Anheuser-Busch
joint study showed that outside of not
being hungry, the foremost reasons are:
Hadn’t planned to — 29 percent
Didn’t occur to me — 13 percent
Not part of routine — 11 percent
unique items, sizes
and communication.
• Utilize sampling to build
awareness.
• Leverage the traffic from other
dayparts to build awareness
(i.e., coupons, team selling).
• Employ social media and
mobile app rewards. CSN