restaurants

Convenience Stores‍ Steal Breakfast Share From Fast-Food Giants

September 13, 2024 – Convenience stores are increasingly becoming⁤ a go-to destination for breakfast, siphoning customers away from traditional fast-food ‍chains like McDonald’s and Dunkin’, according to ‌recent data ⁤and industry analysis. While ‍making breakfast at home remains​ teh most economical option, ​c-stores are winning⁢ over consumers with convenience, variety, and increasingly, food quality.

Data from Indagari, a transaction data analytics firm, reveals that McDonald’s and Dunkin’ have experienced a combined 3.5% decline in their customer base over⁢ the past year. This shift coincides with⁢ a growing trend of consumers opting for made-to-order breakfast options at ​convenience ⁢stores.

A ⁢recent InTouch Insight survey for CNBC found that 1,170 respondents indicated they had purchased made-to-order breakfast from a c-store ​within the last three months. Notably, 48% of those respondents stated they were choosing‌ the c-store option instead of a visit to a fast-food restaurant.

“Buying coffee and breakfast from a c-store likely won’t be cheaper than making it at home. But consumers perceive it as ‘good bang for their buck,'” explained Sarah Beckett, vice ‌president of sales and marketing for InTouch Insight.⁤

Beyond price ⁣perception, c-stores offer⁢ a broader range ​of choices than many fast-food competitors. In addition to coffee,they ⁣typically stock energy drinks,protein shakes,yogurt‌ smoothies,granola bars,and fruit -⁤ providing options to complement breakfast sandwiches.

However, experts emphasize that food quality ‍is⁣ the ultimate deciding factor. “While [a] convenience store broadly does have some tailwind from being a ‌lower price point, the ultimate differentiator, ⁢and what’s really going to set apart the winners from losers, is that quality aspect of it,” said Circana’s Portalatin.

Casey’s General ‌Stores, the ⁤third-largest c-store chain in the U.S., exemplifies this trend. The ⁣Iowa-based chain, which also claims to be the fifth-largest pizza concept by location count, ⁢reported same-store sales growth of 5.6% for prepared food and dispensed beverages for the three ‌months ended July 31.

Its⁣ breakfast pizza, a staple since 2001 featuring cheese, scrambled eggs, ​and a choice of bacon,⁣ sausage, or vegetables, has cultivated a dedicated following.

“I think Casey’s is kind ​of a unique ​thing,”⁢ said Brady Caviness, a 33-year-old account executive from Minneapolis, who favors Casey’s breakfast pizza when⁤ traveling.‍ “My ⁢whole life, I’ve had the Egg McMuffins.”

The rise of convenience store breakfast highlights a‍ changing ‌landscape in the fast-service restaurant industry, where convenience and variety​ are increasingly valued alongside price and⁢ tradition.