It was the late 1960s when 7-Eleven introduced the world’s first coffee to-go. With this product, the company offered its customers convenience, speed and customization—all delivered in a simple paper cup.
Fast forward 60 years and takeaway coffee is still a mainstay of convenience stores. At the same time, modern customer needs have evolved and expanded. Shopping patterns have been disrupted. Even the gas pump is subject to change as the rise in ridesharing and EVs reshape the market. In short, the definition of convenience has changed.
All of these trends, preferences and behaviors are redefining the concept of convenience—and the c-store category itself. So, what’s next for this segment? Here are three emerging food trends that are redefining the convenience-store experience and the steps operators can take to continue to deliver new levels of convenience, choice and customization to their guests.
- Focus on fresh food. The convenience-store experience may be anchored at the pump, but company margins are made in the store. For that reason, many c-stores have come to place greater emphasis on food and beverage sales, expanding selections to include pantry staples, healthier snack options and fresh fruits and vegetables.
With 30% of sales and 40% of gross profits for c-stores coming from foodservice, this topic is more relevant than ever.
For example, Wisconsin-based, family-owned Kwik Trip offers more than two dozen different fresh bakery items each day, and sources milk from dairy farms within a 100-mile radius of La Crosse, Wisconsin.
- Becoming a QSR. In addition to serving basic grocery needs, convenience stores are also increasingly operating as quick-serve restaurants (QSRs). In fact, one recent study found that between 2019 and 2023, dining visits to c-stores grew about 3%, making up about 27.1% of the discretionary dining category.
For example, Casey’s, which operates more than 2,500 stores across 16 states, is the fifth-largest pizza chain in the United States. While they may be one of the best-known examples of a c-store-QSR crossover, they’re far from the only chain to make the shift. In recent years, Wawa, Sheetz and Buc-ee’s are among the brands recognized by Food & Wine magazine for great dining options.
- The shift to private label. Similar to the expansion into the QSR world, c-stores are also focused on the shift to private- label items. Like takeaway options, this is another important way to differentiate the product offering and drive loyalty in a crowded and sometimes hard-to-distinguish category.
For example, in 2023, 7-Eleven announced plans to add 150 new products, including oat milk smoothies, sparkling water and tortilla chips, to their existing catalog of 1,300 private-label items. As with the shift to private labels in the grocery segment, c-store brand expansions are in response to high inflation and price sensitivity from consumers.
Winning Loyalty: 4 Ways to Drive Satisfaction and Growth
As convenience stores increasingly emphasize food sales and related services, it's crucial to consider how they can implement new programs, features and services that enhance the customer experience, foster guest loyalty and drive growth. Here are some ways c-stores can take advantage of this opportunity.
- Make the store “food ready.” If c-stores want people to shop for food in their stores, then they need to make the space feel fresh and inviting. In addition to increasing the in-store selection of healthy snacks and pantry essentials, convenience operators should take steps to make stores “food ready.” This involves creating a welcoming and appealing environment by improving cleanliness, lighting and displays and adding convenient features like self-checkouts to evoke the grocery experience. They may also add café-style seating to reinforce the idea that snacks and meals offered on-site are on-par with QSRs.
- Expand loyalty programs.A recent industry study revealed that 50% of c-store customers enroll in a loyalty program when offered, and another 19% say they’d do so if one was available. This puts loyalty participation on par with restaurants and could be an effective way to drive loyalty and satisfaction among guests.
- Leverage technology for personalized experiences. As in the grocery sector, c-stores should consider how technology can be used to create excellent experiences. This might include offering personalized promotions and responsive ads, as well as enabling dynamic pricing to accommodate local events, weather or even traffic patterns. For example, a store may be able to send a frequent customer enrolled in a loyalty program a special offer for their daily coffee order when they notice that the person hasn’t been into the store in several days. In advance of an upcoming sporting event, stores can put tailgate or party items on sale to encourage people to stock their pantry while they fill their tank. By applying some of the best practices of retail and grocery experiences, c-stores can level up their shopper journey.
- Expand services that draw the customer into stores. The key to increasing in-store sales is offering services and features that draw people through the door. For example, stores that plan to offer EV-charging stations may incorporate lounge-style seating or even WiFi to encourage drivers to relax with a drink and snack as they wait for a recharge. In addition, personalized promotions at the gas pump can be used to drive customer foot traffic into the store.
The definition of convenience may be broader than ever, but for c-store operators the opportunity has never been bigger. With the right products, services, programs and technology solutions, it’s possible to offer guests an experience that keeps them coming back.
Cham Silvy is assistant vice president and Strategic Business Unit Head, Retail of Cognizant, an information technology services and consulting firm.
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