Restaurant competition from convenience stores has been steadily rising in the last few years, with recent data suggesting that 72 per cent of consumers now view c-stores as viable alternatives to QSRs, up from 56 per cent a year ago.
As convenience stores continue to work to attract more customers for food purchases, many are adding customizable options like build your own pizzas and adding technology to draw in younger consumers – and 60 per cent of these stores have reported continued foodservice sales growth.
As more people see convenience stores as food destinations, many operators are using data to tweak their menus. There has been growth in taquitos and tornados (up 15 per cent), fresh bakery breakfast items (up 7 per cent), and French fries (up 8 per cent). At the same time, many c-stores are reducing traditional offerings like hot dogs (down 22 per cent), prepared salads (down 18 per cent), and desserts (down 20 per cent). These adjustments reflect convenience stores’ shift to higher-quality, higher-margin food items to drive traffic, raise revenues, and offer an elevated experience for customers.
Circle K recently upgraded its food menu to add value and provide a better dining experience. The menu revamp included improving its hot sandwich and burgers lineup, pizza and cookies. This includes larger patties for the burgers, larger croissants for the sausage, egg and cheese sandwich, more cheese on the bacon cheeseburger, daily freshly baked cookies and baked pizza. As well, the retailer advertises that all menu items are prepared in Canada.
7-Eleven is planning to remodel at least 7,000 convenience stores in North America through 2030 to adopt a large format, food-focused design. The retailer reports that stores with that design bring in 30 per cent more traffic and are expected to yield 44 per cent more sales than the traditional stores.
Experts predict continued growth in convenience store food sales, expanding to adopt trendy options like protein-centric snacks, upgraded beverages, value meals, and targeted promotions for GLP-1 users. Some convenience store chains are even adding gaming stations, partnering with larger restaurants, and creating lounging areas to upgrade from a strictly transactional destination to a social spot. More steps in this direction means that convenience stores add even more competition for today’s restaurant operators.
