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Breaking down 5 key pieces of convenience store industry news from May 7th, 2025.

Welcome back to The 5 For! As always, we’re sifting through the latest convenience store news to bring you the most relevant insights for owner-operators. Here are five topics that caught our attention from yesterday, May 7th, 2025.

1. Groceries Gaining Traction at the Pump

An interesting piece highlighted that more consumers are making grocery purchases at gas stations and convenience stores. It’s not just about grabbing milk and bread anymore. Retail experts note that consumers are looking for value and convenience. They find c-stores a “great trade-down opportunity from a price perspective” while maintaining quality. C-stores were among the few retailers seeing year-over-year customer growth in March. While 80% of items bought are consumed within the hour, many shoppers fill their tank. Additionally, they stock up on pantry items like bread or eggs for a future meal. Younger shoppers and those with children love the selection and convenience. They avoid the hassle of traditional grocery trips. Sales of categories like frozen food, wine, deli, and dairy products all rose last year.

For C-store owners, this underscores the opportunity to expand grocery offerings beyond staples and capture more basket share. Are you optimizing your layout and inventory to position your store as a quick grocery stop, meeting the demand for both essentials and fill-in needs?

2. The Triple Threat Facing Snacks

A thought-provoking opinion piece discussed how snacks trusted for generations are facing a crisis. This isn’t just due to rising costs and ingredient challenges, but a “triple threat” that includes shifting consumer preferences and intensifying regulatory pressure. Consumers are polarizing, favoring either healthier, pricier options or focusing purely on value, squeezing traditional “middle-class” brands.

Brands managing higher costs may quietly swap premium ingredients for cheaper ones. This “slicing the salami” effect erodes consumer trust over time. Government initiatives like “Make America Healthy Again” are increasing scrutiny on ingredients. Agencies are calling for artificial dye replacement. Several states are banning certain additives. Maintaining a consistent, appealing snack selection is getting harder. Reformulating products to meet new standards or preferences is costly and risky. It can potentially compromise taste or texture. However, inaction is also risky in a climate of increased transparency. Consumers are demanding cleaner labels. Snacks are a core C-store category.

Operators need to stay agile, track disappearing SKUs, and explore new and emerging snack brands or categories to keep shelves full and customers happy. How are you adapting your snack inventory to meet evolving consumer expectations for value and ingredients, and navigating potential supply or availability issues of legacy brands?

3. Love’s Heats Up Food Service with Chipotle Flavors

Love’s Travel Stops are rolling out Chipotle-flavored items to their in-store menus for a limited time this summer. These items include chipotle chicken tacos, chipotle chicken and potato bowls, and chipotle chicken salad wraps. They are also bringing back seasonal fruit items.

This move underscores the continued focus on expanding and enhancing food service in the C-store space. The strategy includes integrating popular flavor profiles. These flavors are recognizable and resonate with customers. Other retailers like Royal Farms are introducing new sub options with various flavor combinations. QuickChek is launching a summer menu with seasonal drinks and coffee blends.

This highlights the value of trending flavors for independent operators. Seasonal offerings can drive traffic and sales in the competitive food service space. What popular or seasonal tastes could you add to your grab-and-go options? How could you make your options attract customers looking for familiar flavors? Consider adding exciting flavors and fresh items. See the article here.

4. Industry Leadership Shifts Signal Potential Direction

C-Store Dive provided a roundup of nine notable executive changes across the convenience store industry throughout April. These included CEO shifts at Parkland and EG Group, Couche-Tard naming a new food executive, and GetGo’s president departing. For example, EG Group named Russell Colaco as its new CEO, who also took over leadership of its U.S. arm, replacing co-founder Mohsin Issa and U.S. leader John Carey. Parkland’s President and CEO Bob Espey announced he will step down amid shareholder conflict and a potential sale to Sunoco. Couche-Tard appointed Gary Brant as VP of North America foodservice and QSRs, reflecting the growing importance of this category.

Shifts in leadership at major chains or industry bodies can often hint at strategic realignments. These realignments or new priorities could impact the wider market. For example, leadership changes can indicate strategic areas of industry investment. Moves like Couche-Tard’s focus on foodservice or Parkland’s potential sale are examples. They highlight industry challenges. Keeping an eye on who’s leading where can offer clues about future trends. It can also provide insights into competitive landscapes. This helps you anticipate market shifts.

Are you observing leadership changes at major industry players? Are you noting strategy shifts to anticipate future competitive moves? These could include market focus areas like expanded foodservice or new category development.

5. McDonald’s Levels Up Beverage Competition

McDonald’s is reportedly launching a beverage test in the U.S. later this year, incorporating menu items inspired by its new beverage-focused concept, CosMc’s, into existing restaurants. McDonald’s CEO noted “interesting learnings” from the initial CosMc’s rollout, particularly regarding consumer customization preferences and interest in emerging beverage categories. He expects significant growth in the beverage “profit pool” and wants McDonald’s to capture its share. CosMc’s offers a beverage-heavy menu including specialty lemonades, teas, blended drinks, and cold coffee with various customization options.

This is a significant move by a major competitor. They are directly targeting the high-margin, specialty beverage space. This is an area where many C-stores excel. It signals increased competition. Customized and specialty drinks are a key driver of foot traffic. They also boost profitability for c-stores. Be prepared for increased competition in the coffee and specialty drink market. Consider how your own beverage program can stand out with unique offerings. You might also focus on loyalty programs, competitive pricing, or enhanced customization options. Read more here.

The Bottom Line

That wraps up The 5 For today. Staying informed on these trends – from the growing opportunity in grocery and the challenges facing traditional snacks, to competitive moves in foodservice and beverages and strategic shifts signaled by leadership changes – is crucial for adapting and thriving in the dynamic convenience retail market.

Stay tuned for more insights!