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

2026 Guest the Forces Redefining Loyalty, Experience, and Foodservice

 

Convenience store retailers and restaurants alike are investing heavily in loyalty programs, upgrading technology stacks, and launching mobile ordering platforms. Yet a fundamental challenge remains: moving guests from a single transaction to a sustained brand relationship. In 2026, engagement—not access—will separate winning brands from interchangeable ones.

Paytronix, a recognized leader in guest engagement solutions, recently released its 2026 Trends Predictions Report, outlining ten forces expected to shape how restaurants and convenience retailers connect with guests in the year ahead. Collectively, these trends reflect a decisive shift away from price-driven interactions toward experience-driven loyalty.

A Grocerant Guru® Preview: Proven Success Behind the Trends

The relevance of Paytronix’s 2026 trends is already evident across foodservice and convenience retail, where early adopters are converting engagement strategies into measurable performance gains:

1. Mobile-First Loyalty Driving Frequency (Trend #3 & #9)
A national convenience retailer leveraging app-based loyalty, mobile ordering, and personalized offers increased visit frequency among Gen Z customers by double digits within 12 months. The key driver was not discounts, but gamified challenges tied to routine trips—coffee, fuel, and grab-and-go meals—delivered seamlessly across channels.

2. AI-Powered Personalization Increasing Basket Size (Trend #4)
A regional fast-casual brand implemented AI-driven offer targeting based on daypart, prior purchase behavior, and weather conditions. The result was a sustained increase in average check size, as guests perceived offers as relevant rather than promotional noise—validating Paytronix’s assertion that AI is becoming a core engagement engine, not a novelty.

3. Subscription Models Locking in Loyalty (Trend #8)
A convenience retailer subscription program offering unlimited beverages for a monthly fee drove incremental food attachment rates and materially reduced churn. Subscribers visited more frequently, spent more per visit, and demonstrated stronger brand affinity than non-subscribers—illustrating how subscriptions convert habitual behavior into predictable revenue.

These real-world examples underscore a central theme in Paytronix’s report: engagement strategies that reduce friction, personalize value, and reward consistency outperform traditional discount-led approaches.

The 2026 Guest Engagement Trends at a Glance

According to Paytronix, the following ten trends will define guest engagement in 2026:

1.       Health-conscious guests will continue prioritizing personalized, wellness-focused experiences.

2.       Value is increasingly measured by experience—not price—as price sensitivity drives fewer visits across demographics.

3.       Millennials and Gen Z demand mobile-first, gamified experiences, while older generations prioritize digital convenience.

4.       Artificial intelligence will drive deeper personalization and operational optimization.

5.       A robust cybersecurity posture is now the baseline requirement for guest trust.

6.       Cloud kitchens and hybrid models will continue reshaping foodservice economics.

7.       Cross-brand loyalty partnerships will unlock incremental engagement.

8.       Subscription models will expand, increasing both revenue stability and loyalty.

9.       Omnichannel experiences are no longer optional—brands without them will be invisible.

10.   Texture-focused dining will gain traction, elevating sensory engagement beyond flavor alone.

What This Means for Convenience Retailers and Restaurants

Despite significant investments in technology, many brands still struggle to differentiate themselves in the eyes of the guest. Mobile ordering, loyalty apps, and digital payments are now table stakes. The competitive advantage lies in how effectively these tools are orchestrated to create emotional connection, relevance, and trust—rather than simply enabling another transaction.

Paytronix’s 2026 outlook makes clear that loyalty is earned through consistency, personalization, and experiential value across every touchpoint.

 

Four Insights from the Grocerant Guru®

1.       Loyalty Is Behavioral, Not Programmatic
Points and perks matter less than habit formation. Brands that integrate loyalty into daily routines—coffee, commute, meal shortcuts—win long-term relevance.

2.       Experience Inflation Is Real
As prices rise, guests expect more than food. Speed, personalization, sensory appeal, and digital ease now define perceived value.

3.       AI Is the New Store Manager
When deployed correctly, AI replaces guesswork with precision—optimizing offers, staffing, and assortment in real time.

4.       Convenience Retail Is Becoming a Lifestyle Platform
The future c-store is not a place to stop, but a brand guests choose repeatedly—because it understands them, remembers them, and rewards them.

Elevate Your Brand with Expert Insights

For corporate presentations, regional chain strategies, educational forums, or keynote speaking, Steven Johnson, the Grocerant Guru®, delivers actionable insights that fuel success.

With deep experience in restaurant operations, brand positioning, and strategic consulting, Steven provides valuable takeaways that inspire and drive results.

💡 Visit GrocerantGuru.com or FoodserviceSolutions.US
📞 Call 1-253-759-7869

Restaurant Chains’ New Requirement for Relevance: Evolve Faster or Fade

 

Fourteen years ago, many of today’s rising foodservice executives were sitting in university classrooms reading Thomas L. Friedman’s The World Is Flat, absorbing the idea that companies must be built to change if they want to last. In 2026, that lesson is no longer theory — it’s survival.

Across the retail food and restaurant landscape, the brands thriving today are the ones that embrace continuous evolution. Those that don’t? They’re quietly slipping into irrelevance, overshadowed by fresher, faster, more consumer‑centric competitors.

According to Foodservice Solutions® Grocerant Guru® Steven Johnson, modern foodservice success now follows a relentless four‑step loop:
Build → Measure → Learn → Repeat.
Not annually. Not quarterly. Continuously.

Consumers have rewritten the rules of engagement. Dinner no longer defaults to a restaurant visit. In fact, by late 2025, more than 62% of U.S. consumers reported replacing at least one weekly restaurant meal with a retail-prepared or convenience-driven option, a trend accelerated by multigenerational households, hybrid work, and the rise of “assembled meals” over “cooked meals.”

The New Competitive Set: Everyone Sells Dinner Now

The most disruptive competitors aren’t always restaurants. They’re the non‑traditional players who understand that relevance is earned through speed, freshness, frictionless access, and personalization.

Starbucks vs. Luckin Coffee: A Case Study in Evolution Velocity

Starbucks — now approaching its 55th year — remains one of the most innovative global foodservice brands. Yet even Starbucks has learned that legacy alone doesn’t guarantee dominance.

In China, Starbucks spent two decades building a 6,000‑unit footprint. But between 2024 and 2026, Luckin Coffee exploded past 13,000 stores, becoming the world’s largest coffee chain by unit count. Luckin’s growth was fueled by:

·       Ultra‑fast digital ordering

·       Aggressive pricing

·       Localized beverage innovation (e.g., cheese‑topped lattes, coconut cloud drinks)

·       A frictionless pick‑up model that mirrors how younger consumers actually live

Luckin’s strategy wasn’t perfect — profitability lagged — but its speed exposed a truth:
Consumers reward brands that evolve faster than their competitors can react.

2024–2026: Real‑World Examples of Evolution in Action

·       Walmart, Kroger, and H‑E‑B expanded fresh prepared foods by double digits, with H‑E‑B’s Meal Simple line surpassing $1 billion in annual sales.

·       Costco’s food court saw record traffic in 2025, driven by low‑friction, high‑value prepared meals and beverages.

·       Convenience stores became America’s fastest‑growing restaurant segment, with chains like Wawa, Sheetz, and Casey’s reporting 7–12% prepared food growth year over year.

·       AI‑powered menu engineering became mainstream, with chains using predictive analytics to optimize LTOs, reduce waste, and personalize offers.

·       Portability and car‑based eating surged, with 2025 showing a 19% increase in meals consumed in vehicles — a direct signal that packaging and portability now shape menu relevance.

The brands winning today aren’t just selling food. They’re selling solutions that fit the cadence of modern life.

Underground Menus, Viral Buzz & the Power of Consumer Participation

Success leaves clues — and one of the clearest is the rise of participatory menu culture.

Potbelly’s Underground Menu remains a masterclass in engineered buzz. Each year, new sandwiches and desserts drop like sneaker releases, fueling social chatter and driving trial. The Barnyard, Cheeseburger Sandwich, Dream Bar Sundae, and Cookie Collision Shake weren’t accidents — they were strategic tools designed to:

·       Spark discovery

·       Encourage social sharing

·       Turn customers into brand ambassadors

·       Create a sense of insider exclusivity

In 2025 and 2026, this strategy has been adopted across the industry:

·       Chipotle’s “Secret Menu 2.0” leveraged TikTok creators to drive millions of incremental views and transactions.

·       Dutch Bros used limited‑time “hacked” drinks to fuel Gen Z engagement.

·       Panera tested underground digital‑only items to boost app adoption.

Consumers want to participate, not just purchase — and brands that invite them in win loyalty, frequency, and cultural relevance.

Is Your Brand Built for Yesterday, Today, or Tomorrow?

The question facing every restaurant chain in 2026 is simple:
Are you evolving at the speed of your consumer?

If your menu, packaging, pricing, and digital experience look more like 2019 than 2026, you already know the answer.

For corporate presentations, keynotes, or strategic advisory, contact:
Steven Johnson, Grocerant Guru® — Foodservice Solutions®, Tacoma, WA
www.GrocerantGuru.com | www.FoodserviceSolutions.us | 253‑759‑7869

 

Three Insights from the Grocerant Guru®

1. Evolution Is Now a Weekly Requirement

Consumers shift faster than annual planning cycles. Winning brands treat innovation as a rolling process, not a calendar event.

2. Retailers Are the New Restaurants

Grocery, convenience, and mass merchants now own the “What’s for dinner?” conversation — and restaurants must adapt or lose share.

3. Participation Beats Promotion

Consumers trust what they help create. Underground menus, customizable meal components, and digital‑only exclusives outperform traditional advertising every time.

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At Foodservice Solutions®, we identify, quantify, and qualify new retail food segment opportunities—from menu innovation to brand integration strategies.

We help you stay ahead of industry shifts with fresh insights and consumer-driven solutions.

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