NACS CEO Frank Gleeson on the Next Phase of C-Store Growth

Why It Matters

The shift reshapes revenue models and competitive dynamics, making food and digital capabilities critical for growth and investor confidence.

Key Takeaways

• Foodservice now core, not just add‑on, driving higher margins
• Digital loyalty and mobile ordering become essential growth levers
• Operators must compete with grocery chains and fast‑casual restaurants
• Regulatory focus on tobacco, payments adds compliance complexity
• NACS will guide members through evolving consumer expectations

Pulse Analysis

The convenience‑store landscape is undergoing a structural realignment as consumers prioritize ready‑to‑eat meals, fresh groceries and seamless digital experiences over traditional fuel and tobacco purchases. Industry analysts note that fuel sales now account for a shrinking share of total revenue, while foodservice categories are delivering double‑digit growth and higher margins. This evolution mirrors broader retail trends where speed and convenience intersect with quality, prompting operators to redesign store layouts, expand kitchen capabilities and forge new supply‑chain partnerships.

Digital transformation is no longer optional; it is a growth engine. Loyalty platforms, mobile ordering, and data‑driven merchandising enable retailers to personalize offers, increase basket size, and gather actionable insights on shopper behavior. As convenience stores face competition from grocery chains, quick‑service restaurants, and delivery‑first platforms, integrated technology becomes the differentiator that turns a simple stop into a multi‑channel engagement. Early adopters that align digital tools with in‑store experience are seeing measurable lift in repeat visits and average transaction value.

At the same time, heightened regulatory attention on tobacco, nicotine alternatives and payment‑card interchange fees adds a layer of compliance risk. NACS, under Gleeson’s leadership, is positioning itself as an advocate and educator, helping members navigate policy changes while emphasizing the sector’s role in community access to essential goods. Looking ahead, the convergence of foodservice expansion, advanced digital capabilities, and evolving regulatory frameworks will dictate which operators thrive, shaping investment theses and supplier strategies across the convenience‑store ecosystem.