C-Stores Declare War on Fast Food: Foodservice is the New Fuel

By Tax assistant

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C-Stores Declare War on Fast Food: Foodservice is the New Fuel

The battle for the quick meal is heating up, and convenience stores (c-stores) are going head-to-head with Quick-Service Restaurants (QSRs).

At the recent 2025 NACS Show, the message from the industry leadership was clear: Evolve your food, or risk your future. With prepared food sales soaring, c-stores are now seeing themselves as culinary competitors, not just gas stops.

Why Food is the Future of Convenience

The shift is driven by undeniable sales data and smart strategy:

  • Massive Growth: Foodservice sales (prepared food, beverages) now account for 28.7% of in-store sales, up sharply from just 11.9% two decades ago.
  • Prime Real Estate: NACS President-elect Frank Gleeson noted that c-stores have the “best real estate in the world”—they are the closest to the customer and can capture sales across multiple day parts. You fill your car once a week, but you fuel your body three or four times a day.
  • Driving Foot Traffic: While fuel and packaged goods are staples, food is the biggest draw, driving customers into the store who then purchase other items.

The Menu is Getting an Upgrade

C-store operators are investing heavily in quality to produce truly “restaurant-quality food.” This is not your grandfather’s hot dog roller:

  • Global Fare: The NACS Show featured sophisticated offerings like fresh-fried spanikopita with couscous and Salvadoran pupusas with dipping sauces.
  • Custom Beverages: The drink game has leveled up dramatically, with customizable stations for iced coffee, refreshers, and hot chocolate, featuring flavored syrups, creams, and toppings.

The New Competitive Target

A critical point from former NACS CEO Henry Armour: C-stores must stop benchmarking against the store down the street.

“If you’re really going to do it, your competitive set is QSRs, quick-service restaurants.”

To win, c-stores must focus on QSR strengths: speed-to-market, flexible menu execution, and consistent quality. By prioritizing fresh, made-to-order, and customized food, convenience stores are capturing market share and building deep customer loyalty that fast-food chains now have to fight to win back.

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