Why Does Coffee Dominate C-Stores?

In the fast-paced world of convenience stores, one product consistently reigns supreme, driving traffic and boosting profits: coffee. If you’re not maximizing your coffee program, you’re missing out on a golden opportunity. Let’s dive into the 5 undeniable reasons why coffee is the lifeblood of your c-store, and how you can leverage its power to fuel your bottom line today.

1. Ubiquitous Demand & Habit

Coffee is deeply ingrained in many people’s daily routines, offering a familiar and reliable energy boost.
The demand for coffee is consistent across a wide range of demographics and times of day.
According to the State of the Market C-Store Coffee Trends report, 39% of c-store retailers noted the popularity of iced and cold-brew coffees, indicating growing demand throughout the day.
The global coffee market is projected to reach $96.45 billion in 2025 for at-home consumption, with out-of-home revenue touching $376.70 billion, demonstrating coffee’s widespread popularity.

2. Morning Rush & Commuting

Convenience stores are strategically located for commuters and those on the go in the morning.
Coffee is the go-to beverage for many people starting their day.
39% of c-store retailers reported that customers commuting to work more often has led to an increase in coffee transactions.
Convenience stores are winning market share from traditional coffee players like diners and coffeehouses, likely due to their convenient locations for commuters.

3. Versatility & Variety

From basic brewed coffee to specialty cappuccinos, lattes, and iced options, coffee offers a wide range of choices to cater to different tastes.
Convenience stores are increasingly offering higher-quality coffee and specialty drinks to compete with coffee shops.
44% of c-store retailers listed investment in new coffee equipment that can make and dispense coffee as the top factor leading to increased coffee transactions.
The addition of iced or cold-brew coffee varieties and flavored syrups has contributed to increased coffee sales in convenience stores.

4. Profitability

Coffee has a good profit margin for convenience stores, especially when they offer premium or specialty options.
It’s a high-volume product that drives consistent revenue.
More than eight in 10 retailers report that their coffee sales are the same or better than a year earlier, indicating strong performance.
Nearly seven in 10 retailers expect their coffee sales to increase in the next 12 months, demonstrating confidence in coffee’s profitability.

5. Brand Loyalty & Familiarity

Many consumers have established brand preferences for coffee, and convenience stores often carry well-known and trusted brands.
The aroma of coffee can be a powerful draw for customers.
Younger consumers are starting to drink coffee earlier, with Gen Z beginning around 15 years old compared to Millennials who started at 18-20 years old.
Coffee has become a trendy and versatile beverage, compatible with various flavors and non-dairy milks, making it popular across different age groups and cultures.

Additional Insights

The convenience store channel is expected to see growth in coffee sales, with the global coffee market projected to reach $156.85 billion by 2033.
The off-trade segment, which includes convenience stores, owns the highest market share and is expected to grow at a CAGR of 4.98% during the forecast period.
Rising costs of goods and equipment are cited as top challenges for c-store coffee programs, but labor costs are not a significant obstacle as consumers are accustomed to self-service.

The data is clear: coffee isn’t just a beverage; it’s a revenue engine. From the morning rush to the demand for specialty drinks, coffee drives consistent traffic and substantial profits. But staying ahead requires more than just brewing a pot. It demands a strategic approach, investing in quality, and understanding the evolving tastes of your customers. Are you ready to capitalize on the coffee boom? The time to optimize your coffee program is now. Don’t let another day pass without maximizing this essential revenue stream. Take the insights from these five key reasons, implement them in your store, and watch your profits soar. The future of your c-store’s success is brewing.

Sources:

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Weekly Trends & Innovative Insights for Convenience Store Owners.