Convenience stores are eating fast-food chains’ breakfast

Convenience Stores Gaining Ground in Breakfast Market

Convenience stores are increasingly becoming the go-to destination for breakfast, posing a challenge to traditional fast-food chains. According to market research firm Circana, visits to food-forward convenience stores climbed 9% in the three months ended in July, while morning meal traffic to fast-food chains rose only 1% in the same period.

This trend is largely driven by what Circana calls “food-forward convenience stores,” which have invested heavily in their foodservice options. Regional chains like Wawa in the Northeast and Casey’s General Store in the Midwest are leading the charge, expanding their reach and taking pages from the fast-food companies’ own playbooks.

Fast-Food Chains’ Breakfast Struggles

Fast-food chains have long tried to lure consumers away from home to eat their early morning offerings, betting that convenience and unique items will win over diners. However, 87% of what consumers eat and drink in the morning comes from their own refrigerators or pantries, according to David Portalatin, Circana senior vice president and foodservice industry advisor.

McDonald’s, which dominates the quick-service breakfast category, has seen its morning visits decline. The chain’s CEO, Chris Kempczinski, noted that the breakfast daypart is the most economically sensitive, with consumers opting to skip breakfast or eat at home due to rising menu prices and a tight job market.

The Rise of Convenience Store Meals

Prepared foods have offered a lifeline for convenience stores as demand for gasoline, tobacco, and lottery tickets has fallen over time. The industry’s overall foodservice sales reached $121 billion in 2024, according to data from the National Association of Convenience Stores (NACS).

C-stores that have focused on fresh food have been winning over more customers. For example, Wawa has seen its customer base grow by 11.5% since 2022, while fast-food chains McDonald’s, Burger King, and Wendy’s have seen their combined customer base shrink 3.5% in the same time.

What Sets Convenience Stores Apart

Convenience stores offer a wider breadth of options, including coffee, energy drinks, protein shakes, and yogurt smoothies. Customers can also pick up a granola bar or banana to accompany their breakfast sandwich, providing a perceived “good bang for their buck.” However, the ultimate differentiator is the quality of the food itself, according to Circana’s Portalatin.

Casey’s General Store, the country’s third-largest c-store chain, has reported same-store sales growth of 5.6% for its prepared food and dispensed beverages. The chain’s breakfast pizza, topped with cheese, scrambled eggs, and a choice of bacon, sausage, or vegetables, has grown a cult following since its launch in 2001.