Why Restaurant Customers Are Eating Lunch — and Everything Else — at Convenience Stores

 

Foodservice Solutions® Grocerant Guru® Steven Johnson has been spotlighting restaurant customer migration toward grocery stores and convenience stores since 1991, long before it became a headline trend. Yet here we are in 2025, and the data has clearly caught up with what our 125,000 regular readers have known for decades: C-stores are now full-fledged foodservice competitors across breakfast, lunch, dinner, snacking—and even coffee.

A new wave of industry research confirms what the grocerant niche has been signaling: convenience stores have evolved into primary destinations for ready-to-eat, ready-to-heat, and fresh-prepared meals. The NPD Group, Circana, Technomic, and multiple POS analytics platforms all point to one undeniable fact:

Restaurant customers aren’t just defecting from QSR—they’re replacing entire meal occasions at C-stores.

 

New 2025 Food Facts: How Convenience Stores Now Compete Across Every Daypart

BREAKFAST: The New Power Meal for C-Stores

·       Since 2021, morning food and beverage trips to convenience stores have grown 17%, driven by grab-and-go handhelds, breakfast burritos, and morning bakery programs.

·       42% of Gen Z now say they “frequently” get weekday breakfast from a C-store—up from 29% just five years ago.

·       Fresh bakery cases and heat-and-eat sandwiches are outperforming traditional QSR value menus by 10–14% in unit sales.

Coffee:

·       C-store coffee volume is up 11% YoY, with bean-to-cup brewing systems becoming a top differentiator.

·       Premiumization matters: customers will spend up to $1.40 more for customized espresso or cold brew in upgraded C-stores vs traditional gas-station blends.

 

LUNCH: The Daypart Where C-Stores Now Outperform QSR

The migration that began a decade ago is now fully realized.

According to 2025 Circana data:

·       C-stores hold 11.7% of all quick-service lunch visits, up from 10% in 2016.

·       Millennials and Gen Z account for over 56% of all C-store lunch traffic.

·       Fresh-made pizza, chicken tenders, salads, and snack bundles are driving double-digit growth, while QSR lunch visits remain flat.

Pricing remains a major advantage:

·       In 2025, lunch at a C-store averages $2.45 less than a QSR combo meal.

·       “Mix-and-Match Meal Deals” have increased lunch basket spend by 22% over five years.

 

DINNER: The Surprising New Battleground

Dinner was once untouchable for C-stores. Not anymore.

Key 2025 metrics:

·       Take-home prepared meals from C-stores are growing at 3× the rate of QSR family bundles.

·       31% of shoppers now say C-stores are a “reliable” or “frequent” source for rotisserie chicken, heat-and-eat entrées, or fresh sides.

·       Urban C-store formats with hot bars and fresh bowls are seeing 20–28% higher dinner sales than legacy convenience formats.

Consumers cite:

1.       Speed

2.       Price transparency

3.       Portion control + customization (mix-and-match)

All core to the grocerant niche.

 

SNACKING: The All-Day Driver Behind Higher Frequency

The biggest performance gains for C-stores in 2025? Snacking.

·       All-day snacking trips to convenience stores are up 19% over 2022.

·       Grab-and-go protein boxes, cut fruit, sushi, premium jerky, and better-for-you snacks are growing 2–3× faster than candy or chips.

·       Gen Z shoppers now make 3.1 convenience-store snacking trips per week, compared with 1.7 QSR snack visits.

Snacking is also where brand loyalty is highest:

·       22% of Gen Z and 24% of Millennials say they “prefer a specific C-store chain” for snacks.

·       Compare that to QSR where brand loyalty for snacks sits below 13%.

 

Updated C-Store Loyalty Insights (2025)

Fresh data continues to reinforce what your original article observed back in 2016:

1.       C-stores now capture nearly 1 in 5 Gen Z foodservice trips.

2.       Millennials remain the heaviest users—representing 34% of all C-store foodservice traffic.

3.       Loyalty is rising: 20%+ of younger consumers go to C-stores specifically because they prefer the brand.

4.       Value still leads—but quality, speed, and customization now tie for second place.

As NPD’s Bonnie Riggs said years ago, “It’s something new, different.” In 2025, that’s even more true—because C-stores now offer restaurant-quality experiences at convenience speed and grocery-level price points.

 

FOURSIGHTS: 2025 Insights from the Grocerant Guru®

1. Mix-and-Match Is Now the Dominant Consumer Behavior

Customers want components, not combos. Whether coffee + bakery item, protein box + fruit cup, or bowl + beverage, convenience stores have mastered choice-based meal construction better than QSR.

2. Price Elasticity Favors C-Stores

In an inflation-fatigued environment, the ability to walk out with a full meal for under $8 remains a major advantage—and C-stores execute that consistently.

3. C-Store Coffee Is Now a Loyalty Anchor

The “morning coffee run” has become the gateway to impulse breakfast, snack, and beverage purchases—creating a dependable daily frequency loop that QSR struggles to match.

4. Technology Has Closed the Quality Gap

Made-to-order kiosks, AI-driven inventory, and better food-safe holding equipment mean that C-store food is fresher, hotter, and more consistent. Convenience stores are no longer the “alternative” to restaurants—they are the new mainstream meal provider.

 

Think About This

Success leaves clues. The ability to bundle meal components, customize flavor profiles, and deliver value at speed sits at the heart of Foodservice Solutions® FIVE P’s of Food Marketing. C-stores are executing on these principles with precision—and consumers are rewarding them with loyalty across every daypart.

For menu positioning, product placement, or foodservice ideation, contact:
Steve@FoodserviceSolutions.us

The Value of Fast-Food Gift Cards as Holiday Gifts

 

Practical, popular, and — yes — still surprisingly strategic for brands. This holiday season, fast-food gift cards are doing double duty: they’re a low-friction present for shoppers and a high-ROI customer-acquisition tool for restaurants. Below I’ll drill into who likes them, who buys them, why they’re rarely regifted, the top fast-food gift-card brands to consider, current marketing/loyalty data that explains their value — and four quick Grocerant Guru® takeaways.

Why fast-food gift cards matter right now.

Gift cards remain one of the fastest-growing segments in retail gifting: demand is climbing, consumers are turning to practical gifts amid economic worry, and restaurants treat cards as both immediate revenue and a long-term customer funnel. Recent industry trackers show gift cards and food are among the fastest-growing holiday gift categories.

 

Who likes to receive fast-food gift cards?

1.       Busy parents and caretakers — a guaranteed quick meal when time is scarce.

2.       College students and young adults — low cost, high convenience and instant gratification.

3.       Office coworkers and casual acquaintances — they’re neutral, useful, and simple to wrap or email.

4.       Value shoppers — recipients who appreciate stretching a small amount into a meal (and often add a little extra spend).

Data shows food & beverage gift options and gift cards are growing in popularity among a broad cross-section of consumers, which helps explain why restaurants and QSRs lean into card promotions each holiday season.

 

Who buys fast-food gift cards — and why?

·       Practical gifters who want a safe, no-fuss present that will be used.

·       Budget-conscious shoppers who can control spend while giving something desirable.

·       Corporate buyers who use cards for employee rewards or incentives (bulk orders).

·       Last-minute gifters who appreciate instant e-cards and same-day delivery options.

Surveys and industry reports show a significant chunk of holiday shoppers prefer physical and digital gift cards for convenience and budget control; corporate and bulk purchasing is also a steady demand driver.

 

Why fast-food gift cards are less likely to be regifted

Three behavioral reasons make fast-food cards stick with recipients rather than circulate as regifts:

1.       Immediate, consumable value. A meal is a short-term, personally useful item — you can’t “pass on” the meal someone already enjoyed.

2.       Low activation friction + loyalty perks. Many brands (Starbucks notably) let you register the card in a rewards account so the value becomes tied to the recipient’s profile and points — which makes resale or regifting unattractive.

3.       High redemption rate for small amounts. Fast-food cards unlock quick, affordable purchases; recipients often top up or spend more during redemption, increasing personal utility and reducing incentive to pass it on. Research and payments-platform analyses show recipients often spend more than the card value and become repeat visitors.

(Contrast that with a niche luxury voucher that someone might not use — those are more often regifted or left unused.)

Bankrate and gift-card studies also show a healthy proportion of Americans hold at least one gift card, but food cards tend to have higher immediate redemption because the product (a meal) is low-barrier.

 

Top 4 fast-food brands that sell gift cards (recommended picks)

These brands are perennially available as gift-card options across retailers, big e-commerce platforms and third-party aggregators — and they pair brand recognition with broad appeal:

1.       McDonald’s — ubiquitous, cross-generational appeal; often included in “top gift card” roundups.

2.       Starbucks — more than coffee: gift cards can be tied into the Starbucks Rewards ecosystem (makes them stickier).

3.       Subway — appeals as a perceived “healthier” fast option and widely available. (

4.       Taco Bell — popular with younger demographics and late-night diners; regularly listed among top fast-food gift cards.

(Alternates that often make the top lists: Burger King, Domino’s, Dunkin’, Chipotle — but the four above offer broad demographic coverage and easy redemption.)

 

Marketing & business data points: why gift cards are more than “just” gifts

1.       Immediate cash flow / front-loaded revenue. Gift cards bring in money up front — great for seasonal cash planning and margins. Industry market reports show gift cards are a major and growing slice of retail revenue, with US gift-card market expansions projected into the billions.

2.       Customer acquisition and trial. Data from restaurant platforms shows 64% of guests discovered restaurants via gift cards — cards introduce non-customers to the brand and often convert them to repeat diners.

3.       Incremental spend on redemption. Studies and payments-industry writeups report that many recipients spend above the card’s face value when redeeming — producing immediate upside on average check size. One payments analysis put the incremental spend at tens of dollars on average.

4.       Loyalty program integration multiplies lifetime value. When gift cards are registered to loyalty accounts (Starbucks is the clearest example), every dollar loaded can translate into points/tiers that increase visit frequency and share of wallet. That registration also reduces the likelihood of regifting and increases tracking and attribution.

5.       Omnichannel & digital wallet adoption. Digital gift cards and wallet integration are rising — easier to deliver, harder to lose, and simpler for brands to incentivize follow-up offers (e.g., reload bonuses). TSG and payments surveys show e-gift buying has grown year-over-year.

 

Four Grocerant Guru® insights

1.       Treat the gift card as the start of a micro-campaign, not a one-off. Pair holiday card purchases with an immediate post-redemption offer (e.g., “Redeem in January and get 15% off next meal”) to convert one gift into a multi-visit habit. (Supports acquisition → retention economics.)

2.       Design cards for discovery. Mix mainstream brands (McDonald’s, Starbucks) with a “local grocerant” or fast-casual option on multi-brand cards to broaden reach and let gifters introduce recipients to new, higher-margin menu items. Multi-brand choice cards (Toasty, retailer bundles) are a smart corporate gifting play.

3.       Use loyalty mechanics to lock value. Encourage gifters to register a Starbucks/McDonald’s card for the recipient (with consent) to capture loyalty data and make the gift an on-ramp to targeted offers — this reduces regifting and increases LTV.

4.       Holiday cards should come with a plan for Q1 recovery. Restaurants should target redeemed cards for January promotions (slow month for many operators). Small Q1 pushes tied to gift-card redemptions keep traffic steady and convert seasonal spikes into year-round customers.

 

Think About This

Fast-food gift cards check all the boxes for modern holiday gifting: low friction, broad appeal, instant utility for recipients, and measurable business benefits for brands (upfront cash, discovery, incremental spend, and loyalty). For shoppers: they’re practical, easy, and seldom sit in a drawer. For operators: they’re a cost-effective marketing channel that converts one-time givers into repeat customers — if the brand treats the card as the start of a customer relationship, not the end of a transaction.

Let’s Build a Partnership for Growth

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Explore innovative food marketing and business development strategies with Foodservice Solutions®.

📩 Contact us at Steve@FoodserviceSolutions.us
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