Guy Fieri isn’t just about diners, drive-ins and dives any more.
On Wednesday, he added convenience stores to that list.
The celebrity chef and restaurateur has partnered with c-store chains Circle K and Holiday Stationstores—some of the largest convenience operators in the U.S. —on the rollout of 11 over-the-top menu items this month, as the Quebec-based Alimentation Couche-Tard-owned convenience chain looks to give its foodservice program a significant boost.
The Flavortown menu will debut at Circle K and Holiday Stationstores in 10 states, including Alaska, Idaho, Michigan, Minnesota, Montana, North Dakota, South Dakota, Washington, Wisconsin and Wyoming, with plans to eventually expand it across the full U.S. portfolio.
“It is a unique relationship,” Alimentation Couche-Tard President and CEO Alex Miller told analysts Wednesday, according to a transcript from financial services site AlphaSense. “It is an exclusive relationship. It is not a short-term relationship.”
It’s a relationship that comes, though, after a “reset” for the c-store retailer, Miller said, one in which it worked on its foodservice operations and execution. The improvements boosted margins, increasing efficiency and reducing spoilage.
“We need to get our operational execution to a level that we felt like, hey, when we launched this differentiating program, we’re ready,” he said. “We feel we’ve reached that time.”
The Flavortown menu includes sandwiches like a Denver Omelet on a Cheddar Bun, a Mac N’ Cheese Burger with jalapeño-American Cheese and a Sweet Heat Fried Chicken & Waffle; snacks like the Churro Crunch Roll, Roasted Poblano Chicken Flavor Roll and Jalapeño Potato Nuggets; and, for dessert, the Candy Chaos Cookie packed with candy pieces, chocolate chips, potato chips, peanut butter chips, pecans and pretzels.
“We think we’re ready to gain additional awareness of our food programs and what we can bring,” Miller said. “We believe this will give us some additional energy and recognition in the food space.”
Couche-Tard is already seeing some significant foodservice success, one of many convenience retailers around the country looking to compete head-to-head with fast-food restaurants.
The retailer reported a nearly 40% increase in bundled meal deal sales in North America at the end of its first quarter compared to the previous quarter.
Overall, foodservice grew 4.5% during the first quarter, with food gross margins increasing 500 basis points. Couche-Tard reported positive same-store sales, including in the U.S. market for the first time in several quarters, he said, driven in large part by food and beverage sales.
“We have been laser focused on execution and SKU rationalization,” Miller said. “We have significantly reduced the number of items freshly prepared in our stores to enhance operational excellence and ease, while optimizing our assortment.”
The convenience-store operator said it feels prepared to take on quick-service restaurants with its food offerings.
“We believe that our food program is really resonating with our customers,” CFO Filipe Da Silva told analysts. “When you see the evolution of the value meals and the quantity of meals that we have been able to sell … We are … executing better, delivering higher food gross profit. So, yeah, very confident that we are in the right direction and that we are winning in our industry.”
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