Why Casey’s General Stores Continues to Win at the Intersection of Food, Convenience, and Value

For decades, convenience stores struggled to be taken seriously as food destinations. Casey’s General Stores has methodically dismantled that perception by leaning into what I call the grocerant sweet spot: fresh food credibility, craveable takeout, and disciplined mix-and-match bundling that consistently grows ticket size across dayparts according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Casey’s is no longer just selling food as an add-on to fuel—it is architecting a food-forward ecosystem where prepared meals, dispensed beverages, and grocery adjacencies reinforce one another with impressive financial results.

Prepared Foods: The Economic Engine of the Brand

Casey’s prepared food and dispensed beverage business continues to perform like a high-margin foodservice operator rather than a traditional c-store. Prepared food and dispensed beverage sales rose 4.8% year over year, and an even more telling 10.3% on a two-year stack basis, with an average margin of 58.6%. That margin profile rivals—and in some cases exceeds—many QSR concepts.

Whole pizzas remain a cornerstone, but the growth story is broader. Whole pies and hot sandwiches performed well across all dayparts, reinforcing the importance of all-day food availability. Even more notable is breakfast, which performed exceptionally well, driven by innovation such as the Maple Waffle Breakfast Sandwich. This product underscores an important strategic shift: Casey’s culinary team is not merely refreshing legacy items—they are actively innovating with flavor-forward, comfort-driven offerings that resonate with time-starved consumers.

Fresh Food and Takeout: Expanding the Grocerant Halo

Casey’s success is rooted in its ability to blur the line between grocery and restaurant. Freshly prepared pizzas, hot sandwiches, and breakfast items anchor the takeout experience, while adjacent grocery items allow shoppers to build complete meal solutions.

Same-store grocery and general merchandise sales increased 2.7% year over year and 6.4% on a two-year stack basis, with an average margin of 36%, up approximately 40 basis points from the prior year. This improvement was driven by a favorable mix shift toward higher-margin items such as energy drinks and nicotine alternatives.

From a grocerant perspective, this matters because these items are not purchased in isolation. They are commonly bundled with food—pizza plus energy drink, breakfast sandwich plus coffee, hot sandwich plus snack—creating incremental ticket lift without requiring incremental labor.

Mix-and-Match Bundling: Where Ticket Size Is Won

Casey’s demonstrates a sophisticated understanding of bundled behavior. Customers don’t come in for “a pizza”; they come in for dinner. They don’t want “a breakfast sandwich”; they want breakfast solved.

By leveraging grocerant mainstay principles—mix-and-match bundling across prepared foods, beverages, and grocery adjacencies—Casey’s consistently increases basket size. The data supports this strategy: higher-margin grocery items complement prepared food purchases, while dispensed beverages deliver margin accretion with minimal friction.

This bundling capability is a competitive moat. It allows Casey’s to monetize traffic across multiple missions: fuel stop, meal occasion, and pantry replenishment—all within a single visit.

Fuel Still Matters—But Food Makes It Stick

Fuel remains an important traffic driver. Same-store gallons sold increased 0.8%, with a fuel margin of 41.60 cents per gallon, supported by strong premium and mid-grade demand, stable diesel sales, disciplined pricing, and solid fleet volume gains.

However, from a Grocerant Guru® perspective, fuel is increasingly the entry point, not the profit center. The real long-term value lies in converting fuel customers into repeat food customers—something Casey’s does better than most through consistent food quality and broad daypart relevance.

 

Three Insights from the Grocerant Guru®

1.       Casey’s Is a Food Company That Happens to Sell Fuel
With prepared food margins approaching 60%, Casey’s economic model increasingly mirrors foodservice leaders rather than traditional convenience retailers.

2.       Breakfast Innovation Is the Next Growth Multiplier
Products like the Maple Waffle Breakfast Sandwich signal that Casey’s understands breakfast is no longer transactional—it must be indulgent, portable, and memorable.

3.       Bundling Is the Silent Profit Driver
Casey’s disciplined mix-and-match strategy across food, beverages, and grocery adjacencies quietly but consistently expands ticket size without adding operational complexity.

In an era where convenience alone is no longer enough, Casey’s General Stores proves that when fresh food, innovation, and bundling discipline align, the grocerant model delivers both customer loyalty and sustainable margin growth.

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call    1-253-759-7869

Casey’s & Pepsi: A Classic Restaurant Playbook Move Fueling C-Store Foodservice Growth

For more than five decades, Casey’s General Stores has steadily evolved from a rural convenience outlet into a national powerhouse, one that has long understood what many retailers only recently discovered: fresh food and foodservice are the engines that drive sales growth, brand value, and customer frequency according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

This latest collaboration with Pepsi—positioning Casey’s handmade pizza alongside an ice-cold Pepsi—demonstrates that Casey’s is now fully embracing the Chain Restaurant Marketing Playbook that helped legacy restaurant brands build national followings.

From the 1980s introduction of made-from-scratch pizza to today’s broad menu of fresh, ready-to-eat staples, Casey’s history mirrors the restaurant sector’s evolution:

·       Fresh food as a differentiator

·       Signature items that create destination-level traffic

·       Co-branding partnerships that elevate flavor, fun, and frequency

·       Marketing campaigns that behave like restaurant media, not traditional c-store ads

Today, Casey’s—now the third-largest convenience store retailer and fifth-largest pizza chain in the country—is leveraging that restaurant-style strategy at scale. And its newest national campaign proves it.

 

Casey’s Joins Pepsi’s ‘Food Deserves Pepsi’ Movement

Casey’s becomes the first convenience retailer to join the nationwide Food Deserves Pepsi platform, a powerful campaign built on the idea that America’s favorite foods just taste better with Pepsi.

A new co-branded advertising spot features a dedicated “Pepsi Chaser,” ensuring that no slice of Casey’s handmade pizza is enjoyed without the bold, refreshing flavor of Pepsi. The creative includes:

·       A 30-second national digital ad

·       A 15-second cutdown

·       Broad distribution across social platforms and fuel pump screens

“Quality is baked into everything we do at Casey’s, and you can taste that in every slice,” said Tom Brennan, chief merchandising officer at Casey’s. “Teaming up with Pepsi is a natural fit—two brands that know great taste, coming together for the perfect hometown combo.”

The Food Deserves Pepsi platform launched in 2024 and has captured national attention through campaigns such as BBQ Crashers, Tailgate Crashers, and Undercover Cups—all reinforcing one simple message: a meal without Pepsi is leaving taste on the table.

 

Fueling the Next Era of C-Store Foodservice

Casey’s adoption of restaurant-style branding, storytelling, and meal pairing shows how convenience stores continue to redefine themselves as meal destinations, not just fuel stops. Pepsi’s partnership only accelerates that shift by tapping into consumer expectations shaped by restaurants:

·       Flavor pairing

·       Branded meal bundles

·       Social-driven marketing

·       Daypart-specific promotions

This is the restaurant playbook—modernized for the C-store era.

Insights From the Grocerant Guru®: The Future of Mix-and-Match Meal Component Bundling

1.       Breakfast Will Become the C-Store Battleground
Mix-and-match bundles—breakfast pizza + energy drink, burrito + coffee, sandwich + juice—will drive morning loyalty, just as QSRs did with combo meals two decades ago.

2.       Lunch and Dinner Bundles Must Mirror Restaurant Behavior
Expect more strategically paired “meal duos” like pizza + Pepsi, sub + chips, wings + fountain drink—engineered for value, flavor, and convenience. C-stores that offer menu-level curation will grow frequency fastest.

3.       Snacking Is the New ‘Fourth Meal’
Snack-driven bundles (pretzel bites + frozen drink, cookies + cold coffee) tap into all-day traffic. As restaurant brands lean into snacking, C-stores must follow with flexible, frictionless mix-and-match formats.

4.       Personalization Will Define the Next Generation of C-Store Meal Solutions
Digital apps and loyalty programs will enable dynamic bundling—letting shoppers create their own component meals across dayparts with personalized pricing. This is where the c-store sector pulls ahead of restaurants.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

Stay Ahead of the Competition with Fresh Ideas

Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

 Email us at Steve@FoodserviceSolutions.us Connect with us on social media: Facebook, LinkedIn, Twitter 

Casey’s Evolving Success with Migrating Consumers

 

The convenience store landscape has undergone a dramatic transformation over the past two decades, evolving from a quick stop for fuel and packaged snacks to a robust competitor in the foodservice industry according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Leading the charge in this evolution is Casey’s General Stores, a company that has strategically embraced the grocerant model—blending the convenience of a grocery store with the meal solutions of a restaurant. With a strong focus on high-quality prepared foods, particularly pizza, and an aggressive unit expansion strategy, Casey’s is capturing a growing customer base seeking mix-and-match meal solution.

A Historical Perspective on Casey’s Shift to Foodservice

Founded in 1968, Casey’s started as a small-town convenience store providing essential goods to rural communities. By the 1980s, the company recognized that foodservice was becoming a critical differentiator in the industry, particularly in smaller markets where dining options were limited. The introduction of Casey’s signature pizza in 1984 was a pivotal moment, setting the stage for its long-term success in prepared foods.

While many convenience stores traditionally relied on pre-packaged sandwiches and microwaveable burritos, Casey’s took a different approach—investing in fresh, made-to-order food. Over the next few decades, the company continued expanding its menu, adding breakfast pizza, bakery items, and eventually full meal bundling options. Today, Casey’s is the fifth-largest pizza chain in the United States by store count, a remarkable achievement for a company that started in fuel and packaged goods.

Expanding Share of Stomach

Pizza and Meal Bundling Driving Incremental Sales Growth

Pizza has remained the cornerstone of Casey’s foodservice success, consistently driving sales and customer loyalty. According to industry data, nearly 80% of Casey’s customers who purchase a pizza also buy additional items, reinforcing the strength of its bundling strategy. With meal bundling becoming an essential part of consumer purchasing habits, Casey’s has integrated complementary offerings like breadsticks, wings, and desserts, elevating its check average while enhancing customer value perception.

The results speak for themselves. In the third quarter of fiscal year 2025, Casey’s reported a 4.7% increase in same-store prepared food and dispensed beverage sales, with hot sandwiches seeing a 50% surge and bakery items growing nearly 10%. This growth is largely attributed to Casey’s ability to bundle fresh meal components into attractive value deals, which keep customers returning. The introduction of new chicken wings and fries further supports Casey’s efforts to create mix-and-match meal options catering to a variety of consumer preferences.

Expanding the Store Footprint and Capturing New Markets

While menu innovation is a critical factor, Casey’s unit growth strategy is equally impressive. The company has aggressively expanded, increasing its store count to approximately 2,900 locations across 17 states. The 2023 acquisition of 198 CEFCO convenience stores marked Casey’s most significant deal to date, bringing 148 new stores in Texas and an additional 50 in Alabama, Florida, and Mississippi. This expansion into the South presents new opportunities to introduce its signature pizza and bundled meal solutions to a broader audience.

Casey’s has long focused on rural and suburban markets, a strategy that has proven effective as traditional grocery stores struggle with rising operational costs. By positioning itself as a go-to destination for both fuel and fresh food, Casey’s continues to build a strong community presence, particularly in areas where quick-service restaurant options are sparse.

The Grocerant Model: A Future-Proof Strategy

The rise of the grocerant niche aligns perfectly with Casey’s growth strategy. As more consumers migrate away from traditional sit-down restaurants and toward quick, customizable meal solutions, convenience stores that offer high-quality prepared foods stand to gain significant market share. The data supports this shift—according to NACS, foodservice has now surpassed cigarettes as the leading revenue category in convenience stores, a trend that is expected to continue.

Casey’s has embraced this shift by focusing on fresh, restaurant-quality offerings while leveraging its existing convenience store infrastructure. With a well-established brand reputation for quality pizza and growing consumer demand for bundled meal deals, Casey’s is well-positioned to capitalize on the next wave of convenience-driven dining trends.

Looking Ahead: Continued Innovation and Growth

As Casey’s moves forward, the company’s commitment to food innovation, operational efficiency, and strategic expansion will remain central to its success. The company has achieved 11 consecutive quarters of reduced same-store labor hours, a testament to its ability to optimize operations while maintaining strong customer satisfaction scores.

With plans to add another 350 stores by the end of fiscal year 2026, Casey’s is poised to continue its dominance in the grocerant niche. By staying ahead of consumer trends and reinforcing its reputation for fresh, high-quality prepared foods, Casey’s is not only evolving but leading the industry into a new era of convenience-driven dining.

The success of Casey’s highlights a broader industry trend: the rapid transformation of convenience stores into foodservice powerhouses. As consumer migration continues to favor ready-to-eat and heat-and-eat meal solutions, Casey’s stands as a prime example of how a retailer can adapt, innovate, and thrive in an ever-changing market.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

Stay Ahead of the Competition with Fresh Ideas

Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter

Casey’s General Stores Strengthens Consumer Bonds with ‘Darn Good Coffee’ Launch

 

In a bold move to deepen its relationship with consumers and elevate its position within the convenience store sector, Casey’s General Stores, Inc. has introduced eight new blends in its innovative “Darn Good Coffee” lineup. With this launch, Casey’s is poised to redefine how consumers view coffee offerings from convenience stores, leaning into decades of consumer adoption trends and the vital role coffee plays in driving incremental food sales within the C-store space according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

A Legacy of Coffee at Convenience Stores

The history of coffee consumption at convenience stores underscores its profound connection to consumer habits and purchasing behavior. In the 1970s and 1980s, convenience stores began offering coffee as an essential on-the-go beverage. By the 1990s, C-stores solidified their role as coffee hubs for millions of Americans, delivering a quick and affordable caffeine fix that seamlessly complemented breakfast or snack purchases. Today, more than 50% of all convenience store shoppers buy coffee, with nearly two-thirds pairing it with food items such as pastries, breakfast sandwiches, or snacks. Coffee sales have long been a catalyst for driving basket size and fostering consumer loyalty—and Casey’s knows it.

“Coffee has always been more than just a beverage—it’s an invitation to linger, to pair, and to enjoy. By enhancing its coffee offering, Casey’s isn’t just filling cups; it’s filling baskets,” said the Grocerant Guru®.

Celebrating Darn Good Coffee with Free Brews

To celebrate this milestone, Casey’s Rewards members are invited to enjoy a free any-size coffee through January 28, with one free coffee per transaction. This promotion not only underscores the brand’s commitment to quality but also serves as an opportunity for customers to explore the elevated coffee experience Casey’s is delivering. By investing in freshly ground and brewed-on-demand coffee, Casey’s is meeting and exceeding consumer expectations of quality—proving that coffee at a convenience store can indeed rival other premium offerings.

The Coffee Lineup: Tailored to Every Palate

Casey’s new “Darn Good Coffee” lineup, made from high-quality beans, features blends for every type of coffee lover:

·         Casey's Country House Blend: Approachable, well-rounded, and always smooth.

·         100% Colombian: A bright and rich aroma with a well-balanced flavor.

·         French Roast: Full-bodied dark roast with a satisfying depth.

·         Rooster's Call High Caffeine: A bold burst of energy with a dark, satisfying finish.

·         Salted Caramel Toffee: Buttery toffee meets creamy caramel with hints of salt.

·         Light Roast: Crisp and balanced for early risers and night owls.

·         Decaf: A lighter roast with none of the caffeine, perfect for all times of day.

·         Toasted Pecan (Limited Time): A rich and nutty flavor profile with smooth balance.

All blends can be customized with complimentary creamers, sweeteners, and condiments, reinforcing Casey’s as a consumer-centric destination.

Deepening the Coffee and Food Connection

Historically, convenience stores that elevate their coffee programs see a direct correlation in increased food sales. From breakfast sandwiches to sweet treats, consumers are more likely to add food items when they perceive the coffee experience as premium. For Casey’s, this launch not only satisfies current coffee fans but also invites new guests to explore the full breadth of its culinary offerings, including its acclaimed pizza and breakfast options.

“Casey’s has cracked the code: a quality cup of coffee isn’t just an end in itself—it’s the key to unlocking deeper consumer engagement and higher check averages,” added the Grocerant Guru. “By aligning coffee excellence with its food offerings, Casey’s is strengthening the all-important relationship between their brand and their customers.”

Casey’s Continued Commitment to Innovation

With over 50 years of history and more than 2,600 locations across 17 states, Casey’s has consistently demonstrated its ability to adapt to consumer demands and set industry trends. As the third-largest convenience store chain in the United States and the fifth-largest pizza retailer, this latest initiative firmly positions Casey’s as a leader in redefining the convenience store experience.

For coffee enthusiasts and convenience store patrons alike, Casey’s Darn Good Coffee is more than just a beverage—it’s an invitation to explore, enjoy, and embrace the evolving world of modern convenience. Don’t miss the chance to try it for free before January 28. The Grocerant Guru® guarantees you’ll leave with more than just a smile.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us