#c-stores

NACS Show Insights While I love the fun and food of the show floor, and seeing so many friends in one place the State of the Industry update is always my favorite session. Chris Rapanick does a masterful job of translating mountains of data into sharp insights that provide instant clarity to key issues. This year he sure didn’t disappoint and I will do my best to summarize the high points, but…

Welcome to FoodStuff October 1, 2025. Changing to a bi-monthly format as the weekly publication challenges my indolence. Info on many things – plastics, chemicals, microorganisms – that don’t belong in your body. And LOTS of alcohol, this week issue, interest likely driven by the state of the world. Enjoy! MACRO Cardboard sales is a leading indicator of recession; they are in decline. In a…

When my family moved in 1971 from one Chicago suburb to another, we found ourselves on the very edge of the country. Of course, that didn’t last for long, because developers had already been eyeing all of those corn and soybean fields. Soon houses started sprouting, and we found ourselves no longer on the edge, but back in the middle.

Along with all that development came a new small strip shopping center a couple of blocks from our house, and the corner tenant was a tiny convenience store. It was owned by the dominant grocery chain in the area (Jewel), but had an entirely separate name (White Hen Pantry). And I'll say it again: it was tiny.

There were no gas pumps. No car wash. No oil change. No prepared food. If all you needed was a candy bar, gallon of milk, loaf of bread, Coke, and a pack of cigarettes, then you were in luck. Otherwise, you had to shop elsewhere.

The emphasis truly was on convenience, focusing only on the things a household might need in a pinch. You paid a price for that convenience, but it beat having to drive a few miles to the supermarket.

At that time, c-stores, as they are called in the industry, were never bigger than 2100 to 2400 square feet, and often even smaller. That would change in the coming decades, though, as the concept expanded in scope, and all the things I mentioned above were added. New stores today hover around 5000 square feet, and instead of only a handful of gas pumps, there are up to 20. Car washes and service bays round out the offerings, and what could once fit into the end of a strip mall now requires a few acres.

But the concept continues to evolve. Those big QuikTrips, Circle Ks, Casey’s, and Wawas are raising the bar once more, but this time they are putting the squeeze on a different type of competitor: fast food breakfast. C-stores are eating their breakfast. Sorry, McDonald’s and Taco Bell. They’ve got your number.

While some might scratch their head at the thought of dining at a gas station—aside from those who suddenly crave an Allsup’s burrito after the bars close—trust me when I say the big chains are doubling down on fresh and portable breakfast fare. And it makes sense.

Think about this. You need to eat. You want coffee. You need gas. And you promised your partner to pick up a few items, like a bottle of wine, six pack of soda or beer, and so forth. You can do all of this on the way to work, and at only one place. Bingo. They keep putting the “C” in convenience store. Some are even providing limited in-store seating.

It is also a solid move on behalf of the c-stores, because they have seen demand for tobacco, lottery tickets, and even gas start to dip in recent years. They need a way to keep the bottom line black, not red. While c-stores sell prepared foods throughout the day, it is breakfast where they see the biggest growth.

There is still one hurdle for all food providers to ponder, though: 87% of what we eat in the morning is done at home. That’s a pretty high brick wall, and I don’t see that changing any time soon. The only times I ever dine out for breakfast are when I am on travel (like now), or when I have guests and I know they won’t like my crazy breakfast ritual.

Interestingly, Buc-ee’s is usually not included in this discussion. Even though I jokingly refer to them as the world’s largest convenience store, they are simply too big to fit into the category. If anything, their sheer size makes them inconvenient. Come on. How many convenience stores do you know with 120 gas pumps and shopping carts? I’ll wait.

This new trend has caught the attention of Japanese-owned 7-Eleven, who recently announced plans to open 1300 new food-forward stores by 2030. I can’t think of a more legitimate confirmation than this.

There’s another little thing to consider. Would you ever make a convenience store your dining destination, and not just something you grab while attending to other needs? Personally, that’s a big no. If I am dining out, I want a nice experience. I want atmosphere and ambience, and I don’t think I am going to get that with a steady flow of people coming in and out to buy a lottery ticket, grab a soda, or use the restroom.

But that’s just me. As for our collective breakfast noshing habits, there’s a battle going on for the 13% we don’t eat at home. In terms of industry numbers, there are more than 152,000 convenience stores in the US, and 213,000 fast food outlets. They’re not that far apart, and to face inroads from a competitor of similar presence has to be causing fast food chains to lose sleep at night.

Now that’s something to put in your breakfast taco and think about. I just can’t imagine that little convenience store of my youth ever saw this thing coming.

Dr “I Can “C” Clearly Now” Gerlich

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The evolution of the convenience store—known as c-stores in industry jargon—is fascinating. While my doctoral research was about the supermarket industry, I was equally fascinated by their cousin. How they have changed through the years is truly mind-boggling.

The first c-store was opened in the Oak Cliff neighborhood of Dallas by the Southland Ice Company in 1927. Back then, they were known as Tote’m stores, and ice was a primary product before the widespread adoption of electric refrigerators. It wasn’t until 1946 that the rapidly growing chain changed its name to 7-Eleven, to reflect its hours of operation.

Early c-stores were typically 1000-1200 square feet, about the size of a house back then. Gasoline didn’t become a popular auxiliary product line until the 1970s. Today, of course, we go to c-stores primarily for gas, and then maybe we walk inside. Oh, and if we buy ice, it’s usually because we need it to put in the cooler. As for the gas, it is a reflection of our car culture. We don’t walk to any stores these days.

And those tiny stores have been replaced by shiny new structures that average 3500 square feet, with some—notably Buc-ee’s—much, much larger. The depth and breadth of c-store merchandise has expanded greatly, far beyond the usual milk, bread, and other staples that once lined shelves. Today there’s a candy store inside, an endless array of snacks, and every possible kind of liquid refreshment. One more thing: Prepared foods. Go to a newer Wawa, QT, Casey’s, and others, and you’ll be able to get lunch or dinner along with a tankful of gas.

Full disclosure: I am writing a feature story about Amarillo’s Toot’n Totum c-store chain for the May-June issue of Brick & Elm Magazine, so I have been knee deep in c-store facts and figures. I was enjoying it so much I decided to share some of it here. The chain started here in 1950, its name a slight dig at the early 7-Eleven stores, as well as a reference to customers tooting their horn when they arrived, and a clerk toting their order out to them.

There are 152,000 c-stores today in the US, and there is rampant consolidation and growth among the biggest chains. Circle K, QT, Casey’s, and Wawa are among those entering new markets, buying up regional chains, building new stores, or both. Some offer car washes and auto care centers as well, making their physical footprint about three acres once you include all of the concrete areas for parking, gas, ingress, and egress.

Makes that first Tote’m Store look even smaller, doesn’t it?

C-stores have always enjoyed higher margins compared to supermarkets, primarily because they just could. Convenience comes with a price, and people are willing to pay it if they are in a hurry.

And therein lies the most important part of c-store evolution: Our increasingly hectic lives—something I have been both observing and bemoaning for several decades now—find us looking for the path of least resistance. If we can combine stops, we’ll do it. Think gas, lunch, and a loaf of bread. C-stores also outgrew the rhyming hours of operation, remaining open 24 hours a day in many locations.

But it is not like c-stores are putting the screws to traditional supermarkets. There are nearly 79,000 supermarkets in the US, with the number continuing to grow slowly. Sure, our population has grown more than 100% since the 1950sl, meaning we simply need more food available everywhere.

Locally, much of Toot’n Totum’s growth occurred by acquisition, a strategy it used in the 1960s through 1990s. Often, all that needed to be changed was the sign. Still, all of its stores were within Amarillo. Toot’n Totum continues to grow today, having shed its Amarillo-only strategy in 2013 when it purchased a small chain scattered across the northern Panhandle. They then set up shop in Liberal Kansas, Boise City Oklahoma, Clayton New Mexico, and right here in Canyon. In 2022 they announced they would build—not acquire—20 new stores in Lubbock, their first major expansion into a new market. The company plans to keep growing where opportunities exist, with their 100th store on Amarillo’s north side set to open this fall.

As c-stores continue to rise to the wants and needs of customers, there are numerous trends afoot, some of which you may have already noticed. Don’t be surprised when you find EV charging stations, self-check kiosks, even more beverages (how can they possibly offer more?), healthier fare, and what Toot’n Totum says is the secret sauce in their success story, an emphasis on the customer experience.

This means safe shopping, clean restrooms, bright lights, loyalty programs, mobile apps, and merchandise variety. Sure, some chains fail miserably on some or all of these measures, but they will be the ones to struggle as competition heats up.

Meanwhile, my fascination with c-stores continues unabated. I see consumer behavior happening here. And as I learned in my interview with Toot’n Totum’s VP of Marketing, they are digitizing more and more of the customer experience. It’s a far cry from when I started studying all of this more than 40 years ago, but it never fails to get my attention.

Darwin’s evolution of species could never keep up with what we’re seeing today.

Dr “C Is For Convenience” Gerlich

Amazon is reportedly considering a plan to open as many as 3,000 new Amazon Go cashierless stores by 2021, with more than 50 locations in major markets by 2019, according to Bloomberg.

While Amazon has not confirmed the report, Amazon Go stores in major metro markets would likely take a bite out of food and beverage sales at supermarket, drug, dollar, convenience and mass chains as consumers — especially the growing ranks of Amazon Prime members — opt to skip the checkout process altogether to make a quick snack, meal or grocery purchase.

The RTP team discusses what steps retailers can take to survive in a landscape flooded with Amazon Go stores, and whether the Go business model is sustainable. 

Debbie Hauss, Editor-in-Chief: I think the stores are coming; how many, and how quickly, is the question at this point. But supermarket and convenience store retailers should be preparing now for how they are going to compete. This is a disruption that we've been aware of, so there's almost no excuse for potential competitors not being prepared. It looks like there are still a number of glitches that Amazon is working to overcome, so now is the best time to jump in and figure out how to perfect the technology to directly compete, or to develop different strategies that will prevent current customers from getting pulled over to Amazon Go.

Adam Blair, Executive Editor: Not much about the announcement of Amazon opening 3,000 Go stores makes sense — except for the fact that Jeff Bezos has amassed enough money and power to change (or ignore) the rules as he sees fit. For one thing, convenience stores generate a lot of their profits from the sale of tobacco products (unfortunately for the health of consumers). Unmanned or lightly manned Amazon Go stores would need to forego this product category, or figure out some cashierless way to keep cigarettes out of the hands of minors. Additionally, these stores may face problems in keeping their SKU counts low: while c-stores don’t sell a ton of non-food items, when you desperately need an aspirin or a 9-volt battery, you want to find it there. I would be less skeptical if Amazon could scale up the technology — and work out the merchandising kinks — to support 300 stores, much less 3,000.

Glenn Taylor, Senior Editor: This appears to be Amazon’s classic “we can do this” moment — the kind that gets everyone rattled in the short term while they slowly put together something more cerebral behind the scenes. I don’t seriously see the Amazon Go stores scaling out that far, especially to the point where other c-stores have to worry about cannibalization of their total sales. There are some lessons to be learned, however, particularly when it comes to introducing more “grab-and-go” meals and creating an entirely mobile-friendly store. Plus, existing convenience stores still carry the advantage of being the place to stop for many things people don’t want to shop at a store for, whether that means paper plates or even headphones. At this point, all c-stores should be doing is keeping an eye out for what works well for Amazon Go, and starting to implement the parts that are succeeding.