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FOODSERVICE – FOOD ON THE GO FROM PAGE 29 “To ensure the \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\[P&C\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\] channel remains competitive and share is not lost into QSR, outlets need to ensure that that they continue to offer a quality range in food-to-go options,” she said. “Consumers’ expectations are high, and they’re prepared to pay for a product that provides value for money.” On a similar note, Meris Development chef Alex Prior says a foodservice offering creates an opportunity for “destination shopping or a reason for visiting store (aside from fuel)”. “It can be any mealtime of the day or for snacking in between,” he said. “It can lead to multiple visits per week and even per day. “Food offers the chance to increase average transaction value and basket size with upsells and meal deals as well as complimentary products – you rarely buy food without grabbing a drink to go with it.” Talking more specifically, Foodservice Australia Exhibition Manager Liz Shaw says buying groceries and ready-to- eat meals from convenience stores is becoming “increasingly common”. “Younger consumers appreciate the grab-and-go options and accessibility,” she said. “There’s a growing number of convenience stores starting to offer high-end foodservice products, leading to an increase in sales.” Highlighting beverages, Ms Shaw says such sales remain strong with convenience stores now offering a wide range of options. “Foodservice Australia exhibitors Bickford’s and Remedy Kombucha have plenty of options on offer,” she said. Noting a further trend, Ms Shaw says the health focus has had a “huge impact” on the P&C channel, with consumers now expecting to see the range of available options including healthier alternatives. “Foodservice Australia exhibitor Chobani has seen increased interest from stores wanting to stock their yoghurt range,” she said. “This trend has also shown a rise in protein-rich options such as bliss balls, bars and cookies, as well as snack options such as nuts, popcorn and other healthier alternatives. “Fresh options are also a great asset to a convenience store. Sandwich and wrap supplier and \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\[Foodservice Australia\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\] exhibitor Azura Fresh has a "The fact is, we feed our stomachs more than we feed our cars – and creating a destination for food can be a clear way to future proof the business for years to come, giving consumers a heightened reason to visit." wide range of options to service the lunch grab-and-go market.” Ms Shaw also notes the introduction of third-party mobile delivery services, such as DoorDash, that have given customers the opportunity to order their favourite foods from home. “Convenience stores that embrace mobile ordering can appeal quickly to a growing target market with sizeable purchasing power,” she said. “In addition, to boost category sales, retailers should be looking for new food and beverage items to stock, as well as any equipment, refrigeration and technology that can streamline the customer experience.” Monetary value aside, Mr Prior says that having a good foodservice offering will go a long way in retaining repeat customers, bringing loyalty over competitors “in the same way we build a relationship with our favourite coffee shop and barista”. “If your customer sees the convenience of getting petrol, milk, bread and a good consistent food offering simultaneously with little to no wait time, it helps make you front of mind as a destination,” he said. “With potentially huge margins on convenience foods combined with self- contained and automated equipment, there’s potential for a business to make the food offering into a profit with little or no extra cost to labour, and not just a thing you have on the side or hidden down the back.” A pandemic push With a decline in fuel demand caused by fewer people traveling, P&C stores with a substantial food offer are reported to have performed very well in 2020. “Most data indicated that during lockdown while fuel sales were down, many had strong shop sales, supported in a large part through food sales,” Mr Prior said. “Additionally, food and meals were one of the largest drivers or reasons for customers to visit stores. This was a significant increase. Although we can see some of these increases reducing somewhat as things return to ‘normal’, some will remain long term. There’ll continue to be remote working and hybrid models, which will help this, as well as changes in customer behaviour, confidence in store offers and freshness, the convenience offered, and more, that give our stores the chance to maintain a larger chunk of ongoing food sales.” A further Covid trend noted by Mr Prior is the need for food security in reference to sanitation and ensuring that food isn’t exposed to other customers or staff, and the chance of contracting the virus through exposure to food. “This is seeing the need for new styles and development in food packaging to allow for good holding times, but still being able to see the food while not detracting from sales and freshness,” he said. While New Sunrise National Merchandise Manager Joseph Alessi notes that convenience stores with a strong food offer did “remarkably well” in 2020, he also acknowledges that the offering isn’t a “new phenomenon”. “In fact, the paradigm shift from a fuel-led business/industry to foodservice-led has been occurring over the last 10 years, albeit much more slowly in Australia than in other developed countries,” he said, adding that a direct correlation between the number of weekly visits to a store (frequency) and the dollars spent in each basket (AWOP) has been reported for many years. “The fact is, we feed our stomachs more than we feed our cars – and creating a destination for food can be a clear way to future proof the business for years to come, giving consumers a heightened reason to visit (traffic).” 30 CONVENIENCE WORLD MAR/APR, 2021