3 food trends that are reshaping convenience stores

Fresh food, fast food, and private labeling are shaking up C-stores as the definition of convenience evolves.

This content was originally featured in the CSP Daily in October 2024.

It was the late 1960s when 7-Eleven introduced the world’s first to-go coffee. With this product, the company offered its customers convenience, speed and customization—all delivered in a simple paper cup.

Fast forward 60 years and takeaway coffee is still a mainstay of convenience stores, or C-stores. At the same time, modern customer needs have evolved and expanded. Shopping patterns have been disrupted. Even the gas pump is subject to change as the rise in ride-sharing and electric vehicles (EVs) reshape the market. In short, the definition of convenience has changed.

All of these trends, preferences and behaviors are redefining the concept of convenience—and the C-store category itself. So, what’s next for this segment? We’ll explore three emerging food trends that are redefining the C-store experience, and the steps operators can take to continue to deliver new levels of convenience, choice and customization to their guests.

Food trends that are reshaping the segment

1.    New focus on fresh food

The convenience store experience may be anchored at the pump, but company margins are made in the store.

For that reason, many C-stores have come to place greater emphasis on food and beverage sales, expanding selections to include pantry staples, healthier snack options, and fresh fruits and vegetables. For example, Wisconsin-based, family-owned Kwik Trip offers more than two dozen fresh bakery items each day and sources milk from dairy farms within a 100-mile radius of La Crosse, Wisconsin.

However, offering a wider selection of fresh foods has significant supply chain implications for C-stores. Stocking fresh products requires sophisticated logistics capabilities to meet precise transportation requirements, as well as new equipment to maintain consistent quality and temperature control. C-stores should also consider building strong relationships with local suppliers to reduce the risk of spoilage and maintain a steady flow of fresh items, as evidenced by Kwik Trip’s decision to source dairy products from local farms.

Bottom line: Offering more fresh food is a balancing act. By localizing parts of their supply chain, convenience stores can provide high-quality options while keeping costs down. However, they also need strong inventory management systems and logistics to minimize waste and maximize profitability.

2.    Becoming a QSR

In addition to serving basic grocery needs, C-stores are also increasingly operating as quick-serve restaurants (QSRs). In fact, one recent study found that between 2019 and 2023, dining visits to C-stores grew about 3%, making up about 27.1% of the discretionary dining category.

For example, Casey’s, which operates more than 2,500 stores across 16 states, is the fifth-largest pizza chain in the United States. While it may be one of the best-known examples of a C-Store QSR crossover, Casey’s is far from the only chain to make the shift. In recent years, Wawa, Sheetz and Buc-ee’s are among the brands recognized by Food & Wine magazine for great dining options.

This shift also has notable ramifications for supply chain management. Operating as a QSR requires a different set of logistics and inventory practices compared to traditional convenience store offerings. Fresh ingredients need to be sourced, stored, and replenished at a fast pace, often requiring multiple deliveries per week. Stores also must ensure they have the proper infrastructure to store and prepare fresh and raw ingredients.

While expanding into the QSR space offers significant growth opportunities, C-stores must embrace a comprehensive transformation strategy if they want to successfully reinvent their business and be recognized as a great dining option by the likes of Food & Wine.

3.    The shift to private label

C-stores are also increasingly shifting to private-label items. Like takeaway options, this is another important way to differentiate product offerings and drive loyalty in a crowded and sometimes hard-to-distinguish category.

For example, in 2023, 7-Eleven announced plans to add 150 new products, including oat milk smoothies, sparkling water and tortilla chips, to its existing catalog of 1,300 private-label items. As with the shift to private labels in the grocery segment, C-store brand expansions are in response to high inflation and price sensitivity from consumers. 

To succeed in this area, C-stores must effectively reinvent themselves as brands, taking on the responsibilities of sourcing raw materials, managing production, and developing compelling marketing and merchandising strategies. This transformation can boost customer loyalty and create a unique shopping experience. However, it also introduces challenges, such as potential tensions with existing brand partners and supply chain complexity, as the store takes on more ownership of its product offerings.

Winning loyalty: 4 ways to drive satisfaction and growth

As convenience stores increasingly emphasize food sales and related services, it's crucial to consider how they can implement new programs, features, and services that enhance the customer experience, foster guest loyalty, and drive growth. Here are a few ideas on how C-stores can adapt:

• Make the store “food ready.” If C-stores want people to shop for food in their stores, they need to make the space feel fresh and inviting. In addition to increasing the in-store selection of healthy snacks and pantry essentials, convenience operators must create a welcoming and appealing environment by improving cleanliness, lighting and displays, and by adding convenient features like self-checkouts to evoke the grocery experience. They may also add café-style seating to reinforce the idea that their snacks and meals are on par with those in QSRs.
  

• This puts C-store loyalty participation on par with restaurants and could be an effective way to drive retention and satisfaction among guests. Perks from these programs serve the primary purpose of encouraging repeat visits. However, modern loyalty programs have the added advantage of being a source of data about customers’ preferences and behaviors. With these insights, C-stores can fine-tune their offerings and create even more targeted promotions, ultimately increasing sales and customer lifetime value.
  
  
• Leverage technology for personalized experiences. As in the grocery sector, C-stores should consider how technology can be used to create excellent experiences. This might include integrating mobile apps with loyalty programs to offer real-time rewards and personalized promotions; leveraging in-store technologies like smart shelves to enable dynamic pricing that will allow stores to accommodate local events, weather, or even traffic patterns; and incorporating more digital signage to offer responsive ads to tailor promotions to specific times of day or customer demographics. By applying some of the best practices of retail and grocery experiences, C-stores can level up their shopper journey.
  
  
• Expand services that draw the customer into stores. The key to increasing in-store sales is offering services and features that draw people through the door. For example, stores that plan to offer EV charging stations may incorporate lounge-style seating or even Wi-Fi to encourage drivers to relax with a drink and snack as they wait for a recharge. In addition, personalized promotions at the gas pump can be used to drive customer foot traffic into the store.

The definition of convenience may be broader than ever, but for C-store operators the opportunity has never been bigger. With the right products, services, programs and technology solutions, it’s possible to offer guests an experience that keeps them coming back.