Convenience Stores

The 65,068 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 – 60% of c-stores have a single location.

Reliance on Volatile 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.

Sep 18, 2026 - USDA Rule Threatens SNAP Authorization

• New USDA stocking requirements could cause thousands of convenience stores to stop accepting Supplemental Nutrition Assistance Program (SNAP) benefits, Reuters reports. Beginning November 4, SNAP retailers must offer at least seven varieties in each of four staple food categories: dairy, fruits or vegetables, grains, and protein. Convenience store operators say USDA has not provided sufficient guidance and are requesting a six-month enforcement delay to give them time to source products, negotiate with distributors, and adjust store inventory. More than 117,000 convenience stores accept SNAP, representing nearly half of all SNAP-authorized retailers. Stores that cannot meet the requirements risk losing SNAP authorization, potentially reducing sales and customer traffic, particularly in lower-income areas. Compliance could also raise inventory costs, require additional shelf or refrigeration space, and increase spoilage risks for stores that must carry more fresh and perishable products.
• Foodservice remained the brightest spot for convenience stores in 2025, creating a key opportunity to offset weaker fuel and merchandise sales, according to the recently-released 2026 Convenience Store News Industry Report. Average foodservice sales per store rose 4.2% to $455,925, lifting foodservice's share of in-store sales to a five-year high of 23.3%. Prepared food led the category with 5.5% sales growth, while cold and frozen dispensed beverages also posted gains. Although overall industry sales declined because of lower fuel prices, foodservice helped drive a 1% increase in in-store sales and generated higher-margin revenue. For convenience store operators, continued investment in prepared meals, beverages, and food quality offers one of the strongest opportunities to increase customer traffic, improve profitability, and reduce reliance on volatile motor fuel sales.
• Moderating cigarette volume declines and growth in nicotine pouches is giving the tobacco retailers a reason to be optimistic, Convenience Store News reports citing a findings from a Goldman Sachs' second-quarter 2026 "Nicotine Nuggets" survey. While inflation and higher gasoline prices continue to stress consumer budgets, retailers, including convenience stores, reported stable business conditions as many smokers shifted to lower-priced cigarette brands or alternative nicotine products. About 75% of respondents said deep-discount cigarettes gained market share, while strong demand for nicotine pouches such as ZYN and VELO Plus is prompting retailers to add shelf space and stock new products. E-cigarette sales also returned to growth, aided by fewer illicit products and new authorized offerings. For convenience stores, expanding nicotine pouch and alternative tobacco assortments can help offset declining premium cigarette sales, support backbar revenue, and drive repeat customer traffic despite ongoing consumer budget pressures.
• Producer prices for gasoline stations rose 18.1% in July compared to a year ago, after climbing 13.3% in the previous July-to-July annual comparison, according to the latest US Bureau of Labor Statistics data. The PPI for gas stations is near record levels largely because the 2026 Middle East conflict has sharply increased both crude-oil and wholesale gasoline costs, while unusually tight global refining capacity has kept gasoline margins elevated. Employment by convenience retailers grew 2.3% year over year in June, while the average industry wage increased 11.7% over the same period to $18.34 per hour, two cents shy of its record high in May, BLS data show.

Industry size & Structure

An average convenience store sells gas, operates out of 1-2 locations, employs 6 full-time workers, and generates almost $6.5 million annually.

• The convenience store industry consists of about 65,00 companies with over 137,000 stores, which generate about $860 billion annually and employ 165,700 workers, according to the Census Bureau.
• The average convenience store had 5,103 transactions (at the pump and in-store) per week in 2025, or 729 per day.
• Single-store operators account for roughly 60% of all c-stores, and 88% employ fewer than 10 workers.
• The average c-store chain has about 50 individual stores.
• Foodservice sales accounted for 28.5% of in-store sales and 38.9% of in-store gross margin dollars at convenience stores in 2025, per the National Association of Convenience Stores.
• Large companies include 7-Eleven, Couche-Tard, Casey's General Stores, and EG America (Cumberland Farms, Kwik Stop, Turkey Hill).