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April 2008

News & Media

Hot, Cold, Healthy and Fast 
April 11, 2008 

CHICAGO - As foodservice continues to be a major focus of convenience and petroleum retail operations, keeping up with consumer demand can be daunting.

In a session moderated by Jim Bressi, director of food research and development at Kwik Trip Inc., food trend experts Tim Pirovano, director of retailing insights at The Nielsen Company, and Kevin Higar, director of operator product development at Technomic Inc., shared how convenience stores can stay ahead of their customers' needs by exploring today's consumer trends.

Has the struggling economy affected organic foods? Nope. In fact, organics continue to grow (25 percent last year) and show no signs of slowing down. Pirovano suggested that this may be because consumers of organics are typically higher income shoppers and largely unaffected by the state of the economy. However, the real growth may be in products labeled "natural," which grew 11 percent last year.

The current consumer environment, according to Higar, likely means bad news for food operators, thanks to factors such as gasoline prices, higher unemployment rates, rising consumer energy prices and falling consumer sentiments.

So what are consumers looking for? Largely, the trends revolve around identifying consumer needstates and satisfying convenience and  work/life balance needs for shoppers who have families, work long hours or don't have time to cook. Consumers are looking for more locations, longer hours of service, menu variety, pickup or takeout options, physical aesthetics, speed of service and customer service.

In the restaurant industry, customers are translating convenience and work/life balance to mean takeout options, portability (i.e., sandwiches), breakfast offers (i.e., eating on the run, on the way to work), products that provide lifestyle enhancements (i.e., manage blood pressure, provide energy and health benefits) and social consciousness (i.e., products that are an extension of a consumer's values, fair trade products). But above all, food quality and taste is critical.

The opportunity for convenience stores? According to a 2007 Technomic report, 50 percent of consumers purchased prepared meals at retail locations other than restaurants at least once a month. Retailers can target these consumers by offering high quality and fresh foods, focusing on good presentation of their foods, providing variety, and in some cases, lower pricing than restaurant takeout menus.

The NACS State of the Industry Summit in partnership with CSP concludes today. Look for more coverage in Monday’s NACS Daily and in the June NACS Magazine.