The year 2023 saw a significant increase in the number of convenience stores operating in the United States, signaling a reversal of the four-year decline in the industry. According to the 2023 NACS/NielsenIQ Convenience Industry Store Count report, there were 150,174 convenience stores in operation, reflecting a 1.5% increase from the previous year. This growth can be attributed to a rise in in-store (non-fuel) sales, which reached a staggering $302.8 billion, representing a 9% increase. Notably, the sales of packaged beverages, other tobacco products, salty snacks, candy, and packaged sweet snacks experienced double-digit growth. Furthermore, the average basket size, which measures the amount customers spend per visit, increased by 4.9% to $7.52. These figures indicate a thriving market for grab-and-go and impulse items within the convenience store channel.

To effectively target this market, it is essential for food and beverage marketers to understand what c-store shoppers are purchasing and when and where they are making these purchases. Kathy Risch, the senior vice president of thought leadership and shopper insights for Acosta Group, highlights the significance of these insights in creating a successful marketing strategy. Risch discussed “The State of Snacking in Convenience” at the recent NACS Show 2023 held in Atlanta from October 3-6.

Key findings from Acosta Group’s Convenience Store Shopper Study in July 2023 and Snacking Study in April 2023 indicate that the most common snack or meal trips to c-stores occur in the afternoon. More than half of the respondents reported purchasing snacks between lunch and dinner time. Interestingly, millennials often make a special trip to the convenience store when they are feeling “snacky,” with 53% confirming this behavior. It is worth noting that the majority of c-store shoppers consume their snacks on the go.

Consumer preferences regarding snacks are divided between taste profiles, with most individuals tending to prefer salty snacks over sweet options when forced to choose. Additionally, convenience stores have become an increasingly popular destination for hot foods, such as pizza slices, hot dogs, and tacos. According to the survey, nearly half of the respondents purchase hot foods at a c-store at least once a week. Furthermore, 50% of respondents agree that the quality of hot foods in convenience stores matches that of fast-food or quick-serve restaurants.

Foodservice sales account for a significant portion of average monthly in-store sales, comprising over a quarter of total sales and more than a third of in-store gross margin. In 2022, prepared foods constituted 67.3% of all foodservice sales, followed by commissary items at 9.5%. Moreover, hot dispensed beverages, cold dispensed beverages, and frozen dispensed products accounted for 9.2%, 8%, and 6% of foodservice sales, respectively.

To stay competitive in this thriving market, c-stores need to strike a balance between offering variety and overwhelming customers with choice. Lisa Ham, the director of merchandising and space planning at Yesway, a c-store chain headquartered in Fort Worth, Texas, emphasizes the importance of the fun factor in driving impulse sales. It is crucial for convenience stores to create an enjoyable and convenient shopping experience for their customers.

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