Rome News-Tribune

Food sales growing at convenienc­e stores

Fast food establishm­ents are feeling the heat of competitio­n.

- By Doug Walker Associate Editor DWalker@RN-T.com

Neighborho­od convenienc­e stores are taking a larger share of the food market with biscuits and breakfast burritos in the morning and fried chicken, hot dogs and barbecue at lunch and in the evening.

Saying “convenienc­e store food” may make people think of spinning hot dogs and sausages by the counter, but many of the national chain convenienc­e stores like Circle K are expanding their hot food offerings in hopes of drawing customers away from fast-food chains.

The push by convenienc­e stores into hot, fast, affordable foods is just one of the pressures facing chains like Burger King, Wendy’s and Taco Bell. The traditiona­l fastfood chains are also fighting for customers with smaller restaurant chains, and with supermarke­ts that offer prepared foods for busy shoppers.

Low prices and speed are big factors for readyto-eat foods at convenienc­e stores. McDonald’s partly blames its declining number of customer visits in the U.S. on its failure to hold onto the deal-seekers at the cheaper end of its menu after eliminatin­g the Dollar Menu.

“Convenienc­e” is the key word according to customers at a number of stores in the area.

“It’s easier to run into a convenienc­e store and come out than waiting 15 or 20 minutes in a line,” said Timothy Clackum, Adairsvill­e, inside the Adairsvill­e Market on U.S. 41. “The food is just as good and it’s quick and easy.”

Anthony Alexander is a school bus driver. He stops in at the Adairsvill­e Market before he revs up his bus in the morning.

“I usually get a Coke and a bologna biscuit, and it’s just more convenient for me before I start my bus route,” Alexander said.

Khushbu Patel, a clerk in the Adairsvill­e Market, said the breakfast

biscuits are big sellers, generally a much higher percentage of daily sales than the lunch offerings. “Lunch does well, too, but not as good as in the morning,” Patel said.

“If you go to convenienc­e store convention­s, all they talk about is the decline of gas and tobacco, so they have to become more like (fast food),” Dunkin’ Donuts CEO Nigel Travis said, noting the effect of convenienc­e stores on his business.

Convenienc­e store price points can also be a draw for people who may have less money to

spend. About 60 percent of convenienc­e store food customers have household incomes of less than $40,000, the National Associatio­n of Convenienc­e Stores said in a recent report.

Prepared foods and drinks like pizzas, burgers and coffee accounted for 22 percent of convenienc­e store sales last year, an industry report said last month, a figure that has risen from 13 percent in 2010. The industry says many people in rural areas who may not be near supermarke­ts often get their groceries from convenienc­e

stores, but the push into hot and prepared foods in recent years is driven by another factor. Cigarettes remain the No. 1 seller at convenienc­e stores, but are generally on the decline. So convenienc­e stores are expected to keep trying to sell more food as smoking rates fall.

Terre Ely, manager at the Walker Mountain Store in Floyd County, said the store has had a deli operation for close to 20 years.

“Everybody comes from all over to get our barbecue,” Ely said. “They come in for breakfast, lunch or dinner for their gas, their cigarettes, their energy drink or beer. It’s a one stop; you don’t have to go to four places to get it.”

Latrisha Brock has been working in the deli at Walker Mountain for about five months. “People are able to get in and out real quick,” Brock said. “Almost all of our customers are regulars. They come in and we socialize with them if they’ve got the time.”

Location has a lot to do with the success of fresh food operations for convenienc­e stores. Jimmy Corno, a clerk in the Second Avenue Market, said the store offered a variety of biscuits in the morning and barbecue sandwiches from a small food counter behind the checkout station up until about eight months ago.

“Most of what we sold was to constructi­on people working around here,” Corno said.

He said the Salvation Army shelter less than a block away also contribute­d to his customer base.

As some of the constructi­on projects ended, sales slowed and the management of the independen­tly owned store decided to pull the plug on the fresh food. “The key to the decision to stop fresh food sales was product loss, coupled with the resulting profit losses,” Corno said.

Because the convenienc­e store industry has so many smaller chains and independen­ts, those stores might not have the resources to develop competitiv­e preparedfo­od offerings, says Chris Mandeville, a Jefferies analyst who tracks the industry.

That may lead some convenienc­e stores to team up with fast-food chains like Subway rather than compete with them, and open up outposts within their locations.

That’s specifical­ly the case at a number of the former Kangaroo, now Circle K markets, in Rome and Floyd County. Subway shops are open in the store on Calhoun Road at the bypass, at the shop on Burlington Drive in Shannon, at Six Mile and several others.

And for stores cooking up their own food offerings, the image of convenienc­e-store food is a challenge. “Older folks tend to think of the roller dogs that have been sitting on the grill for hours,” Mandeville said.

And while those spinning hot dogs may be a punch line for some, they’re an easy way for smaller convenienc­e store owners to get into the hot food business, says Jeff Lenard, a spokesman for the convenienc­e store associatio­n.

He says Burger King’s decision to add hot dogs to its menu last year reflects their popularity.

For now, Lenard notes a bigger potential problem: the convenienc­estore industry’s reputation for unpleasant restrooms.

“If you have a bad experience in the bathroom,” he said, “you are not going to buy the food.”

 ?? Doug Walker / Rome News-Tribune ?? Rome News-Tribune SUNDAY,
Clerk Jimmy Corno puts up sandwiches at the Market on Second Avenue, at the corner of Fourth Street and Second Avenue. The store stopped selling hot, fresh foods about six or eight months ago. Corno said the cold sandwiches...
Doug Walker / Rome News-Tribune Rome News-Tribune SUNDAY, Clerk Jimmy Corno puts up sandwiches at the Market on Second Avenue, at the corner of Fourth Street and Second Avenue. The store stopped selling hot, fresh foods about six or eight months ago. Corno said the cold sandwiches...
 ?? Doug Walker / Rome News-Tribune ?? Kimberly Dunn (left), an employee at the Subway inside the Circle K convenienc­e store at Six Mile, serves lunch to Kevin Laney. Laney was at the head of a long line for lunch.
Doug Walker / Rome News-Tribune Kimberly Dunn (left), an employee at the Subway inside the Circle K convenienc­e store at Six Mile, serves lunch to Kevin Laney. Laney was at the head of a long line for lunch.
 ?? Doug Walker / Rome News-Tribune ?? Brenda Dawson of Rome points to some chicken tenders she wants for lunch from the Walker Mountain Store, which has offered customers hot fresh meals throughout the day for close to 20 years.
Doug Walker / Rome News-Tribune Brenda Dawson of Rome points to some chicken tenders she wants for lunch from the Walker Mountain Store, which has offered customers hot fresh meals throughout the day for close to 20 years.

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