Americans’ appetite for fresh foods drives consolidation in convenience stores

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In the US, consumer spending at convenience stores (c-stores) that offer fresh foods and beverages is increasing. These enhanced c-stores, often housed in upgraded and larger locations, with dine-in options, now account for 58% of all spending at c-stores, up from 48% five years ago. Data indicates that c-stores offering a broader range of fresh food options have experienced higher traffic growth compared to traditional c-stores and even quick-service restaurants (QSRs). 

The ongoing transition of c-stores from retail to foodservice operations is a strategic move led by large players. These c-stores hold a competitive advantage, allowing them to capitalize on more complex operations and marketing activities due to their access to capital, foodservice expertise, and potential economies of scale. This competitive edge is evident in recent expansion plans and acquisitions, suggesting that more consolidation is on the horizon. Larger chains are likely to further engage in geographical expansion, store retrofits, and M&A activity. Download the report to keep reading…