Total Industry In-Store Sales
2021
2021
% change
% change
24.6%
18.1%
12.0%
21.6%
22.5%
$214,941
$45,419
$21,709
$10,407
$292,476
$31,768
$6,713
$3,209
$1,538
$43,228
22.7%
16.2%
10.3%
19.7%
20.5%
Sales per store
Industry Total (in millions)
Prepared food
Hot dispensed beverages
Cold dispensed beverages
Frozen dispensed beverages
Total
The theme for 2021: thank goodness last year is over! Foodservice sales rebounded from 2020's decline with a 20% increase, compared to only about 4% for merchandise.
Source: Convenience Store News 2022 Realities of the Aisle Study
Following a tumultuous year of unprecedented challenges, the foodservice category
rebounded in a big way last year, with all segments experiencing double-digit sales growth.
While the category hasn't yet reached a post-pandemic "new normal," retailers have plenty of
reason to feel good about the future of prepared food and dispensed beverages. In this special
"Deep Dive" report, a bonus supplement to the Convenience Store News 2022 Industry Report,
we present exclusive data and analysis of the foodservice category.
Diving Into the Data
Merchandise
Sales in billions:
2021 2020 % change
Foodservice
Total
$214.9
$207.2
3.7%
$43.2
$35.9
20.5%
$258.2
$243.1
6.2%
Share of In-Store Sales
The foodservice category's strong showing last year allowed
for a 2-point gain in share over merchandise sales.
Merchandise
Foodservice
83.3%
85.2%
83.1%
2021
2020
2019
2021
2020
2019
16.7%
14.8%
16.9%
Category Analysis: Foodservice
Double-digit sales increases were standard for all foodservice segments in 2021,
led by a 24.6% per-store jump in prepared food.
$53,632
The average gain in foodservice sales per store in the last year — especially tasty after the previous year's decline of $24,127.
Five-Year Trend: Foodservice
Foodservice regained strength across the board as double-digit sales growth allowed
the category to come close to all-time highs in margin and in-store sales share.
Share of in-store sales
Margin percentage
Percent change in total sales
2021
2020
2019
2018
2017
20.5%
-9.9%
5.2%
2.4%
3.6%
43.72%
42.80%
43.68%
43.71%
43.85%
16.75%
14.75%
16.91%
16.50%
16.38%
Foodservice Segment Share
When it comes to segment share, prepared food is up, hot and cold dispensed beverages are down, and frozen dispensed stayed the same.
Hot dispensed beverages
Cold dispensed beverages
Frozen dispensed beverages
73.5%
15.5%
7.4%
3.6%
Prepared food
Fountain vs. Cold Vault
(percent change in total sales)
Over the past three years, cold dispensed beverages and packaged beverages have
run neck and neck in terms of sales gains — except in 2020, the height of the pandemic, when packaged beverages held on as cold dispensed bore the brunt
of the COVID-19 shutdowns.
Cold dispensed beverages
Packaged beverages
2021
2020
2019
10.3%
-23.7%
4.6%
10.9%
3.9%
4.3%
Most Important Factors When Purchasing
Prepared Foods at Convenience Stores
Consumers know what they want: food quality, price/value, taste and freshness remain the most important attributes of c-store prepared food year after year.
The Consumer View
The number of at-least-monthly buyers of prepared food is still down from pre-pandemic heights, but a 6-point improvement year
over year is encouraging.
of shoppers surveyed in Convenience Store News' 2022 Realities
of the Aisle consumer study purchased prepared food at a convenience store in the past month — the average was 3 times.
58%
41%
39%
37%
31%
26%
22%
19%
18%
15%
Food quality
Price/value
Taste
Freshness
Convenience/on-the-go
Location
Sanitation
Speed of service
Customer service
Menu choice
Portion size
Presentation
Selection of brands
Delivery available
Drive-thru available
Availability of healthier options
Curbside pickup available
15%
11%
9%
8%
7%
6%
6%
5%
Lunch is the peak
time for prepared
food purchases.
Sales do not
significantly decline
until after the
dinner period.
Satisfaction With Most Recent Prepared Food
Purchase at a Convenience Store
Not only do two-thirds of shoppers indicate high levels of satisfaction with their
last prepared food purchase at a c-store, but more than a quarter also
report feeling "extremely" satisfied.
66%
30%
3%
Additional Items Purchased With Prepared
Foods at Convenience Stores
Tobacco is the most common add-on, but convenience retailers can encourage
more basket-building by offering bundle deals and promotions around
beverages, candy and snacks.
Source: Convenience Store News 2022
Realities of the Aisle Study
Cigarettes
Bottled/canned soda
Cold dispensed drink
Bottled water
Coffee/tea/other hot beverage
Candy/gum
Packaged salty snack
Milk
Ice cream
Packaged sweet snack
Grocery item
Other bottled beverage
Beer/malt beverage
Fresh produce
Newspaper/magazine
Nothing else
31%
29%
29%
28%
28%
25%
22%
21%
21%
21%
18%
16%
16%
10%
10%
6%
What's Trending
Prepared food led the way with the highest sales growth, but all foodservice category segments experienced a major turnaround in both average sales per store and total industry sales last year. Frozen dispensed beverages, which saw the worst sales declines in 2020, saw the second-highest growth in 2021.
Foodservice Is Back:
A majority of consumers (56%) list fast-food outlets as the alternative prepared food destination they were most likely to visit if they had not chosen a c-store. At the same time, more than half of consumers view fast food item quality
as on par or worse than that of convenience stores, which opens the door for c-store retailers to show that they are the best pick for those who want quality food in a hurry.
Quality Food in a Hurry:
Since the start of the COVID-19 pandemic, a shift in consumer behavior has seen convenience store grab-and-go visits decline, while grab-and-go-home visits are up. For c-store operators, catering to grab-and-go-home customers doesn't have to mean offering something drastically different from their existing grab-and-go lineup. The main difference lies in emphasizing accessibility and the ability to purchase multiple portions.
Not Just for
Those On the Go:
Usage of mobile/online ordering has spiked since the start of the pandemic, but consumers report that a loyalty program is the No. 1 factor that influences their decision to visit a c-store. Retailers that don't integrate their digital menu presence with their loyalty offering are leaving dollars on the table.
Mobile Ordering & Loyalty Go Hand in Hand:
1
2
3
4
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Extremely/Very Satisfied
Somewhat Satisfied
Not Very/Not
At All Satisfied
Click each category
to show value
Non-buyers most
frequently cite having no
plan to buy prepared food,
a lack of hunger or a preference for not buying prepared food
at convenience stores as their reasons for not purchasing.
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