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    2016 Results So Far Bode Well for C-store Industry: Part 6

    Foodservice sales continue to drive the business.

    By Don Longo, Convenience Store News

    NATIONAL REPORT — Foodservice sales continue to drive much of the convenience retail industry’s success. For the first half of this year, foodservice sales grew by 5.6 percent to more than $18 billion, a 5.6-percent increase. That’s on top of last year’s robust gain of 5.2 percent at the mid-point, and nearly as good as the remarkable 6.2-percent gain of 2014.

    Foodservice sales rose at almost twice the rate of sales of other in-store merchandise, according to the annual Convenience Store News Mid-Year Report Card. Overall merchandise sales were up 2.7 percent to about $95 billion for the first half of this year, an increase slightly less than the 3.2 percent achieved at last year’s mid-point.

    Prepared food, in fact, generated the largest percentage gain of any segment with the exception of two much smaller subcategories, wine and liquor and ice. Sales of prepared food in the first half of 2016 rose 7.3 percent to more than $12.5 billion. During the first half of 2015, prepared food sales rose 6.2 percent.

    Sandwiches (both for breakfast and lunch) accounted for a little more than a quarter of first-half 2016 prepared food sales. Hot dogs comprised about 17 percent, followed closely by pizza (16.7 percent) and chicken (12 percent).

    In the hot dispensed beverages category, sales increased by 2.1 percent in the first half. This was mostly driven by a similar increase in hot coffee sales.

    Cold dispensed beverages lagged behind hot beverages, with a 1.8-percent sales gain. But that increase was still about a percentage point better than the gain achieved in the first half of 2015.

    Click through the charts above to see more results.

    The entire 2016 Convenience Store News Mid-Year Industry Report is available at:
    Part 1: Total Convenience Store Sales
    Part 2: In-Store Category Analysis
    Part 3: Cigarettes & Other Tobacco Products
    Part 4: Packaged Beverages & Beer
    Part 5: Candy & Salty Snacks
    Part 6: Prepared Food & Dispensed Beverages 

    By Don Longo, Convenience Store News
    • About Don Longo Don Longo is editorial director of EnsembleIQ's Convenience Store News. He has covered retailing for more than 30 years as a reporter, editor and publisher. Previously, he spearheaded the editorial efforts at a variety of business publications focused on mass, drug, grocery and specialty store retailing. Convenience Store News won American Business Media’s Jesse H. Neal Award for Best Issue of the Year in 2008 and 2012. Longo has won numerous other editorial awards over his career and is frequently quoted in the national and local news media on the subjects of retailing and consumer trends.

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