What's Happening?
David Portalatin, a senior vice president and industry advisor at Circana, addressed the need for convenience stores (c-stores) to shift their focus towards higher-income consumers. Speaking at CSP’s Foodservice Forum in Schaumburg, Illinois, Portalatin challenged
the traditional view that c-store customers are predominantly lower-income. He highlighted that the growth in the restaurant sector is primarily among households earning over $100,000 annually. These consumers are frequenting not just fine-dining establishments but also popular chains like McDonald's, Starbucks, and 7-Eleven. Portalatin emphasized that c-stores have the potential to attract these consumers by offering value and deals, which are increasingly driving restaurant traffic. He noted that c-store foodservice traffic saw its first increase in nine quarters during the first quarter of 2026, outperforming quick-service restaurants in terms of traffic and average check size.
Why It's Important?
The shift towards targeting higher-income consumers represents a significant strategic pivot for c-stores, which have traditionally catered to a different demographic. By appealing to wealthier consumers, c-stores can tap into a lucrative market segment that has more disposable income. This could lead to increased sales and profitability for c-stores, especially as they compete with quick-service restaurants for foodservice occasions. The emphasis on value and deals aligns with current consumer behavior trends, where nearly one-third of all commercial foodservice traffic is driven by promotional offers. Successfully attracting higher-income consumers could also help c-stores mitigate competitive pressures from quick-service restaurants, particularly in the late-night foodservice market.
What's Next?
C-stores are likely to continue refining their strategies to attract higher-income consumers, focusing on offering value through deals and promotions. This may involve enhancing their foodservice offerings and expanding their menu options to include more premium items. Additionally, c-stores might increase their marketing efforts to highlight the value and convenience they offer. As competition with quick-service restaurants intensifies, particularly in the late-night segment, c-stores will need to innovate and adapt to maintain and grow their market share. Stakeholders in the c-store industry will be closely monitoring consumer response to these changes and adjusting their strategies accordingly.
