C-Stores Expand with Circle K

The Lempert Report
December 07, 2022

Phil: So Circle K has decided that they're gonna go after supermarkets with their food rocket delivery service. Food Rocket now has over 7,000 SKUs focuses on grocery and convenience products. They're being shipped from two micro fulfillment centers. And also what's really interesting is 60% of all the orders that are being placed on Food Rocket are for fresh grocery and ready to eat meals. The order processing takes just two to three minutes. Delivery window is within 15 minutes. And Sally, you were on Food Rocket earlier today. Tell us what you found. 

Sally: Yes, it's a very interesting, interesting setup. And when you, and when you do look at what they are offering, Phil, it is mostly prepared foods. I love this concept. I love that Circle K is getting involved. You know, even on their website, on Food Rocket Site, they have, you know, Christmas dinners, you can get Christmas sides if you want, or just a Turkey. But it's, it's broken down really nicely into categories. And what I also really found interesting about it is that they're offering subscription services on, on several different levels. It's depending on how many days you'd like your subscription to be for, and that that determines the price. But what else I like about it is, is that each plan offers an opportunity to be a part of a charity. So, for example, one of the options is give the gift of Clean Safe Water. One is Fight for Animals, and then another one is protecting children against abuse and neglect. Now, my only issue with this on the website is they don't really say, "okay, we're giving this much of the profits to this organization". It's, it's really left very vague. So as a person participating in that, I would like to know. 

Phil: Yeah, and also the other thing that's interesting about the subscription, and there's 14 day subscriptions and 30 day subscriptions you get bonuses. I'm looking at the fight for all Animals. With the Humane Society, you get 10% off all groceries, you get 50% off new Rocket Cafe, fresh pastries and desserts, you get a free cup of coffee with every order above $25. So they're really smart about it. I question the whole idea of 14 days and 30 days versus having an annual subscription. And I would expect that if this is successful, they'll move it to an annual fee, you know, probably $99 the way everybody else does it. But to be able to get, you know, 10% off, 50% off, that's a sizable savings, and I think it's really a smart idea.