Convenience Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 87,300 convenience store companies in the US sell a limited selection of merchandise in high-traffic locations. The majority of convenience stores in the US sell gasoline. Most convenience stores are independent operators – 92% of c-stores have a single location.
Reliance on Fuel Sales
Managing fuel sales is a critical yet risky part of c-store operations.
Rising Credit Card Fees
The cost of credit/debit fees continues to grow and can exceed the pre-tax profits for a c-store.
Industry size & Structure
A typical convenience store sells gas, operates out of 1-2 locations, employs 14-15 workers, and generates almost $7.5 million annually. A typical c-store that does not sell gas employs about 5-6 workers and generates about $1 million annually.
- The convenience store industry consists of 87,300 companies with over 130,000 stores, which generate about $457 billion annually and employ 991,000 workers, according to the Census Bureau.
- The average convenience store had 45,312 transactions (at the pump and in-store) per month in 2023, or 1,491 per day.
- Most convenience stores are independent operators - 92% of c-stores have a single location, and 88% employ fewer than 10 workers.
- The average c-store chain has about 50 individual stores.
- Large companies include 7-Eleven, Couche-Tard, Casey's General Stores, and Murphy USA.
Industry Forecast
Convenience Stores Industry Growth
Recent Developments
Jan 18, 2025 - Cheaper Gas is Coming
- In its January forecast for 2025/2026, the Energy Information Administration is forecasting retail gasoline prices to fall compared to last year, largely reflecting the agency’s expectation of lower crude oil prices. In 2025, the EIA expects US gasoline prices will average around $3.20 per gallon, a decrease of more than 10 cents per gallon from 2024. In 2026, the EIA forecasts prices to fall to an annual average $3.00 per gallon. After reaching an annual record of 13.2 million barrels per day last year, the agency forecasts US crude oil production will increase to 13.5 million b/d in 2025. In 2026, crude oil production is expected to grow less than 1%, averaging 13.6 million b/d as operators slow activity due to price pressures. The agency's forecast does not take into consideration political factors, which could inflate energy costs.
- On January 1, 21 states raised their minimum wage with more hikes expected later in the year, Supermarket News reports. Of those, 15 states and the District of Columbia currently have a minimum wage of $15 or higher or are phasing in scheduled increases to $15 or more, including California, Massachusetts, New Jersey, New York and Ohio. Washington State had the highest state minimum wage at $16.66 an hour as of Jan. 1. In addition, numerous city and county minimum wages increased on January 1 or later in 2025. While average wages for nonsupervisory employees at convenience stores already exceed the new higher minimums, when the minimum wage rises, wages a little higher on the income ladder tend to increase as well. Except for inventory costs, labor (wages, benefits, payroll taxes, training and retention) is typically the largest expense for c-store operators.
- The Food and Drug Administration has submitted a rule that would set a maximum nicotine level for tobacco products, Convenience Store News (CSN) reports.The proposed rule was submitted to the Office of Management and Budget in December and proposes a product standard to establish a maximum nicotine level to reduce the addictiveness of cigarettes and certain combusted tobacco products that would be among the most impactful population-level actions in the history of US tobacco product regulation, per the FDA. The agency first discussed lowering nicotine in cigarettes in 2018. In 2022, Commissioner Robert Califf announced the agency was developing a rule requiring tobacco companies to lower nicotine levels to no higher than a designated maximum level. The National Association of Convenience Stores is paying close attention to the proposed rule, as cigarette sales, while declining, accounted for about 21.5% of in-store c-store sales in 2023, per Statista.
- Employment by convenience stores grew 1.7% in October compared to a year ago, although it eased from its summer peak, while average industry wages for convenience retailers dipped 1% over the same period to $16.83 per hour, according to the latest US Bureau of Labor Statistics data. The national average retail price of a gallon of regular gasoline, a major revenue stream for c-stores, was about $3 per gallon in December, down from about $3.60 in the spring, according to AAA.
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