As competition from QSRs intensifies, convenience stores need fresh strategies to attract foot traffic, particularly ones that bring customers from the gas pump to inside the store. A key way to build loyalty? Offer a strong coffee and tea program. Here’s how to get it right:
1. Shift Focus to Beverages
With cigarette sales declining, c-stores are shifting their focus to beverages as a key profit center. In fact, 79% of coffee-buying decisions are made before customers even enter the store1. Offering an attractive beverage program can not only drive sales but also create daily habits for customers to stop by. Bring customers in your store by highlighting your beverage program on outdoor signage and pump videos and keep them coming back with an appealing beverage setup.
Tip: Create a coffee corner with engaging POS. Draw customers in with a cohesive look and feel from backdrops to wraps to menu boards.
2. Capitalize on the Cold Coffee Trend
Cold coffee is booming, particularly among younger consumers who enjoy customizable, indulgent beverages. Iced coffee is easy to prepare and can be enhanced with syrups and creamers, making it an ideal way to tap into a growing market.
Red Diamond has introduced a new iced coffee option that uses a standard tea brewer to make a rich coffee designed for pouring over ice, providing a low-cost and high-reward addition to your beverage lineup.
Tip: Make iced coffee a year-round offering and provide flavored syrups, creamers, and milk alternatives to encourage experimentation and repeat visits.
Emily Wood Forehand, Senior Vice President of Strategic Marketing at Red Diamond Coffee & Tea, notes: “Focusing on providing a beverage experience that rivals restaurants creates a compelling reason for customers to choose your store over others.”
3. Tap Into the Growing Tea Market
Tea is a popular beverage particularly with health-conscious customers seeking low calorie, simple-ingredient options. Millennials and Gen Z are driving the tea trend, which is now the second most popular beverage worldwide2.
Red Diamond offers a variety of tea options, including their Simple Sweet Iced Tea line, Tropical Temptations flavored iced teas and their premium Morris & Park hot teas.
Tip: Expand your tea offerings with a mix of iced, hot, and flavored teas to appeal to a broad demographic.
4. Position Your Store as a Beverage Destination
As c-stores face increasing competition from QSRs, positioning your store as a destination for high-quality, on-the-go beverages is essential. Offering consistent quality, variety, and customization will help you stand out and foster customer loyalty.
Will Bowron, Senior Vice President of the Away from Home Division at Red Diamond, advises: “C-stores can increase customer retention by offering perks like loyalty programs, which reward repeat visits and encourage customers to make your store their go-to for beverages.”
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Tip: Implement a loyalty program that rewards regular visits with perks like discounts or promotions to keep customers coming back.
5. Expand Beyond Coffee and Tea
While coffee and tea remain essential, expanding into other popular drinks can further boost sales. For instance, fresh lemonade is a hit among customers looking for sweet, nostalgic beverages. Red Diamond’s Simple Sweet Lemonade offers an easy, low-investment way to expand your menu by using tea brewing equipment. This allows c-stores to brew multiple beverages with one piece of equipment.
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Tip: Use seasonal drinks like lemonade to drive impulse purchases, especially during warmer months.
Set Your C-Store Up for Success
A well-rounded, high-quality beverage program is crucial for c-stores looking to attract and retain customers in today’s competitive market. By focusing on customization, consistency, and expanding beverage options, c-stores can create a destination that keeps customers coming back.
1 Source: NACS
2 Source: World Tea News