C-stores continue to make plays in the fast-casual space.
7-Eleven, the largest C-store chain in the U.S., plans to open 600 large-format, food-focused convenience stores in North America, by the end of 2027.
Highlighted by CEO Joe DePinto in a recent investor presentation, these “New Standard” stores will offer expanded food options beverages and self-checkout machines.
The move builds on 7-Eleven’s launch of its Evolution store prototypes, which first debuted in Dallas in 2019. These stores featured Laredo Taco Company restaurants and drive-thrus. 7-Eleven acquired Laredo Taco Company Restaurants in 2018 and today there are seven Evolution stores in the U.S.
DePinto states that the “New Standard” food-focused hubs have already provided an 11 percent return on invested capital, although it’s unclear how many are open right now. Plans are to open 115 by the end of 2025.
7-Eleven is no stranger to attracting on-the-go guests with cravings. It has offered its 7NOW app for many years, which lets consumers order food delivery, tapping into third-party services like DoorDash or Grubhub for example. It also provides free delivery via the 7NOW Gold Pass subscription.
In addition, the C-store chain has been testing autonomous delivery. It teamed with Serve Robotics to test its sidewalk delivery robots in Los Angeles in 2023 and previously tested autonomous delivery with robotic vehicle maker Nuro.
It’s also unclear just how many autonomous deliveries are currently being made for 7-Eleven, but it’s evident the company is eyeing the space, as various restaurant brands continue to do.
Navigating challenges
Despite the new store expansions, 7-Eleven is facing challenges, particularly in the U.S. market. The company recently closed 444 underperforming stores, citing inflation. However, it’s possible that a pivot towards enhancing food offerings could help improve margins.
That might be the right strategy. According to a study by Placer.ai, consumers are continuing to choose C-stores over other dining options.
The study found that from 2019 to 2023, the share of visits to convenience stores compared to other dining options increased from 24.2 percent to 27 percent
The relative visit share of breakfast, coffee, bakeries & dessert shops also grew slightly during the period. Meanwhile, restaurant visit share dropped from 13.8 percent to 11.7 percent and visits to fast food and quick-service restaurants fell from 51.8 percent to 50.6 percent.
Several factors could be driving those stats. Most restaurants temporarily shuttered doors during the height of the pandemic, while C-stores remained open—allowing consumers to become more familiar with C-store’s food-away-from-home options.
This comes as other C-store chains, such as Kwik Trip and Casey’s General Store also grow in the hot food space.
“The continued growth of C-Stores between 2021 and 2022, and again between 2022 and 2023, indicates that many diners are now embracing C-Store food out of choice and not just due to necessity. The rise of the breakfast, coffee, bakeries & dessert shops category alongside C-Stores in the past five years may also highlight the current appetite for affordable grab-and-go food options,” the study wrote.
