Convenience store revenue totaled $663.5 billion and grew almost 25% in the last year, according to the 2022 Convenience Store News Industry Report. It seems like the industry is finally picking back up again and returning to pre-pandemic levels. Continue reading this blog to learn how to make your convenience store profitable and successful. We’ll even explain how one hiring software can help you stabilize staffing levels so you can allocate resources elsewhere.
How to Make Your Convenience Store More Profitable
The average convenience store gross profit margin sits around $450,000. Keep in mind that this is just one location. Eventually, you’ll want to expand to multiple locations to maximize profits. Here are four ideas to help your c-store thrive in 2022.
1. Increase Your Food Selection
One in four consumers stop at a c-store for lunch and 30% will purchase fast food items over refrigerated products. In fact, foodservice makes up 23% of c-store sales. No wonder convenience stores are now competing with quick-service restaurants. If you aren’t already doing so, think about adding more fresh food meal options. You could even have an associate greet customers at the front doors with samples!
2. Up Your Prices on Popular In-Store Items
This might feel strange — especially since gas prices are skyrocketing — but c-stores only make two cents to every gallon of gas sold! Consider increasing the price on in-store items, (especially food options). Don’t feel like you have to match price points with your local grocery store. Remember, customers are paying for the convenience of your goods, not just the products themselves.
3. Understand Product Placement
You’ve probably heard the common saying “eye level is buy level”, but are you applying it to your c-store? Products that are placed at eye level are more likely to be selected and purchased by your customers. Why? Eye-level products have more visibility than those at your feet or knees. One study found that it only takes 8 seconds for a person to make a buying decision and if you think about it, it makes sense. A majority of c-store customers are traveling or on the go. They likely don’t have time to think too long about what snack or beverage they want. Consider placing your best-selling items at eye level to better catch your customers’ attention.
4. Drive Sales With the Best C-Store Employees
If you want to profit off of your convenience store, then you need to reduce costs where you can. One bad hire can cost $5,000, according to Cornell University’s Center for Hospitality Research. Avoid these expenses and end the cycle of costly employee turnover by hiring the right c-store associate every time with Sprockets’ solution. It reveals which applicants will succeed and stay long-term based on shared personality traits with a location’s current top performers. Ultimately, the platform empowers owners and operators to build reliable teams, reduce labor costs, and improve profit margins. It’s more accurate than other hiring solutions and even proven to increase employee retention by 43%, on average.
“If you’re on the fence, just the price should push you over because if it saves you one bad hire per year, you’re up money. That’s a no-brainer.”
– Curtis Wilhelmi, McDonald’s Franchise Operator