What's Happening?
The National Association of Convenience Stores (NACS) is emphasizing the importance of foodservice as a growth opportunity for convenience stores. During the 2025 NACS Show in Chicago, NACS President and CEO Henry Armour, along with his successor Frank
Gleeson, highlighted the potential of foodservice to drive in-store sales. Gleeson, who will assume the role of NACS President and CEO in January, noted that foodservice sales accounted for 28.7% of in-store sales in 2024, a significant increase from 11.9% in 2004. The convenience store industry is increasingly capturing market share from quick-service restaurants (QSRs), leveraging their proximity to customers and ability to cater to multiple day parts. Armour stressed that convenience stores should not merely benchmark against other stores but should aim to compete with QSRs by adopting their fast market execution and menu flexibility.
Why It's Important?
The focus on foodservice represents a strategic shift for convenience stores, aiming to enhance customer loyalty and increase foot traffic. By capturing more market share from QSRs, convenience stores can diversify their offerings and strengthen their position in the retail sector. This shift is crucial as traditional sales from fuel and packaged goods face challenges from evolving consumer preferences. The emphasis on foodservice allows convenience stores to tap into the growing demand for ready-to-eat meals and beverages, potentially leading to increased profitability and sustainability in a competitive market. The industry's ability to adapt and innovate in foodservice could redefine its role in the retail landscape.
What's Next?
As Frank Gleeson prepares to take over as NACS President and CEO, the organization is likely to continue advocating for enhanced foodservice strategies. Convenience stores may invest in infrastructure and technology to improve their foodservice offerings, focusing on quality, variety, and speed of service. Stakeholders in the industry might explore partnerships with food suppliers and technology providers to streamline operations and enhance customer experience. The ongoing competition with QSRs will drive convenience stores to innovate and differentiate their offerings, potentially leading to new business models and marketing strategies.
Beyond the Headlines
The shift towards foodservice in convenience stores could have broader implications for the retail and foodservice industries. It may influence consumer behavior, encouraging more frequent visits to convenience stores for meals rather than just fuel or snacks. This trend could also impact urban planning and real estate, as convenience stores become more integral to community infrastructure. Additionally, the focus on foodservice might lead to increased scrutiny on health and nutrition standards, prompting stores to offer healthier options and transparent ingredient sourcing.
