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c-store - TK Architects

04.22 2024

The Future of C-Stores

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Unlocking Success in Convenience: Embrasing Food Diversity and Hybrid Models for Enhanced Customer Experience

by Mike Cummings, Sr. Principal

April 2024

The future of C-Stores is bright, and there are opportunities to capitalize on demographic shifts and changes in customer preferences to provide a differentiated experience in the marketplace.

“What does the future hold for C-stores?”

First and foremost, diversity of food choices.  Providing a full range of choices – diverse snack and meal choices is key.  As mentioned in my previous blog on the evolution of C-Stores, millennial preferences trend Mexican, and Gen Z trend Asian.  Both grab-n-go and fresh options should be provided.  Careful consideration of the market and its customers, along with creating unique, freshly prepared options can create customer loyalty, and increased revenue per visit.  This approach, along with healthier choices, can make C-Stores an alternative to fast-casual restaurants. 

One interesting approach is the hybrid C-store, combining the best of convenience and groceries.  Most grocery stores include a market section in the offerings to allow consumers to shop for groceries and pick up a freshly prepared meal at the same time.  One development that lends support to the viability of a hybrid C-store opportunity is large grocery stores that include a convenience store in front of the main store.  They primarily offer fuel and traditional convenience store type merchandise, along with a few grocery items to provide quicker, easier pickup when only a few items are needed.  The hybrid C-Store can provide convenience, grocery, and meals on a 24/7 basis.

Finally, we come to the most impactful component of the future success of C-stores: the experience.  Brightness, cleanliness, and excellent customer service are essential but are not enough.  The customer experience, from easy access to ample parking and well-lit and clean exterior are only the start.  The interior should be warm and inviting, easy to navigate and find what you came for (and maybe a few more impulse items). 

Merchandising layout should be uncluttered with space allocated for everything, including special items that may be overstock, seasonal, or limited time merchandise.  Graphics must be planned and consistent, and not reliant on product branded placards or signage; the exception is convenience store branded merchandise.  The use of monitors instead of fixed graphics are easy to update and keep current, and allow cross-promotion, and community information to be incorporated. 

The customer check-out experience must be designed from the start.  Ample checkout stations, and queuing space around checkout are necessary.  Consider how you want your customers to line up while they wait for the next cashier.  Provide space for impulse items on the counter and along it in a way that does not impede customer flow or diminish customer experience. 

Consumers can get virtually anything they want delivered to their home or work, and we have to provide a high level of convenience, and a welcome experience to get them to stop in.  Consider drive through, self check-out, and/or express pick-up options to streamline the visit. 

That was part 3 of a 3 part series. To see previous parts, click the News tab, on our website!

Mike Cummings, Sr. Principal

05.15 2023

The Evolution of C-Stores

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by Mike Cummings, Sr. Principal

May, 16 2023

The Covid pandemic had a significant impact on the industry.  The overall number of stores and revenue declined, and it also changed purchasing patterns.  The pandemic highlighted how gaps in the global supply chain added a sense of urgency to keep pace with high-demand products in non-traditional C-store categories. Many customers relied on the channel for daily essentials, including grocery items, as well as treats to boost spirits.

The C-Store Landscape covered the most prevalent functions/types of C-Stores including travel centers, fueling C-Stores, Grocery C-Stores, and Urban C-Stores. 

There are still many opportunities for new locations within all types of C-Stores. But what is currently happening in the marketplace and what is next? 

The most interesting current trend is the diversity of food choices.  From personal experience driving to jobsites, I would decide where to stop based on demonstrated ability to provide a good cup of coffee.  That is basic and can provide an alternative to the coffee shop. Not only are food choices the most interesting trend, but it can also have a large impact on revenue. Foodservice sales in convenience stores increased 20.5% in 2021 after falling 10% in 2020, according to the 2022 Convenience Store News Industry Report. Some of the increase was driven by changes in consumer behavior during the pandemic, but it is also driven by demographics. Data from Cargill show millennials are the top indexing convenience store customers. “Better-for-you” foodservice offerings are key to capturing the demographic, as are Mexican-inspired flavors, said Jessica McMillan, strategic account lead for convenience stores at Cargill. “When we look across the consumer base, millennials are actually the first generation to prefer Mexican flavors over Italian flavors,” she said. “If you look at Gen Z, Asian flavors are their top choice.”

By incorporating more diverse flavors like Mexican and Asian, along with healthier choices, can C-stores become an alternative to fast-casual restaurants and/or the market section of a grocery store? I believe they can.

Have you noticed that grocery stores have added market sections to their offerings or included branded C-stores on their sites?  That empirical evidence alone demonstrates the opportunity For C-stores. Some restaurants pivoted and sold basic grocery items during the pandemic.  The C-store can provide both groceries and meals on a 24/7 basis.  

I expect this duality of grocery and fresh meals represents the current evolution opportunity in the C-Store market.  Providing diversity of offerings in grocery, meals, snack, and beverage categories can increase revenue per visit as well as deliver new, regular customers. 

Full realization of the concept will require a focus on convenience including loyalty apps, self-checkout, drive-throughs, and express options.

That is what is happening today in the marketplace, but what about tomorrow?  Stay tuned.

This is part 2 of a 3 part series. To see previous parts, see our news tab, on our website!

Mike Cummings, Sr. Principal

03.21 2023

The C-Store Landscape

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by Mike Cummings, Sr. Principal

March, 21 2023

Convenience stores serve a variety of needs and continue to evolve.   Full disclosure – I am a fan of C- stores, both in my daily life and when I am on the road going to jobsites.  There are more than 150,000 C-stores in the US, and it is a half-trillion-dollar annual industry.  They may or may not sell fuel.  C-stores are evolving from the traditional “cokes and smokes” to becoming a destination and not just a place for gas and a cup of coffee.  C-stores come in all kinds of sizes from small walk-up non-fueling locations to the biggest in the world like Buc-ee’s. 

Most convenience stores fulfill a variety of needs so they can be difficult to categorize.  Among the primary needs that C-stores can fulfill:

Travel centers are generally large facilities with convenient auto and diesel fueling, large restrooms and lots of drinks and snacks.  Many have a restaurant incorporated.  Travel centers offer a welcome stop on road trips to stretch your legs and refuel. Other amenities that you might find at a travel center include:

  • dedicated truck and RV parking areas
  • Pet relief area (I had no idea so many truckers travel with a pet)
  • Expanded food choices.

Fueling convenience stores

The primary function of some C-stores is to sell fuel, with an assortment of snacks and beverages.  Many times, these may be the only fueling option in town or within miles. 

Grocery convenience stores

The primary function of some C-stores is to be the local grocery store; these may be the only grocery option within miles. These stores will also have an assortment of snacks and beverages, and other convenience items, and may also sell fuel.  Grocery is now the third most common category purchased at convenience stores, falling just below snacks and candy, according to data from NRS.

Urban convenience stores

These small, non-fuel locations are normally seen on an active, pedestrian street and cater to people living or working nearby.  I was quite surprised to encounter these types of C-stores while traveling internationally. One in Beijing on the ground floor of a high-rise office building features a steam table serving lunch to workers in the office building.

As I said, most convenience stores fulfill a variety of needs and fit within multiple categories.  The good news is that there are still many opportunities for new locations within all types of C-Stores. And for new types of stores.  Will the “lessons learned” during the Covid pandemic lead to evolution of C-stores or even new types of C-Stores? 

Stay tuned.

Mike Cummings, Sr. Principal