Convenience Stores: Driving Growth in Foodservice with Innovation and Value
The convenience store (c-store) sector is undergoing a significant transformation, shifting from its traditional role as a fuel stop to becoming a key player in the food service industry. This evolution is fueled by strategic menu innovations, value-driven promotions, and a growing consumer willingness to view c-stores as legitimate meal destinations where they can multitask and save time – charging their car while grabbing a bite to eat and some groceries if need be.
The Rise of Foodservice in C-Stores
Food service has become one of the strongest growth engines in the channel of c-stores. In 2024, it accounted for 27.7% of in-store sales and 38.6% of in-store gross margin dollars at U.S. convenience stores, according to NACS.[1] Indeed, it reports that prepared food, including hot, cold, and frozen dispensed beverages, represented more than 70% of foodservice sales, underscoring the shift toward food-forward strategies.
Consumers are reinforcing this momentum: Technomic reports that in the past six months, C-store operators have noted an 66% increase in foodservice traffic and 37% increase in foodservice sales.[2]
Innovation and Limited-Time Offerings (LTOs)
Menu innovation is central to this growth. Across foodservice, limited-time offerings (LTOs) are expanding, with projections showing nearly 39,000 in 2025, up from about 36,800 in 2024.[3]
C-stores are keeping pace, using exclusive flavors, seasonal promotions, and creative packaging to capture customer curiosity. From hot meals to pre-packaged grab-and-go snacks in BOPP bags, innovation is proving to be a powerful driver of both trial and loyalty.
Value Promotions and Consumer Sentiment
Affordability continues to matter, but the definition of “value” is broadening. In mid-2024, 72% of consumers said they prioritized value deals; by 2025, that number dropped to 59%, a shift reflecting consumer interest in more than just price.[4] Promotions like BOGOs and bundled discounts remain effective, but today’s consumers are increasingly weighing convenience, quality, and discovery alongside price when deciding where to eat.
Rethinking the Approach
Tim Powell, principal at Foodservice IP, suggests that value today should be viewed as “price-and.” In other words, consumers don’t just consider the price tag: they also weigh factors like quality, speed, portion size, dietary fit, and overall experience. What feels like a “good value” can shift depending on what matters most to the individual shopper.[5] For c-stores, this shift requires rethinking the customer experience: meals must be fast and fresh, affordable and appealing, accessible and trustworthy.
Delivering the “And” With Packaging, Presentation, and Safety
Meeting these evolving expectations requires more than menu innovation. Operators also need operational tools that ensure convenience, confidence, and presentation. This is where partners like Handgards enable retailers to deliver on the “and”:
- Convenience Reimagined: Grab-and-go meals in high-clarity BOPP bags or HD sandwich bags and HD specialty bags give consumers the portability and freshness they demand.
- Upscale Presentation: Expendable items like bamboo knot picks, skewers and toothpicks transform everyday items with a premium feel.
- Confidence in Safety: Quick-serve poly gloves, poly gloves, disposable LD aprons, and hairnets reassure consumers that food safety is being looked after, an essential but often invisible driver of trust.
By embedding these elements into their operations, c-stores can compete not only on price but on the richer definition of value today’s consumers expect.
Conclusion
The c-store industry is poised to be able to capitalize on food service growth as consumer sentiment is stabilizing and innovation is flourishing. Yet long-term success will depend on more than promotions or novelty. Operators must embrace the “price-and” equation, ensuring their offerings are affordable and fresh, convenient and safe, fast and appealing.
With the right blend of menu innovation, operational excellence, and consumer trust, c-stores can continue their evolution from quick stops into true food destinations.
Contact your Handgards representative today to see how our solutions can fuel your c-store.
[1] NACS, C-Store Foodservice Delivered Exceptional Growth in 2024 | NACS.
[2] Technomic, Convenience-Store Foodservice Outlook, 2024.
[3] LTOs and value are key to solving restaurant traffic downturn: Technomic | Restaurant Dive
[4] Technomic, 7 Things to Know About Value, 2024.
[5] Rethinking Your Value Proposition | Convenience Store News