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C-Stores are Becoming a Food Destination

Technology, Serving Solutions, Culinary
2025.04.01

A favorite stop for consumers to get gas, grab snacks and a lottery ticket and be back on the road in less time than it takes to park and traverse a retail store, the convenience store (c-store) market in the United States has experienced both growth and challenges in recent years. As of December 31, 2024, there were 152,255 c-stores operating nationwide, marking a 1.5% increase from the previous year. ¹

In 2023, total convenience industry sales reached $859.8 billion, with in-store sales contributing $327.6 billion. However, this was a 4.7% decline from the $814 billion reported in 2022. Factors influencing this decline include reduced consumer spending on traditional c-store items like cigarettes and snacks, partly due to inflation and shifting preferences toward healthier options.²

To adapt, many c-stores are enhancing their foodservice offerings. This includes introducing higher-quality and more diverse prepared foods and beverages to attract customers beyond fuel purchases. Despite these efforts, challenges persist, with some chains closing underperforming locations. For instance, 7-Eleven announced the closure of 444 stores in North America, attributing the decision to inflation, declining cigarette sales, and changing customer preferences.³

Looking ahead, the c-store market is projected to grow annually by 5.6% until 2028, driven by innovations in food offerings and customer experience enhancements. ⁴

C-stores (convenience stores) are implementing several strategies to grow their businesses, adapting to changing consumer demands and the competitive landscape. Increasing the quality and number of food items is a focus, with diversification supported by adding more related options. Key initiatives include:

1. Expanding Food Offerings

Many c-stores are focusing on expanding their foodservice offerings to attract more customers. This includes offering fresh, healthier, and more diverse food options, such as prepared meals, salads, and snacks, as well as premium coffee and beverages. Food and beverage sales now account for a significant portion of c-store revenues, with some estimates suggesting it could represent as much as 40% of total sales.⁵

2. Adopting Cashierless Technology

Some c-stores are adopting cashierless technology to streamline the checkout process and reduce labor costs. This technology allows customers to grab products, scan them via an app, and leave without going through a traditional checkout line.

3. Diversifying Product Assortments

To compete with other retail formats, c-stores are diversifying their product offerings to include items that might not traditionally be found in convenience stores, such as organic and local products.

The industry is evolving to become more of a food destination, not just a quick stop for fuel.

In short, convenience stores are expanding their food selections as part of an effort to adapt to consumer trends, compete with other foodservice providers, and generate more in-store sales.

Sources:

^{​1 Home+1Supermarket News+1}

^{2 HomeConvenience Store NewsWSJ}

^{3 AP News+1Circana+1Convenience Store News+11NIQ+11The US Sun+11The US SunPeople.com+1The US Sun+1}

^{4 grandviewresearch.com/press-release/global-convenience-stores-market}

^{5 National Association of Convenience Stores (NACS)}