Some tips from a friend of mine who owns convenience stores

[AJ444]

Had Peapod delivery for a few weeks but I didn't like the quality of fresh veggies/vegetables. Since I have to pick those out anyway I determined might as well get everything at a physical store.

[herdjohnson]

A little bit different, but Shipt is getting big up here in Michigan. They just contracted with Meijer and I believe they're going to start at Costco soon. They're a grocery delivery service, not a call-ahead/pick-up service. I considered trying them, but it ends up being like 15 bucks for a 100 dollar order, plus a tip to the delivery person, plus you can't use Mperks, which is usually good for another 15-20 bucks per month. If they could trim down the costs a bit I'd love to give it a try. I do love grocery shopping, but with a new baby sometimes it can be tough to get out!

[TexasHusker]

We tried the ordering and then picking up deal. It quite literally took me an hour to get her shopping list all put in, and even then there were some compromises we made just to get the thing done.

Then we got home and there were a couple of items that they didn't bag, as well as a couple of items that we received but shouldn't have. So I ended up having to go back to the grocery myself to finish the list.

As long as you don't mind having an error factor of say 1 item out of every 10 or 15, then this deal works OK.

But if you really needed sharp cheddar instead of mild cheddar, etc., then it's not for you. It is too imprecise.

[TexasHusker]

P.S. The drive thru convenient store in the old Starbucks is a piece of heaven. I can go fetch some hamburger buns or paper plates and be back home all in 8 to 10 minutes and never leave my car. Been there many times on a milk run so I can eat my Lucky Charms before bed.

[PeggyHefferon]

P.S. The drive thru convenient store in the old Starbucks is a piece of heaven. I can go fetch some hamburger buns or paper plates and be back home all in 8 to 10 minutes and never leave my car. Been there many times on a milk run so I can eat my Lucky Charms before bed.

Is it a mom & pop type of business or a franchise/corporation?

Have never seen one in my area but would love it. Also would love to own that type of business.

My area does have drive thru Starbucks that are very popular. Not a coffee drinker so I would never go there.

Drive thru beer stores do really well also.

[TexasHusker]

Is it a mom & pop type of business or a franchise/corporation?

Have never seen one in my area but would love it. Also would love to own that type of business.

My area does have drive thru Starbucks that are very popular. Not a coffee drinker so I would never go there.

Drive thru beer stores do really well also.

This is a local company that dominates the area convenience store market.

7-11s would have zero chance of survival here - they went extinct decades ago.

[Mjenn]

I think skipping convenience stores all together is a great way to save money. But in reality you pop in when you need a cup of coffee and a snack when you are on the road. If you are buying much more than that you are probably not shopping efficiently.

We use a food delivery service which is great. We order 4 'dinners' per week from our grocery store and we get new recipes and all of the necessary ingredients delivered to our door. We had gotten in a rut with our cooking and dinners. This is inspiring and helps us to mix it up a bit.

We still have to buy basics like breakfast food and staples, but for about 50 bucks a week we get this really great service. It has really freed up a lot of time for us and also given us some new favorite meals.

[Fishindude77]

Good friend of mine owns a chain of convenience/gas stores (not franchise). He is a multimillionaire obviously but he gave me a few inside tips about groceries as well as convenience stores:

1. The most profitable thing in the stores is soft drinks, iced tea, and coffee. The cost of the cup and the drink to them is pennies, yet they get a dollar or two for each drink.

2. Gas markup is very small - they might make a nickel or so per gallon - but most customers come in to buy other things (like drinks).

3. The automatic car wash costs them about $.30 per car, but they charge from $5-8 depending on the type of wash you select.

4. Grocery stores and convenience stores are very strategic about product placement - it is not by chance. It is actually a pretty exact science. The cheap, lower-margin items that consumers still want are typically on the lower shelves (bread, the off-brand candies and snacks, etc.). The higher-margin (and often more expensive) items are much more prominently displayed. Items toward the register are called "impulse buy" items - toys, souvenirs, spikey balls, toy cars - and are extremely profitable.

5. Many of the items in the convenience store are priced pretty closely to a grocery store - bread, milk, etc. But they are banking on you buying a bag of ice, a soft drink, and a package of chewing gum "while you are there." Perhaps even a spikey ball just to play with.

The whole "order your groceries online and then come pick them up" concept isn't going over that great. Yes, there are some that do it, but for what could be a variety of reasons, it isn't a big hit with consumers, and might not ever be.

However, the drive through convenience stores are going gangbusters - people driving up for a bag of ice, gallon of milk, or a drink.

So that' my $.02 for the day.

I've got a friend in this business too, and this is pretty much what I have heard. Sodas and coffee are the big money makers. Happy to make $0.10 per gallon on gas. Very scientific way to layout these stores to maximize sales.

The car was thing surprises me. I would have guessed you would have much more expense per car washed.