CSN-0522

FOODSERVICE

Striking the Right Balance Convenience stores can find dispensed beverage success at the intersection of smart innovation and excelling at the basics By Angela Hanson THE PAST two years have been challenging for all convenience store product categories, but particularly so for dispensed beverages. Hot, cold and frozen dispensed beverages all experienced notable declines during the COVID-19 pandemic, at the same time that many consumers opted to quench their thirst with packaged alternatives.

With most c-store operators now predicting that dispensed beverage sales will see little improvement in 2022, it makes sense to temper expectations — but there is room for optimism if retailers make the most of the opportunities that still exist. “One of the biggest challenges in our industry is to change the customer’s habits and create a new habit in our stores,” said Chad White, foodservice category manager at York, Pa.based Rutter’s. He noted that while the 80-store chain saw a hot beverage decline during the pandemic as customers made significant changes to their daily habits, a return to more normal work habits has brought many of them back, presenting Rutter’s with the opportunity to become part of their new schedules. “With customers out of their normal routine, we are working to bring them into our stores and build loyalty with our offerings and quality products,” White explained. In the still-developing new normal, dispensed beverages can serve as an often-overlooked yet key contributor to the c-store industry’s ability to compete with quick-service restaurants 46 Convenience Store News C S N E W S . c o m

(QSRs). This competition intensified during the pandemic as consumers explored new options for away-from-home food and drink purchases. Prepared food often gets the spotlight when it comes to c-stores vs. QSRs, but beverages can be a tiebreaker for those customers seeking both. “If they can come to you for a warm breakfast sandwich and make their perfect cup of coffee, you offer something most QSRs can’t and you win the business,” pointed out Heather Davis, director of foodservice for Savannah, Ga.-based convenience store chain Parker’s. To get customers back, c-stores must offer condiments that allow them to make their coffee the same way they would at home.