Taking Control of Your Store’s Most Important Metrics

The square footage of your store… How profitable are each of those 12” by 12” squares? Do you know? Well, revenue per square foot is one of the most important metrics of any convenience store. You only have so much space in your store (unless you are contemplating a big CAPEX to increase store size) and in order to increase your bottom-line you need to make those square feet as profitable as possible. Let’s go over a few numbers.

The Averages

According to a 2013 study, the average convenience store size was ~2,500 square feet. But how profitable are these square feet? For that year, c-stores that ranked in the top quartile in profitability averaged $67 per square foot while those in the bottom quartile saw $34 per square foot – they were twice as productive! How?

Changing Conditions

One of the ways store owners are increasing their profit per square foot is to build their stores larger. On average, a newly built urban c-store is around 4,500 square foot. They are getting bigger to offer a larger suite of services. From ATMs to seating to foodservice areas, the larger stores are leveraging convenience in order to attract customers. In fact, foodservice is killing it when it comes to improving your revenue and accounts for over 21% of all in-stores sales in 2015. Simply put, they are becoming one of the most profitable sections of a c-store.

Get this, the top quartile of all c-stores have 3.6X more sales than the bottom quartile. Think foodservice is making a big difference in sales per square foot? What can you do in your store to close the gap?

Here’s a breakdown of some of the numbers you can find this CSP Daily News article:

2013 Top Quartile Bottom Quartile Difference, Top vs. Bottom
Store Operational Productivity
Foodservice sales $34,572 $9,712 3.6x
In-store gross margin % 32.7% 27.3% 5.4 points
Average square feet 2,477 2,494 Even
In-store sales per square foot $67.09 $33.99 2x

Closing the Gap

While sales per square foot is a slow moving metric, if you want to make drastic changes then you need to change the system. One option is to bring in a highly competitive foodservice program. By having a name brand foodservice program, you create a buzz that draws customers in.

Make no mistake about it, you have to quickly grab their attention considering that you have 3-4 minutes between the time a person walks in the store and leaves… You have to make an impact. Nationwide programs such as Champs Chicken can do exactly that. It’s a recognizable name with outstanding marketing and an unforgettable taste. It’s a great way to add money directly to your bottom-line!

So how do you even get started?

Obviously, as with any critical business decision, you need to have a clear plan and make sure you have the financials to be able to bring in a business altering program. For instance, do you have enough capital? Do you have the equipment? How long will it take to make your money back (like payback period)?

One great tool that we have created at PFSbrands is our payback period calculator. This simple calculator can help estimate how long it will take to payback your investment, at which point it becomes all profit! The beauty of it is, you can mold the variables to fit your location (or if you own a grocery store).

Once you have a good idea if a branded foodservice program is right for you, then it’s time to get in touch with the experts for a completely free business consultation or even an in-store demo. From equipment recommendations to store layout or pricing, we can answer all of your questions and help you get started! You can speak to one of our exclusive business experts by emailing our Customer Success team or call: (855) 632-3373


You plan out every square foot of available space in your store, so why not offer what could give you the biggest bang for your buck? The biggest margins? A quick payback period? Hot foodservice programs are a great way to attract new customers to your location. The right programs can quickly pay for the capital investment necessary for startup.  Sales per square foot is enhanced by the additional foodservice sales and an increase in various other categories due to more frequent customer visits.

So how are you going to increase one of your store’s most important metrics this year?