About 58% of convenience-store operators are optimistic that business will be better in 2025, with about 19% expecting a downturn.
That’s according to CSP’s 2025 Outlook Survey, which was open to convenience-store retailers from Oct. 4 through Nov. 4.
These numbers are an improvement on last year, however, when 52% of those surveyed were optimistic for 2024.
Click through to see what c-stores’ main challenges are, what technology they’re focused on and more for 2025.
Business Conditions
The ability to hire and retain employees, at 46%, was the top business challenge c-stores face today, taking first place by about 6 percentage points over economic conditions/inflation and increased competition from other c-stores, which tied at 40.6%.
These responses were similar to those in last year’s survey. Although “ability to hire and retain” also finished first last year, it scored 10 percentage points higher then, at 56%. Meanwhile, “employee turnover/labor,” at 42%, finished second last year, and “economic conditions/inflation” finished third, at 37%.
In addition to being the top business challenge c-stores face today, the ability for convenience stores to hire and retain necessary workforce was the top item, with 56.4% of respondents saying it would most affect their business in 2025.
Placing second was fuel margin volatility, followed by growing traffic/store visits.
The top concern was the same in 2024, when 55.8% of respondents said their biggest business challenge was the ability to hire and retain necessary workforce.
This was followed by employee turnover/labor at 42.3% and economic conditions/inflation at 36.5% in the 2024 survey. “Growing traffic/store visits” and “wage inflation” tied for fourth at 30.8%.
Labor and Hiring
Taking a deeper dive into labor challenges, the survey found that finding people who are qualified for the position was the top barrier retailers faced with labor and hiring. This was followed by retaining employees and getting enough job applicants.
Tobacco
The biggest threat to the tobacco category in 2025 is consumers smoking less (25.5%) followed closely by excise taxes (25%), respondents said. Third is the proliferation of illegal vapor products.
Youth tobacco product use reached a 25-year low in 2024, the Centers for Disease Control reported.
When it comes to adult tobacco use, nearly 1 in 5 U.S. adults reported current tobacco product use in 2022, according to the latest available data from the CDC. Cigarette smoking among adults has declined over the past decades, the agency said.
Josh Strawn, category manager for Circle K’s Southeast division, said the biggest threat to the tobacco category is regulation. The industry has been waiting for four-plus years to get answers from the Food and Drug Administration (FDA) on what products c-stores can sell in the vapor segment, he said. State and other local flavor bans also are a hindrance to growth.
“At the same time the new modern oral category is growing significantly,” Strawn said.
Fuel
Survey respondents projected the greatest effect on fuel demand in 2025 to be electric vehicles (EVs), with about 27% of respondents choosing EVs as the top answer—the same percentage as last year.
In the second quarter of 2024, the number of EV-charging ports in the U.S. Department of Energy’s (DOE) Station Locator grew by 6.3%, or 12,485 EV-charging ports, bringing the total number of ports to 211,382. Public EV-charging ports account for most of the ports in the Station Locator, and grew by 6.5% in the second quarter. The most substantial percentage growth in public charging infrastructure during the second quarter was in the Northeast, with a 13.2% increase in EV-charging ports; however, California continues to lead the nation in the number of public EV-charging ports with 26.3% of all public charging ports, according to DOE.
Changing consumer behavior was another top answer that survey respondents said would affect gasoline demand. The percentage of respondents that selected that answer dropped more than 10 percentage points from last year, though.
Other top answers included fuel prices and regulations, plus, one respondent said that “employees required to be in office” could have an effect on fuel demand.
Adding biodiesel was the most common change that survey respondents said they would make to their fuel offering in 2025, at 51%. Next was adding EV chargers, at 42%, which dropped from being the No. 1 change last year.
Technology
The top three technologies that respondents said their c-stores leverage are loyalty programs, digital menu boards and online ordering.
“Consumers expect fast transaction times based on online shopping experience,” said Kenneth England, director of retail technology at Majors Management LLC/MAPCO Express, Lawrenceville, Georgia. “Upgrading tech on the front side of the house allows us to offer a faster transaction as well as makes it easier for our clerk to complete their side of the transaction.”
The technology has to work in partnership with employees, though. England said that the store employee who is operating the system is often forgotten.
“If it's easy to operate the system, and they can do it without much thought, they are able to engage the customer from both an upselling approach and a pleasant transaction,” he said. “When the clerk is frustrated with completing a transaction, that clearly comes across in their interaction with the customer.”
In the back of the store, the technology upgrades are focused on widening opportunities for managers to oversee operations in the store instead of being stuck in the back, keying in data, England said.
Other back-of-the-store upgrades concern applications with which consumers interact.
“If you're using digital media, customer facing apps, etc., they have to be working and at the necessary speed to function,” England said. “There's nothing more frustrating than using a retailer's app that doesn’t work in their store.”
“Consumers expect fast transaction times based on online shopping experience.” —Kenneth England, Majors Management LLC/MAPCO Express
Foodservice
Foodservice equipment upgrade was the top amenity that convenience retailers planned to add in 2025. It beat out frictionless transactions, mobile ordering and delivery.
In the 2024 outlook survey, “foodservice equipment upgrade” was not one of the options. The top choice was “frictionless transactions” at 62%. “Delivery” and “mobile ordering” tied for second at 50%, and “curbside pickup” finished fourth at 29%.
At Stinker Stores, Boise, Idaho, Billy Colemire, vice president-marketing and brand, said they are very happy with Menomonee Falls, Wisconsin-based Alto-Shaam’s H4H Multi-Cook Oven.
“It has four independent chambers, so it’s almost like four different ovens because each chamber has its own time, temperature and fan settings,” Colemire said. “It’s super easy to use.”
The c-store chain also is working on a pilot program in about 20% of its stores with Atlanta-based UpDog, which offers an artificial-intelligence program that monitors roller grills with a camera. UpDog analyzes sales patterns, time of day and traffic trends to create tailored strategies for each station, ensuring optimal product placement and preparation. The program also conducts real-time monitoring, ensuring grills are consistently stocked, clean and compliant.
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