Convenience Stores (commercial food services)

What is the definition of a convenience store according to the National Association of Convenience Stores (NACS)?

A retail business with primary emphasis placed on providing the public a convenient location to purchase quickly from a wide array of consumable products (predominantly food) and gasoline.

What is the significance of foodservice in convenience stores?

Foodservice is the second-largest in-store product sold and generates more than 30% of gross profit dollars for convenience stores.

Describe the characteristics of a Kiosk convenience store format.

Less than 800 square feet, intended to provide additional revenue beyond gasoline sales. Sells only tobacco, beverages, snacks, and confectioneries, with no groceries. Parking is only at the gas pumps. Typical customers are transients and locals buying gasoline.

Describe the characteristics of a Mini convenience store format.

Usually 800 to 1,200 square feet in size, with emphasis on gasoline sales. Grocery selection is sparse, and the only prepared food is sandwiches. Parking is often only at the pumps. Usually open from 18 to 24 hours, and customers typically only buy gas.

Describe the characteristics of a Limited selection convenience store format.

Ranges from 1,500 to 2,200 square feet and is becoming more numerous. Both gasoline and store sales are profitable. They have a broader product mix and grocery offering, with a simple foodservice (e.g., hot dogs, nachos, popcorn). Gasoline buyers are normally the biggest customer base. Striped parking and extended hours are common.

Describe the characteristics of a Traditional convenience store format.

About 2,400 to 2,500 square feet, offering a product mix that includes dairy, bakery, snack foods, beverages, tobacco, grocery, health and beauty aids, confectionery, and gasoline. May also offer prepared foods to go, fresh or frozen meats, and limited produce. Usually have 6 to 12 striped parking spaces and are open 24 hours a day. Often owned by convenience store chains or oil companies.

Describe the characteristics of an Expanded convenience store format.

Ranges from 2,800 to 3,600 square feet and is growing fast. These stores have more shelving for grocery products and more room for quick-service food operations and seating. A greater percentage use the space for high-profit-margin fast foods, while also carrying regular convenience store items. Parking is important, with most having about 10 to 20 spaces, and hours are extended.

Describe the characteristics of a Hyper convenience store format.

Very large stores, 4,000 to 5,000 square feet, typically offering many products and services arranged in departments (e.g., bakery, sit-down restaurant, pharmacy). Many sell gas. The number of employees per shift can be large, especially with a small restaurant. They have a substantial number of parking spaces and extended hours. Some function as mini-truck stops, affecting product mix and customer base.

What is the typical size range for a Traditional convenience store?

About 2,400 to 2,500 square feet.

Who are the common owners of Traditional convenience stores?

Normally convenience store chains, and increasingly oil companies.

What is the size range of an Expanded convenience store?

2,800 to 3,600 square feet.

What is a key feature of Expanded convenience stores regarding profitability?

They use a greater percentage of space to take advantage of high profit margins in fast foods.

What is the typical square footage of a Hyper convenience store?

4,000 to 5,000 square feet.

What kind of departmental offerings might a Hyper convenience store include?

A bakery, a sit-down restaurant area, or a pharmacy.

What market trend is observed among Limited selection convenience stores?

They are becoming more numerous.

What are some examples of prepared foods, meats, or produce that a Traditional convenience store might offer?

Prepared foods to go, fresh or frozen meats, and limited produce items.

What specific features do Expanded convenience stores offer concerning grocery and foodservice space?

More shelving for grocery products, and more room for quick-service food operations and seating.

How many parking spaces are typically provided at an Expanded convenience store?

About 10 to 20 spaces.

What often leads to a large number of employees per shift in a Hyper convenience store?

The addition of a small restaurant.

How does a Hyper convenience store's function as a mini-truck stop impact its business?

It affects the product mix and customer base.