Exploring the Past & Future of Convenience Foodservice
TAMPA, Fla. — Knowledge of the convenience store industry's past is a benefit when it comes to fully understanding where the channel is, where it is currently headed and where it might end up. This is all the more important in an environment that today includes decreasing sales of gas and cigarettes, supply chain snags and financial inequalities, all of which affect all types of c-stores, according to Jim Bressi, vice president of foodservice at Greenville, S.C.-based Spinx Co.
"Whether we're independent or a global conglomerate, we have a lot of challenges," Bressi said during Convenience Store News' 2024 Convenience Foodservice Exchange (CFX) event, held in May. "We're facing decreasing sales, and we're all trying to figure out a way to continue to be viable and be relevant. The good news is we have tools and that is the food and beverage angle that we all enjoy."
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Bressi, a classically trained chef and architect of multiple national food programs, including those at Spinx and Kwik Trip Inc., shared a look at the past and offered some future speculation during his "Evolution & Future of C-store Foodservice" presentation.
Many of today's top c-store foodservice programs come from chains that started out as dairies, he noted, including Cumberland Farms, Kwik Trip, Rutter's, Wawa Inc. and QuickChek. Although their "humble beginnings" were very different in their early days, knowledge of industry history makes it easier to understand how they evolved into their current incarnations as the need for gas safety and clean restrooms boosted demand for c-stores, which in turn allowed individual operators to develop their unique identities.
"Real estate then became the key thing to where we locate today," Bressi pointed out. "All of us know real estate is the key to our business."
A good location, however, isn't the only important attribute consumers take into account when deciding where to shop. According to Bressi, CFX attendees need to take what they learned at the event and decide how the key takeaways fit with their competitive identity.
"The secret sauce is the determination of your uniqueness, your differentiation and those kinds of things," he said. "So, it is always uniquely yours. You're going to make it what it is. You have to find your own secret sauce ... you have to seek out what's going to win for you."
As gasoline declines, a c-store's offer will determine their relevance, he added.
[Read more: Convenience Store News Foodservice Study 2024: Investing in Tomorrow]
Bressi also shared some insights on "the fundamental changes" coming the industry's way, particularly those related to the foodservice and shopping habits of younger consumers.
"They don't really want to engage with us at a checkout. They want self-checkout," he said. "They want automated like the Amazon or whatever, the touch-free." Data shows that 74% of shopping journeys begin with an Amazon or Google search, he noted.
New evolutions in payment technology and store formats that minimize payment friction make it a good idea for operators to keep an eye on changes in this area and consider what might work for them. But they shouldn't plan on opening employee-free stores.
"In my opinion, no way. I don't think you can ever replace people with robots," Bressi said.
He previewed an upcoming Spinx concept store that will replace a decades-old service station. The South Main Street store in Greenville will have numerous elements that are likely to become more common as gas becomes less important.
"There's been this transformation, this urbanization, and that is what's coming," he said. He highlighted features such as the store's scratch kitchen, outdoor seating with a firepit and electric carts for delivery. "We do plan to scoot around town and deliver food. We're going to be a food-centric and small grocery [store]."
The ninth-annual Convenience Foodservice Exchange event, held May 2-3, was an exclusive networking and experience-focused conference that gave attendees actionable knowledge and research to strengthen their foodservice business.
Sponsors of the 2024 Convenience Foodservice Exchange included gold sponsors Ferrero Foodservice, Hunt Brothers Pizza LLC, The J.M. Smucker Co., Krispy Krunchy Chicken, LSI Industries, Southern Visions LLP, Stuffed Foods and Sugar Foods Corp.; silver sponsors Steritech and Supplyit By Jera Concepts; and Innovation Zone sponsors Bite Inc., Shiftsmart and Upshop.