Will US Convenience Stores Find the Secret to Selling Better Foods?

NEW YORK (AP) – Americans who think of petrified hot dogs, frozen burritos and salty snacks when they imagine getting food at a gas station or truck stop may be pleasantly surprised on their next road trip: U.S. convenience stores are offering more and better them. Making — though not necessarily healthy — choices.

From 7-Eleven to regional chains like QuikTrip, c-store operators, as they're known in the business, are looking overseas for grab-and-go inspiration, adding seating at some locations, expanding their coffee menus to rival Starbucks and busy Experimenting with prepared meals for the family.

Moves as they happen Convenience store Find ways to offset sluggish sales of cigarettes, maps and soft drinks. Enticing customers' palates with fresh deli sandwiches and build-your-own burgers, humble food marts seek to become fast-food restaurant alternatives for busy Americans who want easy, appealing and less expensive dining options.

“It's been a decades-long journey to go from food to destination,” said Jeff Lennard, vice president of strategic industry initiatives for the National Association of Convenience Stores.

Once known for breakfast and lunch, the convenience chain like wowMore than 1,000 East Coast locations, as well as smaller operators such as York, Pennsylvania-based Rutter's, have moved into dinnertime with soup, chicken and fish dishes. Rutter's, which operates 90 stores, plans a new store format with expanded seating as it adds 50 new locations over the next five years.

Casey's General Stores, the nation's third-largest convenience store operator with 2,500 outlets mostly in the Midwest and South, introduced warm chicken, pork and hamburger sandwiches on brioche-style buns this year. The company, already known for serving pizzas customers enjoy, has created a limited-time menu that includes pies and sliders made with smoked pork, barbecue sauce and pickles.

“We're really approaching it as a restaurant that we always have, but more so now,” said Carrie Stojac, vice president of brand and strategic insights for the Iowa-based chain. “Prices have really gone up. So what's happening is that convenience stores are becoming a real viable option for guests.”

In line with their findings, convenience stores are expanding delivery services to build on the customer base they gained during the COVID-19 pandemic. 7-Eleven plans to roll out its 7Now delivery app nationwide, allowing users to have pizza, the chain's signature Slurpees and thousands of other items delivered to their door.

Owned the nation's largest convenience store chain Japanese company Seven & I HoldingsSome US locations and recently acquired Speedway and Stripes stores offer select Japanese items such as chicken teriyaki, rice balls, miso ramen and sweet chili crisp wings. audience in Japan And Hawaiians often respond with envy and awe when they taste what's on offer at a 7-Eleven in Tokyo or Honolulu.

The chain's North American subsidiary said it works with some of the same food manufacturers and commissaries that 7-Eleven serves in Japan. These include Warabea, which is expanding its U.S. operations to help deliver fresh foods to stores and an assortment of offerings tailored to regional tastes.

“Our team has drawn inspiration from around the world to introduce new items such as mangonada donuts with tajine, barbecue pork sliders, chicken curry bowls and breakfast sandwiches,” the subsidiary said in a statement after declining an interview request.

Seven&I Holdings disclosed earlier this month plans to close 444 U.S. locations amid slowing sales, inflationary pressures and an accelerating decline in cigarette purchases. The company is also fielding a buyout offer from Alimentation Couche-Tard, the Canadian owner of Circle K convenience stores.

Interesting convenience store foods are not entirely new and vary greatly from region to region. Buc-ee's, the Texas-born chain with 50 stores in the South, has a cult following among fans who regularly eat breakfast tacos and caramel-coated corn puff snacks known as beaver nuggets.

Pennsylvanians, meanwhile, happily debate the relative culinary merits of food from Wawa (try the Gobbler, a hot turkey sandwich with stuffing, gravy and cranberry sauce, they suggest). Sheetz (An extensive menu of hot and customizable dishes includes breakfast bagels and quesadillas) and Landhope Farms, a favorite for its hand-dipped ice cream cones and milkshakes.

TikTok and YouTube videos of people eating nothing but convenience store food for a day or comparing food from different chains have helped fuel interest in street food.

Anderson Nguyen, 26, a TikTok content creator based in San Francisco, has tried chicken and macaroni and cheese from Crispy Crunchy Chicken, which operates most of its locations in gas stations and convenience stores.

“I usually don't buy too many things from these convenience stores,” Nguyen said. But he said his experience with Crispy Crunchy Chicken would make him reconsider.

The coronavirus has created a unique role for this sector. Most restaurants closed temporarily at the height of the pandemic, while many Convenience stores were open.

Non-fuel sales at U.S. convenience stores rose 36% between pre-pandemic 2018 and last year, from $242 billion to about $328 billion, according to an analysis of sales data from roughly 20,000 locations by the National Association of Convenience Stores. At the same time, cigarettes fell as a percentage of sales from 31% to 20%.

To boost their food offerings, convenience stores are now threatening to take business from fast-food chains like McDonald's, Burger King and Wendy's, which used summer deals to revive sales, experts said.

Jonathan Radons, CEO of food merchandising at retail consultancy Merchandise Food LLC, did a spot check online of similar items offered at certain fast-food restaurants and convenience chains that showed convenience store food was actually cheaper.

For example, a large pepperoni pizza at a KC's in London, Ohio costs $13.99 versus a similar version at a Domino's, which costs $14.99. And a large coffee at the convenience store chain Parker's Kitchen in Savannah, Georgia sold for $2.49 versus $3.48 for the same size at a Starbucks in the same area.

Virginia-based convenience chain Arco, which operates stores under banners such as 1-Stop and ExpressStop, has focused on being an affordable option. Earlier in the year, it offered what it described as a “puff-busting” 12-inch pizza priced at $4.99 for members of Arco's free loyalty program and $7.99 for non-members.

“It took us months to come up with something that was good quality and that people could actually afford,” said Ari Kotler, CEO of Arco Corporation.

Nutritionists and organizations like the American Heart Association encourage service station retailers to focus on fruits and other fresh foods that are healthier.

Kristen Lorenz, a registered dietitian with a private practice in Grand Rapids, Michigan, says convenience food operators are adding healthier options like lettuce wraps and yogurt parfaits. Previously, prepared foods had a roll and pizza meat that looked “dry and crunchy.”

Among Lorenz's favorites: customized sandwiches at Sheetz and Wawa.

“Everybody needs to get gas and everybody needs to eat,” he said. “So it's good to offer a variety of healthy choices that Americans can choose from. And what's great about these stores is that they still have traditional items that can make a road trip fun. You can get a small bag of chips.”

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AP food writer Dee-Anne Durbin in Detroit contributed to the report.