2024 C-store IQ: Foodservice Report
Nearly half of convenience store shoppers purchased prepared foods during their most recent visit, with purchases peaking at lunch and dinner occasions—no great surprise there—however late-night nosh runs are on the rise and a trend worth noting.
According to data from the 2024 C-store IQ National Shopper Study, 49% of shoppers say they are purchasing prepared food at a convenience store, an average of two times per month, however that number dropped notably compared to the previous year when 55% of shoppers reported making a food purchase an average 2.77 times. (That 55% in 2023 was a significant jump compared to the 2022 study, when 46% of shoppers purchased prepared food at a c-store, an average of 1.6 times. In 2019, pre-pandemic, the number was also 46%.)
The reason for the most recent dip is, likely, economic pressures, as people reign in discretionary spending, which includes eating out.
Working with the research team at EnsembleIQ, Convenience Store News Canada surveyed more than 2,000 convenience shoppers across the country to examine their wants and needs at retail, specifically convenience and gas. Data shows that when it comes to prepared foods, c-stores are meeting the needs of shoppers, overall, but there’s opportunity to capture market share by focusing on value and the eating habits of younger shoppers.
For the first time, the data reveals late-night consumption habits as an area to watch. Those purchasing prepared foods after 10 p.m. significantly increased over last year. Young people—think generation Z (and Y)—are driving this trend. Unlike older generations, they don’t adhere to set meal times, instead eating when the mood strikes, often after 10 p.m. Younger shoppers tend to focus less on meal prep at home, valuing convenience above all else.
For all other demographics, there’s an increased focus on cost: Price and value remain the most important factor for shoppers when purchasing prepared foods, but economic pressures have made this even more significant in 2024.
Attempts to cut costs have likely helped fast food in growing its lead as the top prepared foods alternative to convenience stores, while home delivery and casual dining lost market share. The good news is convenience store foodservice is rated as similar or better by a majority of shoppers across all alternative channels.
At convenience, shoppers report that nearly three-fourths (72%) of prepared food purchased included grab-and-go items, with made-to-order items decreasing compared to 2023.
Overall preferences appear to be evolving, with packaged, refrigerated items having more appeal than made-to-order for the first time in this survey. Perhaps this is a reflection of the shift in post-pandemic routines, with more people on-the-go and looking for a quick meal solution.
This makes sense, too, with the data showing prepared food consumption continues a post-pandemic shift to locations outside the home, with 59% of people eating in their car, at work etc. (Note the jump in those purchasing breakfast items.)
That’s not to say people aren’t looking for healthy solutions on-the-go. While half of shoppers do not consider special dietary needs when choosing where to purchase prepared foods, for the other half low-sugar, gluten-free and low-carb are the top concerns. Still, pizza leads the list of items purchased, followed by sandwiches (note the growth this year) and hot dogs.
Foodservice at convenience serves the bottom line in more ways than one. Prepared food trips are lucrative, with more than two-thirds of shoppers buying other items during the same visit. Lottery tickets, candy/gum and packaged water or pop are commonly purchased with food.
As c-gas operations increasingly rely on foodservice to drive foot traffic and revenues, it will be interesting to see how things unfold with beverage alcohol now available in convenience stores in Ontario—ideally, shoppers will see the channel as a truly full-service solution where they can grab essentials and a bite to eat, while pairing that meal with beer, wine, cider or an RTD cocktail.
