What's Happening?
The National Association of Convenience Stores (NACS) has identified foodservice as a significant growth opportunity for the convenience store industry in the United States. During the 2025 NACS Show in Chicago,
NACS President and CEO Henry Armour, along with his successor Frank Gleeson, emphasized the importance of enhancing foodservice offerings to remain competitive. In 2024, foodservice sales accounted for 28.7% of in-store sales at U.S. convenience stores, a substantial increase from 11.9% in 2004. This growth is attributed to the industry's ability to capture market share from quick-service restaurants (QSRs) by leveraging their proximity to customers and offering multiple meal options throughout the day.
Why It's Important?
The focus on foodservice represents a strategic shift for convenience stores, traditionally known for selling fuel and packaged goods. By expanding their foodservice offerings, convenience stores can attract more customers and increase sales. This shift is crucial as it allows these stores to compete with QSRs, which have been dominant in the fast-food sector. The ability to offer fresh, prepared foods can enhance customer loyalty and drive repeat business, providing a competitive edge in a crowded market. This trend also reflects broader changes in consumer preferences towards convenience and quality in food options.
What's Next?
As the convenience store industry continues to evolve, stakeholders are likely to invest in improving their foodservice capabilities. This may include menu diversification, enhancing food quality, and adopting new technologies to streamline operations. The competition with QSRs will likely intensify, prompting convenience stores to innovate and differentiate their offerings. Industry leaders may also explore partnerships with food brands to enhance their product range. The success of these initiatives will depend on the ability of convenience stores to adapt quickly and meet changing consumer demands.