Restaurants are increasingly taking foodservice occasions from convenience stores, Robert Byrne, senior director of consumer research at CSP sister research arm Technomic, Chicago, said Wednesday at CSP’s Dispensed Beverages Forum.
Among restaurant consumers who considered retailers for a foodservice occasion away from home, 10% considered c-stores, but did not select them, in 2023, said Byrne, citing Technomic data at the presentation Dispensed Beverage Competition: Hotter Than Ever in Lombard, Illinois.
That number jumped to 14% in 2024, meaning more foodservice occasions where a c-store was considered ended up being won by a restaurant, Byrne said, adding that 14% said, “‘I would have gone to a c-store but ended up at a restaurant.’”
“This means c-stores are in the consideration set among those considering c-stores, but more are picking restaurants,” he added.
Dispensed beverage is a category c-store retailers should pay attention to, as restaurant menu growth exceeds that of other meal parts, Byrne said. Referencing the Technomic white paper Why Is Dirty Soda Suddenly Everywhere?, Byrne said that in a recent one-year period, there was 10.1% menu growth in cold beverages and 8.4% growth in frozen beverages. Compare this with growth elsewhere:
- Nonalcohol beverage: 7.9%
- Kids menu: 5.2%
- Side: 5.0%
- Add-on: 5.0%
- Appetizer: 2.1%
- Dessert: 2.1%
- Entrée: 1.0%
Drive-thrus are an area creating difficulty for c-stores to compete, as most c-stores don’t offer this convenience. In a recent Technomic Consumer Trends Report, 48% of those surveyed said that for beverage-only orders, they are more likely to use a drive-thru. That percentage jumps to 53% for those 18 to 34.
In addition, c-stores aren’t doing themselves any favors in the customer experience area, “significantly” lagging quick-service restaurants (QSRs), Byrne said. In a 2024 Technomic survey, the percentage of those who rated c-stores and QSRs in five categories as “very good” was:
- Order accuracy: 44% c-stores, 62% QSRs
- Convenient location: 44% c-stores, 55% QSRs
- Speed of visit: 44% c-stores, 52% QSRs
- Overall beverage quality: 43% c-stores, 54% QSRs
- Quality of the coffee: 43% c-stores, 47% QSRs
Compounding this problem is the expected change in foodservice use, Byrne said, noting that 59% of respondents in a 2025 first-quarter survey said their drive-thru use would increase significantly, increase slightly or stay the same in the next three months. Meanwhile, 32% said use would decrease slightly or significantly.
Byrne then shared a quote from Howland Blackiston, principal at Westport, Connecticut-based King-Casey:
“If c-stores are truly going to be competitive with QSRs and fast casuals in the foodservice arena, they need to look at the convenience of having a drive-thru because that’s everything to consumers.”
Some notable drive-thru coffee chains that are quick-service restaurant growth leaders:
- 7 Brew Drive-Thru Coffee: 163% growth from end-of-year 2023 to end-of-year 2024
- Scooter’s Coffee: 29% growth in the same time frame
- Dutch Bros Coffee: 26% growth in the same time frame
Want to learn more about foodservice? Register for CSP’s Foodservice Forum in June here.
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