Technomic: 2015 C-store Foodservice Growth Will Be Nominal

CHICAGO — As the convenience store foodservice segment continues to face stiff competition and negative consumer perceptions of its quality and freshness, its growth is likely to be nominal in 2015, according to Technomic Inc.

The growth of convenience foodservice is expected to be approximately 2.5 percent in 2014 and 2 percent in 2015. After inflation, the overall segment will be flat, yet c-stores remain a prime destination for younger generations and those seeking fast, on-the-go options, creating opportunities for growth.

Proprietary c-store foodservice has become a key area of opportunity across the country. The channel comprises approximately 28 percent of retail foodservice and generates $11.2 billion in sales, according to Technomic's Convenience Stores Market Intelligence Report.

"As more c-store brands increase focus on offering a wider variety of fresh, high-quality foods and competition heats up across the segment, understanding the convenience store foodservice landscape has never been more important," said Technomic Senior Director Donna Hood Crecca.

Key findings from the Convenience Stores Market Intelligence Report include:

• Breakfast sandwiches continue to thrive on c-store menus, with their numbers climbing 20 percent from the second quarter of 2013 to Q2 2014.
• More than 90 percent of consumers say food quality and the taste/flavor of the food are the most important elements.
• Energy drinks saw a significant surge in availability at c-stores, which contributed to the category's nearly 23-percent growth in menu items.