Each morning, William Haynes and his staff harken back to the classic ad slogan from the ’80s and ’90s. “We wake up saying, ‘It’s time to make the doughnuts,’” said the director of retail operations at two convenience stores—CornerPost and OneStop—in North Dakota, referring to the popular tagline from Dunkin’ Donuts.

Beginning last year, staff members have been arriving at the stores as early as 4 a.m. to begin baking a wide assortment of baked goods that launched as part of a new focus on in-store cafes. “We’ve had a great response from our customers,” Haynes reported of the baked goods program. “They like that the items are baked fresh, and we’ve made the commitment to satisfy them.”

Indeed, some c-store operators are putting a renewed emphasis on bakery programs, seeing opportunity to expand sales throughout the day and appeal to customers in search of a unique alternative to more traditional c-store snacks. “The trend for fresh food is growing in general,” said Farley Kaiser, senior director of culinary innovation at McLane Fresh. Sweet snacks are no exception. C-stores have the capability to bring convenience to baked goods, she noted, while also tapping into the “snacking all day” trend. Beyond breakfast, there’s lots of potential to market fresh baked goods throughout the day, according to the executive at McLane, which launched its curated Better Case Bakery program for c-stores last year.

Bakery growth can go alongside growth in packaged sweet snacks, a staple c-store category that posted a year-over-year increase of 5.7%, with sales coming in at $3,620 on average per store, per month, according to the NACS State of the Industry Report® of 2023 Data. “While unit sales may need to be boosted, it’s a popular purchase for consumers,” said Emma Tainter, NACS research analyst and writer. “Offering both fresh-baked and packaged is a way to maximize appeal to a broad range of consumers.” 

Kaiser and other observers note that with many convenience retailers emphasizing premium coffee programs, tie-ins with fresh baked sweets make perfect sense. “C-stores now offer barista-grade and bean-to-cup coffee, so there’s certainly opportunity for baked goods,” said Peter Rasmussen, CEO and founder, Convenience and Energy Advisors. “What complements a cup of coffee better?”

Jayne Kearney, director of Bake’n Joy Foods, supplier of muffins, doughnuts and other treats, agrees. “Sweet baked goods are a morning daypart staple,” she noted. “However, operators can leverage their beverage program to promote bakery sales across all dayparts as they are the perfect ‘plus one’ to any beverage, morning, noon or night.”

Duchess convenience stores in Ohio is seeing success with its Sweet Treat offer. The retailer is in the process of expanding its bakery cases to accommodate a larger selection. “Offering bakery items is paramount to a robust foodservice program,” explained Nathan Arnold, director of marketing at parent company Englefield Inc. “Coffee is a big component of our sales and a driver for customers coming to our stores. The Sweet Treat bakery items are the perfect pairing. The smell of items baking in our stores also enhances the overall experience of visiting a Duchess location.” Among Duchess’s bakery offerings are doughnuts, muffins, brownies, cake pops and cookies.

Bakery Front and Center

While sales via a bakery case is the most common format for c-stores, at least one operator does a big business in multipacks of fresh-baked goods. Packaged bakery items, such as packs of 12 donuts, account for 80% of category sales at Kwik Trip, according to Carrie Wiggins, director of foodservice at the 840-unit chain. The multipacks are merchandised front and center at Kwik Trip, often arranged on a cloth-covered table just inside the front door, and are popular with customers to take to the office or school, she noted. “Bakery is the first thing customers see when they enter the store,” Wiggins explained—a practice common at grocery stores. The attention Kwik Trip gives to bakery—with the items produced at its corporate bakery and delivered to stores—has paid off, as category sales reached $100 million in 2023. “That wasn’t built overnight,” Wiggins noted, “but it shows that if you stick with it, bakery can be a successful category.”

Kwik Trip’s access to a corporate bakery is somewhat unique for c-stores, but retailers are employing a variety of models to bring fresh-baked treats to their guests. The option to bake frozen premade dough is a popular one with convenience retailers. Bake’n Joy, for example, markets frozen pan-free, pre-deposited muffin batter that is simply placed on a sheet pan and baked. “Their sturdy liner keeps its shape during the bake, so no muffin pan is required,” explained Kearney. “They enable operators to bake what is needed and to bake fresh throughout the day.” Banquet d’Or Bake’Up’s line of pastries, meanwhile, is “true freezer-to-oven, no proofing or defrosting required,” according to Raoul Dexters, USA commercial manager at marketer Vandemoortele USA. The biggest benefit of the line to c-stores, he said, is that “with labor shortages and rising costs, Banquet d’Or removes the typical early morning start and expertise traditionally needed to provide high-quality bakery products to consumers.” Vandemoortele markets both sweet and savory pastry options that appeal to c-store customers throughout the day, Dexters noted.

Rich Products recently introduced a parbaked French breadstick that is designed for busy c-stores. The breadsticks can be completely baked from the freezer in 5 to 12 minutes, the company said. Elizabeth Sommer, customer marketing manager at Rich’s, called early response to the new product positive. “With snacking occasions on the rise, we see the breadstick as a portable, satisfying and satiating alternative to a sweet offering,” she said, an option comparable to soft pretzels or plain croissants.

Fully baked items that arrive frozen to stores require even less labor on the part of retailers. McLane’s Better Case Bakery products, which include cookies, doughnuts, muffins and new cinnamon rolls, are all frozen-to-thaw options. “They’re easily operational. Retailers just take out what they need,” said Kaiser, adding that the products’ long shelf life also helps to save on labor. Thawed and frosted-in-store doughnuts are most popular at Kwik Trip, Wiggins reported, with average weekly sales at the chain of nearly 870,000 units.

Customers at Haynes’ stores in North Dakota, meanwhile, can customize baked goods, thanks to the locations’ ice cream bars that stock toppings ranging from fresh fruit to sprinkles. “It only takes a couple of minutes to warm and glaze a doughnut, and customers don’t mind waiting,” the retailer said.

At Cone & Steiner c-stores in the Seattle area, sweet treats baked at local bakeries and delivered to the shops are showcased. According to owner Dani Cone, muffins, scones and cookies are the go-to items for her customers, but other baked goods include biscotti, cinnamon rolls, baguettes and larger loaves of bread. The baked items are merchandised on the front counter, adjacent to checkout and the coffee counter.

Sweet baked goods are a morning daypart staple. However, operators can leverage their beverage program to promote bakery sales across all dayparts as they are the perfect ‘plus one’ to any beverage morning, noon or night.”

Profit Driver

In addition to “the potential for profit margins and boosting the bottom line through increased sales,” Kaiser noted that bakery programs provide an “entry point” for c-stores not yet involved in foodservice. “Bakery is a good place to start with foodservice.” Not surprisingly, fresh-baked items stir impulse sales. “You get that critical aroma which can trigger impulse sales,” Rasmussen said.

But bakery programs can also provide some challenges for c-stores. As with other food-service sectors, bakery requires an investment in labor. “We see labor shortages and rising labor costs as a challenge for all retailers, but especially within the c-store space,” remarked Vandemoortele’s Dexters. “When implementing a bakery program, c-stores need products that require minimal training, expertise or hours.” Even with Corner Post’s commitment to the program, Haynes concedes that getting all the baking done before the stores open for business can be a challenge.

“Controlling waste and maximizing profit are key challenges for the bakery category,” noted Wiggins. But thanks to Kwik Trip’s expert reporting and analysis system, the chain is able to minimize waste. Price reductions on baked items late in the day are also useful, she said.

“With the exception of biscotti and a few kinds of cookies that can be okay for two to three days if stored properly, these are all one-day items,” agreed Cone. “Perishability can be a challenge.”

And with consumers more concerned with health and wellness than ever, plus the impact of weight-loss drugs, it wouldn’t be surprising if c-stores experienced some pushback against sugar- and carbohydrate-laden treats. For that reason, both Kaiser and Kearney see opportunity for small-portion baked goods. “Consumers definitely want to snack on sweet indulgences, and great-tasting smaller offerings give them permission without guilt,” said Kearney. In Seattle, where consumers have a high level of “mindfulness” when it comes to indulgences, Cone & Steiner regularly offers gluten-free and vegan baked products, Cone reported.

But most c-store operators and suppliers contacted for this article see little remorse among their bakery customers. “People like the comfort that baked goods bring,” said Wiggins, adding that could be the reason Kwik Trip customers like the chain’s multipack program. Rich’s Sommer agrees. “As much as consumers are looking for healthy options, they’re also looking to satisfy cravings, treat themselves and indulge in something delicious,” the marketer said.

Creative Confections

Effective marketing and merchandising support behind a bakery program is key to its success. In addition to social media, Kwik Trip promotes its baked goods via print and outdoor ads. In fact, a billboard campaign for the items last fall drove an increase in sales of some 250,000 units a week, Wiggins reported. Rasmussen added that incentives for c-store loyalty members can help lift trial of baked goods. “A free cookie for rewards members on a particular day of the week,” for example, not only builds sampling but store traffic too, the consultant noted.

Cross-merchandising bakery products with beverages, particularly coffee, is a best practice not to be overlooked, retailers and suppliers said. “C-stores have found success by including cookies and doughnuts in value deals and bundle programs,” explained Sommer. She points to cross-merchandising doughnuts near the coffee station in the morning as a smart tactic. Seasonal and LTO options are another good strategy, the Rich’s executive and others said. “Seasonal baked goods provide a draw for consumers and create a reason to visit the store,” Sommer remarked. “They can offer fall favorites like pumpkin spice and caramel apple, for example, or strawberry lemonade and s’mores during the summer.”

Regardless of the offerings, a c-store bakery program can’t succeed if it’s not properly presented. Bake’n Joy’s Kearney suggested that if operators take a few minutes after the morning rush to “spruce up the display case,” including changing stained basket liners, replenishing low inventory and creating neat front facings, they have the highest potential for success. “Bake fresh throughout the day to create the enticing sights and smells of fresh baked sweet goods,” she said. “Taste is still king, and customer satisfaction will translate into repeat purchases.”