Convenience Stores Aim to Outperform Fast-Food Chains in the Foodservice Battle

The war for speedy meals is intensifying as convenience stores target fast-food chains.

That was the overriding message from the 2025 NACS Show in Chicago, where executives from the National Association of Convenience Stores (NACS) emphasized how important foodservice will become to the industry’s future.

Outgoing NACS President and CEO Henry Armour and incoming president and CEO Frank Gleeson, and outgoing NACS Chairman and former Alimentation Couche-Tard CEO Brian Hannasch, discussed Thursday the change occurring within the convenience store industry. Gleeson, a former president and CEO of Aramark Northern Europe, begins officially serving as NACS president and CEO on Jan. 1.

“Food is an amazing growth play for this channel,” said Gleeson, noting convenience stores need to move beyond the standard fare to remain competitive.

As reported by data from NACS in April, 2024 was a record year for U.S. convenience store sales, with foodservice contributing to an impressive 28.7% of in-store sales. This is a significant increase from 2004, when foodservice only accounted for 11.9%. The category encompasses prepared food items, commissary foods, and hot and cold drinks illustrating how food has emerged as a prime profit generator.

During the 2025 NACS Show, innovation could be seen in full swing. Food distributors such as Core-Mark featured a range of gourmet-ready items including fresh-fried spanikopita served over couscous and cheesy Salvadoran pupusas served with bold sauces and slaw. Beverage stations provided customizable beverages, ranging from iced coffees and refreshers to hot chocolates with a range of syrups, creams, and toppings.

Gleeson acknowledged the growing competition from quick-service restaurants (QSRs) but noted that convenience stores are successfully taking market share from them. “The good news is the convenience industry is capturing more and they’re taking it from QSRs,” he said. “We’ve got the best real estate in the world. We’re the closest to the customer and can serve multiple day parts for the consumer.”

He stated that fuel, packaged merchandise, and tobacco are still valuable, but foodservice is the most critical factor for getting customers involved and remaining loyal. “You fill up your car every week, you fill up your body three or four times a day,” Gleeson joked. “Foodservice fulfills more day parts and generates loyalty. Begin small and build, that’s what a lot of successful firms do.

However, the shift toward foodservice won’t be simple. Armour warned that convenience stores won’t achieve transformation by merely copying neighboring stores. “If you’re really going to do it, your competitive set is QSRs,” he said. “You have to focus on how fast they go to market, how they execute menus, and how flexible they are.”

The leaders in the industry concur that quality food, matching restaurant-level quality, is the next convenience store frontier. Stores are already adding fresh, diverse, and customizable meals to appeal to customers who want speed, variety, and convenience.

For retailers who are willing to make an investment in food innovation, the return could be enormous. As consumers continue to seek quick, filling meals without the compromise of quality, convenience stores have an opportunity to reframe what “fast food” truly is, transforming them into not only a pit stop for gas or a snack, but a legitimate food destination.

This article first appeared in CSP Daily News with reporting by Managing Editor Heather Lalley.