This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter.
3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
Foodservice is big business for c-stores. Some retailers are adding new items to their menus while others, like Onvo or Refuel, are adding entire programs. So it’s no wonder that foodservice was the topic of discussion at the NACS State of the Industry event in Dallas earlier this month.
But there’s more to it than just fresh meals. From packs of beer to a candy bar at the checkout, c-stores run on all things food and drink.
In today’s “3 Big Numbers,” we look at how much of c-stores’ inside sales come from food and beverages, as well as how customers view these menus alongside QSRs.
The percentage of in-store sales at c-stores that come from foodservice.
Foodservice makes up more than a quarter of sales at c-stores, NACS reported. This category includes prepared food, commissary and — though it might seem counterintuitive — hot, cold and frozen dispensed beverages.
Packaged beverages are separate, and we’ll get to them in a moment.
While foodservice made up 28.7% of overall inside sales in 2024, it accounted for almost 40% of in-store gross margin dollars, meaning the category offers stores above-average margins.
Prepared food accounted for the largest share of foodservice sales at 68.4%.
The percentage of customers who believe c-stores are just as capable of offering fresh, quality prepared food as fast-food restaurants.
While more and more people are willing to eat at c-stores as retailers shake off the “gas station food” reputation, there’s still a ways to go.
Case in point — only 18% of people believe c-stores are just as capable of offering fresh, quality prepared food as QSRs, according to a presentation by Chris Costagli, vice president and food insights lead at NIQ.
What can c-stores do to bridge the gap? In addition to keeping quality and value in mind, retailers can leverage messaging around nostalgia, trustworthiness, convenience and health benefits to draw in more diners, Costagli said.
Limited-time offers also can help. Costagli noted that 80% of QSR shoppers said it’s very important to them to see LTOs on the menu.
The percentage of in-store sales at c-stores that come from nonalcoholic packaged beverages.
Now let’s look at nonalcoholic packaged beverages, which made up just under 18% of in-store sales last year. While these beverages aren’t as profitable as foodservice, they nonetheless made up 21.2% of gross profit dollars last year.
