Competition Between Grocery and Convenience Stores Intensifies
A new report confirms that c-stores are more than just a place to pay for fuel and pop in for an on-the-go drink. According to CoBank, a Denver-based bank that supports the needs of rural communities, c-stores have become important food destinations for both convenience and access reasons.
The report from CoBank predicts that the lines between c-stores, grocery stores and quick-service restaurants will continue to blur, as fuel and convenience chains are adding to and enhancing their offerings that include grab-and-go packaged items and ready-to-eat snacks and meals.
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“Convenience stores have evolved from their gas-fueled beginnings to become true food and beverage destinations,” said Billy Roberts, the bank’s food and beverage economist. “Food service is the future for c-stores, and we expect they’ll continue to emulate their competitors with a greater variety of freshly prepared items, along with more attention to signature menu items and private label products.”
The report points out that CPGs and other suppliers are helping meet the need for more options with products that align with such store formats. Strategic mergers and acquisitions are also helping companies widen their c-store presence and distribution, such as J.M. Smucker’s partnership with Hostess Brands and Hormel Foods’ purchase of the Planters and Corn Nuts brands.
To keep up the momentum in a competitive environment for shoppers’ food dollars, CoBank analysts also noted the growing sophistication of c-stores’ rewards program that span fuel and food perks. “This enthusiasm for loyalty programs will be a tool that c-stores look to sharpen as they attempt to claim more traffic from restaurants, which have seen weak results of late,” Roberts said.
Meanwhile, c-store operators are touting their prepared foods as a new year gets underway. 7-Eleven, for example, is offering a free pizza for customers whose favorite NFL football teams didn’t wind up in this year’s Big Game; first-time users of the 7NOW delivery app can get that pizza with their inaugural order. In late 2024, that chain announced that it plans to open around 125 new “food forward” stores in 2025. The Sheetz chain is also widening its footprint, entering new markets and promoting its “Made to Order” menu. In addition to its signature hoagies, Wawa offers fresh-made salads and “Snack N Go” wraps.