The Path to Purchase
Winning immediate consumption trips from quick-service restaurants (QSRs), grocery stores and supercenters is vital to promote c-store growth, according to Krista Lorio of General Mills, who presented insights entitled "Consumer Path to Purchase" at the Forecast Council.

Before c-store owners and operators can take those consumer visits away from competitors, they need to be aware of some current trends. First, Lorio said consumers are exhibiting "Frugality Fatigue," which means they are tiring of purchasing the cheapest possible product. However, consumers have a new sense of value when it comes to what they purchase.

Lorio also pointed out that 70 percent of people who enter a c-store do so alone. To get them to come back, it's all about the food. "Convey you have fresh, quality food," she said.

Knowing the demographics of customers is also crucial to meeting customer needs, she said. Lorio divided consumers into three groups, the first of which is the 18- to 34-year-old "Young and Mobile" group. This group is comprised of people who are taste and convenience focused, not concerned about health or value and are excited about new product introductions.

"Traditional Fuelers" are those who are older and often male. This group, according to Lorio, is convenience focused, not as concerned about taste and not excited by new products.

The final demographic is "Family Focused." Often male and between 18 and 35 years old, this group cares most about family and social obligations.

The General Mills data also revealed why consumers choose c-stores for their immediate consumption trips. The research revealed that the largest percentage, 22 percent, do so to "drink up." This was followed in descending order by obtaining an easy, satisfying meal (19 percent); the consumer is located in a food desert without other options (17 percent); a gas stop/pit stop (14 percent); it's "time to eat" (14 percent); and because they have a craving for sweets (14 percent).

When it comes to immediate consumption trips, c-stores' staunchest competition comes from QSRs, said Lorio. Forty-three percent of immediate consumption trips occur at QSRs. C-stores are second at 20 percent, with club stores and supercenters lagging far behind. However, c-store immediate consumption trips could drop as a result of increased drugstore competition.

How are c-stores different from QSRs? C-stores dominate when it comes to packaged food, Lorio said. They sell about three times as many packaged foods as QSRs. In addition, c-stores rise above QSRs with the morning business they attract, as well as customer desire for all-day snacking, which c-stores can fulfill.

"QSRs have always been about hunger," said Lorio. "Now, they are about energy (foods and beverages like coffee). C-stores have always been about energy. They can do better when it comes to food. Shoppers want hot, good-tasting food. Offer a broad selection of food items to accompany the beverages that you sell well. Doing so can mean $250,000 per store annually."

There are several things c-store owners can do to steal immediate consumption trips. "You have to remind customers you can serve multiple needs that a QSR can't," said Lorio. "And you have to solve hunger. Drive up their energy and cravings. You need to make sure consumers say they have to go to your store to satisfy a craving."