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.

Rising Credit Card Fees 

The cost of credit/debit fees continues to grow and can exceed the pre-tax profits for a c-store.

Reliance on Fuel Sales

Managing fuel sales is a critical yet risky part of c-store operations.

Aug 18, 2026 - Foodservice Outperforms Fuel and Merch

• 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.
• Buc-ee's aggressive national expansion is raising the competitive stakes for US convenience stores by combining massive travel centers, low fuel prices, extensive food offerings, and a strong customer experience that draws motorists away from traditional operators, The Wall Street Journal reports. The family-owned Texas-based chain’s new locations, featuring a cap-wearing Beaver mascot, are generating exceptional sales, including more than $1 million on opening day at its first Ohio store, underscoring the chain's ability to attract heavy traffic, according to WSJ. Buc-ee's is also aggressively protecting its brand through trademark lawsuits against regional chains with animal mascots, including an alligator, a duck, and chickens, signaling its intent to dominate new markets. For established convenience stores, the growing presence of Buc-ee's increases competitive pressure on fuel pricing, prepared food, store amenities, and branding, making differentiation and customer loyalty more important as Buc-ee’s expands into more new states.
• After years of consolidation and footprint expansion, convenience stores are increasingly focusing on asset optimization, operational efficiency, and profitability rather than simply expanding store counts, Convenience Stores News reports. Many chains are investing in remodels, food service upgrades, new equipment and technology that can improve customer traffic, basket size, and returns on capital. Operators are also pruning underperforming stores and markets to redirect resources toward higher-growth opportunities. At the same time, growing competition from national chains is pushing regional and local operators to differentiate themselves through better customer experiences, fresh food offerings, community engagement, and stronger brand identities. Industry watchers note that while scale remains important, success is increasingly measured by the productivity and profitability of individual stores rather than the size of a chain's footprint. The shift reflects rising operating costs, tighter capital budgets, and the need for faster returns on investment.

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).