The Trust Factor

As consumers seek out safety, branded food concepts at c-stores answer the call

By Renée M. Covino

THE COVID-19 PANDEMIC has had widespread effects on consumers’ consumption habits. Among them, Americans have gravitated toward well-established brands to feel more assured in the safety of the foods and beverages they’re consuming, and they’ve turned to comfort foods to find enjoyment and a bit of relief from the stress and uncertainty of the pandemic.

Both of these shifts have benefitted convenience store operators who have chosen to go the branded route for their foodservice offerings, rather than the proprietary route.

Branded food concepts bring brand recognition, familiar flavors and consumer confidence to convenience stores, allowing them to compete with the other foodservice players in their area, including standalone quick-service restaurants (QSRs), according to Kathy Johnson, senior vice president of franchise service for Godfather’s Pizza, an Omaha, Neb.-based restaurant chain that has been operating in the c-store market for more than 35 years.

Godfather's Pizza offers two distinct programs to the convenience channel: Godfather’s Pizza Express, which includes a wide product mix covering all dayparts; and Godfather’s Pizza TO GO, a program created to reach smaller convenience operations with a manageable menu, flexible equipment needs, and minimal training requirements and labor needs.

“We continue to open new locations on a consistent basis, even over this past year,” Johnson said, noting that the pizza industry weathered the pandemic better than most QSRs. “Pizza sales were very strong in most of our franchised c-stores, outperforming other food concepts. Customers viewed our packaged pizza and sides as safe and convenient.”

A similar story can be found with Krispy Krunchy Chicken, a convenience store-based QSR concept with more than 2,600 retail locations in 47 states. Allison Shapiro Dandry, spokesperson for the Alexandria, La.-based company, told Convenience Store News that Krispy Krunchy’s business in c-stores has “grown considerably” since the onset of COVID.

“Very early on, we supported our stores to stay open as a means to gain foodservice business when other traditional restaurant/foodservice establishments were closed,” she said. “COVID accelerated acceptance of c-stores as a viable foodservice alternative, and that trend will continue to grow.”

Slightly more than half of c-store shoppers currently make a practice of purchasing prepared foods in the channel — 52 percent say they have done so within the past month, according to the findings of the 2021 Convenience Store News Realities of the Aisle Study, an annual benchmark study of U.S. c-store shoppers. Among these consumers, the average number of prepared food purchases they make at c-stores in a month is 2.7, down from 5 times in 2020.

Millennial shoppers (aged 24-39) are particularly fond of convenience foodservice. More than two-thirds of millennials (67 percent) report buying c-store food in the past month. Millennials also make a higher number of prepared food purchases monthly at c-stores (4.7).

Interestingly, when shoppers overall were asked where they would have purchased prepared foods if they had

not done so at a c-store, 57 percent said a fast-food restaurant and 11 percent said a fast-casual restaurant (Freshii, Panera, Chipotle, etc.).

Driving Traffic Through Innovation

Innovation in the c-store industry has been extraordinary over the past year or so, driven by the challenges of the pandemic. And branded food concepts have been no exception.

The convenience channel “pushes restaurant concepts to see outside the box,” according to Johnson of Godfather’s Pizza. “This is reflected in menu options, packaging, marketing and décor. It is a partnership that has unlimited potential,” she explained.

Godfather’s Pizza aims to keep its menu current by continually analyzing market trends and visiting with franchisees who are on the front lines every day. Its new crust options — Thin Crust and MozzaLoaded Crust — are an example of keeping in touch with consumer demands, Johnson noted. The brand also introduced Cinnamon Churro Bites as a low-labor dessert option for all dayparts that holds well in a warming chute.

This year, quarterly promotions are designed to introduce new “interactive” pizzas targeted specifically to the c-store customer, and present limited-time offers that are comfort-based pizzas, according to Dave Gartlan, vice president of franchise development for Godfather’s Pizza. The first quarter of 2021 saw the introduction of the Angry Pepperoni Pizza, followed by the launch of the Patty Melt Pizza in the second quarter.

At Krispy Krunchy Chicken, the brand recently launched a comprehensive new breakfast program, which not only introduces four new items, but also includes a menuboard, marketing and promotions, and training and sales support. The new breakfast program was intentionally unveiled at this time when morning commuters are increasing.

“We continue to innovate in the foodservice category to stay ahead of growth trends in the channel,” relayed Dandry. “This is a unique and innovative way to capitalize on the growing trend toward breakfast in c-stores, with a full program that quickly transforms our locations into breakfast destinations.”

Denver-based Naughty Chile Taqueria, a licensed Mexican food concept scalable to any-size convenience store, boasts flexibility. Retailers can decide how to execute the program — whether they want to do a complete in-line conversion, a kiosk package, a countertop package, or use their own equipment.

While full Naughty Chile Taqueria locations have the complete menu and can make tacos, burritos, quesadillas and nachos, the brand saw a need among convenience retailers who don’t have this concept to “get a lot of grab-and-go burritos out onto the hot glide,” President Jane Hartgrove told CSNews. So, the brand recently expanded its menu to include Quickies — burrito mixes that a retailer can thaw, scoop and roll.

“It’s the easiest Mexican foodservice ever, and we even offer the burrito labels,” Hartgrove said. “For retailers that have space, time and labor limitations, the Quickies Burrito Mixes give them a foodservice program that makes it look like they have their own commissary.”

Marketing Boosts

Along with keeping their menus fresh, c-store retailers also look to their branded foodservice partners for marketing support that will drive more foot traffic to their locations.

Recognizing that consumers like “the story and the theater and the history” behind branded foodservice programs in c-stores, Naughty Chile provides its retailers with Mexican-American artwork and holiday-themed promotions. Additionally, flyers and specials can be populated with specific store information and printed at the store or a nearby copy center. “Everything we offer to market the business is easy for c-stores to implement,” Hartgrove stated.

Godfather’s Pizza promotes all store openings via digital and social media, advertises inside and outside the stores, and works with the Chamber of Commerce in each area, Johnson said. Sweepstakes to win “Free Pizza for a Year” are also a proven traffic driver.

These days, marketing support also means helping retailers capture digital orders.

Krispy Krunchy Chicken is cultivating a delivery app partnership to increase dinner business. Dandry said the company sees the trend toward delivery apps tied to the foodservice business at c-stores continuing to evolve and grow.

Godfather’s Gartlan says customer demand has resulted in three “must-haves” since the start of the pandemic: delivery, online ordering, and curbside pickup.

On April 1, it released a new online ordering app so that customers can order from their mobile phones. Godfather’s has also partnered with DoorDash Drive to provide “last mile” delivery to customers. This service is integrated with its online ordering platform to make it easy for the operator to request a Dasher for their location.

Curbside pickup is also integrated into Godfather’s online ordering platform. Once the operator enables this functionality, the customer can simply check that option, fill in their information, and their order will be delivered to them car-side.

“By adding digital ordering, operators are enjoying significantly higher check averages and realizing a bump in their dinner dayparts where large pie sales excel,” said Gartlan. CSN