Convenience stores are becoming more competitive with quick-service restaurants as consumers’ perceptions of quality and convenience shift between the two options. What can quick-service restaurants learn from the competition, and how can operators ensure they remain the top choice as convenience stores begin to offer higher-quality food service programs? 

Intouch Insights Convenience Store Trends Report for 2024 has revealed where c-stores are thriving and what that means for fast food chains in the coming years. From fuel and food to cleanliness and ambiance, c-stores have become a more viable option for consumer’s needs. This has been a growing trend, with 56 percent of respondents indicating they view c-stores as a viable option to fast-food chains—an 11 percent increase over the past two years.

Ninety-three percent of respondents said they had tried made-to-order food from convenience stores. Quick-service restaurants must understand what differentiates their services. Convenience is a key driver for fast food and convenience stores. From the drive-thru to a quick meal while fueling up a car, operators must ensure the flow, access, and speed of service are all there. Sixty-one percent of respondents said the convenience of made-to-order convenience store food was the driving factor to purchase.  

“While convenience stores have yet to take massive market share from quick-service restaurants, operators should be on alert,” says Sarah Beckett, director of marketing at Intouch Insight. “Convenience stores are investing heavily in value and quality. We’re no longer talking about roller hot dogs and stale coffee. Instead, it’s fresh, made-to-order food with quality ingredients.”

Thirty-seven percent of respondents said their main purchase at a C-store is coffee, and 26 percent said their main purchase was prepared food. Furthermore, most respondents—62 percent—believe food purchased at C-stores offers good value for the money. “Convenience stores are future-proofing their businesses,” Beckett notes. “As the fuel market evolves with electric vehicles and hydrogen fuel cells, they’re looking for alternate revenue streams, and food is a big part of that.”

As consumers, especially Gen Z and millennials, begin investing in electric vehicles, fueling will become more specialized and begin to take longer. C-stores can capitalize by offering higher-quality food and beverage programs, highlighting how the sector needs to find better ways to engage younger consumers.

Coffee is hugely popular among consumers, quick-service restaurants, and now convenience stores. Convenience stores are enhancing their coffee selections and becoming more competitive with quick-service restaurants. In fact, 65 percent of respondents said that with improved coffee offerings, they consider convenience stores as an alternative to coffee shops.

“Convenience stores are upping their game with advanced coffee and hot beverage offerings, and some brands, like Wawa, have customers who are incredibly loyal to their coffee,” Beckett says. Quick-service stores still have an edge as they can offer drive-thrus and convenience in that manner, but it does indicate quick-service restaurants must maintain quality, speed of service, and accuracy to further differentiate from c-store competition. 

“The blurring between quick-service restaurants and convenience stores is happening in the digital marketplaces, where people can order food from either type of business with just a few clicks,” Beckett says. Respondents from Intouch Insight’s recent study showed that 56 percent of consumers used a third-party app to make a purchase at a convenience store, and 45 percent used curbside pickup. 

“Technology is key to staying competitive—whether it’s food quality, packaging, or the overall customer experience, quick-service restaurants are currently ahead of convenience stores in this area,” Beckett says. Quick-service restaurants need to maintain this edge with technology and digital experiences. To do this, they need to know what consumers want, how they are responding to initiatives, and if what they are doing is working. This is further emphasized as c-stores seem to have an edge with loyalty programs as consumers can derive greater value from c-store loyalty programs, giving consumers savings at the pump and higher-quality made-to-order foods.

Competition is only becoming harder to manage in the quick-service restaurant industry, as new brands, trends, technology, and now c-stores begin to change consumer demands. Knowledge is power, and the fast-food industry needs to be aware of competition and consumer demands in order to succeed. 

“Quick-service restaurants are collecting data and surveying customers to stay ahead of future changes,” Beckett says. “They’re constantly measuring whether their new technologies and systems meet customer expectations.” Restaurants still have the edge over C-stores, but factors like cleanliness, curb appeal, quality of food, and technology are surging at the forefront of consumers’ minds, and C-store operators know that. 

Measuring what is working and what isn’t, from new technology innovations to cashier friendliness, should be analyzed. Identifying sticking points in operations, as well as what consumers enjoy, is key for quick-service restaurants to remain competitive.

For more information on how Intouch Insight can help you stay competitive, visit here. 

By Ya’el McLoud