Private Label Food Drives Growth, Profits, and Branding for Restaurants and Convenience Stores: A Grocerant Perspective

 

In the evolving landscape of food retail and service, private label (also known as store brand) food is rapidly reshaping the playbook for restaurants and convenience stores (c-stores). What was once relegated to discount or no-name options has now become a dynamic engine of growth, brand differentiation, and consumer loyalty. According to Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, private label food isn’t just a product strategy—it’s a branding revolution.

The Rise of Private Label in the Grocerant Space

The grocerant—a term coined to describe foodservice offerings within grocery stores, c-stores, and non-traditional food retail locations—has become a hotbed for culinary innovation. Chains like Wawa, Sheetz, and 7-Eleven are no longer just fuel stops; they’re destinations for made-to-order meals, artisan coffee, and proprietary snacks. Private label food plays a pivotal role in this transformation.

Johnson explains, “Private label food gives grocerants control over both the culinary narrative and the customer experience. It’s not just about saving costs—it’s about crafting unique, craveable, branded experiences that drive repeat visits.”

Why Private Label Wins

1.       Margin Expansion: Private label items typically generate 25–30% higher profit margins compared to national brands. This is due to reduced supply chain complexity, fewer marketing intermediaries, and volume-based production.

2.       Brand Differentiation: Unlike national brands, private label SKUs are exclusive, allowing retailers to build brand identity and customer loyalty. From the name and packaging to the flavor and origin story, every element can reflect the parent brand’s ethos.

3.       Consumer Trust and Quality: Over 65% of U.S. consumers now believe that store-brand food is just as good—if not better—than name brands (FMI: The Food Industry Association, 2024).

4.       Speed to Market: Restaurants and c-stores can rapidly prototype and launch private label items, capitalizing on seasonal trends, viral ingredients, and niche diets (e.g., keto, gluten-free, plant-based) faster than large CPG companies.

5.       Loyalty Loop Creation: With private label exclusivity, consumers are incentivized to return for items they can't get anywhere else, enhancing loyalty program effectiveness.

 

Five Chains That are Mastering Private Label Food

1. Wawa – Branded Freshness in Every Bite

Wawa’s private label brand includes hoagies, snacks, and beverages. Their proprietary iced teas and smoothies generate millions in revenue annually. By branding its food as fresh, local, and customizable, Wawa has cultivated a cult-like following.

Insight: Wawa has turned its “Built-to-Order” sandwiches into a brand pillar. Their private label hoagies outsell many fast food equivalents in regional markets.

 

2. Sheetz – Made-to-Order Meets MTO Labeling

Sheetz has pioneered private label MTO (Made-To-Order) food that includes everything from mac & cheese bites to milkshakes. Their internal branding, quirky product names, and 24/7 availability have created a fiercely loyal customer base.

Fact: Over 60% of food purchases at Sheetz are private label, making it a major driver of unit economics.

 

3. 7-Eleven – From Slurpees to Gourmet Sandwiches

Long known for the Slurpee (a private label icon), 7-Eleven has scaled its food offerings with items like 7-Select sandwiches, snacks, and cold-pressed juices. Their in-house product development labs test and roll out global flavors, including Korean BBQ and Japanese onigiri.

Stat: In 2023, 7-Select products accounted for nearly $4 billion in global sales, growing faster than national brands in many c-store categories.

4. Sweetgreen – Branded Dressings and Bowls

Sweetgreen isn’t a c-store, but it's a fast-casual chain mastering private label. With bottled salad dressings, meal kits, and soon-to-launch frozen bowls under its brand, it’s extending its reach beyond the store.

Consumer Value: Customers associate Sweetgreen’s private label dressings with clean eating and transparency, making it a trusted brand extension into home kitchens.

 

5. Casey’s General Store – Breakfast Pizza as Brand DNA

Casey’s built its reputation in rural America with its now-iconic private label breakfast pizza. It’s not just a food item; it’s part of regional food culture.

Result: Private label food accounts for 61% of Casey’s prepared food sales, with breakfast pizza generating loyal morning traffic.

 

Brand Value for the Chain

From a branding perspective, private label food:

·       Elevates Perceived Quality: Consumers see branded, proprietary food as a sign the retailer takes pride in their offerings.

·       Supports Cross-Promotion: Chains can bundle food items with fuel rewards, digital loyalty programs, or app-exclusive deals.

·       Builds Emotional Connection: Private label foods can evoke nostalgia, indulgence, or health consciousness based on how they're crafted and marketed.

·       Reduces Competitive Exposure: Without third-party products, there’s less risk of price matching or cross-shopping.

Brand Value for the Consumer

Consumers benefit in five key ways:

1.       Cost Savings: Private label often comes at a lower price without sacrificing quality.

2.       Product Discovery: Unique flavor profiles and limited-time offerings make meals feel like an experience.

3.       Consistency: Private label guarantees product uniformity across all locations.

4.       Transparency: With clean labels and fewer artificial ingredients, consumers feel more in control of their health.

5.       Convenience & Trust: Familiar branding makes decision-making easier, especially in grab-and-go situations.

 

Think About This: Private Label is the New Signature Dish

As grocerants continue to blur the lines between restaurant, grocery, and convenience, private label food emerges as a cornerstone of strategy—not just a supplement. For chains, it’s a brand-building tool. For consumers, it’s a trusted source of value and innovation. According to the Grocerant Guru, “Private label food isn’t just about selling a product—it’s about telling a story that keeps customers coming back.”

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