Competition Heating up for QSRs

QSR Magazine describes industry’s growing threat from c-stores and grocery stores.

March 17, 2015

CHAPEL HILL, N.C. – A feature in this month’s issue of QSR Magazine describes how the quick-service restaurant community is facing increasing competition from supermarkets, convenience stores and big-box retailers that are offering their own prepared food choices and branded restaurant concepts. More and more, the fresh innovations, competitive pricing, faster service and strong marketing of modern-day retailers are luring more consumers in — and potentially away from QSRs, writes the publication.

The article cites a recent 2013/2014 Foodservice Landscape survey conducted by the International Foodservice Manufacturers Association (IFMA) and Datassential, estimating about 4% growth for both supermarkets and c-stores, compared to about 2.5% growth for limited and full-service restaurants. “Experts say this difference can be attributed to the growing presence and influence of grocery chains like Whole Foods and Wegmans, and c-stores like Wawa and Rutter’s, as well as other retailers expanding and improving upon their offerings,” writes QSR Magazine.

Retailers have happily innovated both their foodservice offerings and their operations to attract those customers with higher expectations.  And while many c-stores do not have the floor space of their grocery counterparts, numerous gas station/convenience hybrids are still making a sizable dent in foodservice. Sheetz, Rutter’s and Wawa all offer touch-screen ordering systems for fresh and personally customized sandwiches, salads and other fare. “They appeal to consumers who may spend less time there than at a grocery store but are attracted to numerous impulse purchases. In both cases, buying food in those stores means one less stop to make to get food elsewhere. With the accessibility of a salad or soup bar at a grocer or pizza at a convenience store, it makes life a little more convenient and easy for work-weary consumers,” writes the publication.

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