instore - October 2016 - 24


cover story

MILLENNIALS
AND THE
C-STORE REVIVAL
Though many of these statistics may seem grim on the c-store side, one
should bear in mind that these are today's numbers, not tomorrow's. As
food industry analyst Phil Lempert points out, the fact that more people
have purchased prepared foods at supermarkets than c-stores likely
has a lot to do with supermarkets simply offering more than c-stores
are able to at the moment. However, when it comes to the future of
c-stores' prepared foods sales and consumer satisfaction, the sky's the
limit - largely thanks to millennials, who said they would purchase more
prepared foods there if they were offered.

Millenials would
purchase more foods
if they were offered.
"These are very good indicators for those serving this channel; strengthening these positive perceptions over time will be key to continued
success," says Marjorie Hellmer, president of Cypress Research.
NACS' Jeff Lenard agrees, saying polls done by his association have
shown similar results. "Snacking is much more prevalent now," he says.
"Not necessarily in complementing meals, but in replacing them - and
a lot of this is driven by younger consumers who have fewer predictable
rhythms. And that applies to everything they do, from when they eat to
when they watch TV - if they even watch content on a TV anymore."

of Boomers, whose prepared
food purchases are highest for
dinner. Dinner, in fact, is the most
popular for the other generations
after snacking, followed by lunch.
Again, we see that breakfast is
getting the least amount of favor,
24 * OCTOBER 2016 * instore

with 20 percent of millennials, 13
percent of Gen-Xers and a mere 6
percent of Boomers seeking out
prepared foods for the occasion.
The majority of survey respondents (65 to 69 percent) say that

their purchases are remaining
the same for all four occasions
measured. But when it comes to
decreasing frequency of these
purchases, breakfast shows
the highest number by far, with
19 percent saying that they're
buying less prepared foods to
start their day.
Whether this leaves breakfast
open as a white space full of
potential to grow or an occasion
that has seen its time pass and
will continue to shrink, only time
will tell - but according to the
survey results, breakfast is the
only daypart where purchases
of prepared foods are decreasing
more than they're increasing
(though for perspective, 68 percent
say that their breakfast purchases
are remaining the same).
Fox, with Dorothy Lane Market,
says the breakfast daypart holds
potential. The challenge is that
consumer behavior takes a sharp
downturn during breakfast when
compared to all other dayparts.
"The thing with breakfast is it
needs to be convenient. It needs
to be quick," he says. "And you'll
find that people often eat the
same thing for breakfast. Lunch
and dinner, you're always looking
for something different, but I
think you'd be amazed how many
people tend to eat the same thing
every morning."
Earl suggests that supermarket
breakfast sales might be impacted
by the market. United's stores
in West Texas, for example, are
experiencing strong sales with
products like their breakfast
burritos. The company' locations in the Dallas-Fort Worth

metroplex, on the other hand,
have seen much slower success.
"In DFW, it's more of a commuter
situation," she says. "People are
in their car and they don't have
time to stop and walk in to get
something. That's further illustrated by the fact that breakfast
sales are huge in those areas on
the weekends."

The future does
look bright
The good news overall for the
retail foodservice industry is that
while most respondents - around
60 to 70 percent - said that
the frequency with which they
purchase prepared foods has
stayed the same, more said that it
is increasing than decreasing.
"For the subset who indicated that their purchases are
increasing, we asked why and
found that convenience is the
leading driver of this increase,"
Hellmer says. "This is followed by
the improved quality of the food,
its affordability, providing healthy
food options, and because it takes
less time to prepare the food for
themselves or others."
By all means, 67 percent say
that convenience is their top
motivator for buying prepared
foods. While still considerable
in their percentages, these foods
becoming more available and
the opportunity for bold flavor
combinations were lower in
rank, at 40 and 30 percent.
So if the American palate
is becoming so much more
diverse, bold, adventurous and

HANS ENGBERS / ADOBE STOCK

The
sky's the
limit!



Table of Contents for the Digital Edition of instore - October 2016

instore - October 2016
Editor's Note - Knowing the consumer
Table of Contents
News - On our radar
Cover Story - What's Driving Retail Foodservice Consumers?
Commissary Insider - October 2016
Insight Insider - Bantam Bagels
Food Safety - Controlling salmonella
Equipment - IBIE machinery debuts
Packaging - Portion control
Operations & Logistics - Inventory software
By the numbers - Value-added fruit
Need to know - Sushi saturation?
Feature - Dietitians: the new necessity
Feature - Peanut Butter Black Bean Brownies
Consider - Holiday cheese trays
On display - New Year's Eve
First to Market
Ad Index
instore - October 2016 - instore - October 2016
instore - October 2016 - 2
instore - October 2016 - Editor's Note - Knowing the consumer
instore - October 2016 - 4
instore - October 2016 - 5
instore - October 2016 - Table of Contents
instore - October 2016 - 7
instore - October 2016 - News - On our radar
instore - October 2016 - 9
instore - October 2016 - Cover Story - What's Driving Retail Foodservice Consumers?
instore - October 2016 - 11
instore - October 2016 - 12
instore - October 2016 - 13
instore - October 2016 - 14
instore - October 2016 - 15
instore - October 2016 - 16
instore - October 2016 - 17
instore - October 2016 - 18
instore - October 2016 - 19
instore - October 2016 - 20
instore - October 2016 - 21
instore - October 2016 - 22
instore - October 2016 - 23
instore - October 2016 - 24
instore - October 2016 - 25
instore - October 2016 - 26
instore - October 2016 - Insight Insider - Bantam Bagels
instore - October 2016 - CI2
instore - October 2016 - CI3
instore - October 2016 - CI4
instore - October 2016 - CI5
instore - October 2016 - Food Safety - Controlling salmonella
instore - October 2016 - CI7
instore - October 2016 - Equipment - IBIE machinery debuts
instore - October 2016 - CI9
instore - October 2016 - Packaging - Portion control
instore - October 2016 - CI11
instore - October 2016 - Operations & Logistics - Inventory software
instore - October 2016 - CI13
instore - October 2016 - CI14
instore - October 2016 - CI15
instore - October 2016 - CI16
instore - October 2016 - 27
instore - October 2016 - 28
instore - October 2016 - 29
instore - October 2016 - By the numbers - Value-added fruit
instore - October 2016 - 31
instore - October 2016 - Need to know - Sushi saturation?
instore - October 2016 - 33
instore - October 2016 - Feature - Dietitians: the new necessity
instore - October 2016 - 35
instore - October 2016 - 36
instore - October 2016 - 37
instore - October 2016 - 38
instore - October 2016 - 39
instore - October 2016 - 40
instore - October 2016 - 41
instore - October 2016 - Feature - Peanut Butter Black Bean Brownies
instore - October 2016 - 43
instore - October 2016 - Consider - Holiday cheese trays
instore - October 2016 - 45
instore - October 2016 - On display - New Year's Eve
instore - October 2016 - 47
instore - October 2016 - First to Market
instore - October 2016 - Ad Index
instore - October 2016 - 50
instore - October 2016 - 51
instore - October 2016 - 52
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