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THE C-STORE INDUSTRY
Franchise Information
 THE FOOD INDUSTRY
AND THE GROWING CONVENIENCE STORE SEGMENT
Today's farm-to-table food industry is big, basic, and efficient. It brings to the tables of American families the greatest variety of foods available anywhere in the world, at an ever smaller portion of family income.
In 1988, consumers in the U.S. spent only 9.5% of disposable income for food at home, compared to 13% in 1970. By comparison, in 1986, the last research available, consumers spent 30% of
disposable income for food at home in the Soviet Union, 15.7% in Japan, and 13% in the United
Kingdom. Total U.S. food expenditures, including restaurant meals, consumed only 14.1% of
disposable income in 1988 compared to 17.1% in 1970.
The greatest growth rate in the decade of the 80's was in superstores, warehouse markets, and
convenience stores, with all three formats gaining a share of the market at the expense of conventional
supermarkets and small grocery stores.
Throughout the decade of the 80's, the convenience store segment grew at a rate greater than
the industry as a whole, resulting in a share of market increase for C-stores from 6.3% of
total U.S. grocery sales in 1983 to 7.8%, or $95.5 billion, in 1988, according to
PROGRESSIVE GROCER magazine.
Convenience stores began developing shortly after World War II in response to the
changing American lifestyle - the move to the suburbs and greater reliance on the
automobile. By 1958, there were approximately 500 convenience stores in the U.S. The
growth of C-stores gained impetus during the decades of the 1960's and 1970's with
continued migration to the suburbs. A growing number of women in the work force
seeking greater conveniences such as quick, one-stop shopping, and extended hours for their
shopping also contributes to the C-store growth. By the mid 1970's, convenience stores had become a way of life for many Americans.
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GAS OPERATIONS
As convenience stores moved into self-serve gas operations in greater numbers in the
1970's. they became a major factor in U.S. gasoline sales. This trend did not go unnoticed
by the petroleum companies. The entry of petroleum marketers into the convenience store
industry in great numbers gave further impetus to the C-store industry's growth in the
1980's. CONVENIENCE STORE NEWS, which consistently claims a larger number of
outlets and dollar sales for the C-store industry than PROGRESSIVE GROCER magazine, claims a total of 89,500 convenience stores for the year 1988, with 30,000 selling gasoline.* CONVENIENCE STORE NEWS claims total sales of $82.5 billion for the industry, $41.8 billion in merchandise, and $40.7 billion in gas. According to CONVENIENCE STORE NEWS statistics, the number of C-stores increased by 30.9% between 1984 and 1988 and gas sales at convenience stores increased 117%.
* The differential between PROGRESSIVE GROCER and CONVENIENCE STORE
NEWS figures appears to be a matter of classification. Many stores included in the CONVENIENCE STORE NEWS figures are classified as "small stores" or gas stations by PROGRESSIVE GROCER.
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N.A.C.S. DEFINITION OF A CONVENIENCE STORE
Due to the growing presence of petroleum marketers in the industry, the National
Association of Convenience Stores (NACS) has broadened its definition of a "convenience
store" to the following:
"A convenience store is a retail business with primary emphasis placed on providing the
public a convenient location to quickly purchase from a wide variety of consumable
products (predominantly food or food and gasoline) and services."
"...Convenience stores have the following characteristics:
- While building size may vary significantly, typically the size will range from 1,500-5,000
square feet, with the majority between 2,000-3,000 square feet.
- Off-street parking and/or convenient pedestrian access.
- Extended hours of operation, with the majority open 24 hours, seven days a week.
- Product mix includes grocery items, and also includes items from the following groups:
dairy, bakery, snack foods, beverages, tobacco, health and beauty aids, and
confectionery.
- Product mix may also include prepared foods to go, frozen foods, meats, deli items,
produce, publications, general merchandise and gasoline.
- The store may offer various services, including, but not limited to, automated teller
machines (ATMs), check cashing, money orders, movie rentals, lottery tickets, film
processing, and video games."
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AMERISTOP'S NICHE
IN AN EVER-CHANGING GROCERY INDUSTRY
As discussed earlier in this section, the grocery industry has become increasingly more
polarized since the early 1980's with the greatest growth in the large and small store categories
(superstores and warehouse markets in the large store category and convenience stores and gas food ''mini" marts in the small store category).
AmeriStop stores strive to offer the consumer the "best of two worlds" - the convenient
location, parking at the door, and quick service, usually associated with convenience stores, plus the
greater variety and better value associated with a somewhat larger store.
Industry analysts might describe an AmeriStop store as a "superette" or "expanded convenience store". We prefer to describe an AmeriStop store as a "complete neighborhood service
center'' with emphasis on the word "service".
Positioned between the supermarket and the typical convenience store, AmeriStop stores offer:
- Greater variety and lower prices than most convenience stores.
- Greater convenience than a typical supermarket or superstore. Our stores are close to the
neighborhood and offer parking at the door, quick selection, and fast, friendly checkout.
Many stores also offer self-serve gas for convenient one-stop shopping.
- AmeriStop stores are clean, friendly, well-merchandised - a "cut above" other C-stores.
- Some AmeriStop stores offer fresh produce (unlike most C-stores) and some stores offer a service
delicatessen department.
- As part of the "neighborhood service center" concept, AmeriStop stores also offer money
orders, state lottery tickets where applicable, and in some instances - where
authorized - accept food stamps and W.I.C. vouchers.
As local business people, AmeriStop franchisees are sensitive to the needs of their
neighborhoods and communities and support many worthwhile neighborhood and community
activities, including local schools, youth sports, and various charities.
AmeriStop stores are dedicated to maintaining a wholesome family shopping atmosphere
every day of the year and strive to be an asset to the neighborhood and the community.
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