Could a food celebrity like Guy Fieri really be the catalyst that helps a convenience store icon turn the tide and get back on the growth track?
Time will tell, but I view the collaboration between Quebec-based convenience retailer Alimentation Couche-Tard (TSX:ATD) and Mr. Fieri as a brilliant, low-risk one that could pay huge dividends.
Indeed, when it comes to success in the convenience store scene these days, great food really does move the needle. And as more electric vehicles (EVs) dominate the roads, there will be less need for gas. Perhaps it’s the great selection of tasty and unique food items that will be the main attraction for those who drive up to a convenience store, rather than the fuel pump that’s next to it.
Flavortown is coming to Circle K – it’s a big deal as Couche-Tard gets serious about food
While Couche-Tard has come quite a long way when it comes to fresh and hot food offerings, I do think work needs to be done. The Guy Fieri collab is one that could bring in a wave of food traffic, as consumers look to get a taste of what Flavortown has to offer.
Indeed, the Flavortown-inspired food items are going to be rolling out rather slowly across Circle K locations. But if they show early signs of success (I think they will), I don’t think it’ll take long before such menu items become a major sales growth driver for Couche-Tard, a firm that clearly recognizes the same-store sales growth (SSSG) opportunity to be had in ready-to-eat food items.
So, what should investors expect as Guy Fieri and Circle K team up to level up the company’s food offerings?
It seems like Couche-Tard will have all bases covered, with breakfast, lunch, and even dinner. Whether we’re talking about the bacon mac & cheese burger (who wouldn’t want to try this?), sweet and spicy fried chicken waffle sandwiches, Denver omelette or some of the intriguing new confectionaries (think cookies), I think the food items are going to get the attention and business of consumers looking for great, tasty, and relatively affordable eats on the go.
Even if you’ve got absolutely no idea who Guy Fieri is, you probably recognize his face and his association with delicious food. That’s going to get people in its doors, and if the initial wave of new menu items hits the spot, look for the partnership to evolve over time.
Indeed, I think Couche-Tard’s managers have their sights set on the long game, with a long-term partnership in place. With Fieri aboard, menu innovation and creativity are covered. As, too, is marketing, since he’s arguably one of the most recognizable faces when it comes to celeb foods, with the man’s spiky blond hair and goatee.
The bottom line
Even if the new menu items don’t sell (I don’t see how they won’t, given they sound like food items that people would line up for at a carnival food truck!), Couche-Tard really has nothing to lose here and everything to gain, as it seeks to pull ahead in the convenience store food race. Food is of utmost importance when it comes to winning the convenience store race over the next decade. And the Guy Fieri partnership is a very strong step in the right direction. Either way, I think Couche-Tard has a catalyst in place to get back on the bullish ascent again.
