Operations

Inside the convenience-store playbook to beat QSRs

C-store foodservice is growing faster than fast food, according to Technomic data. And retailers are capitalizing on it.
Donna Hood Crecca, Technomic
Technomic Principal Donna Hood Crecca told a Convenience Retailing University audience Tuesday how c-stores can best compete with fast-food restaurants. | Photo courtesy: W. Scott Mitchell Photography.

There’s a battle raging between convenience stores and quick-service restaurants, one that seeks to steal “share of stomach, of throat, of occasions” from fast food. 

And convenience stores, at least by some metrics, appear to be winning the war right now. 

That’s according to Donna Hood Crecca, a principal with Technomic, Restaurant Business’ sister research arm, who presented some of her competitive findings Tuesday at Convenience Retailing University (CRU) in Nashville. (CRU is presented in conjunction with RB sister publication CSP Daily News and parent company Informa Connect.)

“The good news is that, in 2025, you’re in a really good position to do so because you are now in a consideration set along with quick-service restaurants for half of consumers who are thirsting for a made-to-order beverage or a dispensed beverage and more than two-thirds who are looking for a good meal when they’re on the go,” Hood Crecca told the ballroom full of c-store retailers and suppliers. “What’s more, nearly half of consumers say convenience stores are capable of presenting a fresh, quality foodservice offer at the same level as restaurants.”

Those are numbers that have risen significantly over the past decade, she said, driven by a “Herculean effort by so many people in this room” to elevate c-store foodservice offerings. 

But it is a challenge for convenience stores to continue competing with fast food, one that requires some smart strategy. 

“It’s going to be tough because we’re competing essentially for the same consumer,” Hood Crecca noted. “The frequent c-store foodservice patron is also the frequent quick-service restaurant patron.”

Today, about 140,000 of the country’s 151,000 convenience stores offer a foodservice program, she said. Technomic is forecasting that total consumer spending on prepared foods and beverages at c-stores will reach $27 billion this year, up 42% from 2015. But fast-food restaurants have twice as many locations and more than 10 times the sales as convenience stores. 

C-store foodservice grew 5% in 2024 and is projected to grow 5.7% this year, according to Technomic. QSRs, meanwhile, saw 4.1% growth last year and are expected to grow 4.7% in 2025. 

And both segments are eyeing each other for innovative ideas. 

C-stores have historically excelled with dispensed beverages. Fast-food chains are expanding and creating beverage-focused concepts. 

Over the summer, fast-food prices climbed too high for many consumers’ wallets, so chains launched value deals. Then a number of c-store chains offered up their own value combos. 

Fifty-seven percent of consumers, though, rate c-stores as a good foodservice value, 10 points higher than they rate quick-service restaurants, she said. The average price of a c-store chicken sandwich is $2.30 less than one at a fast-food restaurant, she added. 

To win the war against QSR, convenience stores must message and deliver on price, value, quality and convenience, she said. 

C-stores also have the advantage of “format variety,” with foodservice offerings in the hot case, roller grill, freezer and more that restaurants do not, giving convenience retailers the edge in serving something for every daypart. 

Retailers should play up the ability for consumers to “multitask” by picking up prepared food while also getting gas, grocery items and more. “Restaurants don’t have that,” she said. 

She urged c-store foodservice category managers to stay ahead of flavor and ingredient trends and to develop a signature menu item to further compete with restaurants. 

“There’s one thing that QSRs agree on and that is that you are a competitive threat to their business,” Hood Crecca said at CRU. “Now I’ve been covering convenience stores for over 20 years. I’ve been covering the foodservice and restaurant industry for a lot longer. And I can tell you, you really do have their attention right now. They recognize they are battling you for consumer occasions and consumer dollars. And from a growth perspective, you’re winning.”

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