Convenience retail’s biggest challenges are out of control.
Allow me to clarify. CSP’s upcoming 2026 Outlook Report makes it clear that the top concerns of convenience executives are factors largely outside their control. Macroeconomic pressures—slowing GDP growth, stubborn inflation and tighter consumer budgets—are reshaping the industry in ways no retailer can change.
As a senior economist at Upside, I analyze billions of real-world transactions to understand how price sensitivity, inflation and competition affect where people shop and what earns their repeat business.
The future of convenience retail will be decided by one thing: how well retailers execute the strategies within their control.
If external pressures are unavoidable, execution will set retailers apart. Those who emerge strongest from this period will be focused on the levers within their reach, invest in them decisively, and carry them out with discipline.
Two areas stand out to me: technology and foodservice.
Technology: From tools to impact
When CSP asked which tech might have the greatest impact in the next two years, the top answers were the following: automation; artificial intelligence and machine learning; and mobile app experience.
Though implementing AI is easier said than done, the technology has immense potential for c-store retailers. And most are already exploring how it can help them—77% of businesses say they are either using or exploring the use of AI. To this point, we’re seeing forward-thinking operators using it for scheduling, demand planning and personalization—and the use cases will only expand from here.
Personalization, in particular, appears to be an area retailers feel they need to focus. When CSP asked which areas of the tech stack are most in need of modernizing, 75% named loyalty and personalization.
Interestingly, the three most popular responses to that question were all customer-facing systems—a clear signal that operators see stronger consumer connections as the next frontier.
Now, technology on its own isn’t the differentiator. With an overwhelming menu of systems to choose from, the retailers who succeed are those who resist chasing every option and instead invest their limited time and money in solutions that deliver a clear, measurable ROI. Technology is never the goal but a means to customer value and business profit.
Foodservice: A hedge against fuel decline
Fuel demand continues to slip—Upside data shows a 1.5% year-over-year drop in average gallons sold per station. That pressure is pushing operators to look elsewhere for growth, and foodservice has emerged as the most powerful lever.
The numbers speak clearly. NIQ data shows that convenience stores with a foodservice share above 20% are growing total sales by 3.9%, with foodservice alone contributing nearly 30% of that growth. By contrast, the channel overall is flat, and independents are in decline—yet even for those operators, foodservice is the only bright spot.
This is more than diversification; it’s a path to sustainable growth. Prepared food remains a constant consumer need, and the retailers executing well in this category are vastly outperforming their peers. Fuel demand may be outside of any operator’s control, but the quality, consistency, and execution of food programs are firmly within it.
The differentiators: execution and investment
From my perspective, the initial findings of the report point towards a two-pronged differentiator: execution and investment.
Technology and foodservice are the strongest levers within reach, but both require upfront investment to succeed. Modernizing loyalty systems, deploying AI across operations, or elevating food programs all demand capital and leadership commitment. What separates leaders from laggards is not whether they pursue these strategies, but how selectively they fund them and how consistently they deliver on them.
The industry’s most pressing challenges—economic pressure, price sensitivity, and fuel decline—will remain outside retailers’ control. But the future will be defined by who invests early and executes well. Those that do will build resilience and growth; those that don’t risk being left behind.
Dr. Thomas Weinandy is senior research economist at Upside, where he leads the company’s industry research and analyzes billions of real-world transactions to uncover meaningful trends in consumer behavior.
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