Foodservice Equipment & Supplies

FEB 2016

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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Page 86 of 104

84 • FOODSERVICE EQUIPMENT & SUPPLIES • FEBRUARY 2016 C-STORE RETAIL RESTAURANTS THRIVE e&s segment spotlight Restaurants can be proft centers for convenience retailers with decent store traffc that enlists the help of experienced foodservice personnel. By Lisa White, Contributing Editor I n convenience stores, the future is all about prepared food, not fuel. Because the bulk of c-store revenue is produced inside the store, as opposed to at the pump, a growing number of these retailers are expanding high-margin prepared food offerings and, as a result, increasing profts. "Gas makes up about 70 percent of c-store revenue dollars, which only equals about 30 percent of proft dollars," says Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores, (NACS), based in Alexandria, Va. "An average conve- nience store brings in about 800 customers a day; how many new restaurants have this many potential customers?" A number of factors suggest the convenience store/ restaurant model may soon be the rule, rather than the exception, for retailers. First, operators have a number of options when it comes to creating a quick-service operation in a store with a small footprint. Retailers can bring in prepared food from an out- side manufacturer or restaurant chain to sell in the cold case; work with an established restaurant partner to cobrand an on-site operation; create a signature prepared food line on- or off-site that can be sold hot or cold; or create a signature restaurant operation on-site. For retailers, going into the restaurant business solo has its challenges. The biggest issue is a change of mindset. Operating a restaurant represents a complete departure from CST's fve rebranded Corner Store Markets have expanded the chain's selection of fresh produce, quick meal fxings and made-to-order items.

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