C Stores Are Becoming America’s Fastest Growing Restaurant Competitors—And the Data Proves It

 

For decades, convenience stores were defined by fuel, fountain drinks, and grab‑and‑go snacks. Today, they are redefining the competitive landscape for quick‑service restaurants (QSR) and fast‑casual chains by becoming full‑scale food destinations according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. With fresh prepared foods, mix‑and‑match meal components, and aggressive value bundling, C‑stores are now capturing breakfast, lunch, dinner, and snacking occasions once dominated by traditional restaurants.

The shift is unmistakable: C‑stores now generate more than $43 billion annually in prepared food and dispensed beverage sales, according to NACS, and the category continues to outpace QSR traffic growth. Consumers are voting with their wallets—and they’re choosing convenience retailers that deliver restaurant‑quality meals at grocery‑store value.

RaceTrac’s latest announcement underscores just how quickly the sector is innovating.

 

RaceTrac: Limited‑Time Offers That Signal a Full Foodservice Evolution

RaceTrac’s new Honey Chicken & Waffle breakfast sandwich is more than an LTO—it’s a strategic move in the battle for morning meal share. The item layers crunchy chicken, hot honey, fluffy egg, and melted cheese between waffle buns, tapping into three high‑growth flavor trends: sweet‑heat, comfort‑food mashups, and protein‑forward breakfasts.

This LTO joins the Southwest Sausage Pizza and Egg Salad Sandwich on cracked oat wheat bread, reinforcing RaceTrac’s shift from convenience retailer to destination foodservice brand. With more than 800 RaceTrac and RaceWay stores and 15,000+ employees, the company is leveraging scale to introduce restaurant‑quality innovation at speed.

RaceTrac’s strategy aligns perfectly with the grocerant niche: mix‑and‑match meal components, bold flavors, and bundled value that beats QSR pricing.

 

How Leading C‑Store Chains Are Competing Head‑On With Fast Food and Fast Casual

Below is a fact‑driven look at how RaceTrac, Wawa, Sheetz, and 7‑Eleven are using meal bundling, fresh prepared foods, and grocerant‑style mix‑and‑match offerings to win new customers and lower the cost of eating out.

 

RaceTrac: Flavor Innovation + Meal Bundling

·       Introduced multiple LTOs in 2024–2026, including the new Honey Chicken & Waffle, designed to drive breakfast traffic, the fastest‑growing daypart in convenience retail.

·       Offers bundle‑and‑save deals pairing breakfast sandwiches with coffee, or pizza slices with fountain beverages, often under $6, significantly below QSR averages.

·       Uses modular meal components—pizza, sandwiches, bowls, bakery, and grab‑and‑go proteins—allowing customers to build meals across dayparts.

·       Leverages its ownership of 445+ Potbelly sandwich shops to cross‑pollinate culinary expertise and menu development.

 

Wawa: Customization at QSR Scale

Wawa has become a benchmark for C‑store foodservice, generating billions annually from fresh prepared foods.

·       Its touchscreen ordering system enables full customization, mirroring fast‑casual brands like Chipotle or Panera.

·       Breakfast hoagies, quesadillas, bowls, and smoothies can be mixed and matched into meal bundles, often priced 20–30% below QSR equivalents.

·       Wawa’s “Built‑to‑Order” platform allows customers to combine proteins, sides, and beverages into personalized meals—an essential grocerant hallmark.

·       Seasonal LTOs (e.g., Gobbler Hoagie, Hot Honey Chicken Strips) drive repeat visits and social media buzz.

 

Sheetz: Restaurant‑Level Variety + 24/7 Availability

Sheetz has positioned itself as a fast‑casual disruptor with a menu that rivals major chains.

·       Offers 2,500+ possible menu combinations through its M•T•O (Made‑to‑Order) platform.

·       Bundles include burger + fry + drink, breakfast burrito + coffee, and snack box + energy drink, all priced to undercut QSR competitors.

·       Sheetz’s 24/7 kitchen operations capture late‑night and off‑peak meal occasions that traditional restaurants often ignore.

·       Its menu includes salads, pizzas, tacos, mac‑and‑cheese bowls, and protein‑forward snacks—ideal for mix‑and‑match meal building.

 

7‑Eleven: Global Scale Meets Local Meal Innovation

With more than 13,000 U.S. stores, 7‑Eleven is the largest convenience retailer in the country—and it’s using that scale to reshape foodservice expectations.

·       The 7‑Select private‑label brand includes fresh sandwiches, wings, taquitos, and bakery items that can be bundled into value meals under $5.

·       The chain’s “Any 2 for $3 / $4 / $5” mix‑and‑match promotions are textbook grocerant strategies, encouraging customers to build meals from multiple components.

·       7‑Eleven’s hot case program (taquitos, empanadas, mini tacos) drives high‑margin snacking occasions throughout the day.

·       The chain continues to expand its Evolution Store concept, featuring made‑to‑order tacos, fresh‑pressed juices, and premium coffee bars.

 

Why C‑Stores Are Winning: The Grocerant Niche Comes of Age

The grocerant niche—Ready‑2‑Eat and Heat‑N‑Eat meals sold in convenient retail formats—has become the backbone of C‑store foodservice growth. Consumers want speed, flavor, value, and customization, and C‑stores are delivering all four more efficiently than many restaurant chains.

·       Mix‑and‑match meal bundling lowers the total cost of eating out.

·       Fresh prepared foods meet the demand for restaurant‑quality convenience.

·       LTO innovation keeps menus fresh and drives repeat traffic.

·       All‑day availability captures meal occasions restaurants miss.

C‑stores are no longer competing with QSRs—they’re overtaking them in key dayparts.

 

Three Insights from the Grocerant Guru®

1. Meal Bundling Is the New Battleground

Consumers are stretching their food dollars, and C‑stores that offer modular meal components—protein + side + beverage—are outperforming QSRs on both value and variety.

2. LTOs Drive Trial, But Mix‑and‑Match Drives Loyalty

Limited‑time offers bring customers in the door. Customizable meal components keep them coming back because they can build meals that fit their lifestyle, budget, and cravings.

3. C‑Stores Are Becoming America’s New Neighborhood Kitchens

With fresh prepared foods available 24/7, convenience retailers are now the most accessible foodservice providers in the country. They are no longer “alternatives”—they are primary meal destinations.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter