Will US convenience stores find the secret to selling better food?

NEW YORK– Americans who think of fossilized hot dogs, frozen burritos and salty snacks when they imagine getting food at a gas station or truck stop may be pleasantly surprised on their next road trip: American convenience stores are giving them more and better — but not necessarily healthier — choices.

From 7-Eleven to regional chains like QuikTrip, the operators of c-stores, as they are known in the industry, are looking abroad for grab-and-go inspiration, adding seating in some locations and expanding their coffee menus to expand. to rival Starbucks and experiment with made-to-order meals for busy families.

The movements happen as convenience stores are looking for ways to offset slowing sales of cigarettes, cards and soft drinks. Tempting customers’ taste buds with fresh deli sandwiches and homemade burgers, the humble food marts aim to become an alternative to fast food restaurants for busy Americans who crave convenient, interesting and cheaper dining options.

“It’s been a decades-long journey to go from food that was seen as desperation to destination,” said Jeff Lenard, vice president of strategic sector initiatives for the National Association of Convenience Stores.

Once known for breakfast and lunch, convenience chains like Wawawith more than 1,000 locations on the East Coast, small operators like York, Pennsylvania-based Rutter’s have also pivoted to soup, chicken and seafood dinner options. Rutter’s, which operates 90 stores, is planning a new store format with more seating and adding 50 new locations over the next five years.

Casey’s General Stores, the nation’s third-largest convenience store operator with 2,500 outlets mainly in the Midwest and South, this year introduced hot chicken, pork sandwiches and burgers on brioche buns. The company, already known for serving pizzas that customers enjoy, created a limited-time menu of pies and sliders made with smoked pork, barbecue sauce and pickles.

“We’re really approaching this as a restaurant as we always have, but now even more so,” said Carrie Stojack, vice president of brand and strategic insights for the Iowa-based chain. “Prices have become really high. So what’s happening is that convenience stores are becoming a real viable option for guests.”

In line with their quest, convenience stores are expanding their delivery services to build on the customer base they found during the COVID-19 pandemic. 7-Eleven plans to roll out its 7Now delivery app nationwide, allowing users to get pizza, the chain’s signature Slurpees and thousands of other items delivered to their door.

The country’s largest supermarket chain, owned by Japanese company Seven & i Holdingsoffers select Japanese items such as teriyaki chicken, rice balls, miso ramen and sweet chili chip wings at select U.S. locations and at the recently acquired Speedway and Stripes stores. Visitors to Japan and Hawaii often reacts with envy and surprise when they taste what is offered at a 7-Eleven in Tokyo or Honolulu.

The chain’s North American subsidiary said it is working with some of the same food manufacturers and commissaries that serve Seven-Eleven Japan. That includes Warabeya, which is expanding its U.S. operations to help deliver fresh food to stores and offer a range of offerings to suit regional tastes.

“Our team draws inspiration from around the world to introduce new items such as Mangonada donuts with Tajín, BBQ pork sliders, chicken curry bowls and all things breakfast sandwiches,” the subsidiary said in a statement after the interview requests had been rejected.

Seven & i Holdings announced plans earlier this month to close 444 U.S. locations due to declining sales, inflationary pressures and an accelerating decline in cigarette purchases. The company has also made a buyout offer from Alimentation Couche-Tard, the Canadian owner of the Circle K convenience stores.

Attractive food in the supermarket is not entirely new and varies greatly by region. Buc-ee’s, the Texas-born chain with 50 stores across the South, has a cult following among fans who regularly stop for breakfast tacos and snacks like caramel-covered corn puffs called Beaver Nuggets.

Pennsylvania residents, meanwhile, happily debate the relative culinary merits of Wawa’s food (Try the Gobbler, a hot turkey sandwich with stuffing, gravy and cranberry sauce, they recommend). Page (its extensive hot and customizable menu includes breakfast bagels and quesadillas) and Landhope Farms, beloved for its hand-dipped ice cream cones and milkshakes.

TikTok and YouTube videos of people spending a day eating nothing but food from the supermarket or comparing dishes from different chains have helped fuel interest in food on the go.

Anderson Nguyen, 26, a TikTok content creator based in San Francisco, tried the chicken, macaroni and cheese from Krispy Krunchy Chicken, which operates most of its locations in gas stations and convenience stores.

“I generally don’t buy too much stuff at these convenience stores,” Nguyen said. But he said his experience at Krispy Krunchy Chicken would make him reconsider.

The coronavirus has created a unique role for the sector. Most restaurants temporarily closed their doors at the height of the pandemic, while many did local shops remained open.

Sales of non-fuel products at U.S. convenience stores rose 36% from 2018 before the pandemic to last year, from $242 billion to nearly $328 billion, according to a National Association of Convenience Stores analysis of sales data from about 20,000 locations. In the same period, the percentage of cigarettes in sales fell from 31% to 20%.

By expanding their food offerings, convenience stores now risk taking business from fast-food chains like McDonald’s, Burger King and Wendy’s, which used summer deals to revive sales, experts say.

Jonathan Raduns, CEO of food merchandising at retail consultancy Merchandise Food LLC, did an online sampling of similar items offered at specific fast-food restaurants and convenience chains, which found that supermarket food was actually cheaper.

For example, a large pepperoni pizza at Casey’s in London, Ohio costs $13.99, while a similar version at Domino’s costs $14.99. And a large coffee at supermarket chain Parker’s Kitchen in Savannah, Georgia, sold for $2.49, compared to $3.48 for a similar size at a Starbucks in the same area.

Virginia-based convenience chain Arko, which operates stores under banners such as 1-Stop and ExpressStop, has focused on being an affordable alternative. At the beginning of the year, the company introduced what it described as an “inflation-busting” 12-inch pizza that cost $4.99 for members of Arko’s free loyalty program and $7.99 for non-members.

“It took us months to come up with good quality, something that people can actually afford,” said Arie Kotler, CEO of Arko Corp.

Nutritionists and organizations such as the American Heart Association encourage gas station retailers to focus on fruits and other fresh foods that are healthy.

Kristen Lorenz, a registered dietitian with a private practice in Grand Rapids, Michigan, said convenience food operators have added healthier options such as lettuce wraps and yogurt parfaits. Previously, prepared food consisted of meat on a roller and pizza that looked ‘dry and wrinkly’.

Among Lorenz’s favorites: custom sandwiches at Sheetz and Wawa.

“Everyone needs to get gas and everyone needs to eat,” she said. “So it’s good to offer a variety of healthy choices for Americans to choose from. And the great thing about these stores is that they still have the traditional items that can make a road trip fun. You could get a bag of chips.

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AP Food Writer Dee-Ann Durbin in Detroit contributed to the report.