Baking&Snack - March 2017 - 54

C-STORES

"Today, you have restaurant-style
products that you can sit down and enjoy."

Share of dollar sales inside c-stores

10.3

Jack Anderson, JSB Industries/Muffintown
The number of top-line c-store chains that are committed to selling fresh products is "eye-opening," according to Mr. Law. In addition to the daily delivery of
baked goods from wholesale bakers or commissaries,
some chains serve breakfast donuts and pastries from
behind a display case or even prepare made-to-order
sandwiches via an in-store deli.
"When you think about the offerings behind the
counter, they now include soup and sandwiches that are
fresh," Mr. Law pointed out. "They're trying to have their
offerings perceived as more wholesome. Traditional
stand-alone sandwich shops should be shaking in their
boots by what some c-stores are offering."
That said, the majority of c-stores haven't made the
leap to the fresh food concept, but it's gradually changing. Many in the top quartile of chains are now making
inroads toward competing against QSRs for that share
of stomach. As a result, it may not be too surprising that
foodservice sales in convenience stores rose 11.4% in
2015, according to the latest industry data by NACS.
"Channel lines are blurring," Mr. Swanson pointed
out. "Everybody is trying to offer convenient foods.
People want a quick-in-and-out, and c-stores provide a
pretty fast option."

20.8

10.7

54 Baking & Snack March 2017 / www.bakingandsnack.com

%
*7.2

Tobacco
Pack Bev
Center Store Foodservice
* 13.1% for stores selling beer

15.1
Beer
Other

Source: NACS State of the Industry annual report of 2015 data

Share of alternative snacks in c-stores

7.2 4.8

Fueling a phenomenon
The proliferation of snacking from three squares to five,
six or seven mini-meals daily continues to turbo-drive
food sales at c-stores. One of the food industry's longtime leading providers of take-away treats and convenience foods, J&J has been supplying c-stores with warm
soft pretzels, churros, funnel cakes, pastries, cookies,
frozen iced novelties and much more for decades.
What has impressed Mr. Law, however, is the steady
growth of c-stores, especially as the economy and workforce expands, resulting in a greater number of commuters stopping by to gas up and grab a bite to eat on their
way to work.
"It's all about traffic, over and over again. Traffic, traffic, traffic," Mr. Law emphasized. "We have seen 44% of
consumers are visiting c-stores more often than they
were two years ago, and we're seeing that convert into
the consumption of more prepared food as c-stores become more of a foodservice destination."
Two years ago, Hill Country Bakery, an established
supplier to cafes and a host of foodservice establishments,

35.9

28.5

59.6

Meat Snacks Health/Energy/Protein Bars
Other Alt Snacks Granola/Fruit Bars
Source: NACS State of the Industry annual report of 2015 data

plunged into the c-store market with its Coffee House
Café brand that includes its signature sliced pound cake
and other pre-portioned loaf cakes. Distributed through
DSD partners and frozen warehouse distributors, those

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