Convenience Store Industry Sees Future in Food

“More than ever, I truly believe that food is our future,” said NACS 2015-16 Chairman Jack Kofdarali during his speech at this year’s NACS Show general session. NACS is the Association for Convenience & Fuel Retailing.

But, he cautioned that while all signs are pointing toward food as the industry’s future, it won’t happen without work.

“We’re going to have to fight for customers in an already crowded marketplace,” said Kofdarali, who also serves as President of Corona, California-based J&T Management Inc., which operates convenience stores in Southern California. “We’re also going to have to tell our story and correct misperceptions about our offer. And we’re going to have to address an increasingly long list of regulations that stand in our way—whether related to food or our other products.”

He said that it is eye-opening to travel from California to the East Coast—and Europe—and see so many retailers executing at a very high level with food. “Their focus is not just on food made fast, but on food that is really good—both in taste and in quality,” said Kofdarali. “And here’s the most important thing: It’s making them money.”

Kofdarali shared regional breakout data from the NACS State of the Industry Report of 2015 Data that showed how high prepared food sales also push the sales of other items higher. “Prepared foods is bringing in more customers, and retailers are selling more food and other items,” he said.

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Kofdarali shared a few examples of regulations in his home state of California, from potential tobacco bans to warning labels on bottled water or fuel dispensers, to a litany of fuel-related regulations.

But, he warned, what’s happening in California is not happening in isolation. He said that just as weather patterns move west to east, so do regulations—especially those emitting from California.

The NACS Show is the premier event of the year for the convenience and fuel retailing industry. More than 20,000 attendees from 60-plus countries are at the 2016 NACS Show in Atlanta, which features four days of general sessions, more than 60 education sessions and more than 1,200 exhibiting companies in a nearly 410,000 net-square-foot expo. For the most up-to-date news and information on the event, go to nacsshow.com.