Convenience stores have suffered year-over-year decreases in trips and fuel volume.
This news comes from David Portalatin, senior vice president and food industry advisor at Chicago-based Circana, who spoke Tuesday at CSP’s C-Store Foodservice Forum in Schaumburg, Illinois.
While foodservice traffic is down 3% from a year ago ending March 2025, foodservice dollar sales are up 2% and the average check is up 5%, Portalatin said.
“Foodservice traffic to c-stores is down year over year, but dollar growth kept pace with quick-serve restaurants (QSRs) in the first quarter of 2025,” he said.
Food-forward c-stores have outperformed others in seven of the past eight quarters, he added, noting that QSRs have grown traffic every quarter since at least 2023’s first quarter.
Portalatin defined food-forward c-stores as Buc-ee’s, Casey’s, Cumberland Farms, GetGo, Kwik Trip, Maverik/Kum & Go, Pilot Flying J, QuickChek, QuikTrip, RaceTrac, Royal Farms, Rutter’s, Sheetz and Wawa.
During morning hours, c-store meal traffic held steady while lunch and dinner declined in first-quarter 2025, he said.
However, Portalatin said, convenience is losing dollars and buyers at the breakfast occasion. Among those who have purchased breakfast at a c-store, they give only 9% of their breakfast wallet to c-stores while giving 77% of their wallet to QSRs.
But, he added, there are “opportunities for growth if you have the complete picture,” pointing out menu items that are growing the share of trips at QSRs.
For example, at Dunkin’, it’s doughnuts, Munchkins, espresso and cold brew with sweet foam. At McDonald’s, it’s the steak, egg and cheese bagel; sausage burrito; and strawberry and creme pie. At Starbucks, it’s espresso, blond roast and hot chocolate. At Taco Bell, it’s the Breakfast Crunchwrap.
“With a large overlap of buyers between c-stores and fast-casual QSRs, fast-casual trends can’t be ignored,” Portalatin said, noting that 85% of c-store customers also visit fast-casual locations.
“Growing foods include a mix of traditional QSR options along with products perceived as healthful,” he said.
Items on the Rise
Portalatin noted six foodservice items that are growing in popularity: fries, chicken strips and wings, burrito bowls, salads, grilled chicken sandwiches and bagels.
While the number of foodservice deals being offered is consistently growing, growth slowed to 1% in the first quarter of 2025,” Portalatin said, noting the top five types of deals being offered:
- Combined item special: 21%
- Coupon: 19%
- Daily special: 17%
- Discounted price: 17%
- Buy some/get some: 12%
Value meals, meanwhile, are slowing.
“After gaining momentum through the third quarter of 2024, value menu growth slowed in the fourth quarter and traffic turned negative in the first quarter of 2025,” he said. “Individual value menu performance continues to be mixed among chains.”
Conversely, nostalgia-based promotions are more successful at providing a long-term lift to chain transactions, Portalatin said. The percentage of chains that experienced a lift vs. the pre-period was 75% for nostalgia vs. 57% for value meal deals.
“Often offered at a premium price point, nostalgic promotions are more likely than value meals to lift transactions,” he said.
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