By Frank Beard
It’s not easy to decide if today’s leading convenience stores are gas stations with restaurants, or restaurants that sell gas.
Large retail brands like Sheetz, GetGo, and Rutter’s have expansive, made-to-order menus; independent stores are attracting coverage for high-quality foodservice in newspapers around the United States; brands like Kum & Go have better indoor and outdoor seating than many coffee shops; and customers frequently seek out branded foodservice programs like Krispy Krunchy Chicken—which Thrillist recently called the best fried chicken “you probably haven’t heard of.”
Foodservice matters. According to data released in April at the NACS State of the Industry Summit, foodservice accounted for 21.7% of in-store sales in 2016 and 35.2% of gross profit dollars. But since many stores compete with local restaurants, it’s important to provide the right customer experience and not neglect the small details.
Having visited and eaten at convenience stores across the United States, here are four issues worth paying attention to.
1. Clean the Tables
Dirty tables can easily lower the reputations of restaurants, and convenience stores are no different. I’ve visited many otherwise fantastic stores only to discover tables that are repeatedly covered in crumbs, grease marks, or trash—situations that could have been fixed with 15 seconds and a bottle of sanitizing spray. This is unfortunate because it detracts from an experience that may otherwise be fantastic.
Many gas stations already suffer from a “fuel penalty”—the perception that their food is of a lower quality due to the presence of fuel pumps—and they don’t have the luxury of getting to the tables “when we have time.” Cleanliness is a frequent source of negative reviews on GasBuddy, and a reputation for dirty tables can easily undermine higher-level planning, promotions, and marketing efforts.
The good news is that consumers are also willing to share their positive experiences online: “This was my first time visiting this store, and I was very pleased,” wrote a GasBuddy user in a recent review. “It was very clean, and the service was outstanding.”
2. Facilitate and Encourage Customization
Many customers—especially millennials—value customization and control. They seek to define their own retail experience rather than be told what it is.
Some customers will want extra cheese, no onions, spinach instead of lettuce, or a different type of sauce. Many leading brands already use touchscreen-based menus that can simplify the process. At Sheetz, customers can build their own creations if the existing options don’t match their preferences; and at QuikTrip, nearly every item is customizable.
It’s also important to be flexible and adopt a customer-first mentality. For example, breakfast is repeatedly identified as a large opportunity for growth, but the dividing line between breakfast and lunch is blurred for many customers—especially those who work nontraditional hours or are simply running late. Rather than acting inconvenienced if a customer requests a breakfast sandwich near the noon hour, accommodate the request.
3. Upsell, Upsell, Upsell
Restaurants have long trained their staff to upsell customers when possible. Not only is it a great way to introduce new products or move those that need to go, but it increases sales with little to no cost.
Convenience stores may lack table service, but touchscreen-based menus provide an opportunity for upselling. During a recent visit to Sheetz, three different products appeared on the screen prior to placing my order, and I was asked if I’d like to add any of them. One option was apple slices.
Upselling is also a way to encourage and enable impulse purchasing. As cited in the February 2016 issue of NACS Magazine, a survey from Harris Interactive found that 80% of Americans admitted to making an impulse purchase in a retail store. Breakfast is an excellent opportunity. Convenience stores with a high coffee rating on GasBuddy receive increased foot traffic during the key morning hours of 5am and 10am, and that provides an opportunity to upsell complimentary items.
4. Quick and Reliable WiFi
Bloomberg recently reported that nearly half of today’s convenience store customers choose their destinations based on the quality of food rather than the fuel. Although many of these customers are dashboard diners, many are also looking for a place to hang out.
That’s why great WiFi matters. Not only do today’s customers expect it, but it’s vital in parts of the United States with poor cellular phone coverage—especially if your brand has its own mobile app.
But poor WiFi is often worse than no WiFi. Inadequate speeds, inconsistent connections, and frustrating login procedures—it changes the experience from a minor disappointment to one of extreme frustration. Consider that the FCC defines “broadband” as 25Mbps download and 3Mbps upload. Poor WiFi is unacceptable at restaurants, and convenience stores are no different.
Frank Beard is a regular NACS Daily contributor who has traveled to more than 1,000 convenience stores in 24 states. He raised awareness of the industry's healthful food options with his "30 Days of Gas Station Food" experiment, and he's an analyst/evangelist for convenience store and retail trends at GasBuddy. Follow Frank on Twitter here.