Shoppers Shift Food Spend to C-Stores

Why It Matters

The shift signals a structural reallocation of food‑spend toward c‑stores, creating growth opportunities for retailers that can deliver quality, convenience, and digital engagement. It also forces traditional restaurants to rethink loyalty and experience strategies to retain customers.

Key Takeaways

• 33% of diners now visit convenience stores more often
• Food quality, convenience, and speed rank top factors for meals
• 61% abandoned orders because of service fees
• 45% changed favorite restaurant in past year
• C‑store operators should focus on seamless, personalized experiences

Pulse Analysis

Convenience retailers are emerging as a new battleground for food spending, driven by tighter consumer wallets and waning restaurant loyalty. Tillster’s 2026 Phygital Index, which surveyed over 2,100 U.S. diners, revealed that 33% of respondents are turning to c‑stores for meals and snacks, while visits to fast‑food and fast‑casual chains fell by 29% and 37% respectively. Economic uncertainty has forced 69% of shoppers to maintain or shrink their dining‑out budgets, and nearly half have swapped their favorite restaurant in the last year, underscoring a broader appetite for flexible, value‑oriented dining options.

For c‑store operators, the data translates into a clear growth playbook: expand prepared‑food assortments, enhance grab‑and‑go offerings, and integrate digital ordering channels that deliver a frictionless experience. Consumers rank food quality (45%), convenience (44%) and speed (34%) as the top decision drivers, suggesting that merely discounting will not sustain long‑term traffic. Brands that blend physical storefronts with personalized digital touchpoints—such as loyalty apps, mobile ordering, and targeted promotions—can capture the “experience over price” mindset Tillster describes as Restaurant 2.0.

The ripple effect extends to the broader food‑service ecosystem. As restaurants lose ground to alternative formats, they must invest in differentiated experiences, perhaps by leveraging technology that enhances service rather than replaces it. Meanwhile, c‑stores that double down on quality, speed, and seamless omnichannel interactions stand to capture a larger slice of the $1.8 trillion U.S. food‑service market. Strategic focus on curated assortments and data‑driven personalization will be the differentiators that turn occasional stops into regular dining destinations.