Rethinking Your Value Proposition

With economic uncertainty spiking and fears of a looming recession, it is no surprise that consumers are looking to save on food. Convenience retailers focused on high-quality fresh food at affordable prices are in a position to capitalize, but they face intense competition. 

What's more, it is no longer enough to offer the best price. To win out over other c-stores, quick-service restaurants (QSRs), fast-casual outlets, or even the home kitchen, food-forward convenience retailers must revisit their overall value proposition to ensure they are giving consumers a reason to choose them, again and again. 

"Good value is a mix of price, quality, convenience and overall satisfaction from the purchase. It's not always about getting the cheapest option, but rather the one that meets or exceeds your needs and expectations for the cost," said Ryan Blevins, director of food and beverage innovation at Weigel's, describing the Powell, Tenn.-based chain's approach to crafting its own value proposition. "Sometimes, value is subjective. If the purchase brings joy, convenience and it tastes great, it may be of greater value than something that saves you a little money."

For all convenience stores, a vital component of a well-planned value proposition is right there in the name of the channel. It's not just what customers want, but when and how they want it. 

"Availability is extremely important. You need to have all offers available during expected hours of operation," said Dave Grimes, vice president of foodservice at Martin and Bayley Inc., operator of Carmi, Ill.-based Huck's Market. "We look at volume by item by store to ensure we have all products available at each location that offers that product."

Consistency is another pillar of the value proposition, and one that can only be built over time. Consumers are more likely to return to a foodservice operator they trust to serve something they enjoy the same way every time than they are to take a chance on a competitor of unknown quality. Consistent execution requires investment in consistent training. At Huck's, this includes written procedures, how-to videos and QR codes that link to a guide for any product it offers. 

Adding delivery to the value proposition through multiple third-party operators is also increasingly feasible thanks to delivery aggregators and other moves to streamline digital ordering, which have made it easier for c-stores to extend the reach of their menu without overwhelming their time-strapped kitchen employees.

"We have found e-commerce platforms to be very helpful, as many consumers want fast and easy transactions that come to their door," Grimes said, pointing to Grubhub, DoorDash and Uber Eats as reliable partners, along with online ordering for its Godfather's Pizza offering.

Tim Powell, a principal at research and consulting firm Foodservice IP, headquartered in Chicago, advises c-store operators to think of value in terms of "price-and." 

"Beyond price point, this commonly includes quality. Consumers might also factor in a broader range of things that are more individually important to them like the ease of the overall experience (speed, service and accuracy), portion size, uniqueness, the ability to find options that meet their dietary considerations, etc.," he explained. "So, even as absolute price points have become something consumers are paying more attention to in the current environment, value can be relative. And what can be considered a good value from a pricing standpoint might vary."

Tiered menus and barbell pricing can be beneficial by providing a range of options and different price points, giving customers the opportunity to trade up or down depending on the attributes they consider to be most important, Powell added.

Emphasizing the Channel's Unique Attributes 

As consumers take stock of their dining habits these days and reconsider the best options for their priorities, c-store operators must be prepared to make a case for why they are the better option than the local QSR, fast-casual outlet or cooking at home. 

Ensuring their prepared food and beverage offerings are of similar or better quality is a baseline requirement. Beyond that, retailers should emphasize what they offer that others don't. 

"C-stores win on immediate gratification — no drive-thru wait, no tipping," said Powell. "C-stores must emphasize convenience and immediate availability as their edge."

He advises c-store operators to shift their framing from cost to savings in both time and effort, and recommends highlighting "skip the wait" or "grab-and-go without compromise."

Convenience retailers can also give their foodservice offerings a better competitive angle by emphasizing how nonfoodservice items such as fuel, packaged beverages, snacks and other everyday essentials can be purchased during a single trip, increasing the efficiency of time spent away from home. Operators should lean into this with bundles that offer a prepared food item with an in-demand product from another category. 

"Our stores offer a one-stop experience, allowing customers to quickly grab a satisfying, fresh-made meal along with their everyday essentials — all in a single visit," said Blevins.

While meals eaten at home will usually win in a financial comparison, c-stores can offer superior value in other ways. "While cooking at home may save money, it often requires more time and effort. We offer hot and cold meals that provide the same comfort and satisfaction of a home-cooked meal without the prep or cleanup," Blevins added. "For busy consumers, this time-saving convenience is a key value proposition."

Grimes, though, pointed out that c-stores can sometimes compete with the savings of meals at home. He cited the "extremely aggressive single-day promotions" that Huck's runs to create loyalty engagement and endearment and drive visit frequency. In addition, he agreed that the intangible benefits of c-stores can be extremely impactful.

"We also sell them time. The customer can be in and out quickly," he said. "I can sell you 20 minutes of sleep every morning!"

Honing a Competitive Advantage 

Developing a value proposition also means developing distinctiveness despite the fact that the most popular items on a c-store menu are also some of the most commonly available. 

To succeed, retailers need to offer customers what they want, but do so in a way that differentiates themselves. For instance, retailers can’t offer value if consumers view pizza and chicken strips as fully interchangeable regardless of the purchase location.

"We recognize that while core menu favorites remain consistently popular, differentiation is essential to staying relevant in a competitive market," said Blevins. "Our approach focuses on elevating familiar favorites, such as chicken and pizza, while continuously introducing innovative, craveable options that set us apart."

Examples include Weigel's Hot Honey Big Pig limited-time offer (LTO), which reimagines a classic breakfast favorite by incorporating premium ingredients to enhance both flavor profile and visual appeal. The chain also partnered with a renowned hot sauce company to develop exclusive sauce flavors using "speed-scratch" recipes. 

Meanwhile, Huck's highlights the quality of its breading, which is a vital yet often under-recognized part of chicken menu items. An upcoming campaign will highlight the fact that Huck's hand-breads its chicken and fresh-cracks its eggs daily. "We have our own proprietary chicken breading," said Grimes. "It will always be unique because it is ours!"

Likewise, Powell advocates for maintaining consistency in the core menu while using seasonal, limited-run flavors to differentiate from competitors' menus and drive purchases. He pointed to Royal Farms as a good example of a smaller c-store chain that balances standard, best-selling chicken piece meals with seasonal specialty chicken tenders.

"Limited-time options encourage impulse buys," he said. "Behavioral cues like 'only available this month' increase perceived exclusivity. Lessons from past economic downturns show that consumers gravitate toward comfort foods in uncertain times. C-stores should emphasize nostalgic favorites while adding subtle innovations to keep offerings fresh."

These efforts need to be ongoing, not a one-and-done cultivation process.

"Our competitive advantage is our ability to bring exclusive proprietary items to our customers. We work with our broad network of 16 commissaries and 16 bakeries across the U.S. to develop and deliver new, high-quality menu items daily. We partner closely with each to adapt our offerings to reflect seasonality and shifting customer preferences," said Brandon Brown, senior vice president of fresh foods at Irving, Texas-based 7-Eleven Inc. 

"For example, in the past year, we have worked with our partners to develop and introduce new LTO items like Mangonada donuts with Tajin, [the] Old Bay Chicken Sandwich, Chicken Curry Bowls and Everything Breakfast Sandwiches," he added. 

7-Eleven also has a dedicated team of product developers that continually work to identify and create new, on-trend products and recipes to meet customer cravings.

While convenience retailers may view their made-to-order offerings as the most fitting to go head-to-head with the QSRs and fast-casual restaurants, a high-quality, differentiated grab-and-go offering can be a draw — even if it doesn't offer customization. 

Brown noted that 7-Eleven has worked to further cement itself as a leader in immediate consumption by continuously expanding its grab-and-go options and bake-in-store programs to improve the quality of its core items, increasing its ability to compete.

"Our fresh food strategy is all about keeping pace with evolving customer expectations — delivering food that meets customers' needs for high-quality, fresh, craveable and on-the-go convenient food," he said.

Getting the Message Across 

Of course, no competitive advantages will be as effective if they are not marketed well. 

"At 7-Eleven, we're constantly looking for ways to show customers that great value and craveable food can go hand-in-hand — anytime, anywhere," said Brown. "Our marketing strategy for fresh food, especially with items like pizza, has recently focused on an integrated mix of channels, including social media, connected TV and traditional media. These platforms allow us to reach different audiences where they are, in ways that resonate most with them."

As an example, he pointed to 7-Eleven's recent Pi Day promotions, which supported its offer of whole pizzas for just $3.14 on March 14. The retailer activated "a full-tunnel campaign" to build awareness and drive traffic both in-store and through its 7NOW delivery app.

"The response proved that when we show up where it counts with an offer that resonates, customers respond," Brown shared.

Retailers can gain by getting specific about the benefits their foodservice program offers. For instance, Huck's ties its Huck’s Kitchen logo to the tagline, "Made Fresh, Right Here."

"We think it is important that the customers know that we make our subs, salads and wraps in-house. Our Godfather’s Pizza is freshly made, our chicken is freshly made," said Grimes. "Often, when people think of the convenience environment, they think it is something you put in the microwave and then transfer to a warming unit! That is definitely not us."

Marketing plans need to consider how each component contributes to the strength of the overall message. Weigel's markets its value proposition through a layered approach that meets customers in multiple touchpoints throughout the day, according to Blevins.

"Our most loyal guests typically get the message first through our app — whether it's a push notification, an in-app reward or a reminder of an offer tied to their behavior," he said. "From there, we reinforce it in-store with intentional signage, point-of-sale messaging and cashier engagement."

Outside its stores, Weigel's utilizes fuel pump video content designed to catch customers' attention during dwell time, as well as targeted online marketing and streaming platforms to reach customers where they are already spending time. Social media also helps Weigel's add energy and personality to its brand while building a sense of community.

"The most successful efforts are the ones that connect across all channels," Blevins said. "When a customer sees the offer on their phone, hears it while fueling up, and walks into the store to see it front and center — that consistency builds trust, drives action and reinforces our value."

Foodservice sales are the most direct measure of successful marketing, but savvy retailers also pursue more nuanced methods of determining whether they are delivering on their value proposition in a way that resonates with consumers.

"While sales data is one of the ways we measure the success of value proposition — looking at performance by store, geography, product category, etc. — we also put significant emphasis on engaging directly with our customers for feedback," Brown said.

7-Eleven considers the Brainfreeze Collective, its proprietary customer research panel launched in 2021, as one of the most useful tools in this area. The Brainfreeze Collective includes more than 250,000 engaged members who regularly share ideas, opinions and experiences related to their visits to 7-Eleven, Speedway and Stripes stores.

"The insights we gather from this community are shared across our internal teams and have a direct impact on business decisions, from product innovation to in-store experience," Brown explained. "A great example of this is the Slurpee rebrand that we unveiled in 2023, where feedback from the Brainfreeze Collective helped inform the brand’s vibrant new look."

Chains that lack the ability to launch such a largescale initiative can still gain valuable data by connecting with customers in other ways. Whether it's through the company's mobile app, in-store comment cards or other channels, the key is listening. 

"While sales performance is a key indicator, we place significant emphasis on gathering customer and team member feedback. And usually the latter two tell the entire story," said Blevins. "If the feedback from our customers and our operators is well received, then you can almost count on the sales performance to fall in line."