From 1952 to 1972, Sheetz Inc. did not sell gasoline- the pumps were only added in 1973. There’s a similar story behind Oklahoma-based QuikTrip, which first began as a mini-mart in 1957 (And the founder was actually inspired by 7-Eleven stores during a visit to Dallas). It wasn’t until 1971 that QuikTrip installed its first gas pumps.
So there you have it. It took a decade, or in some cases two, for prominent convenience store retailers to offer gasoline. If there’s ever a “Jeopardy!” Convenience Store edition, you’re now well prepared. Interestingly enough, both of these retailers are today considered innovative leaders in convenience store foodservice. QuikTrip is known for its QT Kitchens full-service counters, while Sheetz is known for its M•T•O (made-to-order) menu and Shweetz Bakery offerings. And as reported by Convenience Store News, both of these retailers are now looking to open more stores without gasoline. Food-only stores are not only a return to their roots, but also a realization that high-quality, prepared food (high-margin sale for retailer) is driving traffic, even without gasoline (low-margin for retailer).
“To be successful without gasoline, a store has to offer high-quality, well-differentiated prepared food,” Donald Strenk, a consultant for the industry, told CSNews. “7-Eleven does well [without selling gas], but they may not be averaging $300,000 a month. Sheetz and QuikTrip have locations that do significantly high sales in the c-store.”
Setting up a smaller store without gas pumps allows retailers to experiment both with a smaller footprint and different merchandise. For instance, QuikTrip’s 3,500-sq.-ft. downtown Atlanta store is even more focused on fresh foods than other locations.
The fact that more convenience store retailers are committing to healthy choices was one of the headlines of the 2016 NACS Show. Aloha Petroleum, Ricker Oil Co. and Core-Mark International made commitments to the Partnership for a Healthier America (PHA) at this year’s show.
A commitment with PHA means more than “Oh, these apples in the cold case are nice to have in the front of the store.” We’re talking real commitment! For instance, Ricker’s committed to offering healthier food options at an affordable cost; marketing and promoting healthier food choices; and offering employee benefits such as a 50% discount on all fresh fruit and vegetables purchases. Aloha also committed to PHA’s beverage marketing initiatives to promote fruit and vegetable consumption and water as healthier choices. As a distributor, Core-Mark will do its part to modify merchandising sets to incorporate healthier options.
According to the PHA, half of the U.S. population visits a convenience store every single day, and these consumers are looking for healthier options. Each of the new PHA partners is “stepping up” to ensure both consumers and retailers have access to healthier, more accessible options. It’s what 21st century retailers need to do—step up to meet the changing preferences of consumers who demand quality and demand it now!
More Options, Better Execution
In our experience working with convenience store retailers, we know that consumer preferences change and that retailers must respond to them or risk the consequences of losing business. The most successful retailers adapt to change with ease. Some even thrive because they’re able to successfully differentiate themselves in the market.
Remember: The quality of fresh foods is ultimately a reflection of your brand. Because these foods are fresh, they often come with more food safety concerns, so employees must be mindful of storage temperatures and other food safety factors.
Ultimately, if retailers want to provide customers with better, healthier food choices, they have to optimize the store-level execution of safety checks and audits.