Logistical challenges, low sales may keep meal kits out of convenience stores
The National Association of Convenience Stores (NACS), in conjunction with the Project on Nutrition and Wellness (PNW) and the Cornell Food and Brand Lab (CFBL), conducted two pilot tests to determine the challenges and opportunities in selling convenient, affordable meal kits at convenience stores.
The National Association of Convenience Stores (NACS), in conjunction with the Project on Nutrition and Wellness (PNW) and the Cornell Food and Brand Lab (CFBL), conducted two pilot tests to determine the challenges and opportunities in selling convenient, affordable meal kits at convenience stores.
The first pilot test was conducted in September 2015 at Square One Markets (Bethlehem, Pa.) in cooperation with The Six O’Clock Scramble, which provides healthy and easy to create recipes and meal plans for families. Square One Markets’ Six O’Clock Scramble Fresh & Fast Family Dinner Kits were a set of affordable, healthy dinner meal kits developed for four people and were priced to be $5 or less per person. While the sales did not match expectations, the test did uncover several challenges, primarily that small chain stores like Square One Markets often struggle to obtain certain fresh ingredients directly from suppliers and distributors. In addition, there were marketing challenges, especially because convenience stores were not thought of as a dinner meal destination in the market.
Some of the challenges encountered in the first test were addressed for the second test, which was launched in March 2017 at the Shaw’s 88 Kitchen store at Utah State University (USU). Unlike Square One Markets, this store did not sell fuel. The test examined whether consumers (both students and faculty) would embrace a healthy meal kit that could be purchased on campus and prepared at home. The meal kits, called CHEF-in-a-BOX by Aggie Eats, offered students and staff a variety of two- and four-person healthy meal options, including vegetarian and meat options. While the university received positive feedback, ultimately the meal kits presented too many logistics-related challenges, resulting in USU stopping the test before the planned end date.
While 77% of consumers told NACS they would be interested in purchasing an all-in-one meal kit from a store, the sales for both pilot tests did not reflect the stated interest. Both tests demonstrate the marketing, merchandising, and sourcing challenges convenience stores face in producing and selling meal kits to customers.