For the last half dozen years or so, Louisiana’s Y-Not-Stop has offered signature products that have not only resulted in increased impulse sales but also in improved store traffic.

“We’ve had a strong response to our store-baked cookies,” said Annie Gauthier, co-owner and CFO of the 14-unit retailer, who estimated sales at about two to three dozen per day per store. “And sales have been increasing at a double-digit rate month over month.”

At The Hub convenience stores, which has locations throughout North Dakota, sales of fresh-baked cookies have taken off since the pandemic, when the retailer began packaging the treats in bulk, such as 12 mini cookies in a grab-and-go container.

Fresh-baked cookies are a win-win-win.”

CEO Jared Scheeler said, “Customers like that instead of going to the bakery case and taking a single full-size cookie with a cellophane wrap, the bulk packs are ready to go. We sell a ton of them.”

Some days, the batch of cookies baked in-store first thing in the morning isn’t enough to satisfy demand.

“Sometimes we have to bake multiple times a day,” Scheeler said.

Fresh-baked cookies are even making a mark at 7-Eleven. Earlier this year, the retailer launched its limited-time-only (LTO) chocolate chunk cookies, made with Hershey Mini Kisses, at select locations, with a chocolate peanut butter cookie, featuring M&M Minis peanut butter candies, on deck. The offerings followed last year’s LTO gingerbread cookie ($1.69 per 3.5-ounce cookie) at some 3,000 participating 7-Eleven, Stripes and Speedway stores. According to a 7-Eleven spokesperson, the cookies are freshly baked in-store at select locations across the country.

‘Win-Win-Win’

The emergence of fresh-baked cookies as a popular convenience store item is just another example of the strides the channel has made in foodservice.

“Consumers are looking for fresher quality in c-stores,” said Alyssa Barrett, customer marketing manager-convenience at Rich Products, which supplies premade dough and ready-to-serve cookies to c-stores. “Fresh-baked cookies are the perfect opportunity, especially during high-traffic occasions.”

Barrett said the treats are an effective response to consumer demand for high-quality food, provide operators with compelling traffic-driving merchandise and encourage higher-value tickets.

“Fresh-baked cookies are a win-win-win,” she said.

Indeed, store-baked cookies have been popular in quick-service restaurants for some time, and with c-stores increasingly competing with the channel for foodservice dollars, it stands to reason that the baked goods are a good fit for convenience retailers. According to Barrett, more than half of all QSR operators offer cookies on their menus, and in the last four years, menu penetration of fresh-baked cookies in the outlets is up more than 2%.

Subway says it sells more freshly baked cookies than any other restaurant company in the United States. It’s looking to build on that accolade with its footlong chocolate chip cookie, rolled out late last year.

Convenience retailers and vendors report that one of the greatest benefits of store-baked cookies is the spike in impulse sales they provide.

Fresh-baked cookies are “a manageable indulgence for consumers,” due to their price and size, explained Maeve Webster, president of Menu Matters, a consulting company that helps food manufacturers and operators understand how trends affect their brands. She noted that because 41% of c-store shoppers don’t decide on their purchase until they’re in the store, merchandising fresh-baked cookies allows operators to capitalize on impulse decisions.

The 7-Eleven spokesperson said, “In addition to offering customers more options for items to pair with a snack or coffee, the smell of fresh-baked cookies makes the stores smell great and enhances the customer experience.”

Y-Not-Stop’s Gauthier said sales of fresh cookies aren’t restricted by daypart like some other foodservice items: “They sell well during all dayparts,” she said, “even for breakfast.”

In addition to the morning daypart, Rich Product’s Barrett sees opportunity for the baked goodies during the afternoon daypart; she noted that’s the busiest time for bakery case sales in c-stores. For multi-unit retailers, cookies baked from frozen, premade dough provide operators with consistency and easy preparation, she added.

“You take out what you need, so it eliminates waste,” Barrett said of the frozen, preformed pucks.

For Scheeler, one of the biggest perks of The Hub’s cookie program is that “it provides us with a point of differentiation, something that’s different from our competitors.”

But perhaps the biggest benefit of a fresh-baked cookie program is the halo effect it brings to a store and its foodservice program.

Perhaps the biggest benefit of a fresh-baked cookie program is the halo effect.

Menu Matters’ Webster said, “Even if customers don’t purchase them, cookies impart the perception with consumers that the store focuses on fresh and fresh-made products.”

Even if the cookies are baked from pucks, they still connote freshness because customers “don’t care that there isn’t someone in the back mixing up the batter,” she said. Moreover, the aroma of cookies fresh out of the oven is pleasing to virtually all guests.

“It’s the Cinnabon effect,” Webster said. “Everyone loves the smell of Cinnabon even if they don’t buy one.”

‘Immediate Hit’

Y-Not-Stop first dove into fresh-baked cookies with the opening of a store in 2018. The store featured a large bakery case that showcased donuts, muffins and cookies baked from pre-formed David’s Decadent cookie dough.

“They were an immediate hit,” Gauthier said, and the baked treats were soon added to a second location. By 2021, the cookies were available at all Y-Not-Stop locations. Today, each store offers six to eight different cookies—triple chocolate chip is the top seller, followed by sugar cookie and usually an LTO option.

The Hub has been selling fresh-baked cookies, using CoreMark frozen dough, since the opening of its first store in 2015. Scheeler said the stores offer a variety of cookies, but as at other retailers, chocolate chip is the most popular, followed by snickerdoodle, chocolate macadamia and oatmeal raisin. Seasonal LTOs are also featured, such as caramel apple in the fall and s’mores in the summer. The North Dakota retailer sells its cookies for $1.49 for a single and $3.49 for a 12-pack of mini cookies (or the equivalent of three full-size cookies).

In addition to LTOs, 7-Eleven offers varying cookie sizes in a variety of flavors.

“Our core cookies are available in chocolate chunk, oatmeal, red velvet, macadamia nut, salted caramel, peanut butter and sugar,” the spokesperson said.

Beyond cookies, the retailer sees opportunity for other fresh-baked items; fresh-baked pastries, such as cinnamon swirl croissants, chocolate croissants and gouda cheese croissants were added to stores last year. The spokesperson said 7-Eleven also has a variety of other freshly baked items delivered daily to select stores, including brownies and donuts.

‘Incentive Drivers’

While fresh-baked cookies do well as impulse buys, special incentives also help drive sales.

“We recommend value merchandising, such as bundling with a beverage,” Rich Products’ Barrett said, pointing to offers such as “buy a beverage, get a cookie for 50 cents” or “two cookies for $3.”

Y-Not-Stop promotes a “three for $6” bundle that includes a 20-ounce beverage, cookies and other foodservice items. Other cookie-focused promotions at the Louisiana retailer include the distribution of certificates to local schools and the awarding of a free cookie and drink for accomplishments such as making the honor roll or perfect attendance. Y-Not-Stop merchandises its fresh-baked cookies in bakery cases in its large stores and in counter cases at its smaller locations.

The Hub, meanwhile, largely relies on grab-and-go cases located in the front of its stores to merchandise its bulk pack of cookies. “You can’t miss them,” Scheeler said, noting the cases are one of the first things customers spot when walking in.

When cookies are merchandised in a bakery case, Barrett advised that operators be sure the case is fully stocked and features a variety of treats, such as donuts, cinnamon rolls and pastries.

“Don’t allow just a few random items to linger in the bakery case,” she said.

Cookies also do well when promoted as an add-on via kiosk sales, Barrett said, as well as at the pump.

LTOs have become a popular tool in building awareness of fresh-baked cookies. Y-Not-Stop, for example, promotes three or four LTO cookies a year, Gauthier said, such as a red velvet cookie around Valentine’s Day. The seasonal coloring of the LTOs make them effective merchandisers.

Cookies are a great enhancement to foodservice given the amount of space they require.”

Maverik, meanwhile, debuted a stuffed mint cookie in 12 Western states for the holidays last year. The offer followed a s’more stuffed cookie last summer.

“We’re continually innovating our fresh-baked treats, and our stuffed cookies will be a staple,” said Kyle Lore, corporate R&D chef at the Salt Lake City-based retailer.

Maverik and other c-store retailers tied in to National Cookie Day, on Dec. 4, to promote their offers. Last year, loyalty members at Maverik, for example, received free cookies or discounts on cookies for the occasion. Similarly, Circle K offered free Fresh Food Fast cookies at participating locations via its app for National Cookie Day.

Worthy Investment

Much like other foodservice offers, fresh-baked cookie programs can present challenges for c-stores, particularly in terms of space and labor. Gauthier said c-stores must have the room for ovens, freezer space for frozen dough and counter space for cooling racks.

While labor isn’t super intensive, she noted that if a store is short staffed, the need to bake cookies can create a hiccup. For that reason, Y-Not-Stop opts to prep its cookies at non-peak times.

Barrett noted that for retailers without the space or labor for a fresh-baked cookie program, fully baked cookies, such as those offered by Rich Products, are also an option.

Menu Matters’ Webster said that for most c-stores, a fresh-baked cookie program is a worthwhile investment.

“Consumers are increasingly looking for fresh foods and those prepared with care,” she said. “If carried out properly, a cookie program can help enhance a store’s perception [in regard to] freshness.”

Gauthier agreed and added, “Cookies are a great enhancement to foodservice given the amount of space they require. And they’re a lot of fun. Who doesn’t love a cookie?”