How c-stores are leveling up in foodservice

Convenience stores have been trying to compete with fast-casual and quick-service restaurants for years. Retailers like Royal Farms and Casey’s General Stores have touted their fried chicken and pizza, respectively, as some of the best anyone can find, while Wawa and Kum & Go have said their made-to-order foodservice programs are built to compete with restaurants.

This past year, Rutter’s outlined its biggest expansion plan in company history with 50 new stores set to open by 2028. Among its stores’ features will be an abundance of in-store seating for dine-in customers. Meanwhile, Mississippi-based c-store retailer Sprint Mart opened its largest store to date last year that features a sit-down restaurant concept called Sadie’s Diner.

It’s clear that many retailers are prioritizing foodservice over traditional categories like fuel and tobacco, especially as the old-school c-store model of “cokes and smokes” fizzles out amid evolving consumer expectations.

But to really narrow the gap with restaurants — and potentially get ahead — retailers need to break the boundaries of what c-store foodservice can be, said Jonathan Raduns, CEO of food merchandising and retail consultancy Merchandise Food LLC.

By “boundaries,” Raduns refers to the standard foodservice models c-store retailers have leaned on for decades, such as repeatedly returning to the same distributors, manufacturers, turnkey food platforms and equipment that make a foodservice program “easy to executive at the c-store level.”

In other words, c-store retailers need to shake things up.

“I think [c-stores] need to get outside of that thinking, and possibly even pull in some outside expertise from people in the quick-service industry, like hiring someone who doesn't even think about foodservice the same way,” Raduns said.

Rethinking foodservice strategy

C-stores have several advantages over restaurants when it comes to foodservice, such as the ability to create fast trips and the broader array of beverages they offer, Raduns said.

However, the quality of c-store foodservice still trails fast casual and quick-service restaurants, mainly because of the aforementioned “boundaries” that many operators won’t breach, he said.

“I think the industry as a whole has yet to really deep dive with the amount of concept development, quality ingredients, freshness and visibility of food production,” he said. “I don't see a lot of those things happening in convenience.” 

Building a foodservice leadership team of people who’ve worked outside the c-store space is a great place to start, Raduns said. This not only applies to corporate or executive chefs, but even category managers and in-store kitchen staff, he noted. 

The latter can especially make a difference when the store is set up so customers enter a store and see food being cooked on the spot by experienced hands. 

“Go into a Chipotle and see how many people during the peak times are preparing food — they’ve got an entire grill full of chicken,” he said.

Raduns also suggested retailers redesign their stores to properly allocate the space to place foodservice front and center, like Rutter’s did. This includes sharing details such as calorie counts or specific ingredients of items offered on the menu, whether through digital screens or other signage.

“They have to really think differently about everything from the store design to the equipment selection to the distributor selection to the ingredients and the expertise that they're hiring.”

Beyond tangible updates, rethinking what “fresh food development” actually means will also go a long way, Raduns said.

The definition of this term varies depending on the industry. For c-stores, it falls back to the “paradigm” retailers are in — thinking in terms of what distributors have available and the types of food manufacturers they’ve always worked with, rather than looking further afield, Raduns said.

“If you said ‘fresh food development’ in the QSR industry, what comes to mind is not going to be the same thing as someone in the convenience store industry,” he said. 

Plain and simple: If c-store retailers are keen on competing with restaurants, they need to make foodservice the focal point of their operations — and think more like restaurants.

“You can't pull this stuff off without the proper dedication to it and resourcing it properly,” Raduns said

As customer tastes and expectations evolve, today's convenience stores need to adopt new technology to keep up. This is especially true in foodservice, an area of the store that reaps high margins and increases trip frequency.

Consumers are accustomed to digital integration, whether they're ordering food at the corner c-store or dealing with their bank. 

"If you don't offer technology solutions, you will be left behind," said Art Sebastian, founder and CEO of Nexchapter, a contemporary growth advisory firm in Des Moines, Iowa, and former vice president of omnichannel marketing for Casey's General Stores

At Casey's, Sebastian and his team enhanced both the mobile ordering app experience and the company's first digitally led loyalty program, which led to a "significant increase in store traffic and foodservice sales," he said, adding, "It makes a difference when you put your customers at the center of your decisions and deliver seamless experiences." 

Make mobile ordering easy

Casey's launched a new mobile ordering platform in 2019. Once that was established, Sebastian said the company grew the e-commerce business on the same platform. The key is to have "a full-scale assortment of products," he said, including offering grocery, tobacco and alcohol products.

To build and operate a successful mobile ordering business, Sebastian said, c-stores need their own website and a native mobile app. They also need to have their loyalty program integrated to capture all customer data.

And the user experience is key. It has to be easy for users to order food as soon as they open the mobile app. 

In fact, the more reasons retailers can give customers to use their mobile app, the better, Sebastian said. Adding coupons and games, photos that showcase the food, and tying in the loyalty program are all bonuses.

Once a retailer has launched a mobile ordering platform it's also essential to advertise and market it, he added. "The c-store industry has not yet taken advantage of that."

The final step in perfecting a mobile ordering platform is making sure all orders placed through it are fulfilled perfectly, he said. Food needs to be delivered on time and correctly "or you won't get repeat business," he noted.

Last year, Tennessee-based Weigel's launched its mobile app with Vroom, a Miami-based company that helps c-stores build out their delivery programs. Most orders are for delivery, though pickup is an option, and these sales are new sales, points out Ryan Blevins, director of food and beverage innovation. The most popular order is whole pizzas "but what separates us is you can also get a six-pack of beer and your cigarettes." Customers can add anything from the store except lottery tickets, he explains.

Kiosks coming into their own

Kiosks have not caught on in convenience stores the way they have in quick-serve restaurants — but that may change soon.

As of January, Vroom was testing kiosks with several retailers, in an extension of the company’s mobile ordering technology, said CEO and Founder John Nelson.

Kiosks make sense for stores with high volumes and a robust made-to-order foodservice offering, he said. Stores can have one or more kiosks to help speed up the process for customers and free up employees to make food instead of taking orders. 

Mostly the kiosks are a tool to move customers through stores faster, Nelson said, but for companies just starting out with foodservice, "it can be that shiny new digital things get people to come in and order a sandwich."

Kiosks, said Gary Hawkins, CEO of the Denver-based Center for Advancing Retail & Technology, are "a complement to having the order-ahead capability in the mobile app." Put simply, it's just another option for customers, he pointed out. 

Kiosks also make ordering technology available to less frequent customers who have not downloaded the app, potentially adding more impulse foodservice sales. 

These kiosks should have the retailer's loyalty program tied into any sales, he added.

Weigel's has kiosks in many stores, and typically includes one or two screens per location. Most foods available through the kiosk are also available from the grab-and-go cooler, but ordering through the kiosk allows shoppers to customize their orders and have them made fresh, Blevins said.

There are also some unique items that are only available in made-to-order form, including its small, fried Bites, in guacamole, mango habanero and sausage gravy flavors, "which separate us and are things you wouldn't find in a mainstream store," said Blevins. These take around three minutes to cook.

Also unique to the kiosk for Weigel’s are large orders of hand-rolled chicken tenders. Three tenders are available from the grab-and-go case, but orders of six, 10 or 20 are made to order. 

The large orders are popular with families, Blevins added.

Digital menu boards and back of house screens

Around 50% of Weigel's stores have digital menu boards. These displays really help sell the food, said Blevins, adding, "it gives us a chance to showcase the quality of the food you can expect from us."

The four-board design has one static board that shows the menu and three that showcase rotating images of LTOs and new products — some from the supplier, and others being high-quality photos the company created. 

"The pictures help sell [the food] 100%," said Blevins. "We can style the food and make it look branded."

Convenience stores can also offer videos to show how to make the different products on their menu, for back-of-house employees to follow.

But an area that's poised to "explode" is augmented reality, said Hawkins. He expects to see this on the market in less than two years. Augmented reality could come in the form of a pair of glasses that an employee wears to keep important information always visible. One lens might show a customer's order, while the other lens could show a video of how to make the foodservice dish, for instance.

This technology could also be used to guide store associates to exactly where to find items on an e-commerce order throughout the store.

The possibilities of augmented reality extend to c-store customers, too. As the shopper enters the store, AR tech could point out out-of-stock or on-sale items, personalized offers or even the next item on the person's shopping list.

Capitalizing on artificial intelligence

When Sebastian worked at Casey's, millions of customers called the stores to order pizza, he said. The problem was, the stores couldn't answer all of the calls.

Late in 2022, the company piloted a new AI-driven voice assistant to handle the load. The test run went so well that in September, the company expanded that technology to the entire footprint. The system, developed by food and beverage technology company SYNQ3 Restaurant Solutions, connects to Casey’s point-of-sale system and loyalty platform automatically.

Now artificial intelligence can answer every single phone call, offering a pleasant experience to the customer and upselling many of those with just a few suggestions. Once Casey's implemented this, Sebastian said, "the sales increases were legit."

Used correctly, A.I. can also be used, he said, to accurately forecast foodservice sales, so employees make the right amount of food with the least amount thrown away.

In a column published last year, Brooke Hodierne, executive vice president of strategy consulting for Insite AI, noted that, “several practical uses of AI and predictive analytics can benefit CPGs and c-stores, such as enhancing in-store space planning and allocating trade dollars.”

Convenience store chain QuikTrip is experiencing growing consumer demand for food and beverage items during alternative dayparts — the times in between the traditional breakfast, lunch and dinner meals. Experts say that trend provides new opportunities across the c-store industry. 

The Tulsa, Oklahoma-based company has seen “tremendous growth” in sales over the last several years among quick grab-n-go breakfast and lunch items, said Aisha Jefferson, QuikTrip’s corporate communications manager, in an email. 

QuikTrip sells made-to-order foods as late as 9 p.m., while its remote store division keeps kitchens open 24 hours to attract late night snackers. Grab-and-go items, including sandwiches, roller grill foods, fresh pastries and drinks are sold at all hours and tend to do well during those alternative daypart hours.

“They are [quick], easy to eat, and satisfy that late-night craving of sweet or savory,” said Jefferson. 

Consumers' eating patterns have become more fluid over the past several years — a trend that is largely attributed to differences in generational eating habits and workers heading into the office less frequently, said David Portalatin, senior vice president and food industry advisor at market research company Circana. 

The disruption began before the pandemic, when work-from-home practices were starting to take hold, said Portalatin. The very definition of “What is lunch?” along with the time of day that lunch should happen are now up for redefinition, he said.  

“The traditional rhythms of getting up, going to work and coming home, don’t drive the same demands on mealtimes the way that they used to,” said Portalatin.

Many Baby Boomers are also entering retirement age and not making that morning commute, while younger demographics are veering away from rigid work schedules for more flexible ones, said Portalatin. 

That dynamic has contributed to an emerging gig economy where people are working at times and places of their choosing, said Portalatin..

Alternative daypart growth

That growing demand has resulted in sales and opportunities for c-stores. 

According to Circana OmniMarket Integrated Fresh data, c-store snack sales grew 10.5% — reaching $12.8 billion during a 52-week period last year. And over half of people aged 18-44 said they snack three or more times per day, according to a 2023 Circana survey.

That demand extends beyond just grabbing a bag of chips when purchasing a tank of gas. A 2023 survey from canned fruits and vegetable company Del Monte Foods reported that most adults regularly replaced some meals with snacks. 

Consumers also want variety and the ability to customize their snacks and meals. At least half of c-store consumers who responded to a January 2023 survey from foodservice intelligence company Datassential indicated wanting an in-store sub shop, a build-your-own pizza option and customized burrito and taco bars. 

“Any place a c-store can hand more control to the consumer is a good option,” said Stephen Davis, research and insights manager at Datassential, in an email. 

In total, 63% of c-stores reported higher daypart lunch sales and more than half saw increases in breakfast purchases in 2022, according to the Datassential survey. But there are many indicators pointing to a growing demand for those in-between dayparts — with nearly a quarter of c-stores reporting increases in both a.m. and p.m. snack sales.

Also, the p.m. snacking time was tied with lunch for when most customers bought their last food or beverage item at c-stores, Datassential reported. Fourteen percent also reported making their last purchase during the midmorning with snacks, compared to 17% during breakfast. 

Late-night purchases are also fairly popular at convenience stores. 

Datassential’s brand performance tool found about 37% of consumers are interested in late night snacks at Chevron Extra Mile stores. Slightly below that, QuikTrip and Kum & Go both saw 36% of consumers express interest in those after-dark purchases, according to Samantha Bomkamp Des Jardins, a Datassential spokesperson.

Meanwhile, TravelCenters of America and Petro Stopping Centers garnered the highest percentage of consumers interested in morning and afternoon snacks, said Des Jardins. Those snacks are often paired with an item like a sandwich for lunch, or are simply utilized as the lunch, said Portalatin. That puts convenience stores in the “perfect sweet spot” to capitalize on these changing eating trends, he said. 

Building the right approach

Pilot Flying J has seen consumers purchasing more snacks more often throughout the day, said Savannah Johnson, food category manager at Pilot, in an email. 

The Knoxville, Tennessee-based company has tried to meet those demands by expanding the meals and snacks in its cold cases to include convenient on-the-go items such as meat and cheese snack plates and microwavable meals, said Johnson. 

The company also started offering breakfast platters that include sausage, eggs, bacon, tater tots and biscuits n’ gravy. These accompany other hot grab-n-go items such as burgers, chicken sandwiches and corndogs. 

Pilot Flying J has received positive feedback from its guests in response to the changes, said Johnson. 

“To ensure they are meeting the needs of guests on-the-go, we recommend convenience stores continuously look to expand their list of available snacks and meals offered around the clock,” Johnson said. 

Portalatin agreed, noting the vast majority of daypart eating occasions are mobility oriented, where people are on the go, and not sitting down and having an on-premises meal. 

Convenience retailers should consider options that factor in what Portalatin describes as the three P’s: pricing, portion size and portability. 

Offer affordable food items that are easy to carry and amount to a snack alone, or a substantial meal if they buy two or three, said Portalatin. The breakfast sandwich — which has a flexible portion size, a modest price point and is handheld — fits this format perfectly, he noted. 

A lot of consumers are also approaching these eating occasions mindfully, and looking for items that they can eat with a “more positive purpose” — such as a protein, things that could give them energy, or have a “better for you nature,” he said. Those attributes could take many different forms, such as something with no added sugar, or a portion size allowing them to stay within a certain calorie range, he said.

However c-stores choose to target these atypical mealtimes,  they need to focus on quality products. The primary reason consumers choose one c-store over another is the freshness of food and beverage options, followed by clean and sanitary beverage areas, said Davis.

“If food and drinks are not fresh, or served in a clean environment, consumers may opt to forgo a purchase or choose a different operator,” said Davis.

Beverages are big. For evidence, look no further than McDonald’s launching CosMc’s, a drive-thru beverage concept, at the end of 2023.

The trend doesn’t stop with QSRs. According to Statista, the second-highest generator of sales in convenience stores, after cigarettes, are packaged non-alcoholic beverages. Coca-Cola Lens found that beverage selection was a motivating factor for c-store customers much more often than for restaurant patrons. This is a large category, ranging from water to soda and ready-to-drink coffee, as well as healthier products like smoothies..

Younger consumers especially are particularly drawn to drinks.

“Gen Z has really embraced beverages as a place to experiment,” said Maeve Webster, president of Arlington, Vermont-based Menu Matters, a menu consulting firm. “They are low-cost, low-consequence when it comes to risk. They work really well on social media. Essentially, they tick all the boxes for a generation plagued by decision anxiety and [that] has less disposable income than other generations.”

Despite the drive for innovation, after tap water and hot brewed coffee, bottled water remains the most popular beverage, according to Datassential, drunk by 36% of consumers. It’s followed by juice; regular sodas and iced tea.

Atlanta-based RaceTrac’s data shows younger audiences are more experimental with beverages. It therefore tries to keep its beverage sets exciting, partnering with local brands such as Sun Drop in Tennessee, Big Red in Texas and Cheerwine in North Carolina, to provide familiarity to customers.

The chain routinely works with brands such as Coca Cola and Red Bull too, “to push their new products to feature a ‘get it here first’ narrative when customers are shopping our stores for Limited Time Offers,” said Micah Hanthorn, category manager for RaceTrac. He said he also sometimes features some of the local brands up front through limited-time offers.

GetGo Cafe + Market, the convenience store arm of grocer Giant Eagle, sees experimentation across all age groups, largely in made-to-order beverage offers like milkshakes, flavored coffee drinks, and new items like Red Bull Refreshers. In the last few years, it’s seen the most upward movement among its cold coffee offers, like nitro coffee, iced mochas and lattes, said Larry Galley, GetGo’s director of fresh merchandising.

Weigel’s stores have focused in the past year on expanding energy and adding unusual drinks like Poppi, a prebiotic drink with fewer calories and sugar. “The trend is going more functional,” said Nick Triantafellou, director of merchandising and marketing for the Powell, Tenn.-based company. Next the stores will be pushing more sports drinks, which are also functional.

Beverage section navigation

Because the beverage section is so crowded, it’s not enough to just have an innovative or differentiated selection. Signage helps customers find what they want to buy — or points them to something different.

Rutter’s has around five screens running advertisements, deals and bundles above its beverage coolers “to entice people” and to let them know “what we have going from a VIP or loyalty perspective but also because the coolers may be blocked from view,” said Philip Santini, the company’s senior director of advertising and foodservice.

Rutter’s also uses strategically placed door clings to promote drinks behind them, and rail strips within the coolers, but is careful not to place too many so it’s cluttered.

RaceTrac highlights its beverages with promotional tags on shelves, cooler clings on doors and digital boards, but these are usually reserved for calling out key promos or innovation, according to Hanthorn.

The company prefers to create its own images “to promote the item, as much as the brand, in a positive way,” Hanthorn said. “This allows us to lead the narrative and have the final approval of what is in our stores.”

The company always tries to offer something a little different as well. “While many offers are available to all retailers, we lean on our vendors to find unique opportunities other retailers are not participating in,” he said, such as a one-of-a-kind car giveaway with Monster.

Weigel’s uses items like pump toppers provided by vendors to call out promos and also uses rail signage in the coolers. 

“We don’t do clings any more because we want a clean look when you see a door,” Triantafellou pointed out. 

Above its coolers, Weigel’s uses neon-looking signs in newer stores and foam boards in older stores.

GetGo’s stores prioritize signage but also highlight the best value options. To draw attention to signage, GetGo integrates logos where possible, both its own logo and any national brand logos. And if bundling products earns additional loyalty perks or if a special discount is available for a combination of products, it makes sure to call that out prominently in its graphics.

Loyalty

GetGo often partners with beverage vendors when it’s promoting combo meals or LTOs on its myPerks loyalty program.

“Beverages are both a destination item and an add-on, so we work to cater to both types of visit,” said Galley. “For those who are shopping with us to specifically buy a dispensed or packaged beverage, we’ll frequently offer promotions for multiple purchases. For those who shop with us to get a made-fresh-to-order item, we’ll make sure we have promotions available to give them the incentive to add a beverage to their order.”

Beverages he adds, “are a significant part of our marketing strategy. Images of beverages are tied into the food photography we get for signage, both in hard copy and on our kiosks.”

Weigel’s loyalty program is a big driver for beverages, Triantafellou points out. Members get offers such as buy-one-get-one-free, or combos with food.

Quick service restaurants have come under fire recently as their prices surged. This opens the door for c-store chains to take advantage and further grow foodservice sales — if they can make sure customers know about the myriad ways they offer value, experts say.

Many major QSR chains raised their prices last year. After consumer backlash, including media attention on a McDonald’s charging nearly $18 for a Big Mac meal, CEO Chris Kempczinski said the restaurant chain will focus on affordability this year.

QSRs like McDonald’s may face backlash for these rising prices, especially on social media, acknowledged Claire Conaghan, associate director of publications at Datassential. However, consumers’ overall perception in Datassential’s Brand Performance Tool as of December 2023 is that McDonald’s is among the top limited service chains — including QSRs and fast-casual — for having a “best in class” or “above average” value/dollar meal.

“Consumers may not see them as top for value … or highest affordability — that honor belongs to large pizza players — but they know that if they need an inexpensive item, there are options there that will work,” Conaghan said.

In January, Taco Bell rolled out a refresh of its value offerings featuring six new menu items and four “fan favorites” for $3 or less each.

Nearly half of restaurant operators plan to include more special offers on their menus this year, while 20% are adding more affordable menu options according to a Popmenu survey, sister publication Restaurant Dive reported.

C-stores are already known for value

C-store operators have been providing value meal deals and other specials and discounts for years — often boasting more affordable meals than QSRs, experts say. They also provide value in more creative ways than just price.

C-stores and limited-service restaurants perform almost identically in Datassential's Brand Performance Tool, which features consumer ratings for restaurant, c-stores and retail chains. On average, 46% of consumers believe c-store brands overall are “best in class” or “above average” on value for the dollar and on average across all limited service is 46.7%, Conaghan said.

“Convenience stores are doing a good job in providing a variety of price points, from a cup of soup for just a few bucks to great value on a full pizza or party sub,” said Anne-Marie Roerink, principal of Lakeland, Florida-based consulting firm 210 Analytics. “As such, individual meals are likely on par with QSRs but convenience stores are able to bring good price points for larger parties and family meals.” 

QuickChek’s Homestyle Breakfast Burrito for $4.19, 7-Eleven’s Korean BBQ boneless wings for $3 and Casey’s S’Mores cookie for $1.49 performed well on value and other measurements in Datassential’s Launches & Ratings platform.

“Across both QSR and c-store segments each chain has strengths, and if they focus on those strengths, value can be derived from them, whether that strength is being the only gig in some towns (in the case of some c-store or QSR brands) or offering a very craveable product,” Conaghan added.

Value doesn’t just mean cheap

Value at c-stores is not always a matter of offering the lowest prices. Many of the highly rated c-store chains in Datassential’s Brand Performance Tool — such as Kwik Trip, Sheetz, Wawa and Cumberland Farms — sport “innovative menus, demonstrating that value isn't always a pure price point battle,” Conaghan said.

For example, Jacksons Food Stores recently partnered with Darigold on a sweepstakes where winning customers got a year’s worth of milk for free. Consumers enter the sweepstakes when they buy one gallon of Darigold milk.

Roerink also stressed that value is about much more than price: “It’s the combination of price and quality, convenience, taste and more,” she said. 

C-stores offer easy parking and allow customers to take care of multiple chores in one trip — an advantage versus many QSRs, Roerink said.

“We are seeing guests recognize both the value and convenience that we’re providing in our stores that compete with QSRs in price, quality (and taste!),” said Kevin Smartt, CEO of Spicewood, Texas-based TXB. Plus, with TXB’s loyalty program, customers earn points on fuel and purchases made in-store, Smartt added.

While TXB has had to increase some food and beverage prices due to higher overall costs, the company has “ tried to counter that by offering stronger discounts when using our loyalty program,” Smartt said. “We only consider retail increases when we’re faced with cost increases.”

Additionally, TXB stays focused on making sure it keeps the quality of its food high, according to Smartt, who said, “we want our guests to be confident that when they step into a TXB, no matter what they order, they’re getting something fresh.”

At the same time, TXB is aware of offering customers affordable snacks and meals. Last year, it began offering two Family Take Home Meals for $19.99.

Its chicken tender meal includes 10 tenders and two 16-ounce sides. Its tamale meal deal includes a dozen tamales, Spanish rice and refried beans.

Getting loyalty programs involved

TXB isn’t alone in using its loyalty program to offer deeper discounts.  A number of other industry heavyweights have also taken this approach, including 7-Eleven and GPM Investments, the c-store arm of Arko.

7-Eleven offered several meal specials at all of its banners during Super Bowl weekend, offering low-priced pizza and wings alone or in combination. 

GPM introduced a “premium inflation busting take-to-bake whole pizza pie” in more than 1,000 stores for $4.99 for enrolled fas Rewards loyalty members, said Michael Bloom, executive vice president and chief merchandising and marketing officer of GPM. The pizza is $7.99 for customers who aren’t part of fas Rewards.

This pizza — available in cheese or pepperoni — are also available hot and ready to eat in around 225 of those stores, where loyalty members can get a whole pie for $4.99 or a quarter of a pie for $1.49.

“We understand that our customers are concerned by rising food prices in all aspects of their daily lives after recent periods of record inflation rates,” Bloom said. The pizza deal was in development for over a year and is an add-on “to the value we try to offer our customers every day,” according to Bloom.

“Once you build up a reputation in these types of extreme value offerings, people will start to check their apps to see what’s on sale this week and you turn into a destination,” Roerink added.

Many recent updates to c-store chains’ menus, store remodels and loyalty programs have focused on breakfast, reflecting the importance of the morning mealtime to operators.

Loyalty members visit c-stores more in the morning than any other weekday daypart, according to Paytronix’s Loyalty Report 2023. More broadly, 58% of consumers who eat breakfast away from home do so for convenience, Datassential’s Breakfast Keynote report said.

“Breakfast represents our largest and strongest day part in terms of food sales,”  said Kevin Smartt, CEO of TXB Stores in Spicewood, Texas. “[It] is one of our most popular as guests are stopping by before work or school to get some coffee and a quick bite to eat.”.

The company’s breakfast competes not just with convenience-store peers but also with major fast food restaurants. TXB seeks to set itself apart in the space by using all fresh ingredients, Smartt noted.

The Texas chain isn’t alone in that sentiment. 

“Guests are looking for value and speed at breakfast as they head to work for the day,” echoed Ryan Bublavy, food service director for Sayre, Pennsylvania-based Dandy Mini Marts. “Breakfast as a c-store is crucial to our overall success as a company.”

Across the industry, many c-stores are focusing on how to make breakfast their most important meal of the day. The top breakfast trends right now include creating value; offering breakfast at other dayparts besides mornings;  boosting sales with breakfast pizzas, tacos, quesadillas and more; and offering some healthier fare — for the right audience.

C-stores’ breakfast value often beats QSRs

With restaurants charging more for menu items, many c-stores have maintained their breakfast pricing — and offered a variety of specials. The price of a McDonald’s Egg McMuffin last October, for instance, was $4.39 in Florida. In September of 2021, it was $4.21, according to Pricelisto.com.

Many c-stores, both independents and large chains, beat that price. 7-Eleven’s English muffin with sausage, egg and cheese, for example, retailed for $3.09 last fall.

Dandy often offers a deal where customers can buy two breakfast sandwiches for $5, along with breakfast sandwich/coffee combos and other discounts. 

“Our prices and offerings are competitive with fast food, and customers can load up on other consumables at the same time — and a full tank of gas,” Bublavy said.

Dandy has “focused heavily” on breakfast recently, accelerating its advertising and value propositions. “This has worked for us as we’ve seen double-digit unit percentage growth month to month versus last year,” Bublavy added.

As a result, breakfast sandwiches are the company’s third most sold item, behind pizza and coffee.

Unique morning meals push up sales

While breakfast sandwiches are the top sellers for many c-stores operators, alternative options like breakfast pizzas, tacos, burritos and bowls are earning top marks from consumers, as well.

Brisket, egg and cheese breakfast tacos are the most popular breakfast item at Pontiac, Illinois-based Wally’s, which operates two massive travel centers. The company sells around 300 breakfast tacos daily on average, says Tim Good, director of store operations.

The most talked about item at Wally’s — and one which Good said drives new traffic to the store — is its Kitchen Sink Burrito, which he said “includes everything you could possibly fit inside it... minus the kitchen sink.

Dandy recently added breakfast tacos to its menu, offering both value and portability. They are “easily eaten in the car” because the company uses a 6-inch tortilla, Bublavy said. 

“They are selling well as we are advertising them as a 2/$5 deal,” he added

Meanwhile, Dandy’s breakfast pizza, featuring multiple breakfast meats, scrambled eggs and cheese, is one of the company’s top-selling pizzas.

Many c-store operators offer their version of a breakfast pizza — and Americans want more. In fact, 57% of Americans said they would eat breakfast more often if they could get breakfast pizza, according to a recent survey from Ankeny, Iowa-based Casey’s General Stores.

Casey’s, which offers a variety of breakfast pizzas, launched a new flavor last year: Ultimate beer cheese breakfast pizza, which features Busch Light beer cheese.

Breakfast quesadillas are very popular at TXB — particularly the meaty breakfast quesadilla with sausage and bacon and the cheesy chorizo breakfast quesadilla. 

“These are super easy to eat on the go and guests can top it off with salsa verde, salsa roja or fresh-cut pico de gallo,” Smartt said. 

Earlier this year, TXB grew the menu even more by launching a brisket, egg and cheese quesadilla.

 “We love this new item as it incorporates two Texas favorites: BBQ and quesadillas,” Smartt said.

Breakfast is not just for mornings anymore

Americans seem to be eating breakfast all day long, given the rapid growth of breakfast-based restaurants like IHOP and Waffle House. 

The ongoing popularity of brunch dining is also a testament to this trend. In fact, eighty-three percent of Americans go out to eat brunch at least occasionally, according to Datassential’s Breakfast Keynote report. Younger cohorts in particular are interested in the hybrid meal occasion.

While a majority (95%) of restaurants — including on-site operators and retailers — offer breakfast in the mornings, many restaurants continue offering it all day, with about 11% of respondents even offering the morning meal late into the evening, Datassential found. The company also noted that sandwiches, wraps and burritos were among the most successful breakfast foods sold after 2 p.m., behind only potatoes and platters or combos.

Certain c-stores are embracing the all-day breakfast — including Rutter’s, which sells breakfast items 24 hours a day. 

Consumers seek healthy choices at breakfast, too

There is a growing demand for lighter and healthier breakfast choices, Chad White, food service category manager for York, Pennsylvania-based Rutter’s said. Furthermore, many consumers want to customize and tailor their morning meal to their liking, he noted. 

“At Rutter’s, our made for you options allow a guest to create their own meal by selecting their preferred ingredients,” he noted.

At the same time, it is important for retailers to know their local demographics. For instance, lighter fare isn’t as big a priority for Dandy’s customers. 

“Our operating area is mostly hard-working tradesmen and blue collar. They are not big on plant-based or perceived ‘healthier options’,” Bublavy said. “It’s important to keep the focus on our core customers. National trends don’t always translate to our operating area, and we think of that as we add new items.”

Re-Up convenience stores, which operates nine locations in the Southeast, announced in April that it plans to install autonomous robotic chefs at several of its sites.

Re-Up plans to bring robots into its kitchens, coffee-making process and fresh juicing program, Co-Founder and President Narendra Manney said via email. The retailer previously announced plans to use robots from AI firm Nala Robotics in the kitchen, and is in talks with other developers for the coffee and juice programs, he noted. This comes amid Re-Up’s broader plans to increase its c-store count to “more than 200 stores in the coming years,” Manney said in the announcement.

Calling itself a “c-store for the new generation,” Re-Up is tapping into robotic chefs to bring “clean and healthy alternatives” to the traditional convenience retailing experience, Founder and Managing Director Michael Salafia said in Tuesday’s announcement. 

"By harnessing the power of AI, we are able to provide our customers with convenient, personalized, and safe shopping and dining experiences,” he said. “We believe this groundbreaking concept will revolutionize the way people shop and fuel up."

Nala Robotics’ Wingman fry station can be configured to any restaurant or commercial foodservice setup, according to the announcement. It’s equipped with sensors, precision cooking mechanisms and machine learning algorithms that let it prepare food without human intervention.

Manney said via email that as Re-Up looks to grow its store count — it has over 30 locations “in the pipeline” — it remains “steadfast” on robotics-driven food programs, which will focus on cleanliness, speed and ensuring accuracy and consistency.

Miami Beach, Florida-based Re-Up operates nine convenience stores across Florida and Mississippi. The company has also targeted Louisiana in its broader expansion plans.

Although fairly new in the convenience store space, robotic chefs have begun emerging across the restaurant industry over the past year. Brands like Chick-fil-A and Sweetgreen have deployed robots in their kitchens, with the latter saying it’s seen improvements in throughput, order accuracy and labor turnover with these programs, according to its Q4 earnings call.