News

Gas stations eating into fast food market share

May 15, 2019

Fast food restaurants have always been the go-to for a quick bite, but gas station convenience stores are coming on strong by improving their options. And consumers are buying them as foodservice now makes up nearly 23% of sales at convenience stores nationwide, growing 3% in the past five years, according to NACS State of the Industry.

"Convenience retailers with compelling foodservice programs are a growing threat to quick service restaurants," said Frank Beard, trends analyst at GasBuddy, a smartphone app connecting drivers with convenience stores. The company surveyed more than 500 of its customers in April to reveal that 56% of Americans purchased meals at least once per month at gas station convenience stores, with younger Americans purchasing food at convenience stores more frequently. Twenty-five percent of those aged 30-44 purchased food five or more times per month, while 20% of those aged 18-29 purchased food at convenience stores three-four times per month.

A significant portion of 18-29 year olds purchased more meals from convenience stores than they did three years ago (43%), and 75% of Americans believed convenience store foodservice has improved in the past five years.

"Data show that people choose convenience stores over fast food locations because of the convenience of an all-in-one stop for fuel and food, followed by a preference for the taste of the food at c-stores. Couple this with leading convenience brands like Wawa and QuikTrip rapidly expanding across the country, and fast food brands will be forced to find innovative ways to catch up," Beard said in a press release about the study.

Increased dollar spend 
Frequent visits to purchase meals at convenience stores come with increased dollar spend. The study found that one in four Americans spent $6-10 per week on convenience store foodservice, with nearly 20 percent of Americans aged 18-29 spending $10-15 per week.

"Convenience brands are well-positioned to cater to consumer’s tastes because they aren’t pigeon-holed into one type of cuisine," Beard said. "Our study found that younger Americans prefer more variety, particularly with newer menu items like burritos and pizzas."