Datassential: Retailers Expect Higher Foodservice Sales Despite Cost Pressures

Datassential's C-Store Quarterly Tracker shows consumers are feeling the effects of higher prices, but retailers continue to project strong foodservice performance.

C-store foodservice has taken on a life of its own over the past several years. Convenience stores have evolved from a “last resort” for a quick bite into legitimate competitors to quick-service restaurants (QSRs), as retailers continue to elevate their foodservice programs with restaurant-quality offerings at more affordable price points.

But this uptick in demand for c-store food does not come without its challenges.

While consumer perception was once the primary challenge, offering a compelling value proposition has become the industry’s latest hurdle as inflation continues to rise and wallets tighten as a result.

In March, roughly 50% of consumers noted that c-store prices seemed higher than the prior month, while 44% said prices seemed the same and 6% reported that prices seemed lower, according to Datassential’s C-Store Quarterly Tracker, which uses monthly survey data to analyze the foodservice landscape.

Generationally, Baby Boomers are seeing the biggest change, with 58% reporting that prices seemed higher. This was followed by 56% of Gen Xers, 47% of Millenials and 40% of Gen Zers, signaling lasting impacts of inflation across generations.

Even as prices rise, however, retailers are still projecting busy months ahead. Sixty-nine percent of respondents said that they expect higher traffic levels for the upcoming month, while 25% expect similar levels of traffic. Notably, only 6% expect lower traffic rates.

Of the operators surveyed, 56% said that their business had a profitable month, while 13% reported a very profitable month.

When it comes to sales expectations, 75% of retailers surveyed expect higher sales levels in the upcoming month, with 6% expecting lower traffic levels.

Datassential’s C-Store Quarterly Tracker uses data from 1,504 “gen pop” U.S. consumers and 438 foodservice decision makers, 16 of whom operate convenience stores.