Double-Digit Growth in Pizza Category at Convenience Stores Demonstrates Channel’s Rapidly Expanding Foodservice Footprint

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The popularity of the pizza category at convenience stores is further evidence of the channel’s increasing focus on foodservice and its competitive threat to traditional quick service restaurants, reports The NPD Group, a leading global information company.

Convenience stores, particularly food forward convenience stores, are increasing their foodservice footprint and rapidly gaining share from traditional quick service operators,” says Annie Roberts, vice president, NPD SupplyTrack.

Lots of pizza dough went through the doors of convenience stores, and lots of pizza servings went out the doors. Cases of pizza crust and dough shipped to convenience stores from broadline foodservice distributors increased by 27 percent and servings of pizza ordered by convenience store customers increased by over 20 percent in the year ending February 2015 compared to year ago, reports The NPD Group, a leading global information company.

Total dollars of pizza crust and dough cases shipped from broadline distributors to convenience stores increased by over 30 percent , finds NPD’s SupplyTrack®, a monthly tracking service that tracks every product shipped from major broadline distributors to their foodservice operators. Complementing the increase in pizza crust and dough case shipments and dollars was a 4 percent increase of pizza box case shipments to convenience stores in the year ending February compared to year ago.

The popularity of the pizza category at convenience stores is further evidence of the channel’s increasing focus on foodservice and its competitive threat to traditional quick service restaurants. The double-digit growth in pizza servings at convenience stores contrasts to flat servings at quick service pizza restaurants and a 1 percent increase at traditional quick service restaurants, finds NPD’s foodservice market research. Convenience stores are also competing with traditional quick service restaurants in terms of visits. Foodservice visits at convenience stores increased by 2 percent compared to a 1 percent gain at traditional quick service restaurants for the year ending February 2015 compared to year ago. Foodservice at convenience stores is now the top category for in-store gross profit dollars and is number two for sales, according NPD’s Growing in a Fragmented Market report.

“Convenience stores, particularly food forward convenience stores, are increasing their foodservice footprint and rapidly gaining share from traditional quick service operators,” says Annie Roberts, vice president, SupplyTrack. “Foodservice manufacturers and distributors should understand the dynamics that are currently at play between retail and traditional quick service restaurants in order to fully serve the needs of the changing foodservice marketplace.”

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About The NPD Group
The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.

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