Circle K Builds a Foodservice Frankenstein: Does More Branding Mean More Value

 

There is an old saying in the restaurant business: If at first you don't succeed, try again. That may be the philosophy behind Circle K's newest strategy. However, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® this bet on the past just might become a learning lesson not a path forward.

The convenience-store giant, together with The Briad Group, is preparing to open what it calls its first multi-brand Circle K travel center in Binghamton, New York. The 6,800-square-foot facility at 265 Court Street is designed to combine a Circle K convenience store, eight fuel pumps, two dedicated drive-thru lanes, Dunkin', Wendy's and a nontraditional Papa Johns offering. A second location in Watertown, New York, is under construction and is expected to open in January 2027. Briad says it ultimately could develop as many as 40 locations under its long-term Circle K agreement.

On paper, it sounds like the future of the convenience-store foodservice business.

From the historical perspective of the Grocerant Guru®, however, it also sounds remarkably familiar.

And that deserves a closer look.

Co-branding isn't new. The industry has been trying it for decades.

Restaurant companies discovered co-branding decades ago.

In the 1990s and early 2000s, the basic proposition was seductive: Put two restaurant brands under one roof, share real estate and infrastructure, capture more consumer occasions, expand dayparts and give customers more choices.

Yum Brands became perhaps the industry's most famous practitioner, combining KFC, Taco Bell, Pizza Hut, A&W and Long John Silver's in various combinations.

A 2005 Cornell Hotel and Restaurant Administration Quarterly analysis found that Yum's co-branding strategy had, at that point, typically generated sales approximately 30% higher than comparable single-brand units. But the research also identified an important problem: operational complexity.

That distinction matters.

Co-branding can increase the number of things a consumer can buy without necessarily increasing the value of the host brand.

And restaurant history provides several cautionary examples.

1. KFC + A&W

KFC and A&W represented an early attempt to put different restaurant propositions under the same roof.

The idea was logical: chicken plus burgers/root beer creates more choice.

But eventually A&W became one of the brands Yum Brands decided no longer fit its long-term strategy.

In 2011, Yum sold A&W and Long John Silver's. Yum reported $86 million in pretax losses and other costs, primarily associated with closures and impairment, related to those divestitures.

The lesson isn't that putting two brands together can never work.

The lesson is that more brands don't automatically create a stronger business.

2. Long John Silver's + other Yum brands

Long John Silver's was another component of Yum's multibranding experiment.

The company eventually concluded that both A&W and Long John Silver's no longer fit its long-term growth strategy and sold the brands in 2011.

The historical irony is striking.

The same corporate portfolio that once promoted multibranding as a way to make restaurant real estate more productive ultimately simplified the portfolio.

Today, Yum's principal concepts are KFC, Taco Bell, Pizza Hut and Habit Burger & Grill.

3. Dual-concept KFC/Taco Bell locations

KFC/Taco Bell became one of the industry's best-known co-branded combinations.

But even where the combination remained viable, franchise documents demonstrate one of the industry's recurring problems: dual-concept restaurants can require larger buildings, additional equipment, more signage and greater remodeling costs.

One franchise company's SEC filing specifically noted that a dual-concept restaurant generally required more equipment and a larger building, increasing costs when franchise standards changed.

And that is the part of co-branding that consumers never see.

They see more logos.

Operators see more systems.

4. McDonald's + Krispy Kreme

The most recent example is particularly relevant because it occurred in the middle of today's consumer environment.

McDonald's and Krispy Kreme launched a major partnership in 2024, putting Krispy Kreme doughnuts into McDonald's restaurants.

But the program struggled to scale. By May 2025, fewer than 20% of McDonald's locations were selling Krispy Kreme doughnuts, and Krispy Kreme paused further expansion. The companies ultimately ended the partnership in 2025 after Krispy Kreme concluded it was not profitable enough to sustain.

The problem wasn't awareness.

Everybody knew McDonald's.

Everybody knew Krispy Kreme.

The problem was economics, logistics and consumer demand.

That's an important warning for Circle K.

So why is Circle K recycling the co-branding template?

That is the question I would ask.

Why does Circle K believe that a restaurant co-branding formula that has repeatedly encountered operational and economic challenges will suddenly become a winning formula inside convenience retail in 2026?

Perhaps the answer is that Circle K isn't actually trying to build a traditional co-branded restaurant.

Perhaps it is trying to build something different:

a convenience-store travel destination.

That distinction matters.

The Binghamton project isn't simply a KFC/Taco Bell-style shared restaurant. It combines fuel + convenience retail + multiple restaurant brands + drive-thru access.

Briad says the building was specifically engineered around the partnership, with Circle K, Dunkin', Wendy's and Papa Johns integrated into one facility.

That's different architecture.

But architecture doesn't automatically create consumer value.

What is Circle K going to do differently?

This is where the strategy needs to be tested.

Circle K should be able to answer five very simple questions:

1. What does Circle K own in the consumer's mind?

If the consumer comes for Dunkin' coffee, Wendy's lunch and Papa Johns pizza, does the consumer remember Circle K—or simply remember the restaurant brands?

2. What is the Circle K reason to visit?

If three national restaurant brands are doing the food marketing, what unique food proposition does Circle K create?

3. Does the customer experience become easier or more complicated?

Three restaurant brands can mean three menus, three operating systems, three sets of expectations and potentially three different customer journeys.

4. Does co-branding increase Circle K's basket—or merely rent Circle K's real estate to other brands?

That's a critical distinction.

5. What happens when consumers stop thinking in restaurant categories?

That last question may be the most important of all.

The consumer has already moved beyond the industry's silos

The modern consumer doesn't necessarily think:

"I need to visit a convenience store."

Or:

"I need to visit a restaurant."

Or:

"I need to visit a grocery store."

Consumers increasingly think in terms of occasions.

Breakfast.

Lunch.

Dinner.

Snack.

Coffee.

A cold drink.

Something portable.

Something fresh.

Something fast.

Something affordable.

That's the foundation of the Grocerant Niche.

The consumer doesn't care which industry supplied the food.

The consumer cares about the food, price, value, quality, convenience and experience.

That is why I have argued for decades that there are no silos in the consumer's mind.

The restaurant industry can divide itself into QSR, fast casual, convenience, grocery, foodservice and retail.

Consumers don't have to.

The real Circle K opportunity isn't co-branding

Circle K already possesses something extremely valuable:

a consumer relationship built around convenience.

Fuel.

Cold beverages.

Coffee.

Snacks.

Fresh food.

Prepared food.

Impulse purchases.

Speed.

Location.

Extended hours.

Those are assets.

Adding recognizable restaurant logos doesn't necessarily strengthen those assets.

It may actually create a branding paradox.

If Wendy's is the destination for burgers, Dunkin' is the destination for coffee and Papa Johns is the destination for pizza, what is Circle K's food identity?

That's the question.

And it becomes even more important as convenience retailers increasingly build their own fresh-food identities.

The competitive battlefield isn't simply:

Circle K vs. Wendy's.

It is:

Who owns the consumer's food occasion?

Three Insights from the Grocerant Guru®

1. Co-branding adds logos; it doesn't necessarily add value.

The history of restaurant co-branding demonstrates that putting recognizable brands under one roof can create incremental sales, but it can also create operational complexity, higher costs and conflicting brand priorities. Yum's experience with A&W and Long John Silver's and the McDonald's-Krispy Kreme partnership demonstrate that famous brands alone don't guarantee sustainable economics.

2. The 2026 consumer is buying occasions—not restaurant brands.

The consumer has moved toward a Mix-and-Match Meal Component mentality.

Coffee from one brand.

A breakfast sandwich from another.

A beverage from the convenience store.

A snack from a different section.

Dinner assembled from multiple sources.

The consumer doesn't need Circle K to put three restaurant brands under one roof.

The consumer needs Circle K to make the entire food occasion faster, easier, fresher and more valuable.

3. Circle K should build the Circle K food brand—not become a billboard for everybody else's brands.

This is the biggest strategic question.

If consumers enter a Circle K travel center and immediately think Dunkin', Wendy's and Papa Johns, then Circle K has created a terrific location for three restaurant brands.

But if consumers enter and think:

"Circle K is where I can get whatever food I want, quickly, affordably and conveniently,"

then Circle K has created something much more powerful.

That's the difference between co-branding and brand building.

And from the perspective of the Grocerant Guru®, that distinction could determine whether Circle K's 2026 multi-brand travel-center strategy becomes a genuine next-generation convenience model—or simply the industry's latest attempt to make an old co-branding formula work in a new building.

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 Wings Are Flying: The Convenience Store Continues Its March Into Restaurant Territory

 

There is something important happening at Casey’s General Store, and it has very little to do with chicken wings alone according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The wings are simply the latest evidence.

For decades, Casey’s has been quietly proving that consumers do not necessarily care whether a meal comes from a restaurant, convenience store, grocery store or another retail channel. They care about price, value, service, quality, convenience and timing.

That is precisely where Casey’s and the Grocerant Guru® philosophy intersect.

I call it the Price Value Service Equilibrium: consumers continuously balance what they pay, what they receive, how good the experience is and how easily the food fits into their lives.

Casey’s is increasingly building its prepared-food business around that equilibrium.

And now, chicken wings are giving the company another way to win the consumer's food dollar.

The Wings Are Flying — But Look at What They Are Really Doing

Casey’s latest chicken-wing results are particularly interesting because the company is not simply selling more food to existing pizza customers.

According to CEO Darren Rebelez, about 38% of guests purchasing wings have placed a wings-only order.

That distinction matters.

It means the customer did not necessarily come to Casey’s for pizza and decide to add wings.

The wings created a new food occasion.

Even more important, customers who purchased wings on a wings-only occasion subsequently increased their overall frequency of prepared-food purchases from Casey’s by approximately 30%.

In the Des Moines market, where Casey’s has had wings the longest, wing sales were up 46% year over year in the latest quarter.

That is not simply a new menu item.

It is an occasion-building strategy.

And occasion building is one of the most powerful tools available to a modern grocerant operator.

Casey’s currently has wings in approximately 850 stores and is beginning another rollout phase. Management has said it sees substantial room to expand the category.

The strategic objective is remarkably clear:

Do for wings what Casey’s already did for pizza.

Remember When Casey’s Was “Just” a Convenience Store?

This is where the history becomes important.

Casey’s began as a small-town general-store concept in Iowa. Over time, the company evolved from a place primarily associated with fuel, groceries and convenience into a retailer increasingly associated with prepared food.

The pivotal move was pizza.

Casey’s introduced its made-from-scratch pizza in the 1980s, and pizza became a foundational part of the company's identity. Casey’s celebrated the 40th anniversary of its pizza business in 2025.

Historically, the company did not stop with pizza.

It added sandwiches, bakery products, breakfast foods, donuts, beverages and other prepared foods.

By the mid-1990s, Casey’s was already describing prepared food as an important part of its product strategy, including made-from-scratch pizza and commissary-produced sandwiches.

That was an early version of what I have called the Grocerant Revolution.

The retailer wasn't asking:

“Are we a restaurant?”

It was asking:

“What food does the customer want, and can we make it conveniently available?”

That is a very different question.

From 50 Million Pizzas to the Next Food Occasion

Today, Casey’s says it operates roughly 3,000 convenience stores across 19 states and describes itself as the fifth-largest pizza chain in the United States by number of kitchens. The company also reports roughly 800 million guest transactions annually.

The pizza business is enormous.

Casey’s sells the equivalent of approximately 50 million whole pizzas annually, making pizza one of the company's most important prepared-food traffic drivers.

But here's the strategic lesson:

A successful food platform does not have to remain a one-product platform.

Pizza gets customers thinking about Casey’s as food.

Wings give them another reason to return.

Breakfast gives them another.

Sandwiches give them another.

Bakery gives them another.

Beverages give them another.

And suddenly the convenience store is no longer competing for only the “I'm getting gas” occasion.

It is competing for what's for dinner, what's for lunch, what's for breakfast, what's for tonight's gathering and what can I grab right now?

That is grocerant thinking.

The Food Sales Numbers Tell the Story

The financial results demonstrate that Casey’s prepared-food strategy is not merely marketing language.

In fiscal 2025, prepared food and dispensed beverage revenue reached approximately $1.61 billion, up from $1.46 billion in fiscal 2024 and $1.32 billion in fiscal 2023.

That represented a 10.3% increase in prepared-food and dispensed-beverage revenue in fiscal 2025, driven by 3.5% same-store sales growth plus growth from additional stores.

Then came fiscal 2026.

Prepared food and dispensed beverage revenue increased to approximately $1.78 billion, while same-store sales increased 5.2%. Casey’s specifically identified strong whole-pizza performance as a major driver.

And the momentum continued into fiscal 2027.

For the quarter ended July 31, 2026, prepared-food and dispensed-beverage same-store sales increased 4.8%, while the category's margin reached 59.3%. Casey’s reported that positive traffic, led by whole pizzas, drove the prepared-food performance.

Put those numbers together and a pattern emerges:

Prepared food isn't an accessory to Casey's convenience-store business. Prepared food is increasingly one of the reasons customers come inside.

That is a profound change.

The Price Value Service Equilibrium Is Working

This is where I see a direct alignment between Casey’s strategy and the Grocerant Guru® Price Value Service Equilibrium.

Consumers don't evaluate food based on price alone.

They evaluate the entire proposition:

Price + Quality + Service + Convenience + Experience = Perceived Value

Casey’s has an interesting competitive advantage because it can combine several things in one stop:

·       Convenience

·       Extended hours

·       Fuel

·       Prepared food

·       Beverages

·       Grocery items

·       Speed

·       Multiple occasions

·       A familiar local retail presence

And, importantly, price remains part of the equation.

Casey’s management has historically emphasized competing on price as well as location, extended hours, product offerings and quality of service.

That is precisely the equilibrium.

Consumers don't necessarily need Casey’s to be the cheapest possible food provider.

They need Casey’s to make the total value proposition feel right.

Pizza Taught Casey’s the Lesson. Wings Expand It.

There is a subtle difference between selling another menu item and creating another occasion.

Casey’s wings appear to be doing the latter.

A pizza can be dinner.

A pizza can be lunch.

A pizza can be a family meal.

A pizza can be a game-night purchase.

But wings can introduce different consumption occasions:

Friday night. Football. A party. A snack. Dinner for one. Dinner for two. A late-night meal. A shareable food purchase.

That is why the 38% wings-only figure is so important.

The consumer is telling Casey’s:

“I don't need pizza to buy food from you.”

That is an enormously valuable consumer message.

And Then There Is the Marketing Message

Marketing matters here.

Casey’s has spent decades building recognition around pizza, but the brand's messaging increasingly positions the retailer as a destination for food rather than merely a place that happens to sell food.

That distinction is critical.

The marketing message isn't simply:

“We have wings.”

It is closer to:

“Casey’s is a place where you can get the food you want, when you want it.”

That is a much bigger idea.

And it is consistent with how successful grocerant concepts grow.

The consumer doesn't want channel definitions.

The consumer wants solutions.

They don't wake up and say:

“Today I would like to purchase food from a convenience-store foodservice operator.”

They say:

“I'm hungry.”

Or:

“What's for dinner?”

Or:

“I need something for the game.”

Or:

“I need food now.”

The retailer that solves that problem wins the occasion.

Casey’s Is Still a Convenience Store — Just Not Only a Convenience Store

This is the historical progression worth watching.

Casey’s did not abandon convenience retail.

It expanded the meaning of convenience.

Fuel is convenient.

A pizza is convenient.

A wing order is convenient.

A breakfast sandwich is convenient.

A beverage is convenient.

And putting all of those things under one roof makes the store more relevant to more consumer occasions.

That is why I continue to believe the future of food retail is not about protecting traditional channel boundaries.

There are no silos in the consumer's mind.

The consumer sees:

Food.

Casey’s increasingly sees it that way, too.

And the wings are simply the latest proof point.

Three Insights From the Grocerant Guru®

1. The next growth opportunity is the next occasion.

Casey’s isn't simply asking, “How many wings can we sell?”

The more important question is:

“How many new occasions can wings create?”

The 38% wings-only purchase rate and the roughly 30% increase in prepared-food purchase frequency among those customers suggest the answer could be significant.

The lesson for every grocerant operator is simple:

Don't just add products. Add reasons to return.

2. Price gets the consumer's attention. Value gets the transaction.

The Casey’s model demonstrates why the Price Value Service Equilibrium matters.

A consumer can find food almost anywhere.

But the combination of price, quality, speed, convenience, service and availability determines whether the consumer believes the purchase was worth it.

That is why Casey’s does not have to become a traditional restaurant to compete with restaurants.

It can create a different value equation.

3. The future belongs to food retailers that think in occasions, not channels.

Casey’s historical evolution—from general store to convenience retailer to major pizza operator and increasingly sophisticated prepared-food destination—is a case study in the Grocerant Revolution.

The next generation of food competition will not be:

Restaurant vs. convenience store.

Or:

Grocery vs. restaurant.

Or:

C-store vs. QSR.

It will be:

Who can solve the consumer's food occasion best?

Casey’s wings are flying because they are doing more than selling chicken.

They are giving consumers another reason to think:

“Casey’s has food for that.”

And in the modern grocerant marketplace, that may be the most valuable marketing message of all.

The consumer doesn't care what channel you call yourself. The consumer cares whether you deliver the right Price Value Service Equilibrium at the right time.

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.

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