GPM Investments and parent company Arko Corp. see a golden opportunity in foodservice.
The strategy shift comes as the convenience retailer reports significant declines in core categories like fuel and cigarettes.
The retailer during its first-quarter earnings call last week revealed a new branded food offering called Fas Craves, which will be available in a remodeled Fas Mart store in its hometown of Richmond, Virginia.
That’s the first of seven remodels that are part of an Arko pilot project. A second remodel is slated to begin later this month, with all stores scheduled to be completed by the end of the year.
“The pilot stores are expected to include an expanded and refined merchandise assortment with an announced in-store experience and focus on food centered on hot and fresh Grab-n-Go food, bakery, pizza, roller grill and other prepared foods, including our new branded food offering, Fas Craves,” Arko President and CEO Arie Kotler told analysts last week, according to a transcript from financial services site AlphaSense.
- GPM Investments is No. 7 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
Reimagining foodservice has been a focus of the retailer’s strategy for quite some time. The company announced last August that it would go ahead with its pilot program of store remodels.
“Even though we manage the business effectively and deliver results above the midpoint of our guidance, I have higher expectations for the business,” Kotler said during the first-quarter call. “This quarter, persistently high inflation and high consumer debt put increased financial pressure on lower and middle-income households, especially the communities where many of our stores are located.”
Each remodel costs between $700,000 and $1.1 million, the company said.
“The idea is really to take the initial learning and then basically apply them across a whole region and then we’re going to continue to go,” said Kotler, who added that he hopes to see positive results from the stores in 2026.
For the quarter ended March 31, Arko reported a net loss of $12.7 million, compared to a net loss of $600,000 million a year ago.
Same-store fuel gallons sold decreased 6.2%, compared to a 6.7% decline a year ago.
Same-store merchandise sales, excluding cigarettes, fell 5.2% compared to a year ago, while total same-store merchandise sales dropped 6.9%.
GPM Investments is a wholly owned subsidiary of Arko Corp, operating more than 1,500 stores under more than 25 regional store banners, including Fas Mart, Li’l Cricket and Scotchman.
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