An In(-And-Out)-Convenience Truth

An In(-And-Out)-Convenience Truth
Tags: Communications, Customer Service / Experience, Drive-thru, Marketing, Marketing / Branding / Promotion, Trends / Statistics
October 5, 2010

A friend recently moved from Tulsa to Minneapolis. Since then, she has not ceased to lament the fact that Minnesota does not have QuikTrip stores. Not a one. Her closest source for QT coffee with real, yes, real dairy half-and-half is … Des Moines, Iowa.

That’s a brutal adjustment for someone coming from QT’s home market, where there’s a store practically on every other block. My friend recounted how she wanders suburban Minneapolis with her 20-oz refillable mug, searching for a Holiday c-store that can begin to compare with QT. It made me sad.

It also made me think about how attached people get to a brand over just one or two things they love. For my friend it was a 20-oz refill of pretty decent coffee with real dairy half-and-half for under a dollar. Also, it didn’t hurt that the staff always greeted her when she came in, the store was always sparkling clean and well-lit, the restrooms were tidy and well-tended.

That got me to thinking how brilliantly QT has understood and executed on its brand promise. As a corporation, QuikTrip has never forgotten that the “C” in “c-store” stands for convenience. And every employee of the company gets it. The chain knows what it is supposed to be and it delivers on what it knows. Simple.

Having created a c-store model that was running smoothly, efficiently and profitably, QT decided to challenge their model with 5700 square foot “next generation” stores. In addition to the usual grab-and-go fare, the new stores include 24 soda fountains, 12 flavors of frozen drinks, 16 flavors of ice tea and lemonades, plus a specially staffed ice cream and hot beverage bar. And, as always, pretty decent coffee with real dairy half-and-half.

Recently the Chicago based market research company, NPD Group, found that c-store traffic increased 8 percent in the last quarter, with sales up by 11 percent. As a resident of QT-land, my first response was, “duh.”

QSRs are beginning to worry that these chains could be their next worst nightmare, luring customers with their shiny gas pumps, then plying them with hot, steamy taquitos. And, with chains like QT expanding with full service food and beverage counters, this is understandable … in a way.

But for well-defined and well-branded QSRs the c-store trend is more of a challenger than a game changer. Currently, most QSRs have a number of brandable advantages that c-stores cannot equal:

1) The food is generally fresher. Where c-stores offer prepackaged cold sandwiches and hog dogs that have done countless turns on a rolling grill, QSRs can offer just-made sandwiches and sides;

2) Users have a drive-through option. Until and unless c-stores convert their facilities, QSRs will have an undeniable advantage with customers who don’t have the time or inclination to make a trip inside;

3) Customers who want to can dine in. An attractive dining room equipped with a play area, TVs, WiFi or other niceties can help QSRs attract customers who want more of an “experience” than c-stores offer;

4) All of the above plus value menu pricing. During the past recession, QSRs proved to themselves that a $1 snack or drink menu can increase traffic and bring in add-on sales.

Finally, and perhaps most importantly, QSRs can offer menu innovation that c-stores just aren’t set up to provide. What makes the “C”s work is their wide array of choices; their food culture is about homogeneousness, predictability. For the most part, the goal is adequacy, not innovation.

QSRs that define and communicate their brand strengths and focus on customer-driven menu innovation have nothing to fear from c-stores. Those that decide to compete head-on with ballooned, uniformly low-price menus will most likely end up being perceived as offering c-store quality without the c-store convenience … or the shiny gas pumps.

The last time I talked to my transplanted friend, she mentioned that she was traveling to Kansas City for the weekend. There was a chipper quality in her voice that I hadn’t heard in weeks. I thought, “Well, she must really be looking forward to seeing family in KC.” And then I remembered — Kansas City is full of QuikTrip stores … and Des Moines is on the way.