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DENVER — Convenience stores, once known primarily for quick stops for gas and snacks, are now emerging as serious contenders in the foodservice industry. By expanding their offerings to include a wide variety of prepared foods, private label brands, and innovative loyalty programs, c-stores are driving significant growth in foot traffic and in-store sales, according to a new report from CoBank’s Knowledge Exchange.
The full report, C-stores Evolve from Gas-N-Grub to True Food Destinations, highlights the industry's ongoing transformation and growing influence in the food service sector. As c-stores continue to innovate and expand their offerings, they are poised to redefine consumers' perceptions of convenience dining.
In 2023, c-stores achieved record sales, fueled by an 8% year-over-year growth in in-store sales for both 2022 and 2023, as reported by Circana. This growth outpaced overall inflation rates for both grocery and restaurant food prices.

The shift toward foodservice has positioned c-stores as direct competitors to quick-service restaurants (QSRs) and fast-food chains. Chains are tailoring their menus to rival—and sometimes surpass—traditional fast-food outlets. According to CoBank’s report, the boundaries between grocery stores, QSRs, and c-stores are increasingly blurring, intensifying competition across the food retail landscape.
“Convenience stores have evolved from their gas-fueled origins to become true food and beverage destinations,” said Billy Roberts, food and beverage economist at CoBank. “Foodservice is the future for c-stores, and we expect them to continue innovating with freshly prepared items, signature menu offerings, and private label products.”

This transformation has not gone unnoticed by major food manufacturers. Companies like J.M. Smucker and Hormel Foods have made strategic acquisitions to strengthen their presence in the c-store channel. For instance, J.M. Smucker cited c-store distribution as a key factor in its 2024 acquisition of Hostess Brands. Similarly, Hormel Foods expanded its c-store footprint with the 2021 purchase of Planters and Corn Nuts, using these brands to introduce new products like pizza toppings and bacon to c-store menus.
C-stores are also becoming testing grounds for new flavors and product concepts. Hormel’s Bacon 1, for example, is designed for quick preparation, allowing c-store operators to incorporate bacon into a variety of menu items easily. This focus on convenience and efficiency aligns with the needs of c-store kitchens, which prioritize speed and simplicity.

Loyalty programs are another critical factor in c-store success. According to Paytronix’s 2024 Loyalty Trend Report, at least 80% of c-store loyalty program members are among the top half of customers in terms of monthly transaction visits. These programs are helping c-stores build a dedicated customer base and compete more effectively with restaurants, which have struggled to maintain customer engagement in recent years.
“Loyalty programs are a powerful tool for c-stores as they aim to capture more traffic from restaurants,” Roberts noted. “This enthusiasm for loyalty initiatives will likely grow as c-stores continue to refine their strategies.”