Where’s the Money Made?

Everybody has to eat which means foodservice is big business, and while many operators focus primarily on their foodservice operations there are a whole host of businesses whose primary purpose is not foodservice yet derive the majority of their profits from it.

Think about gas stations and convenience stores, for example. While the primary offering of a filling station is gas, that’s not actually where they make the majority of their profits.  And it doesn’t actually matter how high the prices of gas goes. In fact, c-store operators would prefer that gas prices stay low, as it impacts their profits like it does consumer cashflow.

It might be counterintuitive, but the average net margin of gas stations on their fuel is just 1.4% according to IBISWorld. That means foodservice operations within gas stations play more of a role than one would think, and we can’t forget the newest addition to roadside foodservice opportunities – the electric charging stations that are quickly becoming a fixture on major highways.

Right now, trends indicate a jump in EV ownership of 50% over the next seven years. That means gas stations and c-stores have a huge opportunity to offer expanded foodservice operations as an income source, accommodating a growing population of drivers who will need to occupy their time while waiting for their cars to charge. What a better way to wait than to grab something to eat?

But gas stations aren’t the only types of operations that offer a primary product only to make a significant amount of revenue by means of food and beverage. Let’s take a look at your neighborhood bowling alley…

Beyond all the fun and games, bowling alleys generate a lot of revenue from areas of the operation outside of the actual lanes. Who wants to bowl without a beer or a bite to eat? On average, one lane at a bowling alley can bring in over $36,000 annually, and of that total, “the food and beverage departments of bowling alleys generate a significant portion of the income” according to BowlingQuestions.com.

Golf courses and country clubs are another type of operation that offer a primary form of entertainment where food and beverage supplement a large share of revenue. Yes, golf courses make their income from green fees and memberships, but there is an entirely different demographic that comes to the country club to eat and socialize. Add in the on-course refreshments, and you’ve developed a sustainable source of income that adds a significant chunk of money to a country club’s bottom line.

Foodservice Possibilities for C-Stores and Beyond

 So, if we agree there are businesses that provide one type of good or service only to make significant revenue on foodservice, the next question becomes, how do you optimize food and beverage sales? Simply put, one of the biggest answers is to consider menu expansion and to offer more popular items. And what’s popular? Chicken is popular. C-stores, for example, have started to focus more and more on made-to-order foods in a format that more resembles quick serve restaurants or fast casual operations. And while chicken is popular with the masses, it can be a great profit generator for operators.

To successfully implement a chicken program, or any fried foods for that matter, it’s important to consider a few factors within the operation. How much space do you have? What type of power source will be needed? What volume will you produce? Does your foodservice equipment require a hood?

Whether you’re looking to generate more revenue on your Tuesday league nights or are considering making your roadside c-store a more comprehensive pit stop, Pitco can help you design a system to grow profits.