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                                                                                                 U.S. NEWS Tuesday 2 May 2017

































            American Living:

                The new fast food? Convenience stores add hot, cheap options


            CANDICE CHOI                                                                                                        can also request items like
            AP Food Industry Writer                                                                                             a gallon of milk from else-
            NEW  YORK  (AP)  —  Saying                                                                                          where  in  the  store  if  they
            “convenience  store  food”                                                                                          want.
            may make people think of                                                                                            Travis  Sheetz,  the  chain’s
            spinning  hot  dogs  by  the                                                                                        vice  president  of  opera-
            counter,  but  places  like                                                                                         tions, says he has also seen
            7-Eleven  are  expanding                                                                                            growth  more  recently  in
            their  hot  food  offerings  in                                                                                     the  cold  cases  where  yo-
            hopes  of  stealing  custom-                                                                                        gurts,  cut  fruit  and  other
            ers  away  from  fast-food                                                                                          pre-packaged  foods  are
            chains.                                                                                                             sold.
            The  push  by  convenience                                                                                           Those options cater to the
            stores into hot, fast, afford-                                                                                      growing number of people
            able foods is just one of the                                                                                       looking  for  “convenient
            pressures facing chains like                                                                                        health,” he said.
            Burger  King,  Wendy’s  and                                                                                         Because the convenience
            Taco  Bell.  The  traditional                                                                                       store industry has so many
            fast-food  chains  are  also                                                                                        smaller  chains  and  inde-
            fighting  for  customers  with                                                                                      pendents,    those   stores
            smaller  restaurant  chains,                                                                                        might not have the resourc-
            and    with   supermarkets                                                                                          es to develop competitive
            that  offer  prepared  foods                                                                                        prepared  food  offerings,
            for busy shoppers.           Customers use a touchscreen to order food at a QuickChek convenience store in Cedar Knolls,   says  Chris  Mandeville,  a
            Low  prices  and  speed      N.J. In 2016, 22 percent of convenience stores’ sales came from prepared foods like pizzas, sand-  Jefferies analyst who tracks
            for  ready-to-eat  foods  at   wiches, burgers, coffee and fountain sodas, up steadily from 13 percent in 2010, according to a   the industry. That may lead
            convenience  stores  are     preliminary annual report released by an industry association.   (AP Photo/Julio Cortez)  some  convenience  stores
            big  factors.  McDonald’s                                                                                           to  team  up  with  fast-food
            partly  blames  its  declining                                                                                      chains  like  Subway  rather
            number  of  customer  visits   cases. That’s in addition to  tomers have household in-  Cigarettes  remain  the  No.   than  compete  with  them,
            in  the  U.S.  on  its  failure  to   sandwich  melts  the  chain  comes of less than $40,000,  1  seller  at  convenience   and  open  up  outposts
            hold onto the deal-seekers   introduced  in  2015.  The  the National Association of  stores,  but  are  generally   within their locations.
            at  the  cheaper  end  of  its   chain — which still sells hot  Convenience Stores said in  on  the  decline.  So  conve-  And  for  stores  cooking  up
            menu after eliminating the   dogs by the counter — has  a recent report.               nience stores are expected   their  own  food  offerings,
            Dollar Menu.                 expanded  to  about  8,900  Prepared foods and  drinks  to keep trying to sell more    the image of convenience
            “If you go to convenience    U.S.  locations  and  says  like pizzas, burgers and cof-  food as smoking rates fall.  store  food  is  a  challenge.
            store  conventions,  all  they   food is a top priority.  fee accounted for 22 per-    The  Sheetz  chain,  which   “Older  folks  tend  to  think
            talk about is the decline of   “We can drop in a product  cent of convenience store  is  based  in  Pennsylvania    of the roller dogs that have
            gas and tobacco, so they     (in  stores)  overnight,  and  sales  last  year,  an  industry  and has more than 540 lo-  been sitting on the grill for
            have to become more like     all of a sudden we’re in a  report  said  last  month,  a  cations  in  six  states,  says   hours,” Mandeville said.
            (fast  food),”  Dunkin’  Do-  brand-new  business,”  says  figure  that  has  risen  from  half  of  its  new  locations   Wawa,  which  has  about
            nuts  CEO  Nigel  Travis  said   Nancy  Smith,  the  compa-  13 percent in 2010. The in-  are  built  with  a  drive-thru,   750  stores  along  the  U.S.
            in March, noting the effect   ny’s senior vice president of  dustry  says  many  people  an  accommodation  the     East  Coast,  says  the  qual-
            of  convenience  stores  on   the chain’s food and drinks.  in rural areas who may not  fast-food  industry  relies  on   ity of food at convenience
            his business.                Convenience  store  pric-    be  near  supermarkets  of-  for the majority of its sales.   stores has improved. It also
            In  the  past  year,  7-Eleven   es  points  can  also  be  a  ten get their groceries from  While Sheetz customers use   says  convenience  stores
            has  added  $1.99  chicken   draw for people who may  convenience  stores,  but  the drive-thru mainly to or-       have  an  advantage  over
            sandwiches  and  cheese-     have less money to spend.  the push into hot and pre-     der from the chain’s made-   fast-food  chains  because
            burgers  kept  in  warming   About  60  percent  of  con-  pared foods in recent years  to-order foods like burgers,   people  increasingly  value
                                         venience  store  food  cus-  is driven by another factor.  the  company  says  they    speed and variety. q
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