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Foodservice Equipment Opens Doors for C-Stores

By Heather Henstock, Contributing Editor.

With tobacco sales in decline and gasoline prices volatile, convenience stores are looking to other categories to draw more customers and improve profitability. Foodservice in its varied forms—from simply hot coffee and frozen beverages to full-scale restaurant and bakery menus—offers retailers a prime opportunity to differentiate their brand.

Among the c-store industry’s broad foodservice offerings, fresh bakery programs stand out as a way to maximize sales during the breakfast daypart and boost retailers’ fresh appeal.

Eighty percent of c-stores have some sort of fresh bakery program, estimated Jeff Hoffman, vice president and general manager for Baxter Manufacturing. Most are direct store delivery (DSD) programs where bakery production and distribution is outsourced to another baking company.

Large chains typically operate their own commissary bakeries, and a much smaller percentage of convenience stores have in-store bakeries. The key advantages to being your own baking company, whether at the store level or through a commissary, are quality control and the freedom to adjust bakery product lines to regional and seasonal tastes.

QuikTrip, in Tulsa, Okla., which operates three commissary bakeries, sees a bright future in baking. Its latest Gen III store design is large (averaging 5,700 square feet) to accommodate more space for fresh food and bakery product merchandising. “Bakery is another piece of the arsenal for us, and it gives you a chance to try a lot of seasonal things,” said Mike Thornbrugh, public relations manager for QuikTrip.

Designing a fresh bakery program is not for the squeamish. Getting it right takes considerable planning and heavy investment in equipment for both production and merchandising bakery products.

Unique Challenges “When you get into baking, you start adding complexity,” said Jeff Lenard, vice president of communications for NACS. “It is manageable, and the pay-off is often there. But fewer c-stores get into it because of the difficulty.”

Bakery equipment can be complex, and the nuances of a typical convenience store layout further complicate matters. But investing in equipment for a fresh bakery program can draw new customers, generate repeat business and set your c-store apart from the competition.

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