Convenience stores (C-stores) are seeing an uptick in frequent visits, a trend significantly driven by the Hispanic population, who are leveraging this channel for quick food and beverage solutions. A recent study by Acosta Group, which surveyed 1,097 C-store shoppers in July, highlighted the pivotal role C-stores play in the Hispanic shopper’s routine.
Abasto Media talked with Kathy Risch, SVP, Shopper Insights and Thought Leadership at Acosta Group.
The Biggest Driver: Food
“We actually saw that pop even more with Hispanics. So they were one of the subgroups that were driving the claims that people are leveraging convenience stores on a frequent basis,” shared Risch.
While traditional categories like candy, snacks, baked goods, and beverages remain strong, the food service side—specifically cold and hot store-made foods—is proving to be a major draw. About half of C-store shoppers already rate the quality of store-made foods as good or better than fast-food or quick-service restaurants. This group is increasingly relying on these locations for freshly prepared meals and snacks, often stopping on their way to or from work, or even during their workday.
The desire is broad, not limited to ethnic-specific items. Risch noted, “It wasn’t just ethnic food…I actually saw that everything from hot dogs to taquitos and burritos (were) popping.” When testing 12 different food concepts, the Hispanic audience showed greater interest in most of the ideas presented. The top item overall—which popped even more for Hispanics—was the carne asada steak burrito with rice, beans, salsa, cheese and fixings. However, interest extended to diverse concepts like the spicy bacon bourbon meatballs with white cheddar, horseradish, mashed potatoes, indicating a general desire for unique and interesting food options.
Furthermore, Hispanic shoppers are actively seeking better-for-you options. When asked what they want more of from C-stores, this group showed greater interest across the board in attributes like healthier in general (e.g., more protein, less fat), natural and organic, non-GMO, plant-based, and allergen-free options. They are “definitely seeking the better for you options,” Risch confirmed.
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More Than Food
The reliance on C-stores by the Hispanic population extends beyond just food and beverages, which are the “biggest driver.” “I just think Hispanics are more reliant on this channel than non-Hispanics,” Risch asserts.
When making a stop, Hispanic shoppers are also purchasing non-food items at higher rates. While food or drink are the reason for stopping for 92% of C-store shoppers, the Hispanic segment also popped on non-food purchases such as tobacco, lottery tickets or souvenirs. For context, 35% of all C-store shoppers in the study reported buying tobacco products.
The Hispanic population segment also tends to be more digitally savvy, particularly with mobile phones. Also, because all C-store shoppers value product promotions and a majority are likely to read signage at the pump and in-store, another key opportunity for the channel is to leverage this tool to communicate offerings and convert a quick stop into a broader, high-value purchase.
Urban Retail Team
Acosta stands as the largest outsource agency in the convenience channel, utilizing its significant penetration and scale to execute programs across a vast network. The company works with partner manufacturers and retailers, spanning over over 400 distributors, 600 chains, and supplying 150,000 outlets.
“We have the scale to be able to really be a ‘one-of-one’ for most of our partners,” explains Hobie Walker, SVP, Small Format, Acosta. “So we can do everything across the entire store in terms of execution.”
Beyond its core C-store focus, Acosta boasts a specialized Van Urban Team that targets 12 major markets, including the Northeast, Miami, Texas, Chicago, and LA. This team calls on approximately 20,000 inner-city bodegas and small stores.
The primary goal of the Van Urban team is driving innovation and products into these metropolitan markets and educating retailers on where to source them. Walker notes that in inner-city markets, the biggest issue for shoppers is often availability. Through this dedicated program, Acosta addresses the need to make products accessible to consumers in these densely populated areas, resulting in significant growth.