Americans Favor C-Stores

Convenience Stores Surge in Growth

According to Supermarket News, the average American spends $1,200 a year at quick service restaurants. The fast food trend is nothing new, but it is one that is experiencing rapid growth in the convenience store sector. Both drive through restaurants and grocery stores are steadily taking a back seat to c-stores which continue to expand and level up food service offerings, have become an integral component of tackling food desert obstacles and are changing the definition of convenience in the food industry.

Focusing on Food

C-store growth has climbed in recent years becoming a $51 billion dollar industry in 2024. It is expected to grow to a value of $58 billion by 2029 primarily driven by increased food sales. Focusing on food has been a strategic move for the corner stores and gas station outposts typically associated with candy, soda fountains and tobacco. The pace of growth suggests that it could disrupt the food service industry, changing how and where consumers purchase food.

It’s not just that consumer spending habits are shifting. C-stores have made smart and strategic moves to shift in time with their patrons. Americans want fast food, but they also want healthier high quality options. Convenience stores, already known for providing basic packaged and canned food necessities and a quick shopping experience are expanding varieties of ready made food options. 

If you swing by your local 7-11 you can still get a slurpy, but you can also order up your favorite flavor of boneless wings. Better yet, you can have both delivered to your door in a matter of minutes. Corner stores now offer pizza, burgers, wraps and salads at affordable price points. The new Maverick gas station in your town will sell you fuel, the candy bars you expect, and if you want more than a snack, you can stop by their BonFire Grill which serves freshly prepared food all day. Sheetz and Buc-ees stores have developed into food destinations where consumers make it a point to stop and eat everything from bar-b-que, to sub sandwiches, to yogurt parfaits, and fresh baked goods while they fuel up.

Location, Location, Location

Unlike large grocery store chains, you can find c-stores everywhere. Not all small towns in America have a supermarket, but almost all of them have a gas station convenience store that offers a grab and go menu. In urban areas these types of stores can be found blocks apart from each other. 

Part of the growth trajectory is attributed to location. In food deserts c-stores are filling a food gap with options that are a step up in quality from many fast food, drive through options but are still affordable and accessible. In many cases, the stores are owned and operated by local residents who have an in-depth understanding of community needs and are positioned to provide solutions faster than larger grocery chains, thus attracting shoppers who typically make purchases elsewhere but would prefer to shop closer to home or value the variety of options a c-store provides. 

Because of this, c-stores are also capturing more middle income shoppers who have access to multiple grocery retailers and are choosing to spend more at the corner store than ever before.  According to Cobank, in-store sales in the c-store category increase by 12.2% in 2023 due to food purchases. The average amount of items purchased per customer grew by 3.7% amounting to just under eight dollars per person. 

Loyalty programs, generic brand lines and a wider variety of options have contributed to growth. From the perspective of c-store owners, fast food chains are their greatest competition. In order to claim more of the market they must deliver something of greater value. Pairing a carwash with a discounted food item generates repeat customers and is something McDonald’s can’t offer its customers.

Food institute researchers say American consumers are on the hunt for value and uniqueness. Stores that offer both are seeing growth.  Exactly what is valuable is changing. Consumers rate c-stores higher than quick service restaurants when it comes to food service value, believing that fast food has become too expensive and is too unhealthy, while convenience stores allow for multitasking and usually a more nutritious food choice. These same factors have allowed Trader Joes to edge ahead of Whole Foods and Walmart to see massive growth while other grocery chains struggled.

C-store chains are also creating economic impact in the form of jobs. The popular Sheetz chain is currently constructing a food distribution center in Ohio which will serve all new Midwest stores. The distribution center is expected to create 700 new jobs in addition to the hundreds of jobs new stores will produce from Michigan to Ohio. Between well known chains and mom and pop owned buildings, c-store models account for 2.74 million jobs in the United States and provide great opportunities for individuals entering the labor force.  

Will C-Stores Overtake Supermarkets?

While the traditional supermarket isn’t likely to be ousted by convenient corner stores, the c-store model continues to scoop up larger portions of food sales. A staggering 91% of c-stores plan to increase and expand their food service options.  Already, 60% of consumers see c-stores as valuable food destinations and of those, 25% say they regularly purchase a meal from a convenience store.

The next leg of  growth for c-stores is expected to include as much customization as possible. From flexible dietary choices and wellness considerations to innovative ordering and delivery systems that allow personalized meals to still be grab and go, convenience is still the name of the game. Minimal packaging, traceability and sustainably sourced food options are trending among American consumers and c-store are already working to match their offerings to these demands.

For those who remember running down the road on foot to grab a forgotten diner item from the local grocery, a return to corner stores might be welcomed. It is certainly an interesting swing going from local bakeries, butcher shops and farm stands to super grocery centers like Costco. Perhaps the corner convenience store is the happy medium we’ve been looking for.