Shoppers shift food spend to c-stores

LOS ANGELES — Retailers in the convenience channel appear to be capturing a growing share of foodservice occasions as restaurant loyalty weakens and value-conscious consumers reassess where they spend on prepared meals and snacks, according to new research from Tillster.

Tillster’s 2026 Phygital Index Report found that 45% of consumers say their favorite restaurant has changed in the past year, up from one-third in 2025. This suggests diners are becoming less tied to specific brands and more focused on the overall experience. The survey of 2,144 U.S. diners also found that 69% have either decreased or maintained their dining-out budgets due to economic conditions.

For c-store operators, the report highlights a meaningful opportunity. While 29% of diners said they are visiting fast-food chains less often and 37% said they are visiting fast-casual chains less often, 33% said they are visiting convenience stores more often. Grocery stores also gained traction, with 36% of consumers saying they are visiting them more often.

The findings suggest that consumers are broadening where they pick up meals, snacks, or prepared food, particularly when they perceive greater value and convenience. Food quality was cited by 45% of respondents as a top factor in deciding where to eat, followed closely by convenience at 44% and speed at 34%.

The report also found that diners are making more deliberate trade-offs as they manage spending. Among those surveyed, 61% said they had abandoned an order because of service fees, 33% said they were choosing lower-priced items, 27% said they were using loyalty programs more often, and 26% said they were tipping less.

Tillster said those shifts are contributing to a more fragmented foodservice landscape, in which restaurants are losing ground to alternative formats, including c-stores. The company argued that operators need to focus less on discounting and more on delivering a seamless, personalized experience across physical and digital touchpoints.

“The findings from this year’s report point to a fundamental shift in the industry that we’re calling Restaurant 2.0,” said Perse Faily, CEO of Tillster. “As consumers place greater emphasis on experience over price, brands have to move away from the ‘tech for tech’s sake’ mindset they’re operating in today.”

For convenience retailers that have expanded prepared foods, grab-and-go assortments, and digital engagement, the data reinforces the idea that consumers are increasingly willing to treat c-stores as a regular food destination rather than just a fill-in stop.