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

Is It Time to Keep a Bad Idea From the Public? Albertsons vs. Kroger

When Kroger and Albertsons agreed to a $24.6 billion merger in 2022, the companies framed it as a scale-driven solution to inflation, competition from Walmart and Amazon, and a rapidly changing food retail landscape. Two years later, the deal collapsed under Federal Trade Commission scrutiny—and now, in 2026, both companies are asking a federal court to keep portions of expert testimony from that failed merger sealed, calling it “highly confidential.”

At this point, the more relevant question for the food industry is not why they want the testimony sealed, but why the merger was ever positioned as a good idea in the first place. From a food marketing, consumer trust, and competitive dynamics perspective, the Kroger–Albertsons merger failed on fundamentals long before it failed in court.

Below are seven fact-filled food marketing data points that explain why this merger was a bad idea from the start.

 

Seven Food Marketing Facts That Undermined the Merger

1. Consumers Already Perceive Grocery Consolidation as Inflationary

According to multiple FMI and Gallup consumer sentiment studies (2022–2024), over 60% of shoppers believe large grocery mergers increase prices rather than lower them. The merger narrative promised “lower prices through scale,” but consumer belief moved in the opposite direction—eroding trust before integration ever began.

2. Price Sensitivity in Grocery Is at a 20-Year High

NielsenIQ data shows that more than 75% of U.S. grocery shoppers now actively compare prices across banners, digital ads, and apps. In this environment, a mega-merger that reduces banner diversity signals less competition, not more value—exactly the opposite of what price-sensitive consumers reward.

3. Private Label Was Already Saturating Returns

Both Kroger and Albertsons leaned heavily on private label growth as a justification for scale. Yet Circana data shows private label share growth began flattening in 2023 as quality parity was achieved. Merging two mature private-label portfolios offered diminishing marginal returns, not breakthrough growth.

4. Local Assortment Drives Loyalty—Not National Scale

Food Marketing Institute research consistently shows that local assortment, regional brands, and store-level autonomy are top drivers of loyalty. A nationalized merchandising strategy—inevitable under a merger of this size—would have reduced local relevance, especially in fresh, prepared foods, and regional ethnic categories.

5. Labor Instability Is a Direct Sales Risk

Unionized grocery banners already struggle with turnover and morale. Public labor opposition to the merger created measurable brand risk. McKinsey retail benchmarks show that stores experiencing labor disruptions see same-store sales declines of 3–7% in the following quarters.

6. Digital Grocery Growth Rewards Speed, Not Size

Online grocery growth (pickup, delivery, and quick commerce) favors operational agility, not organizational complexity. Walmart, Amazon, and regional players outperformed legacy grocers by simplifying decision-making—not by adding layers of integration risk.

7. Regulatory Risk Has Become a Material Brand Liability

Post-2020 antitrust enforcement is no longer theoretical. Edelman Trust Barometer data shows declining trust in companies perceived as “gaming the system.” The FTC challenge itself became a reputational drag, reinforcing consumer and supplier skepticism.

 

Three Strategic Stumbles Kroger and Albertsons Both Made

1.       They Marketed the Deal to Wall Street, Not to Shoppers
The merger was framed in terms of EBITDA, synergies, and scale efficiencies—not shopper outcomes. Consumers never heard a compelling why that mattered to their weekly grocery trip.

2.       They Overestimated Divestitures as a Credible Fix
Promising to sell hundreds of stores ignored the reality that divested assets often struggle without scale, talent, and capital—weakening competition rather than preserving it.

3.       They Underestimated the Optics of Power Concentration
In an era of heightened sensitivity to corporate concentration, the optics of two top-five grocers combining overwhelmed any operational logic.

 

Two Reasons We’ve Had Enough—and Why It’s OK to Keep This Private

1.       The Market Has Already Rendered Its Verdict
The merger failed. The rationale has been dissected by regulators, trade press, labor groups, suppliers, and consumers. Re-litigating expert testimony adds little value to the public conversation.

2.       Transparency Does Not Mean Endless Repetition
There is already a vast public trial record. At some point, continued disclosure becomes noise, not insight. The industry benefits more from forward-looking innovation than backward-looking justification.

In this context, keeping certain testimony sealed is less about secrecy and more about acknowledging that the debate is settled.

 

Two Insights from the Grocerant Guru®

1.       Scale Without Shopper Relevance Is a Growth Dead End
The future of food retail belongs to brands that combine trust, transparency, and local relevance—not those that chase size for its own sake.

2.       The Next Competitive Advantage Is Cultural, Not Structural
Winning grocers will invest in people, fresh food credibility, and frictionless convenience. No merger can substitute for that.

Think About This:
The Kroger–Albertsons merger wasn’t stopped by regulators alone—it was undone by flawed assumptions about consumers, competition, and credibility. At this stage, keeping parts of that bad idea out of the public spotlight may be the most practical decision both companies have made since 2022.

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7 Eleven Super Bowl Sunday Super Customer Focused

 

This is Food‑Fact‑Filled, Data‑Driven Look at How the World’s Largest Convenience Retailer Wins Big With Consumers by Steven Johnson’s the Grocerant Guru’s team at Tacoma, WA based Foodservice Solutions®

Super Bowl Sunday and National Pizza Day sit back‑to‑back on the calendar, and 7‑Eleven is treating both like the food‑centric cultural holidays they’ve become. With more than 13,000 stores across the U.S. and Canada, the retailer is leaning into two of America’s most snack‑driven occasions with a slate of value‑packed offers designed to meet consumers exactly where they are: hungry, busy, and ready to celebrate.

Food Deals Built for the Biggest Eating Day of the Year

Super Bowl Sunday is consistently one of the top five food consumption days in the United States. Americans eat an estimated:

·       12.5 million pizzas

·       1.4 billion chicken wings

·       325 million gallons of beer

·       48 million pounds of snacks

7‑Eleven’s limited‑time MVP deals are engineered to capture that demand with precision:

·       Buy one whole pizza, get a second for $3 for 7Rewards and Speedy Rewards members on Feb. 8–9.

·       $5 Meal Deal for solo fans: two pizza slices + a 20‑oz Coke, Sprite, Pepsi, or Mtn Dew.

·       20 tenders or 20 wings + five sauces for $20 at Raise the Roost.

·       10 bone‑in wings for $8 at participating 7‑Eleven, Speedway, and Stripes stores.

·       $10 off first‑time 7NOW Delivery orders of $20+ with code DELIVERY10.

·       $3 off large‑pack beers, both in‑store and via delivery.

These offers align with a broader industry trend: 70% of consumers say convenience stores are now a go‑to destination for ready‑to‑eat meals, and fresh prepared foods remain the fastest‑growing category in c‑store retail.

Holiday & Event Marketing: A 7‑Eleven Signature Strategy

7‑Eleven has long understood that food culture is event‑driven. The company consistently uses holidays, sports moments, and pop‑culture tie‑ins to drive traffic, loyalty, and digital engagement.

National Pizza Day & Super Bowl Sunday

By pairing these two food‑centric days, 7‑Eleven amplifies relevance and increases basket size. Pizza is already a top‑five c‑store food item, and bundling it with beverages and wings taps into America’s favorite game‑day trio.

Free Slurpee Day (7/11)

One of the most successful experiential promotions in retail.

·       Drives millions of store visits

·       Converts new loyalty members

·       Reinforces brand nostalgia and fun

Fuel Savings Events

7‑Eleven frequently ties fuel discounts to food purchases, rewarding cross‑category behavior and increasing trip frequency.

Seasonal LTOs

Pumpkin spice beverages, holiday bakery items, and summer Big Gulp specials keep the brand culturally relevant and top‑of‑mind.

Sports Partnerships & Global Events

The upcoming “Scan, Sip, Score” promotion tied to the world’s biggest soccer tournament is classic 7‑Eleven:

·       Buy a Coca‑Cola or POWERADE

·       Earn entries to win a trip to a July match

·       Unlock instant prizes like free Big Gulp and Slurpee drinks

This approach blends loyalty, gamification, and global sports culture—three proven engagement drivers.

Customer Focus: The Core of 7‑Eleven’s Growth

7‑Eleven’s strategy is rooted in understanding how Americans eat today:

·       63% of meals are consumed alone → $5 solo meal deals

·       Multigenerational households drive mix‑and‑match purchasing → wings, tenders, pizzas, sauces

·       Digital ordering is up 30% year‑over‑year → 7NOW Delivery incentives

·       Value remains the #1 driver of foodservice decisions → aggressive bundle pricing

The retailer’s ability to meet these needs—fast, affordably, and with flavor—keeps it ahead of the convenience foodservice curve.

Three Positive Insights from the Grocerant Guru®

1. 7‑Eleven Understands the Power of Food as a Social Connector

By aligning promotions with cultural moments like the Super Bowl, National Pizza Day, and global soccer events, 7‑Eleven positions itself as the easiest way for consumers to participate in shared food rituals.

2. Bundled Value Drives Incremental Meal Participation

The retailer’s mix‑and‑match offers reflect the modern consumer’s desire for flexible, affordable meal solutions—an essential strategy in today’s Ready‑2‑Eat and Heat‑N‑Eat marketplace.

3. Loyalty + Digital + Foodservice = A Winning Formula

7‑Eleven’s integration of rewards, delivery, and gamified promotions demonstrates a sophisticated understanding of how to build habitual, high‑frequency customer engagement.

If you want, I can also turn this into a LinkedIn article, press release, or slide‑ready executive brief.

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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
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