By Tim Powell, Vice President of Consulting, Q1 Productions
Many consumers are continuously trying to find ways to cut back their spending. In fact, “eating out” tends to be one of the top areas for households to try to reduce expenses, opting to pack a lunch or cook at home more often.
A majority of consumers (68%) indicate they plan to spend less on foodservice this year versus last year. This can include prepared foods at retail (such as c-stores or supermarkets) or at traditional casual dining or quick-service restaurants. Two groups of interest to c-stores are Millennials and males, because both segments are frequent users of c-stores. Some 68% of Millennials, like all consumers, plan to spend less as do 71% of males.
In my experience asking these types of questions, consumers are always trying to find ways to spend “less,” particularly when the holidays approach. And in similar research during the 2008-2009 recession, the percentages planning to spend less on food-away-from-home was significantly higher (and daily-fix coffee houses such as Starbucks experienced these cut-backs first-hand.)
I am trying to spend less for prepared food away-from-home (e.g., foodservice) versus last year
(% indicating yes)
Group | % Indicating Yes |
Male | 71% |
Younger Millennials (18-24) | 68% |
All consumers | 68% |
Source: Q1 Productions 2016 Mindset of the Food and Beverage Consumer. October 2015 Survey.
The consumer strategy for reducing restaurant spending is simply to eat out less. Some of the other top five strategies consumers use are going to less-expensive restaurants, using coupons and ordering less expensive items. While few foodservice executives would be excited by these findings, the silver lining is that c-stores are in probably the best position to benefit from them.
How are you trying to spend less on prepared food away-from-home?
(All Consumers)
Top Five | Second Five |
1. Eat out less
2. Go to less expensive restaurants 3. Use coupons 4. Order less expensive items 5. “Skip” extras |
1. Go to restaurants with “deals”
2. Order water instead of soda 3. Share meals 4. Order takeout – no tipping 5. Take part of my order home in a “doggy” bag |
Source: Q1 Productions 2016 Mindset of the Food and Beverage Consumer. October 2015 Survey.
Convenience stores offer groceries, beverages, fuel and prepared food all in a single stop. Convenience stores are also one of the least expensive options in foodservice, and the quality of food continues to improve with commissaries, made-to-order programs and concepts like Sheetz, Wawa and Rutter’s consistently raising the quality bar.
If there is one imperative c-store foodservice and marketing executives can take into planning for 2016 from these insights, it’s that convenience stores are in a prime position to offer “craveable” food while reducing numerous trips, making the venue the best value in town.
Questions or comments? Contact Tim Powell, Vice President of Consulting, Q1 Productions’ Food and Beverage Practice. Visit: www.q1productions.com/consulting