In 2025, Why Do Some C-Stores Struggle with Foodservice?

 

The convenience store (C-store) industry has evolved far beyond gas pumps and candy bars. In 2025, foodservice is not just an option — it's a growth engine. Yet, despite its potential, many C-stores still struggle to get foodservice right. Why, lets see what Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® thinks.

The answer lies in a mix of operational complexity, shifting consumer expectations, and fierce competition — even as the data points to strong opportunities.

Foodservice: A Key Profit Driver That’s Hard to Master

According to the 2025 Convenience Store News (CSNews) Foodservice Report, prepared food remains the undisputed cornerstone of C-store foodservice programs. A whopping 92% of retailers surveyed offer prepared food, and it accounts for an average of 48% of total foodservice sales.

However, simply offering food isn't enough. Many stores fail to deliver consistency, quality, or variety at a level that meets customer expectations. Inconsistent execution, undertrained staff, and lackluster product offerings can all turn a high-potential category into a weak link.

Beverage Breakdown: Who’s Winning?

Dispensed beverages also play a vital role in C-store foodservice. According to CSNews:

·       Hot dispensed beverages (like coffee) and cold dispensed beverages (like fountain sodas) each account for 24% of total foodservice sales.

·       Frozen dispensed beverages, such as slushies, make up 16% of foodservice sales, with popularity surging among large operators. In fact, 97% of larger chains now offer frozen beverages, up from 77% the previous year.

This data reflects how larger, better-capitalized operators continue to adapt and invest in high-margin offerings — while smaller or independent C-stores often struggle to keep up with innovation or customer experience enhancements.

Five Insights from the Grocerant Guru®: Handheld Foods & Mix-and-Match Meals

1. Handhelds Fuel ‘Immediate Consumption’ Cravings

Consumers on the go want Ready-2-Eat options that require no utensils and no wait. Handheld foods — like breakfast burritos, empanadas, chicken tenders, and pizza slices — meet the needs of time-starved consumers. They’re convenient, portion-controlled, and often impulse purchases that boost check averages.

2. Handhelds Bridge Dayparts for Incremental Sales

Items that can be enjoyed anytime, like sausage rolls or soft tacos, are ideal for C-stores. The Grocerant Guru notes that “handhelds are the only food format that fluidly crosses dayparts — from morning coffee runs to late-night snack trips.” That versatility makes them a must-have.

3. Mix-and-Match Bundling Drives Customization and Loyalty

Consumers want personalized meals, not one-size-fits-all combos. Offering mix-and-match components — like a protein (hot wings or BBQ pork), a side (mac and cheese or salad), and a beverage — empowers customers to build meals to their taste, dietary preferences, and budget.

4. Bundling Increases Dwell Time and Basket Size

Well-merchandised component-based meals draw customers in and encourage exploration. A shopper who came for coffee may grab a hot sandwich and chips if offered a smartly priced combo deal. As the Grocerant Guru says, “Bundling is a silent upsell — when done right, it speaks louder than signage.”

5. Handhelds + Bundles Extend the Brand to Home and Office

Smart C-stores are selling more than snacks — they’re selling dinner solutions. Mix-and-match meal bundles let customers grab a meal now and take another home, extending the brand experience beyond the store. It’s food that fits real-life rhythms, and it’s where real margin lies.

 

Why Are Some Stores Still Falling Short?

Here are the top reasons some C-stores continue to struggle with foodservice despite its profit potential:

1. Operational Challenges

Running a foodservice operation requires skills outside the traditional C-store model. From inventory management to food safety compliance and employee training, it's a full-service restaurant compressed into a convenience format.

2. Failure to Differentiate

Consumers today expect more than basic offerings. Successful C-stores offer unique items, regional flavors, fresh options, and even healthier alternatives. Chains like Wawa, Sheetz, and QuikTrip have invested heavily in signature food items that build customer loyalty — while struggling stores often rely on generic, uninspired menus.

3. Poor Marketing and Merchandising

Even the best product won’t sell if customers don’t know about it. Many stores fail to effectively market their food offerings, both in-store and digitally. Eye-catching signage, strategic promotions, and mobile ordering platforms can dramatically improve sales — but require upfront investment and a solid marketing plan.

4. Inconsistent Customer Experience

The most successful operators have nailed down consistency: the food is hot, fresh, and prepared the same way every time. Struggling stores often suffer from high employee turnover and a lack of standardized procedures, leading to customer disappointment.

 

Industry Outlook: Room to Grow — Carefully

Despite these challenges, foodservice remains one of the most profitable and fast-growing segments of the convenience industry. But the margin for error is shrinking. In 2025, success in foodservice requires more than just putting a microwave next to a roller grill.

Retailers must think like restaurateurs, act like marketers, and operate with the efficiency of fast-casual chains. For smaller operators, that might mean narrowing focus, perfecting fewer offerings, and leveraging third-party partners for logistics and menu design.

As CSNews data and the Grocerant Guru’s insights suggest, the potential is there — but execution is everything.

Gain a Competitive Edge with a Grocerant ScoreCard

Unlock new opportunities with a Grocerant ScoreCard, designed to optimize product positioning, placement, and consumer engagement.

Since 1991, Foodservice Solutions® has been the global leader in the Grocerant niche—helping brands identify high-growth strategies that resonate with modern consumers.

📞 Call 253-759-7869 or 📩 Email Steve@FoodserviceSolutions.us

The Rise of Little Treat Culture: How Grocerants Are Meeting the Mini Meal Demand

 

In today's fast-paced world, Americans are embracing the joy of small indulgences—affectionately known as "little treats." According to research conducted by NCSolutions, 62% of Americans consider little treats crucial to their self-care routines, turning to sweet, salty, and even spicy snacks for comfort, reward, and motivation. This cultural shift presents an opportunity for grocerants—hybrid grocery and restaurant concepts—to redefine how consumers experience meal occasions.

Grocerants, positioned at the intersection of convenience and culinary innovation, are uniquely suited to capture this growing trend. With bite-sized indulgences becoming part of consumers’ daily rituals, grocerants can provide mini meals tailored for Breakfast, Lunch, Dinner, and Late Night cravings—enhancing their appeal to on-the-go diners who want variety without committing to a full meal.

Mini Meals & Snacks Inspired by the Little Treat Movement

Using insights from NCSolutions, here are five examples of mini meals across different dayparts that grocerants can introduce:

Breakfast

1.       Mini Croissant Trio – A selection of bite-sized croissants with flavors like chocolate, almond, and matcha to satisfy the morning sweet tooth.

2.       Protein-Packed Greek Yogurt Cups – Layered with granola and honey, tapping into the 41% of consumers who love baked goods.

3.       Milkshake & Espresso Shot Combo – For those pairing indulgence with function, this mix satisfies both caffeine cravings and the desire for a small reward.

4.       Fruit & Dark Chocolate Skewers – A health-conscious yet sweet snack aligned with the trend toward chocolate and candy bars.

5.       Savory Mini Breakfast Tacos – Eggs, cheese, and spiced potatoes wrapped in mini tortillas for a balanced treat.

Lunch

1.       Snack-Size Charcuterie Box – A portable assortment of meats, cheeses, and crackers that blend indulgence with salty and savory appeal.

2.       Mini Bánh Mì Sliders – A fun, bold option featuring pickled vegetables and spicy mayo, perfect for Gen Z’s love of spice (28%).

3.       Smoothie Bowl To-Go – A nutrient-packed option with granola and fresh fruit, aligning with trending beverage preferences.

4.       Crunchy Tempura Bites – Small, lightly battered shrimp and veggies that satisfy midday snack cravings.

5.       Soft Pretzel Nuggets & Beer Cheese – An approachable snack that resonates with comfort-food seekers.

Dinner

1.       Gourmet Mac & Cheese Cup – A rich, portion-controlled meal that satisfies savory cravings.

2.       Mini Taco Trio – A variety of tacos featuring bold flavors for customers who prefer spicy or salty treats.

3.       Miso Glazed Salmon Skewers – A premium, small-plate meal catering to health-conscious indulgence seekers.

4.       Bite-Sized Flatbreads – A mix of BBQ chicken, Margherita, and pesto varieties for late-day snackers.

5.       Stuffed Mushroom Caps – A sophisticated option that pairs well with wine or craft beverages.

Late Night

1.       Ice Cream & Cookie Bites – A fun fusion reflecting ice cream’s top spot in favorite treats (56%).

2.       Mini Sliders with Loaded Fries – A playful indulgence combining fast food appeal with portion control.

3.       Chocolate-Dipped Pretzel Sticks – Sweet and salty balance in a portable format.

4.       Hot Honey Chicken Bites – A late-night favorite aligning with Gen Z’s love of spice.

5.       Boba or Bubble Tea – A trendy beverage option satisfying the impulse-buy culture.

Why Grocerants Should Invest in Little Treat Culture

Grocerants are uniquely positioned to capitalize on this demand by offering carefully curated mini meal experiences. With consumers spending a median of $30 monthly on little treats, and nearly 73% considering small indulgences important to their quality of life, grocerants can build loyalty through well-designed snack-sized offerings.

The research by NCSolutions highlights that most Americans purchase their treats in grocery stores (57%) and superstores (54%), presenting grocerants with an advantage in integrating a menu that blends convenience with indulgence. From pre-portioned snacks to limited-time creations inspired by trending flavors, grocerants can create a habit-forming treat culture that resonates with today’s consumers.

Think About This 

As the Grocerant Guru® knows, today's consumers crave personalized, fun-sized indulgences. Grocerants can embrace the Little Treat Movement by rolling out bold, snackable innovations that align with evolving purchasing behaviors. Whether it's a morning milkshake, a mid-day charcuterie bite, or a late-night slider, small indulgences are redefining the way consumers experience food—one treat at a 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.

👉 Email us at Steve@FoodserviceSolutions.us
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Consumers Eat Everywhere: Why Amazon’s Siloed Grocery Strategy Misses the Meal-Time Moment No Silos in the Shopper’s Mind

 

In the world of food, one thing is certain: consumers have no silos. When it comes to meals, they don’t think in terms of traditional grocery formats according to the Grocerant Guru® at Foodservice Solutions®. They want fresh food fast at a good price — wherever they are, whenever hunger strikes. The modern consumer’s meal journey is fragmented by design, not default. From gas stations to street corners, consumers seamlessly integrate eating into their everyday routines — and they’re not waiting on a weekly grocery trip to do it.

Seven Dramatic Examples of Seamless Eating

1.       IKEA’s Swedish Meatballs – Shoppers don’t just browse for furniture; they plan lunch. IKEA’s restaurants generate billions globally, often turning a home furnishing trip into a sit-down meal experience.

2.       Wawa’s Hoagie Culture – What began as a convenience store evolved into a foodservice leader. Today, Wawa is known more for handcrafted sandwiches and fresh coffee than fuel, proving gas stations can be gourmet.

3.       Costco’s $1.50 Hot Dog Combo – Arguably the best food deal in America, this iconic offering drives foot traffic and demonstrates that prepared food can coexist with bulk groceries.

Build a Larger Share of Stomach

4.       Starbucks Drive-Thru Breakfast – With grab-and-go breakfast sandwiches, protein boxes, and lunch items, Starbucks has moved far beyond coffee — and into the weekday meal routine.

5.       Trader Joe’s Grab-and-Go Coolers – From sushi to pre-packed salads, TJ’s leads in impulse meal solutions that don’t require a cart, list, or long checkout line.

6.       Street Vendors in Urban Centers – In NYC, LA, and Chicago, food trucks and carts meet consumers exactly where they are with warm meals ready in minutes — no app, no plan.

7.       Walgreens and CVS Meal Kits – Drugstores now stock sandwiches, wraps, and even heat-and-eat meals, understanding the consumer’s “right now” hunger pangs better than many traditional grocers.

Amazon’s Fragmented Grocery Play

Amazon, by contrast, has taken a more banner-heavy, siloed approach. Despite innovation and deep pockets, it has failed to create a cohesive meal-time identity across its grocery ecosystem. Consumers are faced with a menu of separate brands rather than a unified food experience:

·       Amazon Fresh: A hybrid grocery concept with evolving layouts and local foodservice selections.

·       Whole Foods Market: Premium organic fare, mostly aspirational, not everyday.

·       Amazon Go: A tech-first format that hasn’t scaled.

·       Amazon Grocery: A pilot model trying to compete with mini-marts.

·       Online Platforms: A fragmented mix of third-party and private labels.

While each banner may have strengths, Amazon has built grocery silos — each pulling in different directions — instead of constructing a singular, omnichannel food identity that meets today’s "anytime, anywhere" eating patterns.

Where Amazon Is Missing the Mark

1.       No Singular Meal-Time Voice
Consumers don’t want to decode which banner offers what. They want a reliable, frictionless meal solution, and Amazon has yet to present a unified brand that says: “We’ve got your next meal — fresh, fast, and affordable.”

2.       Siloed Branding Confuses, It Doesn’t Convert
While Amazon touts 90% satisfaction with its new Fresh layouts and brags about Whole Foods’ profitability, there’s no shared customer journey across these formats. There’s no instinctive association between Amazon and “great food right now.”

3.       Innovation Without Integration Is Just Noise
The company is undeniably experimenting — from Amazon Saver to grocery delivery subscriptions — but each initiative lives within its own mini-ecosystem. What’s missing? Holistic execution. A street-vendor-style lunch should be as easy to get via Amazon as a paper towel restock — and it’s not.

What Consumers Actually Want

As the Grocerant Guru® has studied for decades, food success today is built around the consumer’s evolving need set — not banner strategy or store count. That need set includes:

·       Fresh Food – Not just shelf life, but meal relevance: hot, wholesome, and craveable.

·       Fast Access – From curbside to counter to couch delivery, consumers expect immediacy.

·       Good Price – Affordability isn’t just a concern; it’s a requirement in a value-driven market.

And perhaps most importantly: it has to fit into their lives — not the other way around.

Lessons from the Past: Supermarket to Super Meals

Grocery retail has transformed from pantry-filling to meal-solving. The success of retailers like Wawa, Trader Joe’s, and even Costco’s food courts reflect a deeper truth: the line between food retail and foodservice is not just blurry — it’s irrelevant.

Shoppers no longer shop aisles — they shop occasions, emotions, and convenience. That’s why a cold brew and sandwich at Starbucks feels more relevant at noon than a trip to a 50,000-square-foot Amazon Fresh.

Final Thought: Amazon’s Grocerant Opportunity

Amazon still has the tools, tech, and talent to revolutionize food retail. But unless it unites its banners into a cohesive grocerant strategy — one that addresses meals, not shelves — it will continue to grow grocery in volume, not in value.

The future belongs to the brands that understand eating is an anytime act. If Amazon wants to truly dominate grocery, it must stop building banners and start building a food-first identity that fits inside a consumer’s day — not just their cart.

Steven Johnson is the Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has been tracking the convergence of restaurants, retailers, and food-forward CPGs for over 35 years. His insights focus on consumer behavior, grocerant strategies, and meal migration trends shaping the future of food.