Convenience Redefined: Strategies That Drive Traffic

Are customers driving past your stores to get to your competitors’?

Consider the busy parent juggling toddlers and searching for a clean restroom, fuel, and groceries; the time-pressed professional gassing-up and grabbing a quick coffee and pastry on the go; or the electric vehicle driver looking for a way to spend 20 minutes while their car recharges.

While these scenarios differ, they share a common thread: Consumers are looking for a variety of needs to be met in one stop. They seek destination hubs. And a recent Vontier survey tells us that they will pay more and drive further for it. The survey found that nearly 60% would happily pay an average of 10% more on products if it meant making only one stop, and that nearly 80% will travel out of their way, even passing by other options to get to their favorite store.

It rings true then, that convenience stores have a unique opportunity to expand their reach beyond those who are simply passing by. By anticipating the growing demand for one-stop convenience, stores can expand their customer base and position themselves for long-term success. To capitalize on the brand loyalty that brings customers in from afar, brands need to offer more than just a fuel stop or grab-and-go items.

Creating a Destination Hub that Fits Your Brand

Transforming a convenience store into a destination requires a tailored approach. Factors such as location, site constraints, jurisdictional regulations, and brand identity all come into play. Some brands, like Texas-based Buc-ee’s, have successfully created massive retail experiences. Travelers can have a freshly made meal and spend hours browsing through the vast and unique product selection.

^{Buc-ee’s Convenience Store featuring the world’s largest car wash.}

But not all brands have the capacity or desire to be a 50,000+ square-foot operation like Buc-ee’s. However, even at a fraction of that size, convenience stores can still become powerful destinations simply by incorporating a food and beverage offering.

The data tells us that the lines are continuing to blur between the convenience, restaurant, and coffee sectors. A recent study by Intouch Insight found that 56% of consumers see convenience stores as a viable alternative to quick service restaurants (QSR), and 65% see it as a good option for coffee over a coffee shop.

Providing guests with unique, proprietary food options is a way for c-stores to leverage this shifting perception. It’s a path celebrated for its healthy profit margins and leg up in the battleground to differentiate from the competition. Sheetz, for example, is doubling down on proprietary food offerings, investing $145 million in a new food production and distribution facility. By owning the brand identity of the space and controlling the food offerings, brands can create a truly distinctive and profitable destination.

^{Sheetz convenience store featuring made-to-order food and restaurant-style seating.}

Strategic collaborations can also unlock the potential to become a sought-after one-stop-shop. This is particularly true of QSR’s and convenience brands. Often competing for the same customer, the opportunity presents itself for these brands to join forces and create a space where they co-exist and even complement one another.

Effective Design Elements of a Collaborative C-Store

Done right, these collaborations create vibrant, one-stop-shop experiences that attract new customers and lure stay-at-the-pump folks into the store. Once inside, impulse purchasing can drive revenue up by double digits. How can this potential become reality? The success of the collaboration lies in each brand preserving its unique identity within one cohesive space.

It requires an effective redesign of the physical store. The efficacy of the redesign hinges on having a customer-centric approach. One that answers the consumers call for a variety of services and product offerings.

Strategic collaborations should offer:

1. Variety and choice
2. Comfortable and inviting environment
3. High quality food and beverage options
4. Seamless experience between brands
5. Easy navigation

^{Tim Hortons and Sugar Crossing Convenience Store in Lancaster, OH}

To drive customers the extra mile to their store, the space must offer variety and choice. It must be inviting and functional with a clear and intuitive layout that allows customers to easily find what they need. It must be a place where each brand can thrive individually while collectively enhancing the overall experience. And let’s not forget that to keep customers coming back for more, a well-curated selection of high-quality food and drinks is essential. By focusing on these elements, convenience stores can transform themselves into thriving destinations that attract and retain customers.

The ROI of Collaboration

We’ve seen successful brand collaborations yield substantial results. By strategically integrating multiple brands within one convenience space, stores can significantly enhance customer experience, boost sales, and optimize operations.

$$$$  Increased Revenue:  Expanded food and beverage offerings, coupled with comfortable seating areas lead to longer customer dwell times and larger ticket amounts.

$$$$  Operational Efficiency:  Sharing space often means shared facilities, resources, and sometimes even staff. This can lead to significantly reduced overhead costs like utilities and staffing.

$$$$  Greater Volume:  Collaborations bring more customers in for a variety of reasons and can offer opportunities to tap into new demographics.

$$$$  Market Resilience:  The strategic alliance between convenience stores and quick-service restaurants creates a business model that’s capable of weathering market fluctuations.

Here’s what one Tim Hortons store owner had to say:

“Combining Tim Hortons with the Sugar Crossing Convenience Store has been a game-changer. We’ve seen a noticeable increase in customers and in-store sales. People love the convenience of being able to fuel-up and grab coffee or a bite to eat in one place. It’s a perfect partnership that helped take our customers’ experience to the next level.” – Steve Norton, Convenience Store Owner and Tim Hortons Franchisee

As architects, we are a strategic partner in making sure the brands we work with are set up for long-term success. Let’s rethink your convenience space together and turn it into a destination that keeps your brand ahead of the curve.

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