The convenience store industry is evolving, especially with a greater focus on foodservice. In recent years, these stores have shifted from being just gas stations to becoming vital food destinations.
According to the National Association of Convenience Stores (NACS), food and merchandise sales reached an impressive $341.2 billion last year, showing a solid 1.7% growth compared to 2024. This marks 23 years of steady sales growth in this sector.
Foodservice sales alone comprised 28.5% of all in-store sales, a significant increase from just 11.9% back in 2005. This shift is changing how stores make money, contributing 38.9% of gross profits last year.
So, what does foodservice entail? It includes a variety of offerings, like pizza, chicken, sandwiches, and drinks. Prepared food is particularly popular, making up 73.9% of foodservice sales—up from 66.4% in 2021.
Here are some other key takeaways from the latest NACS report:
- Packaged beverages and snacks are big winners: Packaged beverages claimed nearly 19% of total sales, with a growth of 0.8% from 2024. Snacks like jerky and nuts also saw a rise of 7.9%, highlighting the importance of variety for c-store retailers.
- Gas sales are declining: Despite convenience stores controlling 80% of the U.S. fuel market, gas sales dropped by 5.4%, falling from $501.9 billion in 2024 to just over $463 billion. This decline is mainly due to lower gas prices in 2025.
- Profit margins tell a different story: Fuel might account for 65% of sales, but it brought in just 38.8% of gross profit. In contrast, foodservice, while making up a smaller percentage of sales, contributes a higher profit margin.
Interestingly, although overall operating expenses rose by 4.2%—the slowest increase since the pandemic—transaction volumes are down. On average, c-stores recorded 45,160 transactions per month, a decline of 2.7% from 2024. This drop suggests retailers may need to rethink their strategies moving forward.
In summary, convenience stores are becoming more than just places to fill up gas. With a stronger focus on food and a wider range of offerings, these stores are shaping their futures in exciting new ways.
