Amid the challenges faced by the foodservice industry over the last few years, competition from convenience stores seeking to capture the fast-food customer is on the rise. Whether it’s due to declining cigarette sales or simply recognizing the opportunity for growth, convenience stores are becoming a fast-food destination for many consumers.
Convenience store foodservice grew five per cent in 2024 and is predicted to increase another 5.7 per cent this year. With 85 per cent of consumers saying they’ve tried made-to-order meals from a convenience store, they are quickly becoming a food destination.
In Canada, convenience stores have evolved from simply fuel stations to places for fresh food, high-quality coffee, and prepared meals. This shift echoes a growing consumer preference for fast, easy, grab-and-go choices, and c-stores are certainly embracing this trend.
One advantage convenience stores have is adaptability. Not being tied to a specific menu, they are open to switching up the offerings to suit trendy consumer preferences, adding seasonality, or offering a last-minute LTO quickly. Another is the ability to offer multiple services at the same time. Convenience stores can serve customers looking to get gas and purchase a meal (or almost any other item) in one stop.
Convenience store customer habits are changing, as demonstrated by some interesting behavioural data, including:
- Hot meal orders jumped from 29 per cent to 35 per cent year over year as more consumers see convenience stores as fast-food destinations.
- Salads rose from 20 per cent to 25 per cent, showing that consumers are not simply looking for junk food from the convenience store.
- 43 per cent of consumers say the food is just as fresh as what they’d get at a QSR or grocery store, showing the growing confidence in convenience store food items.
How can restaurants best compete with convenience stores? As consumers continue to watch their pennies, operators will need to go back to the basics, focusing on value to drive traffic and retain customers. Restaurateurs who can master adding maximum value per visit, whether through price, experience, or convenience, will be able to attract today’s price-conscious customers.
