Convenience Stores at a Crossroads

by | Mar 6, 2023

Convenience-Stores

Electric vehicles (EV) are going mainstream, with many consumers ditching their gas-powered vehicles due to historically high gas prices, new electronic vehicle (EV) models, lower price points for EVs vs. gas-powered vehicles, government sales incentives, and the desire to become more sustainable. To meet ambitious environmental goals, certain states – including California – plan to stop selling gas-powered vehicles altogether by 2034. Experts predict that the EV market will more than double by 2027 and that 45% of new car sales will be electric by 2035.

Since fuel has been a significant source of revenue for convenient stores, the migration to EVs means convenience stores must reinvent themselves. In 2023 (and beyond), c-stores must transition from a grab-and-go model – where customers spend a few minutes gassing up their car and grabbing snacks for the road – to a destination, where consumers stay for an hour or more to shop, eat, work, and charge their cars.

C-stores aren’t just competing with other c-stores anymore. Now, they face increased competition with casual dining, shopping malls, grocery stores, etc. These destinations are all battling to become travelers’ preferred locations to charge their cars and recharge themselves with a meal, a comfortable place to work, and a place to run errands while their cars charge.

If your convenience store hasn’t developed a reinvention strategy yet, it’s time!

C-stores would be wise to:

  • Change their mindset around food. Moving forward, c-stores must give their customers a reason to come and stay, which means making food service a meaningful part of their business model. Train employees to properly (and safely) cook, replenish, and monitor fresh food. Also, consider where your food comes from, how it’s sourced, and whether your suppliers follow strict food safety procedures. Implement food safety and quality protocols, ensure integrity in food sourcing, use tech tools to conduct QA inspections, monitor your suppliers’ safety protocols, and make food safety part of your company culture.
  • Change misconceptions. Unfortunately, there are still widespread misconceptions about c-store foods, with consumers envisioning old, shriveled hotdogs being held under heat lamps for days. C-stores need to change the narrative and become famous for serving fresh, safe, delicious food. Since customers will need something to do while they charge their cars, it’s imperative to add welcoming areas to sit, eat, and wait. C-stores should work diligently to change negative perceptions around their food service by emphasizing safety and quality, offering more fresh options, and building consumer trust.
  • Migrate or get left behind. Consumers are becoming healthier, with a decline in cigarette smoking and a shift away from buying sodas and processed snacks. C-stores should transform accordingly, replacing these revenue drivers with items that will appeal to the notoriously health-conscious EV owners. Offer delicious meals and snacks, with plenty of healthier options, including vegetarian meals, fresh fruit and juices, bottled waters, nutritious sandwiches, and smoothies.
  • Embrace the EV trend. There are nearly 150,000 convenience stores nationwide, with approximately 80% of them currently selling gas. Now that more consumers are adopting EVs, consider how their needs will change – and transform your business accordingly. EVs have a finite battery life, so people will be looking for charging stations locally and on longer road trips. Offer charging stations and give people reasons to stay onsite (like high-quality food and a clean seating area) while their cars charge. Look at 7-Eleven, a brand that has embraced the EV trend, installing 500 charging ports at 250 of its locations.
  • Understand the changing competition. The EV trend has changed the landscape, adding new (and increased) competition for c-stores. Fast casual restaurants, shopping centers, grocery stores, pharmacies, and other locations are adding charging centers and giving customers something to do – eat, shop, work – while they wait. Differentiate your c-store by creating an environment where people will enjoy hanging out. Create a seating area with Wi-Fi where customers can catch up on work, drink coffee, and enjoy a nice meal or a healthy snack.
  • Emulate European models. QSRs don’t have market presence in Europe, so for on-the-go meals and snacks, consumers rely on c-stores. European c-stores make fresh food the centerpiece, prepare nutritious meals to order, and don’t hold foods under heat lamps. C-stores across the pond have built trust in their food in a way that’s quite different from the US.
  • Use tech to elevate inspections and audits. Many food businesses are ditching paper checklists and manual systems, instead relying on tech tools to conduct daily inspections, ensure foods are held at proper temps, check store cleanliness, etc. Manual systems can’t validate whether safety checks occurred or provide comprehensive data for your entire operation. Tech solutions have become much more affordable, accessible, and user-friendly, and can significantly improve your brand’s safety, quality, accuracy, transparency, and compliance.
  • Ensure all suppliers follow strict safety and quality protocols. It’s essential to implement strict safety and QA programs in your store, but that alone is not enough to keep your business (and customers) safe. Monitor your suppliers (all along the supply chain) to be certain they have proper food safety protocols and structured QA programs in place. Use tech tools to organize and manage supplier certifications and audit all suppliers to ensure they’re compliant before you work with them (and throughout your collaboration).
  • Play the long game. Consumer perception won’t shift quickly. Your store must build trust over time by demonstrating that you follow strict safety protocols, showcasing delicious food, having sparkling clean facilities, training every employee, conducting regular safety checks, and quickly fixing any noncompliance issues. Have patience. It takes time (and consistency) to build trust and improve customer perception.

All signs indicate that EV sales will continue increasing, changing what convenience stores will look and feel like. Instead of wanting grab-and-go experiences at c-stores, more customers will want to sit and wait as they charge their cars. This is an ideal opportunity to give your customers and prospects what they want – a reason to come and stay awhile.

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