Top 5 trends in foodservice

Coffee subscriptions, customisation, online delivery… Industry expert Frank Beard gives PetrolPlaza his top 5 trends in foodservice today.

Frank Beard is an Iowa-based marketer, speaker, and writer who currently serves as the head of marketing at Rovertown, a leading app platform for convenience retailers. Beard is a frequent speaker at industry events. To prove a point about healthy options existing on-the-go, he once spent a month eating at convenience stores and documented the experience. For our Foodvenience Special we wanted to talk to him about the top five trends he identifies in the foodservice market and some best-in-class examples.

With just over 150,100 c-stores nationwide, the U.S. is home to some brilliant brands that have become synonymous with fresh food, tailored services and high-profit margins. A declining fuel demand and the arrival of EV drivers have pushed retailers to continuously enhance and expand their foodservice in an effort to become destinations.

According to Beard, you don’t have to be the most tech-savvy operator to be successful – “if you're someone with a clean store, amazing foodservice, killer coffee and a great product assortment, that's a very compelling offer.” Here are his top five trends in the market today.

Continued Coffee Improvement

The days of large coffee glass carafes sitting on a hot plate while roasting are mostly gone. Unlike other international markets, c-stores in the U.S. were known for batch-brewed drip coffee, some of it of high quality. Since 2016, customers have seen a rise in bean to cup machines through the introduction of technology from companies like Franke and Schaerer.

"In my market in Des Moines, before Covid it was unique to see a bean to cup machine at a c-store. Kum & Go was one of the first to do it. Casey's and Hy-Vee also have them now – it's started to become more common. Question is what's next?"

C-store consumers want high quality in a quick, convenient manner. Beard expects a change in how people access coffee with subscriptions taking a bigger role. In addition, brands will start adding value through the coffee beans and roasts. Some examples – Kum & Go bringing in BLK & Bold coffee; Twice Daily and their White Bison Coffee brand, which now has stand alone sites; and Vantage Fuels in Australia. The BP-branded fuel retailer developed a brand called Bowser Bean that replicated the look and feel of a pleasant Melbourne coffee.

Top 5 trends in foodservice — © Bowser Bean

Breakfast Offer

Intrinsically connected to coffee is breakfast. It's a critical traffic driver for c-stores – people driving to work as well as those working from home who fancy a trip out, like Beard. Many c-stores now have good indoor and outdoor seating. The issue is that retailers have historically had a similar offering store to store – from soggy prepackaged sandwiches to bacon and egg biscuits.

Kum & Go made a big switch. They sell small egg bites that are not high on calories and tasty options like bagel balls with cheese. At their made to order menu there are lots of options including bowls with spinach, roasted potatoes and vegetables.

“It's about a choice of good food for different types of clients – those on-the-go and those that have a little more time. Kum & Go seems to be targeted at a younger demographic. C-stores are doing a better job at getting clients to sit down during breakfast and lunch hours.”

Customisation

A high level of customisation has come together with the growth of foodservice at US convenience stores and gas stations. That is the one thing Beard believes c-stores really bring to the table compared to quick-service restaurants (QSRs). Sheetz has offered fully customisable foods since 1996.

“For all the talk of personalized marketing and loyalty, it's hard to find a more personalized experience than letting people tell you what they want to eat and how they want it cooked. The ability to go to a touchscreen and choose items or even assemble your own dish – that's compelling to a lot of people,” he adds.

Rather than attempting to copy what works for the QSR industry, convenience retailers have an opportunity to take elements of that while also positioning themselves as a unique alternative.

“C-stores are their own foodservice category. Instead of a rationalized menu with limited, rigid options, the touchscreen menu at c-stores is a way to give people control, flexibility, and the freedom to tell you how they want their food prepared."

Online Ordering and Delivery

As retailers are building a destination-worthy foodservice offer, online ordering and delivery become important. Retailers are looking at ways to make the most of their convenient locations by using pick-up and delivery services.

“Some retailers are seeing a lot of success in delivery, especially those that also offer the ability to conveniently place orders through their mobile app. Many are even seeing great results in rural towns. After all, rural markets don't tend to have DoorDash or GoPuff. The convenience store might be the only game in town."

Beard expects more growth in this area over the next years. H&S Energy Products in California and Quality Dairy in Michigan are two smaller players currently doing a good job in this category.

Improved Branding

A key trend that ties all this together is better branding around foodservice. Some brands struggle to break out of the ‘fuel retailer’ image and become an appealing food destination for customers. Brands like Sheetz have made a big effort around branding their food programs – they made their MTO brand prominent and a key part of their business.

“Kum & Go's stores can feel more like a fast casual than a gas station – lots of branding and signage around fresh food. Wawa, Rutter's, and Maverik have also done great work over the years. Buc-ee's is another example. They don't even put fuel prices on the pylon because no one really cares. Fuel is secondary to the Buc-ee's customer, and they want that shopper who's going to walk into the store and leave with a basket full of food and merchandise. A lesser-known retailer that also does a great job is ShopRite in Louisiana with their Bourbon Street Deli concept. The quality of their Cajun food is incredible,” explains Beard.