The 2020 Foodservice Industry Update
As we close out the final quarter of the year and reflect on the first nine months of 2020, to say those months have challenged what we all thought we knew is an understatement. The pandemic has forced convenience stores that offer foodservice to adopt new technology, establish new operating procedures, and make menu changes to accommodate a new way of living.
The Initial Impact of COVID
When the pandemic first began, in-store traffic decreased for most convenience stores as fewer people were commuting. According to the CS News Foodservice Study 2020, 51% of retailers reported a drop in foodservice profits for January through June. Many stores changed their approach to foodservice including curbside pickup, mobile ordering, online ordering, loyalty programs, closing self- service areas, additional cleaning, etc.
What C-stores experienced in the early days of the pandemic has evolved as states have begun to reopen. New reports indicate that dollars per transaction are up compared to 2019, particularly in categories like alcohol, packaged beverages, and groceries. Retailers continue to execute on initiatives that originated, or were accelerated, due to the pandemic. Companies like Crosby’s and QuickChek have launched new loyalty apps, Kwik Trip launched a meals-to-go program, and Family Express and RaceTrac have rolled out online ordering.
The Future of Foodservice
Despite a volatile future, the perspective of many foodservice retailers is looking up! By year’s end, CS News Foodservice Study 2020 reports that 44% of all operators expect to finish 2020 with increased foodservice profits.
Technology and revamping menus remain top initiatives. The CS News Foodservice Study 2020 report states that close to 25% of convenience stores will add ordering ahead via an app within the year. CS News also shared that companies such as Couche-Tard have seen great success with their “Fresh Food Fast” program, where sales for stores with the program are outpacing sales at comparable stores without the program.
As we end the year, we recognize all foodservice retailers and say thank you for rising to the opportunities 2020 has presented!
For more information on how ADC can help streamline your operations as we move into 2021, visit www.applieddatacorp.com or contact me directly (see below).
For more information, contact: