How Convenience Stores are Dominating the Food Scene: The Winning Strategy

Convenience stores are changing. They’re not just places to grab gas or a soda anymore. Nowadays, they’re becoming popular food spots that challenge traditional fast-food restaurants.

The Breakfast Shift

Have you noticed more people stopping at convenience stores for breakfast? Recent data shows that traffic is on the rise. While visits to fast-food chains increased only 1% over the past three months, places like Wawa and Sheetz saw an impressive 9% increase.

“Breakfast is their strongest selling point,” said David Portalatin, a food service advisor at Circana. “These stores offer speed, value, and a variety of choices.”

Foodservice Growth

Foodservice is driving major growth in convenience stores. In 2024, foodservice made up 27.7% of all in-store sales and contributed 38.6% to gross profits, according to NACS. Prepared foods alone accounted for 72.6% of foodservice revenues, reflecting a rising trend in ready-to-eat meals.

This focus on food is important. As fuel and tobacco sales decline, convenience stores are finding a lifeline in food options.

Why Customers Prefer C-Stores

Many Americans are seeing convenience stores as a real alternative to fast-food chains. One reason? They often offer lower prices. A breakfast sandwich and coffee at a convenience store can cost less than a combo meal at a fast-food joint. Variety matters too. You can find made-to-order sandwiches, energy drinks, and even fresh fruit at these stores.

“Quality is becoming the key differentiator,” Portalatin adds. Better food means attracting more customers.

People at the Heart of It

Even with all the technological advancements, Jeff Lenard from NACS stresses that people matter the most in convenience retail. “We conduct about 160 million transactions a day in the U.S.,” he mentions. That means nearly half of the population visits a convenience store daily.

The challenge is retaining great staff to create good customer experiences. Unlike many fast-food places focused on drive-thrus, convenience stores encourage human connections. “You’re not just talking into a box—you’re having real conversations,” Lenard notes.

Innovation Takes Off

The future looks bright, with many convenience stores investing in their food offerings. For example:

• 7-Eleven is expanding its U.S. food options based on its successful Japanese model.
• RaceTrac is acquiring Potbelly in a $566 million deal to bring sandwiches directly into its stores.
• Regional players like Wawa and Casey’s are also expanding their kitchen facilities to keep up with demand.
• Even smaller chains, like Fast Stop, are announcing new locations and offering foods that customers praise as “better than restaurants.”

In Summary

Convenience stores are no longer just places to pick up snacks. They’re becoming strong competitors to fast-food restaurants, especially for breakfast. With an emphasis on quality, variety, and customer connections, they’re carving out a niche in the food market.

Expect to see more room for food innovations and a focus on community as these stores evolve. The real question now is how much market share they can take from traditional fast-food chains.

For more insights on this topic, check out NACS, which provides valuable industry data and trends.

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