The5For

Welcome back to The 5 For, your quick hit on the latest happenings in the convenience store world! Monday, May 12th, was packed with fascinating insights that really hammered home how fast our industry is evolving. From intensifying competition for meal dollars to strategic moves by major players, it’s clear that c-stores are stepping up their game. Let’s dive into the top 5 takeaways from the day’s news and discuss what they mean for your business.

1. C-Stores Are Taking a Bite Out of Restaurants

We’ve been tracking the growth of foodservice in convenience stores, but reports on Monday underscored just how much c-stores are eating into restaurant market share. It makes perfect sense when you think about it: Consumers are prioritizing convenience, speed, and value. Today’s c-stores are meeting this demand head-on with increasingly high-quality meal options that directly compete with quick-service restaurants (QSRs). It’s gone way beyond basic grab-and-go sandwiches. We’re seeing expanded hot food programs, made-to-order options, and a genuine focus on quality that’s attracting customers who might have previously headed to a fast-food joint. According to a recent consumer report, 24 percent of surveyed diners are buying meals from grocery stores more frequently than a year ago, and notably, 15 percent are hitting up convenience stores more often for meals. This is a larger increase than those visiting fast-casual or full-service restaurants more frequently. Even more critically, frequent restaurant users—those eating out five or more times a week—were found to be the most likely to increase their grocery and convenience store meal purchases, meaning restaurants risk losing their core customers. The takeaway here? For c-store operators, foodservice isn’t just a side gig anymore; it’s a massive opportunity if you get it right.

2. Arko’s Big Foodservice Play: The Fas Craves Program

Speaking of foodservice, Arko Corp., the parent company of GPM Investments, made significant news last week by beginning construction on the first of its new food-focused c-stores. This initial remodel is happening at a Fas Mart location in Richmond, Virginia. This store will feature their new branded foodservice program called Fas Craves. Chairman, President, and CEO Arie Kotler highlighted that Fas Craves will include hot and cold grab-and-go foods, baked goods, pizza, roller grill dogs, and other fresh-prepared items. This is just the beginning; it’s the first of seven pilot stores under the new design planned for the Richmond area, with Arko intending to finish all of them by the end of 2025. Arko is making a substantial investment into these locations, putting between $700,000 and $1.1 million into each new store. This move by a major player like Arko clearly signals how critical foodservice has become in the industry. Investing in a dedicated, branded program like Fas Craves shows a strategic effort to standardize offerings, improve quality, and build a consistent brand experience across their network. Kotler described these new food-focused stores as fundamental to Arko’s long-term transformation plan, which focuses less on acquisitions and more on organic growth and store-level investments. After the pilot stores are complete by the end of the year, Arko plans to evaluate the results before deciding on a broader rollout across their network of over 1,300 company-operated stores, potentially leading to an uptick in 2026 assuming the results are positive.

3. Steal This Foodservice Idea: Go Big on Snacks!

Here’s a brilliant, actionable idea highlighted on Monday: think big when it comes to snacks! We all know snacks are a huge category in c-stores. But the idea goes beyond just stocking shelves; it’s about creating a destination for snacking. This could mean offering unique, shareable, or elevated snack options, considering different dayparts, or even integrating snacks into meal deals. One interesting example mentioned was Subway’s partnership with Doritos, rolling out an oversized, 12-inch serving called Doritos Footlong Nachos as a limited-time offer. This kind of creative, branded offering shows how snacks can be incredibly innovative. Given their often high margins, snacks offer a simple yet powerful way to boost sales and differentiate your store. Pay attention to trends, think about local favorites, and don’t be afraid to experiment beyond the usual chip bags.

4. Water is Gaining Serious Weight in Beverages

Shifting to the cooler aisle, the big beverage news on Monday centered on the continued dominance of water. According to Duane Stanford, editor and publisher of Beverage Digest, water was the biggest volume gainer among liquid refreshment beverages in 2024, seeing a 2.7% increase. This data covers multiple channels, including convenience stores and grocery. While other major categories like carbonated soft drinks, juice, and ready-to-drink coffee saw volume decreases in 2024, only energy drinks also had a positive volume gain. Stanford also noted that water has been steadily gaining on carbonated soft drinks and energy drinks over the last 25 years, with their combined volumes nearly even in 2024 compared to a significant gap in 1996. For c-stores, this trend reinforces the importance of dedicating ample cooler space to a wide variety of water options – sparkling, flavored, premium, and basic—to meet diverse consumer preferences in this booming segment.

5. Good Oil Co. Acquires Big Mike’s Gas ‘n’ Go

Finally, the mergers and acquisitions (M&A) activity continues apace in the industry. Good Oil Co., which operates Good To Go convenience stores out of Winamac, Indiana, announced its purchase of Big Mike’s Gas N Go’s five locations. Big Mike’s was a niche convenience retailer in and around Dayton and Cincinnati, Ohio. This acquisition brings Good Oil Co.’s total number of owned or operated retail locations to 22. Big Mike’s was founded in 2008 and focused on customer service and expansive retail offerings. Consolidation like this is a constant feature of the convenience store landscape, reflecting companies’ efforts to expand their footprint, gain market share, or acquire strategic locations. For independent operators, such deals highlight the dynamic nature of the market and the potential for both growth through acquisition or becoming an attractive target. Read more.

The Bottom Line

And there you have it – 5 key pieces of convenience store news from Monday, May 12th. What stands out from the day’s news is the increasingly competitive landscape for consumer spending. Convenience stores aren’t just selling fuel and basic essentials anymore; they are actively positioning themselves as destinations for food and beverages. From major players like Arko making substantial investments in food programs to the quiet rise of categories like water, operators need to be keenly aware of shifting consumer demands for value, convenience, and quality. The ongoing M&A activity reminds us that the industry structure is constantly evolving. To succeed, operators must adapt their strategies, focusing on areas like enhancing their foodservice offerings, optimizing beverage selections, and finding ways to differentiate themselves in a crowded market