Convenience Stores Are Stealing Breakfast Customers from Fast food Chains

A Wawa store is seen on May 29, 2024 in Washington, DC. Kent Nishimura | getty Images

Fast-food restaurants are losing breakfast customers to convenience stores.

Morning meal traffic to fast-food chains rose 1% in the three months ended in July, while visits to food-forward convenience stores climbed 9% in the same period, according to market research firm Circana.

“Over the long run, convenience stores have taken share, really at foodservice but the morning meal has been their strong suit,” David Portalatin, Circana senior vice president and foodservice industry advisor, told CNBC, noting the trend has largely been driven by what the group calls “food-forward convenience stores.”

For decades, McDonald’s and its rivals have tried to lure consumers away from home to eat their early morning offerings, betting that convenience and unique items will win over diners. While fast-food chains have made some inroads, 87% of what consumers eat and drink in the morning comes from their own refrigerators or pantries, according to Portalatin. That leaves plenty of prospect for fast-food chains – and anyone else who wants a slice of the breakfast pie.

FILE PHOTO: A McDonald’s Corp.McGriddle breakfast sandwich is displayed for a photograph in New York, U.S. Daniel Acker | Bloomberg | Getty Images

Before the pandemic, fast-food chains started seeing a new rival for their breakfast customers: convenience stores. Regional chains like Wawa in the Northeast and Casey’s General Store in the Midwest were expanding their reach and investing in their foodservice options, taking pages from the fast-food companies’ own playbooks.

For a time, lockdowns and the shift to hybrid work reversed those market share gains. But in the three months ended in July, food-forward convenience stores once again gained the upper hand in the battle to serve consumers breakfast, according to Portalatin.

Circana separates food-forward convenience stores like Buc-ee’s and Sheetz from the broader industry, even though more chains may soon fit under that umbrella. 7-Eleven, the biggest convenience, or c-store, in

convenience Stores Challenge Fast Food for Customer Loyalty

Convenience stores (c-stores) are increasingly becoming a viable alternative to customary fast-food restaurants, particularly during peak commuting hours. This shift is driven by consumer demand for speedy,convenient meal options and the evolving offerings within c-stores themselves. The morning and evening rush hours,when customers are fueling up their vehicles,present a prime opportunity for c-stores to capture a larger share of the food service market.

the Growing Appeal of C-Stores

Traditionally, c-stores were primarily known for snacks, beverages, and fuel. Though, many are now expanding their food service options to include freshly prepared meals, breakfast items, and dinner solutions. This expansion is resonating with consumers. According to a recent report by InTouch Insight, 72% of consumers now view c-stores as a genuine alternative to fast-food chains, a significant increase from 56% in the previous year.

Peak Hours and Meal Occasions

The timing of c-store visits plays a crucial role in this trend. Most customers frequent gas pumps during morning and evening rush hours, coinciding with commutes to and from work. This creates a natural demand for convenient meal solutions. C-stores are capitalizing on this by offering breakfast sandwiches,coffee,and prepared dinners,providing a quick and easy option for busy individuals.

Factors Driving the Shift

Several factors contribute to the growing popularity of c-stores as fast-food alternatives:

• convenience: C-stores are often located in easily accessible locations, making them a convenient stop for commuters.
• Speed: Customers can quickly grab a meal or snack without waiting in long lines.
• Expanding Food Options: C-stores are investing in higher-quality food offerings, including fresh and healthy choices.
• Competitive Pricing: In many cases, c-store meals are priced competitively with fast-food options.

Implications for the Future

The increasing acceptance of c-stores as fast-food alternatives has significant implications for both industries. Fast-food chains may need to focus on enhancing their convenience and speed of service to remain competitive. C-stores, on the other hand, are likely to continue expanding their food service offerings and investing in quality and innovation. This competition ultimately benefits consumers by providing them with more choices and better value.

Key Takeaways

• C-stores are gaining traction as alternatives to fast-food restaurants.
• 72% of consumers now see c-stores as a viable fast-food option, up from 56% last year.
• peak commuting hours are a key opportunity for c-stores to sell breakfast and dinner items.
• Convenience, speed, and expanding food options are driving the shift.

Published: 2025/09/13 12:51:53