Maintaining and improving profitability is crucial for long-term success in the competitive landscape of convenience stores. Cost analysis plays a pivotal role in achieving that goal. According to the National Association of Convenience Stores (NACS), the total convenience industry sales in 2023 reached an impressive $859.8 billion, with a substantial $327.6 billion stemming from in-store sales. Notably, foodservice sales represented 26.9% of in-store sales.
Prepared food emerged as the leading category for in-store sales, experiencing a significant 12.2% growth. Understanding the dynamics of these sales trends and their implications for cost management and profitability is essential.
Despite positive sales trends, NACS also reported that operational costs increased in 2023. With these considerations, convenience store owners must adopt strategies to streamline costs and enhance profitability without compromising quality.
By closely examining expenses, you can identify areas for improvement and develop strategies to reduce costs without compromising the quality of your foodservice offerings. Each store is unique, which is why at TBHC Delivers and Hunt Brothers® Pizza, our Account Managers (AMs) work to create personalized solutions to address store-specific challenges. From pizza toppings and preparation to equipment maintenance and store cleanliness, you can optimize your operations to drive cost savings and operational efficiency.
Let’s explore strategies for optimizing operations to help the financial health of your C-store.
Inventory Management
The right inventory is crucial for keeping your store running smoothly. Your AM ensures you have the correct inventory levels. They will review your inventory, bring orders in from our trucks, physically check in any products with you, and rotate inventory as necessary. An efficient inventory management system prevents resource waste and helps control costs associated with overstocking.
Utilizing inventory tracking tools such as the Hunt Brothers Pizza Build To and Sale & Waste charts can be instrumental in preventing waste and contribute to cost savings. These tools provide valuable insights into inventory levels, sales trends, and potential waste, allowing you to make informed decisions to optimize your inventory and reduce unnecessary costs.
Pizza Toppings & Preparation
By optimizing your ingredient usage, portion control, and preparation methods, you can minimize waste and maximize the value of your inventory. This reduces food costs and contributes to the consistency and quality of your products.
Want to know a cheesy secret? When you add double cheese to a whole pizza, you should get 13 pizzas out of one bag of cheese. If not, ensure your staff masters the art of topping, and remember to charge for that extra cheese!
Equipment Maintenance
Are equipment repairs draining your budget? Your store’s success, especially your pizza program, relies on smooth equipment operation. To cut down on equipment repair expenses, prioritize proper equipment maintenance and upgrades. Sticking to a maintenance schedule can avoid unexpected breakdowns, extend your equipment’s lifespan, and reduce repair costs.
But that’s not all – where you place your freezer, cooler, and ovens can significantly improve your Pizza Shoppe’s efficiency. This doesn’t just ensure a smooth flow; it also boosts energy efficiency and customer satisfaction. Strategic placement can streamline your staff’s work, making it easier to whip up your pizza orders and provide quicker service, enhancing the overall customer experience.
By fine-tuning your C-store operations with practical cost analysis and strategic equipment placement, you can boost your profits and pave the way for long-term success in the competitive convenience store market.
Keep your Lincoln and TurboChef ovens in top shape with our Oven Maintenance Tips! Head to our website to discover how to maximize your equipment’s performance and longevity
Labor Management
Managing staff effectively is crucial for controlling labor costs in your store. Focus on staff scheduling, task assignments, training, performance tracking, and implementing incentive programs to maximize productivity and minimize expenses. Utilize resources like Hunt Brothers Pizza’s ‘Pizza Portal’ for training and contact your AM for in-store refreshers.
Cleanliness and Store Maintenance
Maintaining a clean store directly impacts costs by reducing the need for frequent repairs or replacements of equipment and facilities. A clean and organized store also promotes operational efficiency, leading to cost savings in the long run. Additionally, it can help prevent potential health code violations, which could result in costly fines or legal issues.
Make a great impression and boost your revenue with our latest Cleaning Checklist! Keep your store inviting and increase profits! Download your free copy today!
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TBHC Delivers®
TBHC Delivers is the largest distributor of Hunt Brothers Pizza; we are our own business and brand. We own our trucks and follow, believe and deliver on all Hunt Brothers Pizza’s visions. TBHC Delivers builds upon the high-quality product of Hunt Brothers Pizza with value-add customer service like our 15-Point Promise.